Sharing of expertise
Question 20: When definite-term Employees are sent abroad for long-term training, some enterprises request Employees to sign training contracts, including the period that Employees undertake to spend working for the enterprises following the training course and the compensation obligation in case of their violations. So, can the period that Employees undertake to spend working for Employers be longer than the term of the signed LCs? If yes, is it all right for Employees not to renew LCs when LCs expire? Is it correct that the compensation amount must be diminished according to the time that Employees have spent working after the training course or just a violation will force them to pay the whole compensation amount? Can Employers specify a compensation amount larger than the amount that they have spent on the training course?
Can the period that Employees undertake to spend working for Employers be longer than the term of the signed LCs? Pursuant to Article 62.2 of the Labor Code, training contracts must include the following main contents: a) job to train; b) training location, training period; c) training costs; d) the period for which Employees undertake…
Question 19: During the employment under LCs, may Employers arrange for Employees to sit anywhere at the workplace and not provide working tools (e.g. computers, telephones) to perform the assigned jobs in LCs? If computers are provided, may Employers block Employees from access to the enterprises’ servers, prevent them from receiving or sending emails from their business email addresses, and not allow them to use the internet to search information for their work?
May Employers arrange for Employees to sit anywhere at the workplace? Labour law stipulates that Employers may recruit, arrange and managing Employees according to the business and production demands; reward and discipline Employees[1]. Accordingly, the arrangement is construed as assigning Employees into specialized departments or teams in line with the enterprise’s structure and Employees’ job…
Question 17: Can the Employee’s leave without reason be considered as an unlawful unilateral termination of an LC?
Some enterprises now tend to issue the decision on unilateral termination of LCs for the reason that Employees leave jobs without reason as they think this is an unlawful unilateral termination of LCs by Employees. However, currently the Labor Code and relevant guiding documents do not have any provisions regulating that Employers may issue the…
Question 16: What are the legal procedures and risks related to the notice of terminating a definite LC upon its expiry?
Procedures for notifying the termination of a definite LC upon its expiry. Except for cases where any Employee as a part-time trade union officer is serving in the office term of the trade union, but his LC term expires, the signed LC will be extended until end of the term[1]. For the remaining cases, Employers…
Question 15: Do the “days” and “working days” in a prior notice for termination of LCs include weekly days off and holidays?
The cases where prior notices are required for termination of LCs Pursuant to the Labor Code, it is not always required to abide by the regulation on giving prior notice in the “working day” if Employers or Employees wish to terminate LCs unilaterally. It depends on the type of LC and the reason of termination…
Question 14: With all items regarding ‘Employees’ performance of military services, will the suspension period be counted into the LC term?
Cases of LC suspension The Labor Code allows Employers and Employees to suspend LCs in the following cases[1]: Employees must be away for military service; Employees are held in custody or detention in accordance with the criminal procedural law; Employees are subject to a decision on application of the measure of consignment to a reformatory,…
Question 13: For Employees as recruits or current workers, which type of signed LC will allow them to be assigned to managerial positions in the enterprise (general director, managing director and other functional directors)?
Recruiting or appointing Employees working for Employers to managerial positions in the enterprise Under the Enterprise Law, apart from the case where the board of management may appoint one of the board of management’s members to be general director, the board of management may also choose the form of hiring a general director – but…
Question 12: Which type of LC may Employers sign with part-time handy workers? Upon signing LCs with part-time Employees, how are Employers required to implement compulsory insurance regimes for Employees?
LCs signed with handy workers Under the labour laws, Employers may agree with Employees to apply full-time or part-time employment regimes. Accordingly, the part-time working regime is defined as the mode where Employees have shorter working time than the normal working day by the day or by the week as stipulated in the labour law…
Question 11: If foreign traders’ representative offices are dissolved, will Employees in these offices be paid severance allowances or unemployment allowances upon termination of LCs?
The Labour law does not particularly provide for the case where foreign traders’ representative offices (“RO”) terminate LCs with their Employees when ROs cease to operate in Vietnam. However, based on the cases of LC termination listed in the Labor Code[1], there are now two points of view concerning the case of LC termination as…
Question 10: After Employees terminate LCs, must the Employer pay them unemployment allowances for the period when they do not contribute to the UI fund? Which salary will be the basis to make payments in this case?
After Employees terminate LCs, must the Employer pay them unemployment allowances for the period when they do not contribute to the UI fund? First, it is necessary to clarify the two concepts below: “Unemployment allowances” are the amounts that the SI agency pays to eligible Employees when LCs are terminated[1]. “Severance allowances” are the amounts…