Human Resources & Payroll

Managing Contracts and Severance in Vietnam – Latest Issue of Vietnam Briefing Magazine

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VB_2016_12_en_Managing_Contracts_and_Severance_in_Vietnam_-_CoverThe latest issue of Vietnam Briefing magazine, titled “Managing Contracts and Severance in Vietnam“, is out now and available to subscribers as a complimentary download in the Asia Briefing Publication Store.

In this issue:

  • Identifying Trends in Vietnamese Labor
  • Permitted Contract Structures Under Vietnamese Labor Code
  • Contract Termination and Severance Obligations

Vietnam is undergoing a significant transformation in economic development, moving from conventional production of low cost goods towards the output of more technologically intensive products. While presenting significant opportunities for foreign investors, this has simultaneously created a strain on domestic labor markets. With a finite pool of skilled labor, now more than ever before, investors are exposed to issues stemming from the sourcing of qualified talent and the retention of existing workers for the long term.

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Podcast: Recruiting Practices in Vietnam

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By Dezan Shira & Associates

Oscar Mussons, Associate of Dezan Shira & Associates’ operations in Vietnam, speaks with Jon Whitehead. Jon is the Country Manager for Robert Walters Vietnam – a global, specialist professional recruitment consultancy working with clients across the region and the world.  Together Oscar and Jon explore the Vietnamese landscape with regard to human resources, hiring and retaining Vietnamese workers, and Vietnam’s prospects for the years to come.  

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U.S. Visitors to Vietnam Now Eligible for 1 Year Visa

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By: Dezan Shira & Associates

New visa standards have come into effect extending US visas in Vietnam to one year. The extension comes as the result of a diplomatic agreement, which was negotiated between the United States and Vietnam in late 2015, made public in January, and passed by the National Assembly on April 9th. Following an official release on August 30th, the new policy has been rolled out as of September 4th. 

Professional Service_CB icons_2015 RELATED: Dezan Shira & Associates’ Payroll and Human Resources Services
Understanding US Vietnam Visa Updates

Visa updates between the United States and Vietnam replace a previous arrangement that had allowed both tourists and those doing business to enter the country for a maximum of 3 months with entry fees starting at US$ 25. Under the updated visa scheme, two new categories of visas have been introduced and are outlined below. These are to apply to both business visitors and tourists, allowing a significant expansion of maximum stay for US tourists. 

  • 6 months, multiple entry
  • 1 year, multiple entry

Fees: While the application fees will likely differ depending on the consulate or agency used, Vietnam has outlined a stamping fee of US$ 135 to be applied for one year visas across the board. It remains to be seen if this fee will be extended for six month visas as well. With details on the policy still forthcoming, it is also unclear if some of the shorter term and less costly visas will continue to be available for US citizens. 

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Managing Vietnamese Labor Disputes

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Labour dispute Management VietnamBy: Dezan Shira & Associates
Editor: Marquise Clarke

As more businesses begin to take off in Vietnam, job security has steadily begun to increase. With this rise in employment comes a lot of expectations from both employees and employers. As a result, operations can at times become exposed to strikes stemming from low wages, poor communication, disparity in internal promotion, and expectations failing to get fulfilled. If not managed properly, the occurrence of strikes risks adversely impacting the future of a company.

In recent years, Vietnam has experienced its fair share of strikes, with about 762 strikes during the global financial crisis of 2008 due to high inflation in the low-wage economy. This article seeks to explain how to detect when a strike will happen and the methods to combat it. If a strike does occur, those with an up to date understanding of the country’s policies and laws will be in an optimal position to protect their operations, both through assessing the legality of strikes and knowledge of the compensations expected. 

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An Introduction to Overtime in Vietnam

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Overtime VietnamBy: Eugenia Lotova

When companies turn to Vietnam to establish their manufacturing operations, it is important to not only consider the laws on regular wages, but also the policies on overtime that will be applicable to the workforce and style of a given operation.  One of the great benefits of Vietnam is that wages are low in comparison to the rest of the region, especially China. Overtime and night work policies in the socialist republic are essentially the same as those currently employed in China. The Vietnamese government enumerates all of these regulations in the Labor Law of 2012 (Law No. 10/2012/QH13), Decree No. 05/2015/ND-CP, and Circular No. 23/2015/TT-BLDTBXH. Understanding how these laws and guidance shape costs is of utmost importance for investors seeking to maximize Vietnam’s potential as a low cost destination for manufacturing. 

