Showing posts from October, 2022

[Q&A] Applying Labor discipline: Some key issues

During the enterprise’s operation, there is often a part of employees that do not comply with the enterprise’s labor internal regulations rules. For the purpose of creating favorable conditions for employers in managing the labor source and maintaining stability in enterprise business activities, current labor legislation allows employers to issue labor internal regulations and apply sanctions to their employees for violations of regulations. This is one of the fundamental rights of the employer in the labor relation. However, the application of these rights must be within legal framework and in case it contravenes the legal framework, the application of discipline on employees will be considered illegal. Q: What labor disciplinary measures can enterprises apply as per the current law? A: According to the current law, labor discipline is the regulations on compliance in respect of time, technology, production, and business management promulgated by the employers in the labor internal r

Issuing and registering internal labor regulations

Internal Labor Regulations (hereinafter referred to as “ILRs”) is a document issued by an employer, in which its provisions create grounds for employment relationships that employees must implement. According to the Labor Code 2019, ILRs have the following main characteristics: (i) having a form of a document or other forms depending on the number of the enterprise’s employees; (ii) having statutory essential contents and other contents do not breach the laws; (iii) the ILRs must be registered at a competent state authority; and (iv) being one of the grounds for the enterprise to take employees under disciplinary and material responsibilities during their employment. According to the regulations of the employment laws, it is mandatory for an employer has more than 10 employees to issue ILRs in writing and carry out the procedures for registration the same with a competent labor-specializing management agency of the Provincial People’s Committee for the  ILRs  to be valid. Employers who

Frequent legal compliance issues of enterprises in Vietnam

In the course of advising enterprises in Vietnam for their business and conducting legal due diligence on target companies in M&A transactions, we found some legal issues below that many enterprises in Vietnam are frequently involved in. These legal issues construe administrative violations by the Company which are subject to certain fines and sanctions under the relevant regulations. Not making capital contribution in full Under Law on Enterprise 2020, the owner/shareholders/members of a company (hereinafter collectively referred to as “shareholders”) are required to make a capital contribution in full as registered within 90 days from the date of issuance of the enterprise registration certificate. If the shareholders do not contribute capital on time, then the company shall register the actually contributed capital with the licensing authority within 30 days after the deadline of capital contribution. If the Company fails to register the change of capital, the Company shall be s