On Thursday, November 26th, CEEC conducted Share&(L)Earn event: Insight on labour compliance and culture in the workplace.
In the first part Mr. Vlad Savin from Aclimme Vietnam shared with the audience the key changes in labour law in Vietnam, immigration changes, work permits for expatriates and taxation for individuals. We could hear that effective from 1 January 2021 a number of changes arise that impacts workplaces, including:
- Requirement to issue PAY SLIPS to each employee for each pay run.
- Labour regulations (required for all companies with at least 10 staff) will likely need amending, to cover changes to Labour Code 2019 – including prohibition/definition of sexual harassment in the workplace and how this is handled, job reassignment, etc
- Violations of Labour Rules, now have 4 clear disciplinary measures: reprimand, Deferment of pay rise for up to 6 months, demotion and dismissal
- New Labour Law 2019 removes the concept of seasonal contracts
- Definition of Labour contract is more broader and includes some points which support companies in crisis management
Later on, Vlad gave and update on visas and temporary residence cards based on the new Immigration Law which came into effect from 1 July 2020 “The Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam, issued on 25 November 2019” (Law 51/2019/QH14). We could learn that now visa types can now be changed in-country without requiring the holder to leave Vietnam and return, business visas can be issued for up to 5 years in length, corporate Investors can nominate an individual to represent them in Vietnam and receive an investor visa and investor visas are now linked to the value of capital introduced, with smaller investors now having lesser periods for visas.
Furthermore, Mr. Savin inform audience that the New Labour Law (2019 Labour Code), which applies from 1 January 2021, introduces changes to Work Permits and Exemptions, and reduces gaps in laws. We could learn that a Labour Contract must not be signed without a Work Permit and should not be signed for a longer period then the work permit is issued.
At the end, he talked about taxation for individuals. He explained who are tax residents in Vietnam, what are the tax rates for individuals and that resident individuals in receipt of salary or service income are generally required to submit an annual finalisation of their Personal Income Tax (“PIT”) with Vietnamese Tax Authorities.
Full presentation can be found HERE.
In second part of the event, we could hear from Mr. John Knipfing from JK Intercultural the explanation through the study cases why “common sense is uncommon” and how different cultural background can create different points of view. The way of leading, scheduling and trusting differ based on the culture and failure to understand them can lead to great misunderstandings.
Full presentation can be found HERE.
Our big thanks to the speakers for their very interesting and useful presentations and to audience for joining us.