Sinasean consults the business management on term of labor codes as below:
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Guidance on labor contract templates and onboarding processes
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Coordination with law firms for work permit and visa applications
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Connecting with trusted HR, payroll, and labor law advisory partners
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Ensuring your HR practices align with Vietnamese law and international standards
📌 FDI Enterprises’ Labor Obligations in Vietnam
Foreign Direct Investment (FDI) companies operating in Vietnam must comply with the country's Labor Code and related regulations regarding employment practices, labor contracts, social insurance, and workplace conditions. These obligations are essential to ensure legal compliance, employee welfare, and sustainable operations.
🔹 Key Labor Obligations for FDI Enterprises:
1. Labor Contracts & Employment Terms
✅ Sign written labor contracts with all employees (except for casual work under 1 month)
✅ Use the correct contract types:
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Indefinite term
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Fixed term (12–36 months)
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Seasonal or specific jobs
✅ Contracts must clearly state salary, job description, working hours, insurance, and other rights/obligations
2. Internal Labor Regulations (ILRs)
✅ FDI companies with 10 or more employees must register Internal Labor Regulations with the local Department of Labor, Invalids and Social Affairs (DOLISA)
✅ ILRs include: working hours, disciplinary actions, bonuses, leave policies, etc.
3. Work Permits for Foreign Employees
✅ Foreigners working in Vietnam for over 30 days must obtain a work permit or work permit exemption certificate
✅ Companies must justify the need for foreign labor and conduct a local labor demand report in advance
✅ Validity: up to 2 years (can be renewed)
4. Social Insurance, Health Insurance & Unemployment Insurance
✅ Mandatory for Vietnamese employees under labor contracts over 1 month
✅ Contributions (as of 2024):
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Employer: ~21.5%
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Employee: 10.5% (deducted from salary)
✅ Foreign employees with work permits valid for over 12 months must also participate
5. Trade Union & Employee Representation
✅ Support formation of a grassroots trade union if requested by employees
✅ Engage in collective bargaining and ensure labor harmony if a union is present
6. Reporting & Compliance
✅ Submit labor reports periodically to DOLISA (bi-annual)
✅ Maintain updated employee records
✅ Comply with occupational safety and health regulations