The Vietnamese labor law is oriented towards protecting employees and disputes are often decided in their favor. Employers must follow strict procedures for contract termination that involve notice periods and severance payments. Social insurance contributions paid by both employers and employees have been increasing and currently total 25% of gross salary but will rise to 33.5% by 2014. Minimum wages are also being gradually increased each year until 2015 to ensure a living wage.
The document provides an overview of Vietnam's labor laws and practices, including the following key points:
1) Labor relations are governed mainly by government decrees and regulations issued by the Ministry of Labor, Invalids and Social Affairs (MOLISA). MOLISA is responsible for state management of labor issues.
2) Labor laws are interpreted in favor of employees and disputes are often resolved in their favor. It is difficult for employers to terminate employees but easy for employees to terminate contracts.
3) Employers must ensure labor contracts and internal labor rules are consistent with labor laws to avoid invalidity. Fixed-term contracts give flexibility but have limits on extensions.
4) Upon termination or redundancy, employees
The perverse effects of job security provisions on job security: results from...EUROsociAL II
This document summarizes a study that uses a regression discontinuity design to analyze the effects of job security provisions in Italy on outcomes like job composition and firm productivity. It finds that while employment protection may help job security, it can also reduce job creation and reallocation. The study exploits a threshold in Italy where regulations are less stringent for firms with 15 employees or fewer. It presents descriptive statistics and tests that validate the regression discontinuity approach. Regressions are estimated to examine impacts on various outcomes and whether effects differ across sectors with varying output volatility. The results provide evidence on the complex tradeoffs of employment protection policies.
VIETNAM - GUIDE FOR THE NEW LABOR LAW 2021 - WHAT YOU MUST KNOWDr. Oliver Massmann
The document summarizes key changes to Vietnam's labor law that took effect in January 2021, as outlined in the new Labor Code 2019 and related decrees. Some major changes include:
1. The definition of employment was broadened, so contracts resembling employment could now be considered labor contracts.
2. Electronic contracts and probation periods up to 180 days for managers are now recognized. Definite-term contracts are limited to 36 months.
3. Grounds for termination were expanded for both employers and employees. Employers can now terminate employees who retire or fail to return from leave. Employees can terminate without notice if not provided agreed working conditions.
4. Regulations on issues like wages, foreign workers, discipline,
ETHICS, LAW AND CORPORATE SOCIAL RESPONSIBILITY -
Malaysian Industrial – Labour Relation, SEXUAL HARASSMENT ISSUE, RETRENCHMENT ISSUE, IMPOSITION ISSUE
BHW Solicitors Summer Employment Law NewsletterBHWSolicitors
The document is a newsletter from BHW Employment Law summarizing recent changes to UK employment law. Some key changes discussed include:
1) Introduction of fees for employment tribunal claims, with Type A claims costing £160 issue fee and £230 hearing fee, and Type B claims such as unfair dismissal costing £250 issue fee and £950 hearing fee.
2) "Protected conversations" can now be used when terminating employment to avoid legal proceedings, though employers must be careful not to engage in "improper behavior" which could allow employees to submit settlement offers as evidence.
3) A new "employee shareholder" employment status will exchange certain rights like unfair dismissal for company shares worth over £2000
Lawyer in Vietnam Oliver Massmann LEGAL ALERT ON EMPLOYMENT ISSUESDr. Oliver Massmann
1. The Ministry of Labor, Invalids and Social Affairs of Vietnam is working on amendments to the Labor Code to reflect international agreements and address shortcomings. Key changes will include regulations around independent trade unions, calculating minimum salaries, and working time.
2. Minimum salaries in Vietnam are expected to increase in 2017 to a range of VND180,000-VND250,000 per month, equivalent to $8-12.
3. Work permits for foreign employees in Vietnam will only be granted for experts, managers, and technical positions as defined narrowly under the Enterprise Law. A new circular is expected to provide further guidance.
This document summarizes key aspects of Vietnam's labor law from a presentation given by Oliver Massmann, Managing Partner of Duane Morris Vietnam LLC. It begins by noting that Vietnamese labor law is very employee-friendly, influenced by the country's socialist system and transition from a state-run to private sector economy. The document then provides an overview of Vietnam's governing labor laws and regulations covering issues such as recruitment, wages and benefits, data privacy, disputes, and termination. It emphasizes that the labor code aims to strongly protect workers' rights.
This document provides an overview of employment termination laws and best practices for managers in Malaysia. It discusses the different types of voluntary and involuntary termination. If termination is unavoidable, the document advises proper planning to avoid unfair dismissal claims and legal issues. This includes following due process, such as conducting investigations for misconduct cases and domestic inquiries. The burden of proof is on the employer to show just cause for dismissal. Remedies for unfair dismissal include filing a representation with the Director General seeking reinstatement. Constructive dismissal occurs when an employer makes working conditions unbearable to force an employee to resign. Throughout, the document emphasizes complying with employment laws and natural justice to conduct termination lawfully and avoid disputes.
The document provides an overview of Vietnam's labor laws and practices, including the following key points:
1) Labor relations are governed mainly by government decrees and regulations issued by the Ministry of Labor, Invalids and Social Affairs (MOLISA). MOLISA is responsible for state management of labor issues.
2) Labor laws are interpreted in favor of employees and disputes are often resolved in their favor. It is difficult for employers to terminate employees but easy for employees to terminate contracts.
3) Employers must ensure labor contracts and internal labor rules are consistent with labor laws to avoid invalidity. Fixed-term contracts give flexibility but have limits on extensions.
4) Upon termination or redundancy, employees
The perverse effects of job security provisions on job security: results from...EUROsociAL II
This document summarizes a study that uses a regression discontinuity design to analyze the effects of job security provisions in Italy on outcomes like job composition and firm productivity. It finds that while employment protection may help job security, it can also reduce job creation and reallocation. The study exploits a threshold in Italy where regulations are less stringent for firms with 15 employees or fewer. It presents descriptive statistics and tests that validate the regression discontinuity approach. Regressions are estimated to examine impacts on various outcomes and whether effects differ across sectors with varying output volatility. The results provide evidence on the complex tradeoffs of employment protection policies.
VIETNAM - GUIDE FOR THE NEW LABOR LAW 2021 - WHAT YOU MUST KNOWDr. Oliver Massmann
The document summarizes key changes to Vietnam's labor law that took effect in January 2021, as outlined in the new Labor Code 2019 and related decrees. Some major changes include:
1. The definition of employment was broadened, so contracts resembling employment could now be considered labor contracts.
2. Electronic contracts and probation periods up to 180 days for managers are now recognized. Definite-term contracts are limited to 36 months.
3. Grounds for termination were expanded for both employers and employees. Employers can now terminate employees who retire or fail to return from leave. Employees can terminate without notice if not provided agreed working conditions.
4. Regulations on issues like wages, foreign workers, discipline,
ETHICS, LAW AND CORPORATE SOCIAL RESPONSIBILITY -
Malaysian Industrial – Labour Relation, SEXUAL HARASSMENT ISSUE, RETRENCHMENT ISSUE, IMPOSITION ISSUE
BHW Solicitors Summer Employment Law NewsletterBHWSolicitors
The document is a newsletter from BHW Employment Law summarizing recent changes to UK employment law. Some key changes discussed include:
1) Introduction of fees for employment tribunal claims, with Type A claims costing £160 issue fee and £230 hearing fee, and Type B claims such as unfair dismissal costing £250 issue fee and £950 hearing fee.
