Sharing of expertise
Question 157: May Employer not apply CLA to foreign Employees?
A CLA[1] is the written agreement between a labour collective and an Employer on the labour conditions the two parties have achieved through collective bargaining. According to the said definition, the CLA stipulates the general and basic working conditions which are applicable to all Employees, including both Vietnamese and foreign Employees. If in need of…
Question 156: In what forms can foreign Employees work in Vietnam?
1.The forms in which foreigners can work Currently, the regulation on foreign Employees working in Vietnam has been governed in detail by the Labor Code and relevant guiding legal documents[1]. Accordingly, foreign citizens who come to Vietnam to work can only work under one of the following forms: Execute LCs; Internal secondment within an enterprise:…
Question 155: Do foreign Employees under hospital treatment affect termination of LCs due to their expiry?
LCs will be terminated due to their expiry except for the case of Employees as part-time trade union officials still serving their trade union tenure. In such case, signed LCs must be extended until end of their tenure[1]. However foreign Employees who are not entitled to join Vietnamese trade unions will not fall into this…
Question 154: Will it be deemed as a guarantee for foreign Employees to continue their temporary residence in Vietnam upon expiry of their LCs?
Where foreign Employees wish to prolong their residence term in Vietnam, they shall request the guarantee organisation to carry out the legal procedural steps to extend their temporary residence[1]. Accordingly, the immigration department will consider foreign Employees’ request for extension of their temporary residence based on the application file for extension submitted by the guarantee…
Question 153: Where a foreign Employee is sent to work in Vietnam for one year, receiving salary from his/her parent company abroad, enjoying transport and meal allowances from a Vietnamese company, is he/she subject to PIT in Vietnam?
Pursuant to the PIT law, foreign Employees working in Vietnam for one year will be considered resident individuals because they have resided in Vietnam for 183 days or more calculated according to 12 consecutive months from the first day of their presence in Vietnam[1]. Accordingly, foreign Employees will be required to declare and finalise taxes…
Question 152: Upon expiry of any work permit, may Employers continue LCs with foreign Employees based on their visas instead of applying for re-issuance of their work permits?
Pursuant to the labour law, Employers and Employees may not continue LCs based on Employees’ visas instead of applying for re-issuance of their work permits. There is a distinction between a work permit and a visa. Accordingly, a visa[1] is the document issued by a competent Vietnamese authority to a foreigner to grant his/her entry…
Question 151: Are Employers eligible to pay foreign Employees salaries in foreign currency?
Pursuant to labour law, the salary stated in any LC and the salary paid to Employees will be prescribed in Vietnamese dong, except for cases of paying salaries or salary allowances to non-residents and residents as foreigners in accordance with the law on foreign exchange[1]. In addition, the law on foreign exchange stipulates that residents…
Question 150: What are the conditions for any foreigner wishing to enter Vietnam to work as an unpaid intern at an enterprise for a period of 30 days?
In order for a foreigner to enter Vietnam to work as a corporate intern, the foreigner must meet the conditions for visa issuance in Vietnam by submitting the following documents: (i) passport or valid papers related to international travel and (ii) evidencing any invitation or sponsorship by any organisation in Vietnam[1]. Thus, the enterprise receiving…
Question 149: How does the Vietnamese labour law prescribe for case where foreign Employees enter Vietnam to work and receive salaries from Employers but do not have work permits and/or LCs?
1.Case 1: Foreign Employees’ work permits are issued at the Employer’s request, but Employers do not sign LCs with them If foreign Employees fall into the subjects who Employers must sign LCs with after their work permits are issued[1], Employers and Employees must sign LCs in writing prior to the first working date, and within…
Question 148: Is an LC with a female Employee who is pregnant or on maternity leave automatically terminated upon expiry of her term?
Pursuant to the Labor Code, the LC will terminate where it is a definite LC and its term expires as stipulated in the LC and the parties have no need to continue their labour relationship after this term[1], except for any compulsory extension of the LC with any Employee who is a part-time trade union…