Vietnam is one of the fastest-growing economies in the world, and it is an attraction for many foreign entrepreneurs and investors, thanks to its relatively affordable but highly qualified population. Vietnam is also a member of the ASEAN and World Trade Organisation, enabling its smooth trading with other countries. Vietnam aims to become a high-income country by 2045, and has also committed to carbon neutrality by 2050.
Employers need to follow the strict employment guidelines set forth by the local authorities before they could employ in Vietnam. This process can be time-consuming as the company first needs a legal entity in the country and it needs to manage payroll, tax, benefits and compliance.
Globelise payroll solutions make it easy to find and hire top talent in Vietnam. With one seamless integration and local legal entity, we take care of the compliance matters so that you can start your globelizing plan immediately.
Vietnam’s worker classification labour and tax laws distinguish between contractors and full timers. If the individual meets the legal definition of an employee but is classified as a contractor, your company will face penalties.
Vietnam’s main Labour law is the Labour Code with the most recent version taking effect on 1st January 2021. The Labour Code seeks to implement regulations with both employers and employees in mind in line with both market practice and international standards. It provides for the basic terms and working conditions for all types of employees, with some exceptions.
Globelise will be able to help you navigate through the employment process and so that you’ll be able to offer a competitive and compliance offer to attract and retain your employees in Vietnam.
Vietnam labour unions, like most other countries, are designed to help Vietnam stay competitive and workers remain employable. As of January 2021, Vietnam allows independent trade unions to operate as opposed to being supervised by the state-run Vietnam General Confederation of Labour (VGCL). However, independent unions will still be required to get permission from state authorities to operate. Employees may seek their unions for help when they feel that they are unfairly treated or have been non-compliant with their employment terms.
There are no minimum and maximum probation periods as required by the labour law, though the common practice usually ranges from 2 to 6 months.
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