2) "Protected conversations" can now be used when terminating employment to avoid legal proceedings, though employers must be careful not to engage in "improper behavior" which could allow employees to submit settlement offers as evidence.
3) A new "employee shareholder" employment status will exchange certain rights like unfair dismissal for company shares worth over £2000
Lawyer in Vietnam Oliver Massmann LEGAL ALERT ON EMPLOYMENT ISSUESDr. Oliver Massmann
1. The Ministry of Labor, Invalids and Social Affairs of Vietnam is working on amendments to the Labor Code to reflect international agreements and address shortcomings. Key changes will include regulations around independent trade unions, calculating minimum salaries, and working time.
2. Minimum salaries in Vietnam are expected to increase in 2017 to a range of VND180,000-VND250,000 per month, equivalent to $8-12.
3. Work permits for foreign employees in Vietnam will only be granted for experts, managers, and technical positions as defined narrowly under the Enterprise Law. A new circular is expected to provide further guidance.
This document summarizes key aspects of Vietnam's labor law from a presentation given by Oliver Massmann, Managing Partner of Duane Morris Vietnam LLC. It begins by noting that Vietnamese labor law is very employee-friendly, influenced by the country's socialist system and transition from a state-run to private sector economy. The document then provides an overview of Vietnam's governing labor laws and regulations covering issues such as recruitment, wages and benefits, data privacy, disputes, and termination. It emphasizes that the labor code aims to strongly protect workers' rights.
This document provides an overview of employment termination laws and best practices for managers in Malaysia. It discusses the different types of voluntary and involuntary termination. If termination is unavoidable, the document advises proper planning to avoid unfair dismissal claims and legal issues. This includes following due process, such as conducting investigations for misconduct cases and domestic inquiries. The burden of proof is on the employer to show just cause for dismissal. Remedies for unfair dismissal include filing a representation with the Director General seeking reinstatement. Constructive dismissal occurs when an employer makes working conditions unbearable to force an employee to resign. Throughout, the document emphasizes complying with employment laws and natural justice to conduct termination lawfully and avoid disputes.
Please be informed that the Labour Code numbered 4857 (“Labour Code”) regulates the working conditions and also rights and obligations of the employees and employers. The Labour Code shall apply to all employers, employer representatives, employees and workplaces except those listed under Article 4 of the Labour Code. There are two types of termination of the employment contract stipulated under the Labour Code; 1) Termination with notice period and 2) Immediate Termination due to justified reasons.
Labour law, or employment law, governs the relationship between employers, employees, and trade unions. It deals with issues like wages, working conditions, hiring/firing practices, and workers' rights to unionize. The goal of labour laws in India is to reduce conflicts between employers and employees and promote industrial growth and national development. Labour is a shared responsibility between the central and state governments in India. Some key labour laws cover issues like industrial relations, wages, working conditions, social security, and equality in the workplace. The laws aim to protect workers' interests while maintaining harmonious relations between workers and employers.
Asia Counsel Insights New Vietnam Labour CodeMinh Duong
Asia Counsel Insights provide readers a punchy update on legal and business developments in Vietnam.
In this edition, we provide a brief summary of the changes to employment law under the new Labour Code which will take effect on 1 January 2021.
This document summarizes Utah's Non-Compete Statute, which was enacted in 2016 and limits non-compete agreements to one year after employment ends. It discusses what is known and unknown about how courts might interpret certain provisions of the statute. Key points of uncertainty include whether exceptions for severance agreements or sale of a business could allow non-competes longer than one year, and how non-solicitation agreements are treated. The document provides best practices including limiting the scope of non-solicitation agreements and ensuring agreements are well-drafted.
This document discusses the law of constructive dismissal and its implications for human resource management in Malaysia. It provides background on employment law in Malaysia, defines constructive dismissal, reviews literature on the topic, and analyzes case law awards related to constructive dismissal to identify lessons for preventing such claims. The key points are that constructive dismissal occurs when an employee resigns due to a serious breach of contract by the employer, the number of constructive dismissal awards against employers in Malaysia has increased in recent years, and employers need to properly manage employees to avoid constructive dismissal and its costs.
The Industrial Relations Act of 1967 provides the legal framework for regulating relations between employers and employees/trade unions in Malaysia. The Act aims to prevent and resolve disputes arising from their relationships, promote democratic self-governance in industry, and ensure the speedy resolution of trade disputes. It covers important areas like rights of workers and unions, recognition of unions, collective bargaining, dispute resolution, and restrictions on strikes and lockouts. The Act works together with the Employment Act of 1955 and Trade Unions Act of 1959 to form the basis of Malaysia's industrial relations system.
HR compliance involves defining policies and procedures to ensure compliance with applicable employment laws and regulations. It is essential for organizations to understand HR compliance to operate successfully in today's legal environment. HR compliance should establish clear behaviors for both individuals and groups to follow the organization's policies and applicable laws. The document then provides an overview of various types of statutory HR compliances in India such as the Employees' Provident Funds and Miscellaneous Provisions Act, Payment of Gratuity Act, Professional Tax, Employee State Insurance Corporation, and Labour Welfare Fund. It discusses the importance, advantages, and risks of compliance and non-compliance.
Independent Contractors and Employees: Understanding the DifferenceDeirdre Kamber Todd
This document provides an overview of the differences between classifying workers as employees versus independent contractors. It discusses the various tests used by the IRS, US Department of Labor, US Supreme Court and Pennsylvania Department of Labor to determine status. The document notes that no single factor determines classification and that the tests examine the degree of control over the worker and the economic realities of the relationship. It also summarizes the potential consequences of misclassification and an IRS program for voluntarily reclassifying workers.
China's labor laws emerged in the 1980s as the country transitioned away from a state-controlled economy. The most recent labor laws came into force in 2008 and cover requirements for hiring employees, probationary periods, firing employees, and conducting layoffs. Hiring is generally based on a written contract that specifies compensation and responsibilities. Probationary periods range from one to six months depending on contract length. Employees can be fired for cause or by mutual consent without compensation, but special rules apply for pregnant, injured, or hazardous working conditions employees. Companies must follow formal procedures and cancel accounts when firing staff. Layoffs of over 20% of employees require one month notice and approval.
This Expert Series webinar presentation talks about the latest statutory changes in employment laws.
To know the statutory compliance for payroll, refer the link: https://www.greythr.com/complete-guide-statutory/
This document discusses various Indian labor laws and statutory compliance requirements for human resource management. It outlines key provisions of laws related to provident fund, employee state insurance, professional tax, gratuity, minimum wages, maternity benefits, bonus payments, and payment of wages. Compliance with these statutes is important to safeguard employees and the organization from risks and penalties for non-compliance. Failure to adhere to the various labor laws could result in fines or imprisonment for the employer.
