Labor Solutions

What is labor solutions?

According to Vietnam labor law, every company when use or hire employees in Vietnam, must follow the labor law and the labor solutions . The labor compliance is simply known as statutory insurances, labor usage declaration, establish the trade union.

Legal services:

  • Register the new Social Insurance code for the company;
  • Prepare and submit the reports via online system upon of changing in salary of employees, new hires or leaving;
  • Prepare and submit the required Six-month/ time labor movement reports to local labor authorities;
  • Calculate the monthly social insurance, health insurance and unemployed insurance;
  • Establish the trade union.

How to proceed?

We have experience team who is very familiar with using the online system. The team also keep themselves up to date newest regulations so that we can assist the client in time. We use the checklist as well as work closely with the client in order to make sure we collect all needed information.

A foreign worker must apply for a work permit or work permit exemption certificate to legally work in Vietnam. The permit allows the foreigner to work in a specific position, company and location. Thus, foreigner workers might hold several work permits.

More importantly, the work permit or work permit exemption certificate do not exempt foreigners to obtain a visa or a temporary resident card.

There are several personal income tax rates which depend on the kinds of personal income such as:

  • monthly wages with progressive rates ranging from 5% to 35%;
  • income from capital investment with a fixed rate of 5%;
  • income from real estate transfer with rates of 2% or 25% depending on the case.

It is mandatory for all companies to have at least one of its legal representatives in Vietnam at all time; however, the legal representative does not need to be a permanent resident in Vietnam.

Foreign employees are required to participate in compulsory social insurance when they work under a Work Permit or a practice certificate or a practice license issued by a Vietnamese competent agency with an indefinite-term labor contract or a labor contract with a term of 1 year or more.

For unemployment insurance, foreign employees are not required to participate.

A company has duty to notify competent agencies that are in charge of labour management and social insurance on raising of employee amount, which results in changes of information on social insurance.

No. Employees have to ask their company to submit in full social insurance, unemployment insurance including overdue interest as prescribed by law; certification of social insurance agency on social insurance book is the basis for employees to claim unemployment insurance.

No. Certain monthly allowances that employee receives shall be excluded from the salary that is subject to social insurance, such as allowances for lunch, travelling, business trip, cellphone bill and the like stipulated in the labour contract.

No. Labour Union is established on a voluntary manner, which operates by the principle of democratic centralism; the establishment of Labour Union is subject to company’s decision. However, it is highly recommended that companies to have Labour Union, which serves as a bridge between the company and its employees, and it is also compulsory to have Labour Union’s opinion in approval of internal regulations, and labour discipline in some cases.

We would be delighted to schedule a meeting to provide you with an effective solution.