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Extended termination notice for senior employees in Viet Nam

In the landscape of human resources and corporate governance, the departure of senior personnel often poses significant operational risks. For high-level executives, the standard statutory notice periods, generally typically 30 to 45 days, are often insufficient to ensure a smooth handover of duties, safeguard sensitive data, and find a suitable replacement.    Recognizing this, Vietnamese law provides a mechanism to extend the termination notice period up to 120 days for specific “Enterprise Manager” positions. However, applying this regulation requires a nuanced understanding of both the Labor Code and the Law on Enterprises. This article analyzes the legal basis for these extended notice periods and provides practical guidance for enterprises wishing to implement them effectively.   1. Statutory Prior Notice Periods: The General Rule vs. Special Exceptions   Under the Labor Code 2019 (Articles 35 and 36), the standard notice period...
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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. ...
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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...
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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...
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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...
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