This document discusses the laws around retrenchment in Malaysia and its implications for human resource management practices. It defines retrenchment as the termination of employment contracts for employees deemed surplus due to factors like restructuring or economic downturn. The document outlines relevant statutes governing retrenchment in Malaysia and findings from court cases that revealed many retrenchments were ruled against employers for poor workforce selection processes or mishandling of retrenchment. It recommends viewing retrenchment as a proactive rather than reactive process involving effective planning and exploring alternatives before use as a last resort.
The document provides an overview of employment and labor law in Ireland regarding the termination of employment. It discusses:
1) Employers generally need a reason to lawfully terminate employment, with potential fair reasons including conduct, capability, redundancy, or other substantial grounds.
2) Additional notification and consultation obligations apply for large-scale ("collective") redundancies over certain thresholds.
3) Protections for employees also apply in the context of a business sale, such as under the European Acquired Rights Directive.
4) Minimum statutory notice periods are required, ranging from one to eight weeks depending on length of service.
All the four Labour Codes have now been passed in both the houses of the parliament and President's assent obtained. As industries across India are busy decoding the codes, they are also trying to understand the possible impact the could make, when the date of commencement likely shortly, is announced. They would like to make policy decisions, if need be, to stay compliant because of the introduction of the Codes.
The document discusses minimum wages, including definitions, purposes, and approaches to setting minimum wages. It notes that minimum wages have been discussed by the ILO since 1919 to help ensure workers receive a living wage. Minimum wages are intended to protect low-income workers and promote social justice. There are various mechanisms for setting minimum wages, including expert bodies, government authorities, collective bargaining, and formulas. The document also discusses criteria for determining appropriate minimum wage levels and enforcing minimum wage laws. Finally, it outlines Nepal's minimum wage law and the role of its Minimum Wage Fixation Committee in recommending wage levels every two years.
Managing Dismissal to Avoid RepercussionlegalPadmin
Speech by K.Somasundram, Assistant Secretary from MTUC, given in Labour Law Seminar held by Legal Plus Sdn. Bhd (www.legalplus.com.my) on Apr 10, 2015.
The document discusses various aspects of industrial disputes in India such as the definition of an industrial dispute according to Section 2(K) of the Industrial Dispute Act 1947. It notes that disputes can be between employers and workers, employers and employers, or workers and workers. The summary also outlines the key steps involved in the settlement of industrial disputes such as conciliation proceedings, adjudication by labor courts or tribunals if conciliation fails, and arbitration as an alternative dispute resolution mechanism.
This document summarizes key provisions around termination of employment from the Labor Code of the Philippines. It discusses termination by the employee, including requirements for notice and just causes. Just causes include serious insults, inhumane treatment, and crimes committed against the employee. It also covers termination not deemed to have occurred, such as during a business suspension. The document outlines retirement provisions, including entitlement to retirement pay after 5 years of service at age 60 or 65. It exempts small establishments and allows Pag-IBIG membership as a substitute retirement plan.
VIETNAM - ENERGY SECTOR - DIRECT AWARDS OF PUBLIC PROCUREMENT PROJECTS AND TH...Dr. Oliver Massmann
Vietnam's energy sector is growing significantly to meet rising demand. Power projects can be directly awarded without a government tender under certain conditions, such as when there is only one registered investor or the investor proposes the highest feasibility. Direct appointment of a contractor also applies in specific cases like force majeure events or when confidentiality is required. The Trans-Pacific Partnership Agreement aims to increase transparency in government procurement by requiring timely publication of tender information and objective evaluation criteria. It also establishes procedures for investors to settle disputes with host states through arbitration.
For more than 60 years, the Industrial Truck Association (ITA) has been the leading organization of industrial truck manufacturers and suppliers of component parts and accessories that conduct business in the United States, Canada and Mexico. This is a chart illustrating the eight types of forklifts and industrial powered vehicles
Please be informed that the Labour Code numbered 4857 (“Labour Code”) regulates the working conditions and also rights and obligations of the employees and employers. The Labour Code shall apply to all employers, employer representatives, employees and workplaces except those listed under Article 4 of the Labour Code. There are two types of termination of the employment contract stipulated under the Labour Code; 1) Termination with notice period and 2) Immediate Termination due to justified reasons.
Labour law, or employment law, governs the relationship between employers, employees, and trade unions. It deals with issues like wages, working conditions, hiring/firing practices, and workers' rights to unionize. The goal of labour laws in India is to reduce conflicts between employers and employees and promote industrial growth and national development. Labour is a shared responsibility between the central and state governments in India. Some key labour laws cover issues like industrial relations, wages, working conditions, social security, and equality in the workplace. The laws aim to protect workers' interests while maintaining harmonious relations between workers and employers.
Asia Counsel Insights New Vietnam Labour CodeMinh Duong
Asia Counsel Insights provide readers a punchy update on legal and business developments in Vietnam.
In this edition, we provide a brief summary of the changes to employment law under the new Labour Code which will take effect on 1 January 2021.
This document summarizes Utah's Non-Compete Statute, which was enacted in 2016 and limits non-compete agreements to one year after employment ends. It discusses what is known and unknown about how courts might interpret certain provisions of the statute. Key points of uncertainty include whether exceptions for severance agreements or sale of a business could allow non-competes longer than one year, and how non-solicitation agreements are treated. The document provides best practices including limiting the scope of non-solicitation agreements and ensuring agreements are well-drafted.
This document discusses the law of constructive dismissal and its implications for human resource management in Malaysia. It provides background on employment law in Malaysia, defines constructive dismissal, reviews literature on the topic, and analyzes case law awards related to constructive dismissal to identify lessons for preventing such claims. The key points are that constructive dismissal occurs when an employee resigns due to a serious breach of contract by the employer, the number of constructive dismissal awards against employers in Malaysia has increased in recent years, and employers need to properly manage employees to avoid constructive dismissal and its costs.
The Industrial Relations Act of 1967 provides the legal framework for regulating relations between employers and employees/trade unions in Malaysia. The Act aims to prevent and resolve disputes arising from their relationships, promote democratic self-governance in industry, and ensure the speedy resolution of trade disputes. It covers important areas like rights of workers and unions, recognition of unions, collective bargaining, dispute resolution, and restrictions on strikes and lockouts. The Act works together with the Employment Act of 1955 and Trade Unions Act of 1959 to form the basis of Malaysia's industrial relations system.
HR compliance involves defining policies and procedures to ensure compliance with applicable employment laws and regulations. It is essential for organizations to understand HR compliance to operate successfully in today's legal environment. HR compliance should establish clear behaviors for both individuals and groups to follow the organization's policies and applicable laws. The document then provides an overview of various types of statutory HR compliances in India such as the Employees' Provident Funds and Miscellaneous Provisions Act, Payment of Gratuity Act, Professional Tax, Employee State Insurance Corporation, and Labour Welfare Fund. It discusses the importance, advantages, and risks of compliance and non-compliance.
Independent Contractors and Employees: Understanding the DifferenceDeirdre Kamber Todd
This document provides an overview of the differences between classifying workers as employees versus independent contractors. It discusses the various tests used by the IRS, US Department of Labor, US Supreme Court and Pennsylvania Department of Labor to determine status. The document notes that no single factor determines classification and that the tests examine the degree of control over the worker and the economic realities of the relationship. It also summarizes the potential consequences of misclassification and an IRS program for voluntarily reclassifying workers.
