Is Fining Employees for Late Arrival Lawful under Vietnamese Labor Law?
Question: I am working for a company that imposes a penalty of 500,000 VND each time an employee arrives late. Is this regulation lawful, or does it violate labor laws? I hope to receive clarification from a lawyer. Answer: Pursuant to Article 128 of the Labor Code: “Article 128. Prohibited acts when handling labor discipline […]
Unlawful Unilateral Termination of a Fixed-Term Labor Contract: Employee Rights and Remedies
Currently, I am an employee working at Company X under a fixed-term labor contract with a duration of 02 years. However, yesterday, the Company suddenly notified me of the termination of my employment contract without providing any specific reason and without giving prior notice as required by law. This has caused me great confusion and […]
Differences Between Vietnamese-Owned and FDI Companies in Wholesale and Retail
Question: I am researching the establishment of a business operating in the wholesale and retail sector in Vietnam. I am wondering whether setting up a 100% Vietnamese-owned company and a 100% foreign-owned (FDI) company in the same sector differs in terms of procedures, level of complexity, and time required. Could you, as a lawyer, explain […]
TERMINATION OF LABOR CONTRACT DUE TO CHANGES IN STRUCTURE OR TECHNOLOGY
Question: I am the Sales Manager and have worked at the company for 5 years, with a salary of 40 million VND/month. Yesterday, the Director called me in to inform me that the company must ‘undergo structural changes and apply AI technology,’ so my position is no longer necessary, and decided to terminate my employment […]
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 […]