Vietnam | Labour

A Brief Introduction of Labour Laws and Regulations

The Labor Code addresses most labor-related issues such as recruitment, employment contracts, working  ods, discipline and dispute resolution. The Labor Code applies to both local and foreign employees

B Requirements of Employing Foreign Employees

a Work Permit

Foreign nationals working in Vietnam must obtain a labor permit from the Department of Labor, Invalids and  Social Affairs ('DOLISA'. Various exceptions apply to this general requirement, including where a person is:.  An equity member or owner of a limited liability company:

chief of a representative office, a project of an international organization or a non-governmental  organization in Vietnam

oming to Vietnam for a period of less than three months to offer services  ing to Vietnam for a period of less than three months to handle a technical or technological situation that  is affecting or threatens to affect production and businesses in Vietnam and that Vietnamese and foreign experts  currently in Vietnam cannot handle  A foreign lawyer who has been licensed to practice law in Vietnam under the Law on Lawyers, andA work permit is for a maximum of two years and must coincide with the period of:

ransfer, in the case of an intra-company transfer,  performance of the contrac  of the provision of services  The license of the foreign non-govemmental organization or inte  Appointments if the expatriate is establishing a commercial presence in Vietnam.  onal organization operating in Vietnam, orb. Application Procedure

The first step of the application procedure for a Vietnamese work  apply to obtain approval from the DOLISA to recruit foreign employees. Dermit is for the company in Vietnam to  Following the receipt of approval from DOLISA, the work permit applicant may submit the application dosser

consisting of several personal documents, such as a criminal record report, health certificate from an approved  medical provider, copy of a passport as well as a copy of the investment registration certificate of the hiringcompany  The estimated time for the process is generally 40-45 business days, provided that all required documents are  well prepared, and assuming that DOLISA does not ask for additional documents

c. Social Insurance  There are three types of insurance included under the social insurance" umbrella in vietna  insurance, unemployment insurance and health insurance. Vietnamese workers are required to pay into all three  regimes, whereas foreign workers employed under Vietnamese labor contracts must only contribute to the health  insurance regime at this point. If the foreigner is employed under an offshore labor contract, they are not subject topaying into the health insurance regim  In December, 2015, Circular 59/2015/ TT-BLDTBXH was issued providing guidance on the implementation  of the compulsory social security regime. According to this Circular, from 1 January 2018, foreigners working in  Vietnam with a work permit, practicing licence, or practicing certificate will be required to contribute to the social

C. Exit and Entry

a Visa Types

The Law on entry, exit, transit and residence of foreigners in Vietnam No. 47/2014/QH13 took effect on

A foreigner who holds more than one passport is required to use only one of their passports for all of theirentry in, exit from, transit and residence in Vietnam. Foreigners who enter Vietnam to work are able to obtain avisa for up to a maximum of two years, while foreigners who enter Vietnam for investment purposes are able to

for up to five  There are specific instances where a visa is not required, such as where a foreigner enters Vietnam at acheckpoint for an economic zone or special administrative economic unit.

A stateless person who had temporary residence in Vietnam prior to 2000 will be considered for the granting  of permanent residence

Tourists entering Vietnam need a tourist visa which is either 15 or 30 days in duration. Tourist visas are  not required for citizens of the countries who entered with Vietnam into a bilateral or unilateral visa exemption  agreement including Belarus, Brunei, Cambodia, Denmark, Finland, France, Germany, Indonesia, Italy, Japan  Kyrgyzstan, Laos, Malaysia, Myanmar, Norway, Philippines, Russia, Singapore, South Korea, Spain, Sweden  Thailand, and United Kingdom

b Restrictions for Exit and Entry

Foreigners may be restricted from exiting Vietnam when their tax obligations have not been fulfilled and are  ibject to a judgment or decision of a court or a decision on penalties for an administrative violation

D Trade Union and Labour Organizations

a Trade Unions

Trade unions are representatives of employees in Vietnam. The employer is responsible for encouraging and  providing favorable conditions for the establishment of a trade union within the workplace. Trade unions participate  in the improvement of social legislation and represent workers in the negotiation and execution of collective  agreements, as well as assisting in labor disputes. An employer is prohibited from prejudicing employees against  participating in a trade union

Employees who are trade union officers are entitled to conduct trade union activities during working hours  All employers and enterprises, including foreign-invested enterprises, are required to pay into the trade  union fund at a rate of two percent of their payroll. This trade union funding paid by the employer is a permissible  deduction when assessing corporate income tax

b. Collective Bargaining  Collective bargaining was introduced under the Labor Code of 2012 and may be carried out periodically or on  specific occasions. Collective bargaining consists of negotiation between the labor collective representative andMatters that can be the subject of collective bargaining include  Wages, bonuses, allowances, and pay raises,

Working hours, rest breaks, and overtime:

Occupational health and safety,  Implementation of intemal labor rules; ar  Other issues of concern to the parties  A collective labor agreement is a written agreement between the labor collective and the em  working conditions that were reached via collective bargaining. A collective labor agreement may be an individua  enterprises collective labor agreement, an industry's labor agreement, or another form of labor agreement to be  stipulated by the government.  A collective labor agreement can only be signed after the parties reach an agreement at a collective  bargaining session. After a collective labor agreement is signed, the employer must publicly announce it for the  information of all employees and must send a copy of the agreement to the relevant labor authorities  E Labour Disputes

An employee and employer must first attempt to resolve the dispute via conciliation prior to submitting  petition to a court to resolve the dispute, except for a number of specific cases stipulated by the law where  conciliation procedures are not mandatory, such as conflicts over unilateral termination or conflicts between  household employees and employers  Where a labor dispute results from a collective bargaining agreement, without exception, the dispute must trst  attempt to be resolved via conciliation. If such conciliation fails, the dispute may be resolved by a labor arbitration  council, the chairman of the People's Committee at the district level, or a people's court  Labor conciliators are appointed by the state administrative authority for labor at the district level. Labor  arbitration councils are established by the chairman of the People's Committee at the Provincial level. The number

appointed to hear a dispute is seven

If after five days of the establishment of the conciliation minutes by the Arbitrators Council, a party fails to  xecute the conciliation agreement as set out in the minutes, employees may lawfully strike. A strike must be  organized and led by the trade unior