China's labor laws emerged in the 1980s as the country transitioned away from a state-controlled economy. The most recent labor laws came into force in 2008 and cover requirements for hiring employees, probationary periods, firing employees, and conducting layoffs. Hiring is generally based on a written contract that specifies compensation and responsibilities. Probationary periods range from one to six months depending on contract length. Employees can be fired for cause or by mutual consent without compensation, but special rules apply for pregnant, injured, or hazardous working conditions employees. Companies must follow formal procedures and cancel accounts when firing staff. Layoffs of over 20% of employees require one month notice and approval.
This Expert Series webinar presentation talks about the latest statutory changes in employment laws.
To know the statutory compliance for payroll, refer the link: https://www.greythr.com/complete-guide-statutory/
This document discusses various Indian labor laws and statutory compliance requirements for human resource management. It outlines key provisions of laws related to provident fund, employee state insurance, professional tax, gratuity, minimum wages, maternity benefits, bonus payments, and payment of wages. Compliance with these statutes is important to safeguard employees and the organization from risks and penalties for non-compliance. Failure to adhere to the various labor laws could result in fines or imprisonment for the employer.
This document discusses the laws around retrenchment in Malaysia and its implications for human resource management practices. It defines retrenchment as the termination of employment contracts for employees deemed surplus due to factors like restructuring or economic downturn. The document outlines relevant statutes governing retrenchment in Malaysia and findings from court cases that revealed many retrenchments were ruled against employers for poor workforce selection processes or mishandling of retrenchment. It recommends viewing retrenchment as a proactive rather than reactive process involving effective planning and exploring alternatives before use as a last resort.
The document provides an overview of employment and labor law in Ireland regarding the termination of employment. It discusses:
1) Employers generally need a reason to lawfully terminate employment, with potential fair reasons including conduct, capability, redundancy, or other substantial grounds.
2) Additional notification and consultation obligations apply for large-scale ("collective") redundancies over certain thresholds.
3) Protections for employees also apply in the context of a business sale, such as under the European Acquired Rights Directive.
4) Minimum statutory notice periods are required, ranging from one to eight weeks depending on length of service.
All the four Labour Codes have now been passed in both the houses of the parliament and President's assent obtained. As industries across India are busy decoding the codes, they are also trying to understand the possible impact the could make, when the date of commencement likely shortly, is announced. They would like to make policy decisions, if need be, to stay compliant because of the introduction of the Codes.
The document discusses minimum wages, including definitions, purposes, and approaches to setting minimum wages. It notes that minimum wages have been discussed by the ILO since 1919 to help ensure workers receive a living wage. Minimum wages are intended to protect low-income workers and promote social justice. There are various mechanisms for setting minimum wages, including expert bodies, government authorities, collective bargaining, and formulas. The document also discusses criteria for determining appropriate minimum wage levels and enforcing minimum wage laws. Finally, it outlines Nepal's minimum wage law and the role of its Minimum Wage Fixation Committee in recommending wage levels every two years.
Managing Dismissal to Avoid RepercussionlegalPadmin
Speech by K.Somasundram, Assistant Secretary from MTUC, given in Labour Law Seminar held by Legal Plus Sdn. Bhd (www.legalplus.com.my) on Apr 10, 2015.
The document discusses various aspects of industrial disputes in India such as the definition of an industrial dispute according to Section 2(K) of the Industrial Dispute Act 1947. It notes that disputes can be between employers and workers, employers and employers, or workers and workers. The summary also outlines the key steps involved in the settlement of industrial disputes such as conciliation proceedings, adjudication by labor courts or tribunals if conciliation fails, and arbitration as an alternative dispute resolution mechanism.
This document summarizes key provisions around termination of employment from the Labor Code of the Philippines. It discusses termination by the employee, including requirements for notice and just causes. Just causes include serious insults, inhumane treatment, and crimes committed against the employee. It also covers termination not deemed to have occurred, such as during a business suspension. The document outlines retirement provisions, including entitlement to retirement pay after 5 years of service at age 60 or 65. It exempts small establishments and allows Pag-IBIG membership as a substitute retirement plan.
VIETNAM - ENERGY SECTOR - DIRECT AWARDS OF PUBLIC PROCUREMENT PROJECTS AND TH...Dr. Oliver Massmann
Vietnam's energy sector is growing significantly to meet rising demand. Power projects can be directly awarded without a government tender under certain conditions, such as when there is only one registered investor or the investor proposes the highest feasibility. Direct appointment of a contractor also applies in specific cases like force majeure events or when confidentiality is required. The Trans-Pacific Partnership Agreement aims to increase transparency in government procurement by requiring timely publication of tender information and objective evaluation criteria. It also establishes procedures for investors to settle disputes with host states through arbitration.
For more than 60 years, the Industrial Truck Association (ITA) has been the leading organization of industrial truck manufacturers and suppliers of component parts and accessories that conduct business in the United States, Canada and Mexico. This is a chart illustrating the eight types of forklifts and industrial powered vehicles
Vietnam's healthcare system is developing rapidly due to economic growth. It is financed through government funds, private payments, and health insurance. While Vietnam spends a significant portion of its GDP on healthcare, most treatment costs are paid privately. Traditional medicine also remains popular. The pharmaceutical market is growing as healthcare access expands, though market barriers still exist. Foreign investment in healthcare and pharmaceuticals is increasing as Vietnam liberalizes its economy and integrates further into international trade.
Técnicas de estudio al servicio del aprendizaje. Agencia de Calidad de la Edu...eraser Juan José Calderón
Técnicas de estudio al servicio del aprendizaje. Agencia de Calidad de la Educación .
Objetivos:
Valorar las técnicas de estudio como un aporte para la mejora de los aprendizajes de los estudiantes en las distintas asignaturas.
• Diseñar una propuesta metodológica en la que se integren algunas técnicas de estudio, a las actividades regulares de las asignaturas.
The Blockchain: Capital Markets Use Cases. @GreySparkUK
GreySpark Partners presenta un informe, el Blockchain: Capital Markets casos de uso, examinando cómo los bancos de inversión y otras empresas de los mercados financieros potencialmente podrían utilizar la tecnología distribuida libro mayor (DLT) en el futuro. El informe caracteriza a una amplia variedad de diferentes formas de aplicaciones blockchain siendo desarrollado por Fintech empresas de nueva creación a nivel mundial, y se analiza cómo estas aplicaciones podrían eventualmente ser utilizadas por los participantes en los mercados de capital como medio de sustitución de los sistemas de front y back-office existentes y procesos dentro de la buyside y la sellside.
User experience for the 100 percent - Paul ZimmermanIntranet Now
The document discusses making intranets accessible to all users. It defines accessibility and usability, noting they aim to make something possible to approach, enter or use, and easy to use. The document advocates for content to be perceivable, operable, understandable and robust. It suggests putting oneself in the shoes of users, including those using assistive technologies like screen readers. The document provides tips to evaluate accessibility through tools and testing techniques like navigating without a mouse or in impaired conditions. It emphasizes accessibility benefits all and asks what more can be done to improve.
