Sharing of expertise
Question 168: Does the Vietnam law stipulate and provide guidelines on the duration of storing and deleting the information data of Employees in the enterprise? Who has the authority to decide to delete these information data?
The prevailing Labor Code and guiding documents do not cover any specific regulation on the duration of storing data in enterprises for Employers to comply with. However, Circular 09/2011/TT-BNV dated June 3, 2011 of the Ministry of Home Affairs prescribes the duration of maintaining the published dossiers and documents in the operation of agencies and…
Question 167: What type of LC will be used if an Employer needs to recruit senior Employees? Are senior Employees the subjects to participate in compulsory SI?
1.The type of LC to be entered into with senior Employees The Employer may agree with senior Employees, who have reached the age of retirement as prescribed by law (60 for male and 55 for female)[1], to keep working for the Employer by either extending the LC or entering into a new LC provided that…
Question 166: Are Employers obliged to pay the premiums of compulsory insurance for senior Employees who are not yet eligible to enjoy pensions?
Senior Employees who are not yet eligible to enjoy pensions are construed as those who have not satisfied the condition on the time of social insurance contribution as prescribed by law[1]. Therefore, Employers are still obliged to pay the premiums of the following compulsory insurance for Employees: For SI contribution[2], Employees who work under LCs…
Question 164: Are Employers obliged to pay compulsory insurance and trade union dues for elderly Employees on pension?
1.Compulsory insurance Under the law, elderly Employees on pension are not subject to compulsory insurance. Specifically as follows: For SI payment[1], those who enjoy pension, SI allowances and monthly allowances while entering into LCs are not subject to compulsory SI; For HI payment[2], monthly pensioners will be paid for SI insurance by the SI agency….
Question 163: Are amounts equivalent to payments for SI, HI, UI and annual leave, paid as additional amounts in the same salary period of elderly Employees on pension, subject to PIT?
Under Article 186.3 of the Labor Code, for Employees who are not covered by compulsory SI, HI and UI, in addition to salary payment, Employers shall simultaneously pay Employees in their same salary period an amount equivalent to the level of payments for compulsory SI, HI and UI, and annual leave in accordance with the…
Question 162: What is the minimum number of working hours that must be reduced for senior Employees?
Pursuant to Article 166.3 of the Labor Code, in the year preceding retirement, Employees are entitled to a reduction of the normal working hours (at least 01 hour) or the regime of part-time work will apply. The reduced hours will be counted into the paid working hours. For example: If Company A has 8 working…
Question 161: Will foreign Employees be entitled to severance allowance upon termination of LCs?
1.Severance allowance for foreign Employees The subjects of application of Labor Code 2012 include the following[1]: (i) Vietnamese Employees, Employees in apprenticeship and other Employees as prescribed in Labor Code; (ii) Employers; (iii) Foreign Employees working in Vietnam; and (iv) other agencies, organisations and individuals directly involved in the employment relationship. Therefore, technically, the regulations…
Question 160: Are foreign Employees required to participate in compulsory HI when they are appointed to work in Vietnam, having work permits but with or without arising salary in Vietnam?
The Vietnamese law stipulates the subjects participating in compulsory HI, including Employees working under indefinite or definite LCs of 3 months or more; Employees as a paid manager of the enterprise[1]. This provision applies to both Vietnamese and foreign Employees currently working in Vietnam. Accordingly, foreign Employees paid in Vietnam under LCs or appointment letters…
Question 159: How are prevailing guidelines on online issuance of work permits to foreign Employees performed?
Circular 23/2017/TT-BLDTBXH provides guidelines on: (i) reception of application files for approval on demand for employment of foreign Employees; (ii) issuance and re-issuance of work permits; (iii) certification that foreign Employees working in Vietnam fall out the category of work permit issuance via electronic networks. Although this circular took effect on 02/10/2017, the authorities in…
Question 158: Are foreign Employees paid for overtime if they work on their own New Year’s Day and National Day?
Article 115.2 of the Law on Labour stipulates that foreign Employees working in Vietnam will enjoy a maximum of 12 days of public and New Year holidays, including 10 days of Vietnam’s public and Tet holidays, 01 traditional Tet holiday and 01 National Day of their own country. The Ministry of Labour, War Invalids and…