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Agreement on future termination of labor contract

In the context of an increasingly dynamic labor market, employers and employees continuously seek flexible solutions in their employment relationships. In many cases, the parties wish to anticipate and enter into an agreement on the termination of the labor contract at the time of concluding the labor contract (“Labor Contract”). However, the question arises as to whether such an agreement is lawful under the current labor regulations.  1. Legal basis   The Labor Code 2019 (hereinafter referred to as the “Labor Code”) provides detailed regulations on cases of termination of labor contracts in Chapter III, Section 3, from Article 34 to Article 38. According to Article 34 of the Labor Code, one of the grounds for terminating a labor contract is that “ both parties agree to terminate the labor contract ”. This indicates that Vietnamese labor law recognizes agreement as a legitimate method for terminating an employment relationship.   Moreover, the law does not prohi...

Responsibilities of enterprises when voluntarily requesting the withdrawal of a cosmetic product notification receipt

During the distribution of cosmetic products in the market, there are cases where enterprises voluntarily request the withdrawal of the cosmetic product notification receipt for various reasons. One notable factor is the regulatory changes in the permissible concentration limits of ingredients used in cosmetics, which may require enterprises to withdraw products due to updated legal requirements.  Regularly reviewing legal regulations and proactively withdrawing cosmetic product notification receipts demonstrates an enterprise’s commitment to compliance with current laws while maintaining and enhancing its reputation. However, when withdrawing products due to changes in legal concentration limits, enterprises must fulfill certain responsibilities to ensure an effective withdrawal process complying with legal requirements while minimizing consumer concerns.  1. Regulations on the Withdrawal of Cosmetic Products   Circular No. 06/2011/TT-BYT (“Circular 06”) governs the w...

Some important issues to consider when applying dismissal to employees

Dimissal is one of the disciplinary measures prescribed in the Labor Code 2019 and is considered the most severe form of disciplinary action against an employee. The application of dismissal requires employers to strictly comply with legal regulations to avoid labor disputes and potential legal risks. In this article, the author will analyze the cases in which termination applies, the principles, and the procedures for handling labor discipline, helping businesses ensure legality in the implementation process.  1. Cases where employees are applied dismissal legally    1.1 According to Article 125 of the 2019 Labor Code, employers may only apply termination as a disciplinary measure for the employee commits violations in the following cases:   Theft, embezzlement, gambling, deliberate infliction of injuries or uses drug at the workplace;   Disclosure of business secrets, technological secrets, or infringement of intellectual property rights, causing o...

Vietnamese investors investing in other companies through a foreign company

Many Vietnamese Investors have successfully taken their business activities abroad and earned stable profits from foreign companies (“ Foreign Company ”). Upon achieving a certain level of growth, the Foreign Company may expand its scale by establishing or contributing capital to another company. This is a common activity and is in accordance with the laws of many countries, including Viet Nam. For example, if a Vietnamese Investor establishes a company in Singapore, this Singaporean Company has the right to establish or contribute capital to/purchase shares of other companies in accordance with Singaporean law. However, from the perspective of compliance with Vietnamese law, Vietnamese Investors may face risks if the Foreign Company does not operate in accordance with the Offshore Investment Registration Certificate (“ OIRC ”). 1. Case where Vietnamese Investors use the profits of the Foreign Company to invest in another company Article 67 of the Law on Investment 2020 stipulates t...

ESG in corporate governance: the board of directors’ responsibilities and legal risks

1. ESG – From peripheral factor to core corporate governance standard In the era of green transition and sustainable development, ESG (Environmental, Social, and Governance) is no longer merely a “preferred option” but is evolving into an inherent obligation within corporate governance structures. Crucially, the Governance (G) pillar serves as the “backbone” enabling enterprises to actualize their environmental and social commitments.  In Vietnam, although no standalone ESG legislation exists, extant legal regulations concerning corporate governance already encompass fundamental ESG elements, albeit dispersed across multiple legal instruments. See more: Legal framework for ESG assessment and sustainable business practices in Vietnam 2. Legal responsibilities of the Board of Directors in ESG Integration From a legal perspective, the Board of Directors (“BoD”) holds a central role in formulating and overseeing ESG-related strategies.  Ensuring ESG management mechanisms an...

Legal barriers for foreign investors opening language centers in Vietnam

Vietnam is a promising market in the field of foreign language education due to the increasing demand for learning English, Chinese, Japanese, and other languages. However, foreign investors entering this sector face significant legal challenges. This article analyzes the key legal barriers that foreign investors may encounter when establishing a language center in Vietnam.  1. Investment Forms   Foreign investors can choose one of the following investment forms:  Establishing a wholly foreign-owned company.  Entering into a joint venture with a local partner.  2. Licenses for Operating a Language Center  Before commencing operations, foreign investors must obtain the following licenses:  Investment Registration Certificate for foreign language training activities.  Enterprise Registration Certificate.  Approval decision for educational operations. Work permits for foreign teachers (if applicable).  3. Basic Requir...