However, I had no idea about vietnamese employment law. I started recruiting employees by resume and the conversations I had with them included some very long job switching times (one said 45 days and another said 30 days). I started to wonder about the logistics of how employment works and I asked the rep that has pitched a plan to me, and here is what she came back with.
- we will be a Representative Office so the agreement will be with Matraex, Inc Boise, Idaho, USA. We may take 30 to 60 days after we get make offers to get started. Can you tell me when the monthly fees start? And when the one off fees are to be paid?TLN: The one-off fees will be charged in the first month of service after we complete all the set up. The first month of service starts when client has employee need to register with local statutory bodies and payroll processing. It means that even the service contract is effective from Nov 2015 but you do not have any employee on-board, we will not apply any charge until the first employee on board. But most of the case, the chief Rep will need our assistance in tax registration and payroll.- in starting to post jobs and recruit. I have noticed differing amounts of time that some people individyals need before they leave another job and will be able to start. Can you tell me what I'd common (45 days seems long by USA standards, but is that reasonable by vietnamese standards? )TLN: The standard notice time in Vietnam is 30 days for definite term contract (1-3 years) and 45 days for indefinite term contract. It means that someone can start with you after they submit the resignation letter if their contract with current employer is definite contract.- for a job offer letter or contract you would be creating for us, what terms are generally in the letter. Compensation and benefits? Number of days until start? Contract length? (Basically I am trying to find out what is customary in Vietnam and what obligations I will have as an employer to the employee)TLN: I attached herewith a standard labour contract template in billingual for your reference on the content.-if an employee is not working out, are there government regulations or contract requirements about firing that we have to think about?TLN: In VN, the Labour code in general is quite favor for the employee rather than the employer. Organization with more than 10 employees should have clear internal labour rules to define all cases of poor performance and other code of conduct breach for execution. Talentnet can help you to set up and register the Internal Labour rules with local authority before public to all employees. If your Rep. office is less than 10 persons, all your requirement should be mentioned clearly in the labour contract.Other than these questions, I am just looking for a timeline from you on how payments for the different services might go from you as we get started. Can you help me with the order or timeline of these?- setup for you- TLN: within 4-5 weeks including regulatory registration- regulatory setup of payroll tax accounts- TLN: within 4-5 weeks including payroll system set up- write offer letter / contract- TLN: within 2 business days since the time we receive the request and employee personal data.- hire employee ( wait for employee start)- TLN: 30 days or 45 days.- employee start - TLN: all the information from new hire or termination should be informed to TLN on cut off date (pre-agreed between TLN and client) and then all the payroll set up and statutory registration for new hire will be carried out within that month or within an allowable by local regulation.- twice monthly payroll - TLN: Normally the twice monthly payroll only applicable for very few factory with blue colar workers. If your organization in VN is Rep. office with office staff, they prefer once monthly payroll. Please confirm that you still need twice monthly payroll so that we can revise the service fee accordingly.
With the strong laws favouring employees, I asked about probation periods
- should I be considering a probationary period? Is this even allowed? - Probation period should be applied. Maximum time for a probation period in VN is 60 days.
Very useful information, all of it! I also asked for an example job contract. It turns out that all jobs need contracts so she attached one. Everythign in it is pretty clear, job termination is ONLY for cause. I have not figured out about the ability to terminate the employee if you no longer need them.
Additionally, in the contract it lists the insurance rates. Which show that employers must pay 22.5% insurance (medical, social, other) on all employee wages.
 |
| Vietnam Employer - Employee insurance rates |
No comments:
Post a Comment