Question 170: Is it mandatory for Employers and Employees to contribute to the natural disaster prevention and control fund?

1.The natural disaster prevention and control fund This is a fund at the provincial level and managed by the provincial people’s committees. The Fund is not financed by the State budget and does not originate from the State budget. The Fund’s financial sources will be compulsorily contributed by domestic and foreign economic organisations in the…

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Question 169: What is the definition of the “offense” wording in the labour area pursuant to the Penal Code 2015 as amended and supplemented in 2017?

The Penal Code 2015 No. 100/2015/QH13 promulgated by the National Assembly on November 27, 2015 is amended on June 20, 2017 by the Law on amending and supplementing a number of articles of the Penal Code No. 100/2015/QH13 by the National Assembly (“PC 2015 as amended in 2017”). Accordingly, for the first time a number…

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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…

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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…

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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…

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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….

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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…

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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…

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