Vietnamese Labor Laws

The new code will impact businesses, and employers should try to get support for their work practices to ensure their policies are legally compliant by 2021. Although it has recovered extraordinarily well, it is worth highlighting some of the labour law implications of Vietnam`s response to Covid-19. Vietnamese labour law does not make a legal distinction between different categories of workers; However, it applies to Vietnamese labour law, which obliges employers to pay severance pay to employees whose employment contract is terminated. At that time, the laid-off employees had been working regularly for the employer for 12 months or more. The amended Labour Code will help Vietnam meet international standards as it becomes a party to several free trade agreements, including the European Free Trade Agreement in Vietnam (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). According to labor law in Vietnam, employers must offer insurance to their employees. Three types of insurance are required for all employees in Vietnam: For this reason, an independent contractor is not entitled to statutory labour rights compared to a full-time employee under Vietnamese labour law, such as: Some key areas are essential under Vietnam`s labour regulations, including the fact that companies and employers operating and hiring in Vietnam should be aware of: Discrimination: The new code includes safeguards to protect workers from discrimination in the workplace. This includes protection against sexual harassment and discrimination based on race, race, nationality, ethnic group, sex, marital status, pregnancy, political opinion, disability, HIV status or whether they belong to a trafficking group. The amended Labour Code also improves the protection of young workers. Vietnam has minimum wage laws, but the minimum wage itself differs by region, due to a change in the law in early 2020. According to Vietnamese labor law, any foreign employee working on behalf of companies operating in Vietnam must obtain a work permit (e.g. head of a representative office or subsidiary based in Vietnam, foreign lawyers holding a certificate of practice of the profession of lawyer in Vietnam, foreign members/owners of LLC, members of the board of directors of SC, Foreigners transferred internally within an enterprise and under Vietnam`s WTO Schedule, which includes the following eleven (11) services: business services; information services; Factory; distribution services; educational services; Environmental; Financial services; medical health services; tourism services; cultural and entertainment services; and transportation services). Failure to comply with Vietnam`s labor laws would result in fines for the company.

There are several aspects that an employer must take into account when running a business in the country. The only conditions that are automatically implicit in employment contracts in Vietnam include the conditions under which an employment contract can be terminated. Indeed, the termination of employment contracts is strictly regulated by Vietnamese labor law. This article aims to cover all major elements of Vietnamese labour law and labour law provisions in Vietnam. The Labour Code in Vietnam clearly defines a mandatory requirement for all employers and enterprises operating in Vietnam. This is to ensure that employment contracts are concluded in writing. An exception exists only in the case of temporary employment contracts of less than one month. In such cases, employers may use a verbal employment contract. However, if an employer mistakenly classifies an employee as an independent contractor, labor authorities in Vietnam may view this misclassification as a deliberate circumvention of labor laws and employment-related requirements by the employer. These include the payment of statutory insurance or the granting of paid leave. There are no provisions in labor law in Vietnam that specify when an employer must use (or not) labor laws in Vietnam do not prescribe a specific method of payment of pay.

However, payment methods are subject to an agreement between the parties, according to which salary payments directly to the employee must be made in full and on time. 4. It is the responsibility of the employer in Vietnam to ensure that all foreign workers work with a valid work visa and employment contract. Vietnam approved an amended labour law, which came into force in January 2021. The change in labour regulations is a step towards alignment with international labour standards, especially as Vietnam is integrated into the global economy, as noted by the International Labour Organization (ILO). 3. Any company considering hiring in Vietnam should ensure that it respects minimum labor rights and minimum wage laws and properly classifies employees.

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