Labor Relations Management In Vietnam – The Key Compliance Procedures

Labor relations are the relationships of rights and obligations between individuals or groups of employees and the employer. The management of labor relations is not only the management of wages and policies for employees but also the management of compliance procedures for government.

So, what is the compliance procedure in labor relations management? What are the internal labor regulations and what does the labor agreement include?

Below are some basic information to provide an overview of labor relations management in Vietnam.



Compliance procedures in labor relations management in Vietnam:

  • Recruitment procedures: Principles, recruit notice, employee background…
  • Setting up labor relationship: Labor contract, labor declaration, PIT declaration…
  • Enter and implement a labor relationship: Attendance, payroll, performance…
  • Terminate a labor relationship: End the contracts, dismissals, liquidation…
  • Discipline and settle any dispute: Warning, collecting technical evidences, lawsuit cases…

On internal labor regulations:

  • Internal labor regulations registration is compulsory for the units having 10 people or more.
  • Internal labor regulations represent the concretization of provisions of the Labor Code in each specific case of the company for violations of labor disciplines, in which, extent of the violation, form of discipline, responsibility for material and responsibility for compensation shall be considered and determined appropriately.
  • On one hand, the internal labor regulations guide employees to properly comply with and respect the common interests, and contribute to the development of corporate culture; on another hand, the internal labor regulations help to prevent acts of infringement, intentional sabotage, conflict of interest, and protect business secrets as well as legal rights and interests of employees.
  • Without any properly registered internal labor regulations, the employer cannot take any disciplinary actions and still has to fully pay salary and wage even if any employee fails to complete their works or intentionally cause damage, and so on.

Registration of collective labor agreement:

Registration of collective labor agreement to clarify welfare policies and entitlement conditions of the labors. A labor agreement usually includes the following:

  • Job and job assurance: job assurance measures for employees; type of contract for each type of employment or type of work; cases of termination of employment contracts; policies on severance allowances, unemployment allowances, suspension allowances; improvement of skills, retraining upon any change in technique or organization-production; principles and time of temporary transfer of employees to other position.
  • Working time, rest time: regulations on length of working time during a day, a week; arrangement of shifts and break time appropriate to each type of job or work; weekends, holidays; annual leave including travel time; leave for personal business; principles and cases of working overtime.
  • Salary, wage, allowance, bonus: minimum salary or average salary (salary on monthly, daily or hourly basis); Salary scale and payroll applied in the company; measures to ensure actual salary, salary adjustment methods upon any fluctuation in market prices; salary payment principle (time-based salary, product-based salary or piece wage); principles of setting out and adjusting salary unit price; principles and conditions of raising salary grade; type of allowances; monthly payment of salary; payment for annual leave and travel cost; overtime salary; bonus (unplanned bonus, monthly bonus, year-end bonus, performance bonus, bonus deducted from profits) and bonus payment principles (rules may be attached).
  • Labor norms: principles and methods of norm establishment, trial application, promulgation, and change; type of norm applied to types of employment; medium and advanced norms applied in the company; measures applied to the cases not satisfying norm.
  • Occupational safety and health: measures to ensure occupational safety and health; standards and the provision of labor protection equipment; regulations on allowances in kind; measures to improve working conditions; compensation for work-related accidents, occupational diseases (rules may be attached).
  • Social insurance: regulations on obligations and interests of the employer and employees in contributing, collecting and paying social insurance premium.
  • And other contents such as: labor dispute resolution method; mid-shift meal; collective welfare; allowances in case of wedding or funeral, etc. under the new regulations taking effect from 2016 onwards.

Labor relation management services provided by VIVA:

  • Managing employee profiles.
  • Preparing employment contracts, internal rules and regulations on HR policy.
  • Making and submitting reports on employment and compensation such as taxes, insurance, union, etc. to state authorities.
  • Calculating compensation, payroll, pay-slip, analyzing salary fund and salary expense by department and position.
  • Working, on behalf of the employer, with employees, sate authorities and other third parties.
  • Giving consultancy on comprehensive management of compliance procedures, optimizing the accounts payable, controlling, comparing, adjusting all problems arising to ensure the enterprise is always in a clear state, without any risks and hindrance incurred with state authorities.

Services of Human Resource Management – Internal management:

  • Reassessing the organization chart and operational procedures.
  • Reassessing the regulations on organization and operation.
  • Reassessing the job description table system.
  • Reassessing the system of policies on employment and compensation, including internal rules and regulations on labor discipline, compensation and welfare policies, HR recruitment, training, development and utilization policies. Updating, anticipating and managing expenses incurred related to employment and compensation.
  • Salary fund, management of salary expenses and salary deductions.
  • Strictly complying with labor relations in accordance with applicable provisions of law.
  • Policy on information confidentiality, prevention of interest conflicts, code of conduct, etc.
  • Corporate culture.
  • Completing other documents and policies to meet the audit requirements of famous clients such as Li & Fung, Honda, Panasonic …

With more than 10 years of delivering business consultation for more than 1000 foreign representative offices in Viet Nam, Viva Business Consulting is capable to consult and implement any query you have in the most practical way. We prevent your business from any potential risks in advance so you can operate the office in the most simple and cost effective way.

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