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Transactions between a joint stock company and related persons

Introduction. In the context of corporate governance, transactions between a joint stock company (“ JSC ”) and related persons (“ Related Persons ”) are subject to stringent regulatory oversight. Given their inherent nature  –  transactions  entered into  between parties connected by ownership, management, or control  –  transactions with Related Persons  always present risks of conflicts of interest, asset diversion, or abuse of managerial authority. To safeguard the interests of the company and minority shareholders, the Law on Enterprises 2020 (“ LOE 2020 ”) and its implementing regulations establish a system of controls to ensure that such transactions are conducted transparently, within the proper authority, and in a manner consistent with the company’s best interests. This article provides an analysis of the regulatory framework and practical application concerning transactions between a JSC and Related Persons under current Vietnamese law. ...

Method of recording product-based wages in lobor contracts

1. Legal Basis   Pursuant to Article 94 of the Labor Code 2019, wages may be paid based on time, product, or piecework.   Article 98 of the Labor Code 2019 provides for wage payment rates for overtime work, night work, work on days off, public holidays, and Tet holidays as follows:   “ 1. The employee who performs overtime work shall be paid based on the wage unit or wage actually paid for his/her current job, specifically as follows:   a/ At least equal to 150%, on normal workdays;   b/ At least equal to 200%, on weekly days off;   c/ At least equal to 300%, on public holidays and paid leave days, excluding the wage for public holidays and paid leave days for employees who receive daily wages.   2. The employee who performs night work shall be paid with anadditionalamount at least equal to 30% of the wage calculated based on the wage unit or wage actually paid for a job performed during normal workdays.   3. The employee wh...

Personal income tax withholding on dispute settlement payments after termination of labor contracts

Currently, labor disputes arising from unilateral and unlawful termination of employment contracts due to economic reasons or changes in organizational structure and technology are increasingly common. In order to minimize the financial damage caused by unlawful termination, enterprises aim to reach a dispute settlement agreement with the employees during the court proceedings, with an optimal settlement amount for both parties. Accordingly, in cases where the parties agree on the settlement amount to fully resolve the dispute, enterprises and employees need to pay attention to the regulations related to personal income tax (“ PIT ”) to ensure maximum benefits and compliance with tax obligations.   1. Regulations on payments to employees for dispute settlement   First and foremost, the amount agreed upon for dispute settlement between the enterprise and the employee in this article is understood as a payment made by...

Solutions for dealing with sexual harassment in the workplace

The concept of sexual harassment in the workplace was first codified in the 2019 Labor Code, establishing a solid legal framework and marking an important step forward in protecting employees from workplace sexual harassment. In cases of sexual harassment, depending on the nature and severity of the behavior, victims have several legal options for resolution. This   article presents the relevant regulations and solutions   for addressing sexual harassment in the workplace.   1. Concept of sexual harassment in the workplace   Although sexual harassment in the workplace had been addressed before the 2019 Labor Code was enacted, the concept of sexual harassment was officially codified for the first time in the 2019 Labor Code.   According to Clause 9, Article 3 of the 2019 Labor Code, sexual harassment in the workplace is defined as:   “Sexual behavior of any person toward another person in the workplace that is not desired or a...

Foreigner lender and receive shares mortgage of a Vietnamese company

Viet Nam is an attractive location for many foreigners who come to work and settle permanently. Parallel to investment, business, and living activities, financial lending between foreigners, or between a foreigner and a Viet Nam national, is relatively common. In some cases, to secure payment obligations, the Borrower may mortgage the shares that it owns in a Viet Nam company as collateral for the loan. When participating in this type of transaction, the Lender, being a foreigner, needs to pay special attention to several important legal issues in order to protect its lawful rights and interests:  1. Loan contract: The parties are required to enter into a Loan Contract with clear and comprehensive contents, including: the loan amount, interest rate, loan term, payment method, the rights and obligations of each party, as well as the sanctions applied if the Borrower breaches the repayment obligation. To enhance legal certainty and the ability to provide evidence in the event of a ...

Facts and circumstances exempt from proof in civil proceedings

In civil proceedings, the burden of proof plays a pivotal role in ensuring that disputes are adjudicated objectively and in accordance with the law. However, not every fact or circumstance is required to be proven by the parties. The 2015 Civil Procedure Code (“CPC 2015”) clearly stipulates certain categories of facts and circumstances for which the parties are exempt from providing proof, thereby shortening the duration of proceedings and enhancing the efficiency of adjudication.   The principle of proof can be understood simply as follows:   A party initiating a lawsuit or requesting the Court to protect its lawful rights and interests must bear the burden of proof.   A party opposing a claim or asserting that the opposing party’s request is unfounded must also provide evidence to substantiate such assertion.   This principle ensures fairness and prevents parties from making unsupported claims. Nonetheless, ...

General terms and conditions (T&C) in contract formation

In current business activities, the establishment and application of general terms and conditions (“ T&C ”) have become increasingly common, particularly for enterprises providing goods or services to a large number of customers. T&C help enterprises standardize contractual provisions, reduce negotiation costs, and ensure consistency in contract management. However, since they are unilaterally drafted and applied on a broad scale, such terms potentially pose risks of disadvantaging consumers or creating an imbalance of rights and obligations between the parties. Therefore, civil law and consumer protection law have established specific regulations to govern the application of T&C, aiming both to safeguard the freedom of business operations and to protect the legitimate rights and interests of the disadvantaged party in the transaction.   1. Definition of general terms and conditions (T&C) According to Article 406 of the Civil Code 2015, “ General terms and co...