SUPPORTING REGIME FOR SMALL AND MEDIUM ENTERPRISES (“SMEs”) IN VIETNAMDr. Oliver Massmann
The document discusses a draft law in Vietnam to support small and medium enterprises (SMEs) as they face increasing competition from foreign firms. The law aims to introduce a comprehensive set of supporting measures for SMEs. It defines SMEs based on employee numbers and capital. The key supporting measures in the draft law include improved access to bank loans and funding, lower corporate tax rates, access to industrial zones, support for market expansion, and priority in public procurement contracts. The draft law seeks to increase the number and quality of SMEs to drive Vietnam's economic growth.
RApport RApport nº 2016-075. Octobre 2016
Rapport à madame la ministre de l’éducation nationale,
de l’enseignement supérieur et de la recherche
monsieur le secrétaire d’État chargé de l’enseignement
supérieur et de la recherche
The Future of Learning Technology in UK Higher Education
At Microsoft it’s essential that we understand how we can support
innovative individuals, businesses and organisations to shape the future – and there is no more important area for innovation than Higher Education.
Introduction
Learning delivery in Higher Education Institutions (HEIs) is
being reshaped before our eyes, thanks in part to advances
in technology and the new pedagogical theories facilitated by
that technology.
In order to understand more about the ever-evolving
relationship between technology and learning, we spent time
speaking with six of the UK’s leading learning technologists
working within HEIs.
In a series of interviews exploring current practice, changing
needs and key trends, we were able to establish how digital
devices are being used in universities and how cutting-edge
technology can continue to compliment a sector experiencing
fresh emphasis on collaboration, creation and innovation.
[WEBINARIO] amdia y OM Latam "Medir para actuar"OM Latam
"Medir para actuar"
Aplicación de la medición en diferentes tipos de proyectos.
¿Por qué medir? Comprendé como elegir un mapa de KPIs que sea relevante y accionable para tu negocio y comenzar a medirlos. Herramientas y tips para comenzar a mejorar los resultados de tu negocio gracias a información de valor.
La primera guía de viaje con hashtags para Instagram con la que el viajero podrá aumentar su popularidad hasta convertirse en todo un influencer. Destino: Tailandia.
Myanmar - Legal and Tax Structure of Major Construction ProjectsDr. Oliver Massmann
This document discusses legal and tax structures for major construction projects in Myanmar. It provides an overview of land ownership types in Myanmar including freehold, grant land, and government leases. It also discusses licensing requirements for joint ventures, construction permits, and environmental impact assessments. Key terms for government leases and potential problem areas in construction contracts under Myanmar law are outlined. The document uses a case study of a construction company to illustrate investment licensing, procurement, and service fee structures.
EMA Network Security Survey and RecommendationsLora O'Haver
Ixia recently partnered with Enterprise Management Associates to conduct a survey on network security. The results highlight areas for improvement, that can strengthen overall security in 2017.
Presentation at CCC (Callidus Customer Conference) in Vegas earlier this year (April 2015). Covers the topics related to Customer Experience at a high level for Executives to get the knowledge they need.
Investing in Myanmar in the Context of the Asean Economic Community - How to ...Dr. Oliver Massmann
The document discusses foreign investment in Myanmar. It provides an overview of the country's economy and opportunities in key sectors like infrastructure, energy, telecommunications and mining. It outlines the forms of foreign investment allowed, including wholly foreign owned companies, joint ventures, branches and representative offices. Minimum capital requirements and restrictions on certain activities are also summarized. The presentation aims to help investors understand how to successfully invest in Myanmar.
ISO SQL:2016 introduced Row Pattern Matching: a feature to apply (limited) regular expressions on table rows and perform analysis on each match. As of writing, this feature is only supported by the Oracle Database 12c.
The document discusses how falling oil prices are bad for US oil company revenues, as increased supply and decreased demand lower prices. It argues big oil companies should invest in solar power as sunlight is abundant and free, demand for solar is rising, and costs are decreasing. While fossil fuels will be used for the foreseeable future, gasoline may become a byproduct and solar represents an opportunity. The document concludes big oil should examine investing in solar using a SWOT analysis, as solar presents opportunities amid threats to the oil industry from alternative energy sources.
Legal framework on Compensation Structure Mark Anders
The document summarizes several key Indian labour laws:
- The Employee's Provident Fund Act establishes a compulsory retirement fund contributed by employers and employees.
- The Employee State Insurance Act provides health insurance and benefits to employees of organizations with 20+ workers.
- Other laws discussed include the Equal Remuneration Act, Factories Act, Industrial Disputes Act, Minimum Wages Act, Payment of Bonus Act, and Payment of Gratuity Act which aim to protect workers' rights and welfare.
This document discusses several key aspects of industrial relations:
1. Industrial relations involves determining employment relationships and regulating the institutions and rules that govern the workplace. It also involves socio-industrial conflict and its resolution through bargaining between employees and employers.
2. Collective bargaining aims to reach voluntary agreements between employers and workers' organizations (usually trade unions) regarding working conditions such as wages, hours, benefits, and rights.
3. Several laws and acts in India govern various aspects of industrial relations such as working hours and conditions, wages, bonuses, welfare, disputes, unions, and more. Major stakeholders involved include employees, employers, and the government.
The document summarizes key changes being introduced through three new labour codes covering organized, unorganized, and self-employed workers. Some of the major changes include expanding the definition of worker, introducing fixed term contracts, increasing the threshold for requiring government approval of layoffs/closures, strengthening social security benefits for gig and platform workers, and consolidating various labour laws into three simplified codes to improve ease of compliance. The codes are aimed at improving the labour market flexibility while enhancing social security coverage for all workers.
This document discusses several issues related to human resources, training, labor, and statutory insurance in Vietnam. It provides recommendations to revise key aspects of Vietnam's Labor Code, including allowing more flexibility in contract terms and overtime hours. It also recommends clarifying termination procedures and expanding the scope of activities that can result in dismissal. The document recommends reconsidering the definition of salary used for social insurance contributions to reduce costs. It suggests making social and health insurance contributions optional for non-Vietnamese employees if they have coverage elsewhere. Finally, it addresses the benefits of international education for Vietnamese students.
The document summarizes key changes between old and new labor legislation in India. It discusses 3 new labor codes that consolidate previous acts: the Industrial Relations Code, Occupational Safety, Health and Working Conditions Code, and Social Security Code. Some major changes include expanding the definition of "worker", allowing fixed-term contracts without retrenchment benefits but with other statutory benefits, increasing the threshold for lay-off and closure approvals, introducing a universal social security system for gig and platform workers, and establishing a single registration and inspection system to reduce compliance burden for businesses.
The document provides an overview and analysis of the Code on Wages Act, 2019 in India. Some key points:
- The Act aims to consolidate and simplify existing labor laws related to wages, bonuses, and equal remuneration. It subsumes four existing labor laws.
- Key definitions include expanded definitions of "wages" and new definitions of "employee" and "worker." Minimum wages will be revised every five years maximum.
- Provisions address payment of wages, bonuses, and equal remuneration without discrimination. Timelines are provided for wage payments.
- The Code emphasizes compliance over penalties and introduces an Inspector-cum-Facilitator role to advise employers.
