Is it allowed to sign a fixed-term employment contract or it should be an indefinite term employment contract?
Both of Fixed-term employment contract and indefinite term employment contract are acceptable.
Is it allowed for entity to have foreign employees? If yes, what is the procedure to get a working visa? What are the conditions of this visa? Is it difficult to get it?
Yes, it is. Firstly, the employee must obtain the work permit from the Provincial Department of Labor, Invalid and Social Affair. Generally, in order to obtain the work permit, the Employee must have clean criminal record from his home country and he must have obtained the University Diploma and good health status.
What reasons can regulate termination of the employment contract?
- Both parties agree to terminate the contract; or
- To unilaterally terminate the labor contract, but only in any of the following circumstances:
(i) The employee regularly fails to fulfill the taskassigned by contract;
(ii) The employee is disciplined and dismissed in the following circumstances:
+ The employee who commits an act of theft, embezzlement, disclosure of technological and business secrets or other acts causing severe losses to the property and interests of the enterprise;
+ The employee whose time for promotion in wage has been prolonged or who has been transferred to another job as a disciplinary measure and who again commits the same breach of labour discipline while the discipline measure has not been repealed or is a recidivist while being removed from the position;
+ The employee who has been absent for a total of five days per month or 20 days per year without legitimate reasons;
(iii) The employee is ill and no recovery of working ability is in sight after having received treatment for 6 consecutive months;
(iv) In case of natural disasters, fire or other cases of force majeure defined by the Government, when the employer has made every effort to overcome difficulties but is nevertheless compelled to make cuts in production and workforce;
(v) The enterprise, body or organization ceases activities.
If an employee is fired by the initiate of the employer, is there any authority that has to verify this?
The Provincial Department of Labor, Invalid and Social Affair and the Court shall verify this upon noticed by the Employees.
Is it allowed to set a sales target for an employee when being hired (for instance, the number of items that should be sold to reach a certain amount per day)? And can the failure to reach the goals set act as a reason for firing an employee?
Yes, it is allowed to set a sales target. The failure to reach the goals can set act as reason for terminating the Employment Contract.
Can an employee be fired without good excuse and if yes, what is the compensation to be paid?
- The employer must re-employ the employee to the work as agreed upon in the contract;
- The employer must pay a compensation equal to the amount of wage and additional payment to wage (if any), corresponding to the period the employee was not allowed to work, and an addition of at least two month wages plus allowances, (if any);
If the employee does not wish to return to work shall receive, in addition to such severance allowance, a compensation;
In the case the employer does not want to re-employ the employee and the employee also agrees with such a decision, both parties can negotiate upon the additional compensation apart from sums indicated in above in order to terminate the labour contract.
What are the required compensations to be paid to the employees when fired?
In case the Employment Contract is terminated, the Employee shall be entitled to severance allowance, which equivalent to a half of one monthly wage for each year of working, and equivalent to one monthly wage for each year of working in case the company terminate the employment contract for the reasons of restructure. Employee who is disciplined and dismissed shall not be entitled to severance allowance. The Employer does not need to pay the severance allowance if the Employee join the Unemployment Insurance.
If the Company is liquidated shall an employer pay any compensation to employees? If yes, what kind of compensations?
In case the company is liquidated the employer does not need to pay the compensation to employees.
How many payable vacations days has an employer to grant for employee?
Under Vietnam Labor Law, payable vacation days shall be New Year’s Day. Lunar New Year Festival (03 days), National Anniversary of Hung Kings, Victory Days, International Labor Day, Vietnamese National Day, Marriage: three days; Marriage of his/her son or daughter: one day; Death of a parent (including parents of the husband or the wife), death of spouse, death of a son or a daughter: 3 days and weekend. Furthermore, Full-time employees, with at least 12 months' service, are entitled to an annual leave of twelve (12) days per year with full pay. Related, the number of days in an annual leave shall increase proportionally with the seniority of the employee, at the rate of one day for every five years.
Does the employer have pay for the time when an employee was ill? If yes, is it applicable for all time of illness or for a certain period?
No. The employee shall be paid by the Social Insurance Agencies.
What days are public holidays in your country? Does an employer have to pay for these days if the employee doesn’t work? If the employee works?
Public holidays are New Year’s Day. Lunar New Year Festival (03 days), National Anniversary of Hung Kings, Victory Days, International Labor Day, Vietnamese National Day. Employer have to pay for these days if the employee doesn’t work. If the employee works, the employee shall earn at least 300% his salary rate for these public holidays.
What about trade Unions legislation?
Under Vietnamese Law, Trade Union is defined as an organization of the workers class and Vietnamese workers who represents and protects the legitimate rights and interests of employees, civil-servants, state employees and workers, educating workers and mobilizing workers to study for their self-improvement of knowledge and professional skills as well as compliance with the Vietnamese Law.
A trade union is to be established at the company level by the provincial trade union (or district trade union) and facilitated by the company within six months from the date of commencement of operations. The employers or the enterprises must provide favorable conditions for establishing trade unions and avoid obstructing such an effort.
What is the period of the Maternity Leave and what amount does an employer have to pay to women? Can this sum be compensated by the Indian Government?
The Maternity Leave shall be 4 months. The Employer does not have to pay to women. The Social Insurance shall be liable to pay the Employee on this Period.
