Asia Legal

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...

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....

Labor – Human resources always play an important role in a business. When doing investment in Vietnam, regulations on labor in general and labor contract in particular requires foreign-invested enterprises’ strict compliance. 1. Form and content of a labor contract Under Article 13 of the Labor Code 2019, a labor contract is an agreement between an employee and an employer on paid job, salary, working conditions, rights and obligations of each party in the employment relations. If the two parties conclude an agreement by another name but showing the following 3 elements, it is still considered a labor contract: paid job; salary; and management and supervision of a party. a. Form of labor contracts A labor contract must be made in writing which is in paper or via electronic means in accordance with regulations on electronic transactions, except for a labor contract with less than 1-month terms which may be concluded in verbal. b. Content of labor contracts A labor contract must contain ...

Vietnam is a potential and attractive investment environment for foreign investors due to its many advantages in a large labor market, affordable labor costs,   abundant  young  workforce , incentives policies. When implementing investment activities in Vietnam, besides the concerns about conditions and procedures, foreign investors need to pay special attention to labor regulations as well. There are core labor regulations that foreign investors keep in mind when making the investment in Vietnam. 1. Labor Contract Under the provisions of Vietnamese law, a labor contract is an agreement between an employee and an employer on a paid job, salary, working conditions, and the rights and obligations of each party in the labor relations. A labor contract shall be concluded in one of the following types: An indefinite-term labor contract  is a contract in which the two parties neither fix the term nor the time of termination of the contract. A fixed-term labor contract...

Employment related cost is always a fundamental part of corporate operational costs. Some of these employment related costs are mandatory. The following information will provide foreign investors with an overview of the basic costs of an employee in Vietnam. 1. Salary Basically, the salary of each employee is negotiated and agreed upon by both the employee and the employer, depending on the position, title, professional level, capacity of the employee. Nevertheless, the salary must not be lower than the regional minimum salary prescribed by the Government. The minimum salary level set forth in the table below is applicable on the basis of the locality where the employee works and for the untrained employees. The regional minimum salary for trained employees must be at least 7% higher than the one for the untrained employees. 2. Compulsory Insurance The employer and the employee are required to contribute to compulsory social insurance, health insurance and unemployment insurance funds....