How Foreigners Could Work in Vietnam Legally

Foreigners working in business set-up in Vietnam are expatriates which are normally required work permit in Vietnam.As the Vietnam law’s restrictions to encourage employment of local employee over foreign employee, normally, the employment of an expatriate is limited to a managerial position or to a position which Vietnamese employee are not yet qualified.There are exemption of work permit in Vietnam as following cases:A capital contributing member...

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How Mediation and Labor Arbitration Councils Work in Settlement of Labor Disputes?

During and after the Covid-19 pandamic, the financial health of enterprises have been negatively impacted leading to management’s decision to reduce cost through termination of labour contract with employee. The illegal termination of labour contract could lead to disputes between employer and employee which sometime would cost the employer more than it gains. It is important for the employer to engage with labour lawyers to consult before...

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How to Send Vietnamese Workers Working Abroad Under Contracts?

Decree No. 38/2020/ND-CP detailing the implementation of a number of articles of the law on Vietnamese workers working abroad under contracts has been signed by the Government on April 3, 2020 takeing effect from May 20, 2020. Background Check Service in Vietnam Trade promotion in Vietnam This Decree prescribes the areas and jobs workers must not go to work abroad; licenses, conditions and procedures for the grant or replacement...

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Can Employer Terminate the Labor Contract with Employee Due To Covid 19 Outbreak?

Due to intricate occurrence of Covid 19, many enterprises are forced themselves to reduce the number of employees for maintaining the operation financially. Specifically, the employer has to make difficult decision to terminate the labor contract with the employee. The termination of the labour contract has to be considered carefully because of potential legal risks brought up which dispute lawyers in labour should be consulted before execution....

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How to Resolve Disputes in Employment in Vietnam?

A labor dispute is a dispute over rights, obligations and interests arising between parties in employment relationship. Labor disputes include individual labor disputes between employees and employers, and collective labor disputes between labor collectives and employers. When a labor dispute occurs, the competent agency, organization or individual will settle it on the basis of the measures and principles of labor dispute settlement prescribed...

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Temporarily Stop Granting Work Permits to Foreigners Originating from Infected Area Because of Covid-19

An outbreak of acute respiratory infections caused by a new strain of Corona virus (nCoV) was first detected in Wuhan City, Hubei Province, China in December 2019. Up to now, the disease has spread to many cities in China and more than 20 countries in the world including Vietnam. Facing new complicated movements of the acute respiratory disease epidemic caused by a new strain of Corona virus (Covid-19), on February 2nd, 2020, the Vietnam Minister...

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How Law Regulates Employing People with Disabilities in Vietnam?

Disabled people are those who have one or more body parts or functional impairments which are manifested in the form of disability, which makes it difficult for labor, living and learning. The State sponsors the right to labor and creates jobs for disabled workers, has policies to encourage and give incentives to employers to create jobs and to accept workers with disabilities to work in Vietnam. The disabled people are inherently disadvantaged...

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Regulations on Pay to Employees Working During Lunar New Year Holiday

Under the provisions of Article 106.1 of the Labor Code 2012, overtime is a period of work outside normal working hours prescribed by law or according to a labor agreement or regulation. Depending on the needs and agreement of the two parties, the enterprise may request employees to work overtime during lunar new year (Tet) holiday, but must not exceed 12 hours in a day and must pay overtime as prescribed by law. Set-up business in Vietnam Register...

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How to Protect Business Secrets through Non-Disclosure Agreement (NDA)

In business or production process, individual or organization being may have to share its business secrets with others. Legal solution for this situation is to enter into a Non-Disclosure Agreement agreement (NDA). Non-Disclosure Agreement (NDA) are often used by inventors or companies when sharing business ideas, sample products which have just been created, patent and many other business secrets. This disclosure’s purpose is to explore...

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Work permit for foreign investors?

Vietnam is a country that has been having many policies to attract foreign investors to work in Vietnam. In particular, foreign investors are individuals with foreign nationality, organizations established under foreign laws and carry out business investment activities in Vietnam. When conducting business investment activities in Vietnam, many people wonder if a work permit is required? In this article, we will help you answer the above questions. Foreign...

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Entering into a labor contract

A Labor contract is an agreement between an employee and an employer on paid employment, working conditions, rights and obligations of each party in the employment relationship. Before starting to work, the employee and the employer need to sign a full employment contract so that they can know their rights and obligations when working, and carry out immigration-related procedures, temporary residence in compliance with Vietnamese law. Labor...

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Work permit

According to the labour law in Vietnam, enterprises that need to employ employees working in their organizations must fully meet the provisions on using foreign workers in the Labor Code 2012. Specifically, enterprises are only allowed to recruit foreign citizens to work as managers, executives, experts and technical workers that Vietnamese workers have not yet met the production and business needs. Before recruiting foreign citizens to work in the territory of Vietnam, enterprises must explain their employment needs and be approved in writing...

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Non-Compete Agreement In Labor Contract

The principle “freedom to work” is recognized and respected by the Labor Code 2012. However, this regulation may harm legitimate business interests of employers when employees, during the performance of the labor contract or especially after the termination of the labor contract, reveal the business or technology secrets to compete with the employers. Therefore it is necessary to create the limits on the freedom to work, for the purpose of...

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Employee Subject to Unilateral Termination of the Labor Contract Could Claim Unemployment Insurance

Unemployment insurance is a measure to assist workers in a market economy. In addition to providing financial support to stabilize the lives of employees during the period of unemployment, the main purpose of unemployment insurance is to help the unemployed to find a suitable and stable job, through vocational training, counseling and job referral. Work permit in Vietnam When the labor contract is unilaterally terminated by the employee,...

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Handling Labour Matters in Post M&A Transaction

While undertaking M&A transaction, the buyer may face legal risks regarding license, assets, compliance, including labor matters. One of the challenges of the buyer post M&A is the integration of the labour force into the new structure while ensuring rights and interests of their existing employee complying with the laws. Labour lawyers inVietnam When negotiating a deal, the buyer and target company may try to retain the advantage...

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Certain provisions of 2012 Labor Code will be amended

The Law on Amendments and Supplements to 37 Laws relating to planning and the XIVth National Assembly’s Resolution No. 72/2018/QH14 prescribes certain contents of the 2012 Labor Code which have been and will be amended or supplemented, including: - Delete the word “planning” in clause 2 of Article 235 on state management of labor. - Intend to amend and supplement Chapter XIII on trade unions with a view to giving permission for establishment of...

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New highlights of Decree No. 148 providing guidance on 2012 Labor Code available in full

1. Person authorized to conclude an employment contract within a family household and organization without legal personality As provided by the new regulation, the person authorized to act as the legal representative of a family household or an entity will be entitled to sign an employment contract on the employer side, instead of the householder or the head of that entity who usually signs the employment contract in most cases.  2....

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What Are Rights and Benefits of the Employee Suffering the Occupational Accident?

Accidents can happen at any time at work. Whether a workplace accident is the result of employee carelessness or employer negligence, employers must take responsibility for accidents to employee. Vietnam Labor Code defines occupational accident is an accident that causes injury to any part and function of the body or death to employee occurring during the working process associated with the implementation of work and labor tasks (according...

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