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Expat Employment in Vietnam: The Comprehensive Guide to Work Visas and Work Permits

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Screen Shot 2016-06-27 at 4.44.34 PMBy: Dezan Shira & Associates 
Editor: Marquise Clarke

In recent years, the number of expats coming to Vietnam has steadily increased. The majority of foreign workers that come to Vietnam are employees of foreign contractors, working for, or establishing foreign direct investment (FDI) projects.

When hiring foreign staff in Vietnam, there are a number of procedures and legal frameworks that must be understood. In this article, we discuss the documents necessary for a foreign worker in Vietnam, including:

  • Visas;
  • Work Permits;
  • Temporary Residence Cards.

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Layoff Violations Under Vietnam’s Updated Criminal Code

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A crowd of votersBy: Dezan Shira & Associates

Recently implemented, an updated version of Vietnamese criminal code raises penalties for illegal termination of employees. Effective from July 01 2016, Code No. 100/2015/QH13 lays out punishments, including serious fines and even jail time, for those found to be terminating or coercing the termination of employees illegally.

In order to reduce exposure to non-compliance, companies should be aware of how updates differ from previous legislation, in what instances non-compliance can be triggered, and the penalties and liability that are established and maintained under updated guidance.

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Circular 59: Updates to Vietnam’s Social Insurance Scheme

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By: Dezan Shira & Associates
Editor: Anais Robin

With social insurance related debts reaching a high of US$ 414 million in 2015, Vietnamese Authorities have initiated reforms intent on bringing outstanding obligations under 223 million by the end of the year. Rather than solely cutting social insurance programs, however, the increasing burdens of social insurance are in some instances being shifted to the private sector. While the resulting costs are unlikely to have a significant impact on competitiveness, vis-à-vis regional competitors, current and prospective investors should be cognizant of updates from a budgeting and compliance standpoint.

Passed December 29th and to be rolled out from January 1st, Circular 59/2015/ TT-BLDTBXH is the most important revision to existing guidance –  outlined Decree 115/2015/ND-CP – on the implementation of Vietnam’s Social Insurance (SI) Law. As part of, and in addition to, measures aimed at reducing the governments outstanding fiscal obligations, these updates cover applicable salaries, covered employees, benefits, as well as the specific obligations of employers with regard to their employees. As these updates are likely to impact a variety of business lines within Vietnam, careful review of this update is of critical importance.

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Understanding Vietnam’s Recruiting Requirements

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By: Dezan Shira & Associates 
Editor: Anais Robin & Maxfield Brown

HR Under previous versions of Vietnamese labor code, all foreign entities were required to engage the services of recruiting agencies when searching for employees within the country. While these requirements have largely been scrapped as part of a revised labor code released in 2012, certain sectors must still abide by this process; thus creating confusions and opening the possibility for non-compliance.

In an effort to clarify uncertainty surrounding lingering recruitment requirements, the following article focuses on existing legislation and supporting guidance that has been issued on the subject. We highlight entities that must use recruiting services; discuss which types of recruiters may be engaged by these organizations; and finally, we outline the process that should be followed to recruit and employ workers within Vietnam.

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Vietnam’s New Decree Offers Improved Rights to Female Employees

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By: Dezan Shira & Associates
Editor: Siddahrtha Thyagarajan

The Vietnam government recently issued a new decree to ensure greater rights for female employees. The regulatory change under Decree No 85 came into effect on November 15, 2015. Under the new regulations, female employees will get better health benefits, greater representation in unions and rights of unilateral termination of labour contracts. Meanwhile, the decree also elucidates several benefits to employers who adopt the new labour regulations. The details of the decree issued by the Vietnam’s Ministry of Labor, Invalids and Social Affairs, on October 1, 2015 are discussed in the section below.

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