Internal labor rules Vietnam business need to know
With increasingly deep international integration, the appearance of foreign workers has contributed significantly to Vietnam’s economic development. However, to ensure harmony and balance in the management of foreign labor resources, the development and enforcement of relevant internal labour rules becomes extremely necessary.
Foreign investment capital in Vietnam has affirmed its contribution to economic development, increasing the value of total social investment capital, accounting for about 70% of export turnover and more than 50% of industrial output. manufacturing and processing industry. This shows that Vietnam is an attractive destination for the foreign labor market in the current period, especially focusing on labor in East Asian countries such as China, Korea, Japan…
1. Legal system regulating foreign labor management
Vietnamese law is currently regulating the management of foreign workers through legal documents, policies on working conditions, implementation of management, and reporting to competent state agencies and develop appropriate management policies, through some of the following main internal labor regulations documents:
The 2019 Labor Code regulates the management of foreign workers in Vietnam. This is a basic core statutory set-up work document that regulates the rights and obligations of foreign workers when working in Vietnam, aspects such as salary, social insurance, working conditions in Vietnam…
When should the employer register the internal labor regulations in Vietnam?
2. Notes on managing foreign workers working in Vietnam
Businesses need to clearly understand and comply with relevant legal regulations and especially the provisions of Decree 70/2023/ND-CP amending and supplementing a number of articles of Decree 152/2020/ND-CP on issuing work permits and exempting work permits for foreigners, fully implementing the reporting regime to employment contract advisor in the process of recruiting foreigners to work. Practical operations show that the process of licensing and managing foreign workers working in Vietnam has many issues that need attention, some typical issues are as follows:
2.1 Regarding determining working positions for foreign workers:
Vietnamese law allows foreigners to work in positions including: Managers, executives, experts, technical workers. Each position requires different standards and conditions. In addition, for some specific positions such as doctors, lawyers, football players, pilots, flight attendants, seamen, sports coaches… appropriate professional certificates will be needed to ensure capacity and professional qualifications when working.
2.2 Regarding licensing authority:
In current practice of internal labor rules vietnam, there are 3 main agencies granting work permits to foreigners, including: Provincial Department of Labor, War Invalids and Social Affairs (DOLISA), Industrial Park Management Board (Industrial Park), economic zone (EZ) at provincial level, Department of Employment under the Ministry of Labor, Invalids and Social Affairs. Determining the agency competent to issue work permits depends on the address of the company’s headquarters and the establishment licensing agency for agencies, organizations, and businesses employing foreign workers.
For example: Companies located in industrial zones will apply for work permits (LDP) for foreigners at the Provincial Industrial Zones Management Board; or Banks or Universities licensed by a ministerial-level agency to be established will have to apply for a Labor License for foreigners at the Department of Employment.
Development And Registration Of Internal Labor Regulations
>>>Find out more: Internal labor rules Vietnam. Labor contract consulting services for foreigners working in Vietnam
2.3 Note on residence and work period:
Foreign workers will be granted a visa period or temporary residence card period by the competent authority. This term depends on many factors, such as different job positions, different working terms… but will basically depend on the term of the issued work permit. In addition, there are also some employment contract consultant that support business to apply work permit for company labor, such as SMART SOLUTION FOR BUSINESS COMPANY LIMITED (S4B Vietnam).
The working term of employment agent contract will normally range from 12 months to 24 months. At the end of the licensed period of work and residence, the employee must extend the period of work, residence, or complete the labor obligation and return to the country. In case of job transfer, a company is required. new guarantee and compliance with labor management regulations as above.
2.4 Foreign workers need to comply with the law and fulfill their obligations to the businesses and society where they work.
This not only ensures the rights of workers but also contributes to building a healthy and law-abiding working environment. Organizations and businesses need to focus on creating the best conditions for foreign workers, protecting their rights and interests, and strictly implementing regulations on labor and labor safety, as well as Report on the situation of foreign use periodically to the management agency. Foreign workers need to comply with immigration and residence regulations according to Vietnamese law.
3. Enforcement measures and penalties for violations
Administrative measures, including fines, revocation of work permits, deportation, and entry bans, may be imposed for violations in foreign labor management. These violations encompass non-compliance with regulations on work permits, legal residence, and the requirement to periodically report the labor utilization situation to management agencies.
Ensuring compliance with the law, implementing regulations correctly, and safeguarding the rights and interests of foreign workers are crucial for maintaining a sustainable working environment and fostering harmony in import and economic development in the country.
SMART SOLUTION FOR BUSINESS COMPANY LIMITED (S4B Vietnam)
- Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
- Tel: + 84 24 3974 4181
- Email: service@s4b.com.vn
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