- Draft
Labor law in Colombia governs employment relationships and covers individual labor law, collective labor law, and social security. Individual labor law regulates relationships between employers and individual employees, while collective labor law regulates relationships with unionized employees or those negotiating collectively. Social security covers health, death, and loss of working capacity contingencies for employees. Employment contracts in Colombia do not require formalization and only require personal service, subordination to the employer, and remuneration. The types of employment contracts are indefinite, fixed-term, for the duration of a work or service, and occasional/temporary. Payments from employment include salary in ordinary or integral forms, wage exclusions, and traveling expenses.
The document summarizes key aspects of the Code on Social Security 2020 in India. It consolidates 9 social security laws into a single code to extend benefits to organized and unorganized sector workers. Key benefits include provident fund, health insurance, maternity benefits, compensation for work-related injuries, and unemployment benefits. The code aims to provide social security to new categories of workers like gig and platform workers. Employers failing to pay required contributions can face fines and imprisonment.
This document provides a summary of key labor regulations for foreign investors in Colombia. It outlines that Colombian labor laws are standards that cannot be waived or negotiated. Employment contracts in Colombia are governed by Colombian law regardless of party nationality. Key requirements include paying the monthly legal minimum wage, affiliating all employees to the social security system, and providing various fringe benefits like severance pay, interest on severance, service bonuses, transportation aid, and contributions to pension and health funds. The document explains different types of employment contracts and required payments to understand labor obligations for doing business in Colombia.
This document provides a summary of key labor regulations for foreign investors in Colombia. It outlines that Colombian labor laws are standards that cannot be waived or negotiated. Employment contracts in Colombia are governed by Colombian law regardless of party nationality. Key requirements include paying the monthly legal minimum wage, affiliating all employees to the social security system, and providing various fringe benefits like severance pay, interest on severance, service bonuses, transportation aid, and contributions to pension and health funds. The document explains different types of employment contracts and payments arising from labor relationships in Colombia.
All about End of services Gratuity in Kuwait.pdfFiyona Nourin
our payroll experts in Kuwait take you through a set of questions and answers that will help in clearing all your doubts related to end of service gratuity in Kuwait.
Welcome to our Vietnam Labor Law Review of April - May 2018 is the "Workplace investigation for labor disciplines" contents:
A. LEGAL INSIGHTS:
1. Amending 03 important Decrees that guide the implementation of the Labor Code on salary, labor contracts, labor discipline and implementation of regulations on grassroots democracy at the workplace
2. Is it advisable to expand the right of employers to unilaterally terminate the labor contract?
B. ISSUED LABOR LAW DOCUMENTS – FEBRUARY 2018
– Written by LE & TRAN | Vietnam’s Premier Boutique Litigation Firm
Vietnamese and more, please visit our website: letranlaw.com.vn
Sri Lankan Labour law related to employe reminaration and pay cuts Chandimal Gunasekara
This document provides guidance on labour laws in Sri Lanka relating to communicable diseases like COVID-19. It addresses issues like sick leave, pay, quarantine, and compensation. For COVID-19, existing sick leave policies would apply and employees can take paid or unpaid leave. If quarantined and unable to work remotely, employees may be paid depending on organizational policies. Contracting COVID-19 at work could potentially result in a compensation claim if negligence can be proven. Employers can require employees take annual leave but cannot make deductions from salary except as authorized by law.
Labour legislation refers to laws enacted by governments to provide social and economic security to workers. The key objectives of labour legislation are to: protect workers from exploitation; promote good industrial relations between employers and employees; and preserve worker health, safety and welfare. Some of the major labour laws in India include the Factories Act, Employees' State Insurance Act (ESI), Employees' Provident Funds and Miscellaneous Provisions Act and Workmen's Compensation Act. These laws provide benefits like health insurance, pension plans, gratuity payments and compensation for employment injuries. Labour disputes are typically resolved through collective bargaining, conciliation or compulsory adjudication if needed.
Employee rights include a written employment agreement outlining terms, maximum work hours, annual leave, safety protections, timely salary payments, notice periods for termination, maternity benefits, protections against sexual harassment, gratuity and provident fund benefits. Historically, early Indian labor laws were intended to protect British employers' interests but now aim to provide fair wages and working conditions while ensuring productivity. Knowing employee rights establishes a comfortable work environment.
Five key points about labor matters in Colombia:
1. Employment contracts executed in Colombia are governed by Colombian law regardless of nationality.
2. The monthly minimum wage is set annually through agreement between representatives or unilaterally by the government.
3. Certain payments like commissions and bonuses must be included in the salary base for calculating taxes and contributions.
4. Both national and foreign employees working in Colombia must join and contribute to the social security system, though foreign contributions to pensions are voluntary.
5. Additional voluntary benefits up to 40% of total compensation are excluded from social security contribution calculations.
VIETNAM — Anwalt in Vietnam Dr. Oliver Massmann Corporate Sustainability Due ...Dr. Oliver Massmann
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The document summarizes Vietnam's Power Development Plan 8 (PDP8), which aims to ensure national energy security by 2050 through increasing renewable energy and developing the transmission grid system. Key points include: (1) PDP8 sets renewable energy targets of 47% by 2030 and 67.5-71.5% by 2050; (2) $134.7 billion will be invested in power generation and transmission from 2021-2030; (3) the plan encourages private investment and development of the transmission grid system.
Vietnam's Plan for Implementation of PDP8 – Key HighlightsDr. Oliver Massmann
The Prime Minister of Vietnam approved the Plan for Implementation of the National Power Development Plan to 2030 (PDP8) on April 1, 2024. The Implementation Plan sets specific tasks and timelines for government ministries to execute PDP8 through 2025. It maintains planned capacity targets for power generation projects such as gas, coal, and hydropower. However, it does not provide guidelines to address issues like project bankability and feed-in tariffs. The Implementation Plan also lists onshore wind and solar power projects and targets, while prioritizing the development of relevant legal frameworks through 2025 to fully implement PDP8 by 2030.
VIETNAM - THE NEW LAW ON CREDIT INSTITUTIONS - WHAT YOU MUST KNOW:Dr. Oliver Massmann
The National Assembly of Vietnam passed a new Law on Credit Institutions that takes effect on July 1, 2024. The objectives of the new law are to strengthen the resilience of the banking system, increase the independence and accountability of credit institutions, and improve oversight of the banking industry. Key changes include new rules around cross-ownership in commercial banks, managing bad debts, and providing a legal framework for digital banking. These regulations are intended to further develop Vietnam's market infrastructure and move the country closer to emerging market status. However, Vietnam remains a frontier market, and guidance on the new law could focus more on ensuring availability of information and streamlined processes to set up investment accounts to help Vietnam achieve emerging market status sooner. The new law
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The Prime Minister of Vietnam approved the National Energy Development Strategy to 2030 and vision to 2045 to ensure national energy security and sustainable development. The strategy aims to meet domestic energy demand through 2030 by supplying 150-170 million tons of oil equivalent primarily through renewable sources comprising 15-20% of supply by 2030 and 65-70% by 2045. It also seeks to reduce greenhouse gas emissions from energy by 15-35% by 2030 and 70-80% by 2045. The Ministry of Industry and Trade will implement policies and proposed legislation to develop an interconnected energy market, encourage private investment in renewable projects, and establish a framework for direct power purchase agreements between renewable producers and customers.
