Consultation on Overtime Work
Question: I would like to ask how overtime wages for employees are calculated. What is the maximum allowable overtime working time for employees? Answer: According to Article 98 of the 2019 Labor Code, it is provided that: “Overtime pay and night work pay 1.Employees working overtime shall be paid based on the unit wage or […]
Retention Period for Labor Records under Vietnamese Law
Question: Under Vietnamese law, how long is an enterprise required to retain labor-related documents (such as labor contracts, payroll records, personnel files, etc.)? Are there different retention periods for different types of documents? Answer: Regarding the retention period for labor documents, after reviewing the current legal regulations, SB Law clarifies the applicable timelines as follows: […]
Consultancy on Employment Contracts for Foreign Employees
Question: From what I understand, in Vietnam, the third fixed-term contract should transition into an open-ended contract. However, I’m not sure if this applies to foreigners as well. Answer: In accordance with Article 151.2 of the Labor Code 2019, the duration of a labor contract for a foreign employee must not exceed the validity […]
LEGAL CONSEQUENCES OF AGREEING ON A FIXED-TERM LABOR CONTRACT EXCEEDING 36 MONTHS
Question: Our company is currently reviewing personnel records in order to proceed with the termination of certain 2-year fixed-term labor contracts that are approaching their expiry date, as the company no longer has a need to continue employing these workers. However, during the review process, we identified two cases in which employees had signed fixed-term […]
Consultation on the Procedures for handling violations of labor regulations
Question: My company is adjusting the process of handling violations of labor regulations, including applying a number of document templates as follows: 1.Coaching form: For light violations, a verbal warning is required. 2.Warning Letter: For medium level violations, a written warning is applie 3. Performance Improvement Plan: For more serious violations, apply demotion or delay […]
PROCEDURES FOR RESIDENCY AND WORK PERMIT EXEMPTION FOR FOREIGN INVESTORS
A foreign investor plans to contribute VND 3 billion in charter capital to establish a company in Vietnam. With this capital contribution, does the investor fall under the category eligible for a work permit exemption under the latest regulations? In addition, for convenience in managing the enterprise and staying long-term in Vietnam, should the investor […]
HANDLING LATE ARRIVAL OF EMPLOYEES AND A LEGALLY COMPLIANT SALARY STRUCTURE
Question: I am in charge of human resources of a service company. The Company is applying a fixed monthly salary of VND 10,000,000 for employees who work a full 8 hours per day. However, a number of employees frequently arrive late for work and the Board of Directors wishes to pay salary only according to […]