Anwalt in Vietnam Dr. Oliver Massmann Corporate Sustainability Due Diligence ...Dr. Oliver Massmann
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Labor law
1. Lawyer in Vietnam Oliver Massmann Labor law
Introduction
The Vietnamese labor law is oriented employee-friendly to the greatest extent and in most cases
is interpreted to the disadvantage of the employer. It has an effect particularly in labor law-
related disputes which are in most cases decided in favor of the employee. The employment
contract has to be based on the standard contract drawn up by MOLISA which, however, can and
should be adjusted to individual requirements of particular enterprises in order to do justice to
the interests of employers and employees. Here, a particular attention should be directed to non-
competition clauses and such which ensure the protection of company secrets. However, the
statutory provisions must not be violated in order to avoid nullity of the labor contract. Since the
Vietnamese law is still immature, enterprises and subordinate agencies can by all means have a
direct influence on its development by pointing to inconsistencies. Legal bases can be found in
various statutes, but the core law is the Labor Code of 02 July 2012. Moreover, the labor law-
related issues are regulated by the National Insurance Act, the Vocational and Further Education
Act, the Trade Union Act as well as the Act on Vietnamese Working Abroad and numerous
implementing regulations of the government and competent ministries. The Vietnamese law does
not now industry-wide multi-employer agreements yet. Practice-oriented are rather collective
work agreements in which the wage level, social security contributions, working hours and
breaks, safety at work and rights to strike as well as the bonus system are regulated and which
have to be signed by a trade union representative and the principal of the company. Enterprises
with more than ten employees are obliged to issue the so-called Internal Labor Rules and to
register them with MOLISA. They have to regulate the following contents:
- working hours and rest periods;
- regulations within the company;
- health and safety at work;
- protection of the property and confidentiality of company secrets;
- specific examples of behaviors meaning a violation of these provisions;
- punishments to be expected in case of infringement (e.g. official rebuke)
Contract termination
In respect of contract termination it is advisable even in extreme cases to take the line of a
reasonable amicable settlement. Moreover, the agreement to terminate a contract, contrary to
termination according to the law, is the more common and most practicable variant and should
contain the following items:
2. • the amount of the compensation to which the employee is entitled and possible benefits in
kind;
• the commitment of the employee to retire from the company;
• the waiver of further claims on the part of the employee against the employer.
• The Vietnamese labor law knows also a distinction between a termination with notice
(periods of notice of 3, 30 and 45 days, depending on whether a seasonal contract or a
fixed-term or permanent contract is involved) and without notice (no periods of notice)
and stipulates different reasons for termination: compulsory redundancy as well as
individual- and behavior-related terminations.
The principal preference of employees is reflected in particular in the area of contract
termination. A dismissal of an employee requires a termination notice and the adherence to
appropriate periods of notice (which, however, in most cases does not even take place in
practice). In such case, the employer is obliged to pay out a half of monthly salary per year of
employment. If the employer wishes to give a notice unilaterally, then the trade union has to be
involved as a rule. In order to mitigate against the strict termination procedure, it is advisable to
use in most cases the contracts of employment for a limited period of time (they may, though, be
extended once) or outsource certain activities completely.
Payments to the employee after termination of the employment relationship
According to Article 42 of the Labor Law, when unilaterally and illegally terminating the labor
contract, the employer has to allow the employee to be back to work and pay salary, social
insurance, health insurance during the period which the employee is not allowed to work,
together with at least two-month salary according to the labor contract. If the employee does not
want to continue working, the employer is required to additionally pay the employee job loss
allowance. If the employer does not want the employee to continue working, and the employee
so agrees, they have to negotiate on an additional compensation package but it must equal to at
least 2-month salary according to the labor contract.
When formulating an individual contract of employment, a collective work agreement and
internal company regulations, attention should be paid that apart from detailed description of the
duties of employees, in addition, all reasons for termination coming into consideration are to be
listed scrupulously because otherwise a termination turns out to be impracticable even in case of
serious misconducts.
Examples of compulsory redundancies:
• organizational or technology restructuring processes
3. • changes in the company’s ownership structure (mergers, transfer of ownership etc.); and
• economic reasons.
An individual- or behavior-related reason for dismissal is a repeated violation of duties defined
in the contract of employment, but the personal fault has to be proven by the employer.
Furthermore, unauthorized absence from work (five days within a month or 20 days in total
within a year) or absence from work due to a long-lasting illness, events of force majeure and
absence from work after 15 days from the date of temporary delay in implementing the labor
contract also entitle employee with termination. However, other disciplinary measures had to be
taken before. The relevant amount of compensation varies depending on specific reason for
termination.
Guidance for the implementation of unemployment insurance
Circular 32/2010/TT/-BLDTBXH guiding the Social Insurance Law relating to unemployment
insurance issued on 25 October 2010. It provides details to when it whether a reason for refusing
work offered is “plausible”. Also it provides clarification around the strict requirements that a
person must follow in order to be entitled to unemployment benefits. Circular 32 states, that
where the number of 10 or more employees is reduced, the company still has to continue to pay
unemployment insurance contributions. In case the unemployed moves that person is then
required to submit a prescribed “request for transfer” to their existing labor body from where
they are receiving benefits. That body contacts the new body who pays the benefits in the future.
Probation period
According to Article 29 of the Labor Code, the employer or the employee is allowed to terminate
the employment during the probation period without notice and compensation.
Social insurance contributions
In 2009, the social and health insurance contributions amounted in total to 25% of the gross basic
salary and were paid by both the employer and the employee. However, by 2014 the
contributions are supposed to rise to 33.5%. The Vietnamese labor law grants maternity leave of
6 months. However, the work can be resumed four months after the birth at the earliest, but the
ability to work has to be confirmed in health aspects by a medical certificate. The statutory
retirement age is in principle 55 (women) and 60 years (men). Apart from the old-age security
fund, since 1.1.09 an unemployment fund exists with the duty of the employers and employees to
pay contributions amounting currently to 1% of the basic salary. The spirit and purpose of this
fund is to abolish the obligation to severance payment. Furthermore, at the beginning of 2009
several amendments with regard to the Personal Income Tax (PIT) have been enacted. On the
one hand, the PIT is calculated now from the gross salary, and on the other hand it has to be paid
4. by the employer, which, at the end of the day, gives the enterprises more security. In order to
save labor costs, some enterprises make recourse to an illegal trick. Two contracts of
employment are concluded with an employee in order to pay social security contributions at a
lower salary. However, be cautious of this practice. Moreover, foreign investors are advised to
double-check whether the Vietnamese firm that is to be taken over has met its obligations to pay
social security contributions in order to avoid being responsible for outstanding payments in the
aftermath. The employer is obliged to pay the cost of treatment in case of an accident at work,
but it is eventually borne by the social insurance, provided that it has been paid.
Wage costs and non-wage labor costs
Due to the inflation, the salaries leapt in 2008 indeed. However, meanwhile Vietnam can come
up with comparably low labor costs again, which, in view of labor-intensive manufacturing
processes particularly with regard to manufacturing clothes, shoes, toys or furniture is an
enormous incentive for international investors to divert to the newly industrializing Southeast
Asian country. Even the neighboring country China is not able to keep up with Vietnam’s wage
level and occasions even 50 – 70% higher costs, with the productivity being described as slightly
lower or comparable.
Meanwhile, the wages in the capital Hanoi adjusted to those of the economic center Ho Chi
Minh City which had always been highest throughout Vietnam. It is due primarily to the high
number of foreign investors that group mainly around these both cities. In respect of low labor
costs, particularly Da Nang (central Vietnam) is an extremely attractive location for foreign
investors because, among other things, it has a big port and an international airport which is to be
expanded yet in the future.
According to MOLISA, the minimum wages will be raised each year until 2015in order to ensure
adjustment to constantly rising prices. Current minimum wages (as of 01 January 2015) are
different from region to region and range between 2,150,000 and 2,750,000 dongs in the suburbs
or Hanoi, Ho Chi Minh City, Hai Phong etc., whereas they amount to 3,100,000 dongs inside
Hanoi and Ho Chi Minh City. This minimum wages apply both to domestic and foreign-invested
companies.
In practice, the minimum wages are usually higher, and in particular from Western employers a
higher level is expected. According to HR Solutions Vietnam, the earnings of workers in the
manufacturing industry at Western companies that want to retain their employees ranged
between $ 100 and 150 (2009). In Vietnam, it is quite common to change jobs several times in
order to receive a higher income. However, only regular job changes every year to three years
bring the employees actual salary increases. The remunerations rise sharply just in particularly
5. searched-for areas, and the better qualified the faster. Studies of employment agencies such as
Navigos and Mercer showed a salary growth rate of 16.5% or 15.3% (2008), and for 2009 an
increase of 13.1% was forecasted. The highest rises took place in the real property and financial
services segments. However, this development involves the danger for Vietnam to lose in the
future its status of a country with low labor costs. Apart from political stability and security, it is
one of the most important factors of the location advantage that Vietnam can currently offer.
Principally, depending on levels of turnover, it is common in Vietnam to pay a 13P
th
P salary and,
depending on performance, even a 14P
th
P salary which is paid out at the “Tet” festival in January or
February. Most of the job changes take place at this time as well. Considering the high labor
turnover rate, enterprises with foreign capital should definitely give thought to the subject of
employee retention. Suitable for this purpose is e.g. the defrayal of both social insurance portions
or the introduction of an additional health insurance. Furthermore, it is important to observe a
respectful contact with each other and to encourage the sense of unity by uniform T-shirts etc.
Raising the bar for auditors
The Decree 16/2011/ND-CP amended changes in two areas. A. qualifications: now the auditors
are required to hold a university degree specializing in economies, finance, banking, accounting
or auditing, not just a Bachelor degree anymore. B. experience: the amendments require at least 5
years working in finance and accounting enterprises. Now clarifying that the experience must be
gained after graduation and before the year in which an auditor registers for the exam to be
issued with an auditor certificate by the Minister of Finance. It came into effect on 20 April
2011.
Workforce shortage
In principle, Vietnam has a young and diligent working population thirsting for education.
However, there is a severe shortage of skilled workers. Whereas unskilled workers, due to small
workload in some areas, are quasi forced to relocate in order to find work, skilled workers are
reluctant to accept greater distances to commute to work or even to relocate. The standard of
education has still to be characterized as inadequate (frequent lack of foreign language skills,
lack of communication of technical depth and lack of key qualifications, such as particularly
quality awareness), and according to newspaper reports not even a third of working Vietnamese
is educated. The motivation, even at the management level, leaves partly much to be desired –
e.g. an extremely great stress is put in Vietnam to punctual work stoppage. Meanwhile, the
country has to realize that the current situation in respect of the existing inadequate qualification
is rather hindering the economic development. The requirements on the workforce will increase
yet in the future so that quite a few things have to change in the education sector in order for
Vietnam to be able to keep up with the needs of the industry and for the gap between supply and
demand to stop to increase yet further.
6. The workforce shortage becomes apparent particularly in the booming IT sector and the service
sector (legal services, banks and logistics). In particular, there are practically no local lawyers
with international experience. As a general rule: The more responsible the vacancy to be filled
the more difficult it is to find suitable personnel. Another problem appears in view of the fact
that the job titles are not used uniformly, so that an accountant may quickly become a financial
manager. That is why it is strongly advisable for employers to double-check before the
recruitment whether the qualification profile of the applicant corresponds to the required skills;
moreover, they should not rely on certificates only because their significance is very limited.
Alternatively to the workforce educated in the country presents itself the possibility, depending
on the area of activity (technical or management area), to divert either to workforces educated in
the former GDR or to so-called Viet Kieus (Vietnamese who spent their life mostly abroad).
Here, on the other hand, appears the problem that these highly qualified and cross-culturally
educated people mostly aspire after self-employment and are less interested in an activity as an
employed person. Furthermore, in case of short-term employments, the possibility for foreign
employers to have own employees flown in from abroad presents itself. In case of permanent
employments, however, this option could often prove to be too expensive because they would
have to meet expenses for accommodation allowances, school fees etc. Currently, the foreign
investors have no choice but to apply the “training on the job” method and to take care for the
apprenticeship of the employees themselves. Since headhunting for qualified workforces is
common practice in other enterprises, it should be prevented by means of suitable security
mechanisms, although it can never be completely excluded despite all security measures, that an
employee trained by the company leaves it early. However, already the obligation to refund the
training cost is practically unenforceable. As the labor costs are indeed forced up as a result, but
the number of well-trained employees does not increase, this strategy should be reconsidered.
The number of qualified workers is far higher in the south in the area of the industry zones than
in the north, not to mention Central Vietnam. It is due to already completed employee
qualification by the enterprises. Since the restriction of the percentage of foreign employees at an
enterprise of 3% at the maximum has been abolished in June 2008, it is definitely advisable to
fill higher positions with expatriates. Here, the Vietnam-based foreigners who have started a new
life in Vietnam are particularly suitable because in most cases no expenses for flights home or
fees for international schools have to be defrayed. However, Vietnamese employees also can be
extremely advantageous, especially if official and unofficial cultivation of contacts with relevant
local authorities is involved. Considering the rigorous and complicated termination procedure,
the enterprises should consult professional and experienced institutions when searching for
personnel and negotiating contracts.
7. Another important issue which must not be underestimated is family ties. It is not uncommon
that Vietnamese staff taking care of the recruitment of future employees readily gets relatives on
board. However, since in case of doubt the family hierarchy remains the decisive factor,
difficulties when establishing the internal organizational structure of the company are bound to
occur. That is why the recourse to relatives should be avoided even if the qualification is correct.
The current difficult economic situation caused that the loyalty to the employer increased
forcedly. The high labor turnover rate of 15% is, however, to be attributed not only to the wish
for a better salary, but is rather due to dissatisfaction of the staff with the management style of
some companies.
Please do not hesitate to contact Oliver Massmann under Uomassmann@duanemorris.comU if you
have any questions on the above. Oliver Massmann is the General Director of Duane Morris
Vietnam LLC.
INTERESTED IN DOING BUSINESS IN VIETNAM? VISIT: Uwww.vietnamlaws.xyzU
THANK YOU VERY MUCH!