What is Salary Payment Rules According to Labor Code 2019?

  The employer shall pay the employee on the basis of the agreed salary, productivity and work quality. The salary written in the employment contract and the salary paid shall be made in Vietnam dong. If the employee is a foreigner working in Vietnam, the salary payment to foreigners can be made in foreign currency. The payment of salary to the employee by the employer has to follow salary payment rules clearly regulated under the labour to protect the interest of the employee and avoid disputes in employment relationship.

                                                 Employment Dispute Law Firm in Vietnam

Employers shall directly, fully and punctually pay salaries to their employees. In the cases where an employee is not able to directly receive his/her salary, the employer may pay it through a person legally authorized by the employee. Employers must not restrict or interfere their employees’ spending of their salaries; must not force their employees to spend their salaries on goods or services of the employers or any particular providers decided by the employers.

Every time salary is paid, the employer shall provide the employee with a note specifying the salary, overtime pay, nightshift pay and deductions (if any).

An employee who receives an hourly, daily or weekly salary shall be paid after every working hour, day or week respectively, or shall receive a sum within not more than 15 days as agreed by both parties; an employee who receives a monthly or bi-weekly salary shall be paid after every month or every two weeks respectively, the payment time shall be periodic and agreed upon by both parties; an employee who receives a piece rate or a fixed amount shall be paid as agreed by both parties. In case a task cannot be completed within one month, the employee shall receive a monthly advance payment based on the amount of work done in the month.

In case of a force majeure event in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented, the salary shall be paid within 30 days. In case a salary is paid at least 15 days behind schedule, the employer shall pay the employee a compensation that is worth at least the interest on the amount paid behind schedule at the latest 1-month interest rate quoted by the bank at which the employee’s salary account is opened.

Failing to make payment or making underpayment of wages and salaries to employees is the breach of labor contracts which fines imposed on the employers will be at the following rates: a fine ranging from VND 5,000,000 to VND 10,000,000 to be imposed if the violation involves 01 – 10 employees; a fine ranging from VND 10,000,000 to VND 20,000,000 to be imposed if the violation involves 11 – 50 employees; a fine ranging from VND 20,000,000 to VND 30,000,000 to be imposed if the violation involves 51 – 100 employees; a fine ranging from VND 30,000,000 to VND 40,000,000 to be imposed if the violation involves 101 – 300 employees; a fine ranging from VND 40,000,000 to VND 50,000,000 to be imposed if the violation involves 301 or more employees. At the same time, the employers shall be compelled the full repayment of wage and salary plus the amount of late payment interest calculated at the highest demand deposit interest rates publicly quoted by state-owned commercial banks on the date of imposition of such penalty for the violations.

According to the provisions of the Labor Code 2019, the employer must pay the employee directly, fully and on time. If due to force majeure, the employer has used all the remedial measures but cannot pay the salary on time, there is only maximum extension of 01 month for late payment. Passing this time limit, the employee has the right to unilaterally terminate the labor contract without prior notice or make complaints or filing lawsuits at competent agencies to resolve employment dispute. The time limit to request a labor mediator to settle an individual labor dispute is 06 months; the time limit to bring an individual labor dispute to the Court is 01 year from the date on which a party discovers the act of infringement of their lawful rights and interests. Employment lawyers specializing in dispute could be engaged to protect best interest of parties involved and provide guidance to resolve in most effective ways.

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Successfully Register a Vietnam Trademark in the US

  ANT Lawyers as an Industrial Property law firm with full IP license under Vietnam laws represented Live Forever Young Co., Ltd to submit an international application of trademark Live Forever Young trademark which designated the US according to the World Intellectual Property Organization (WIPO) on October 2021.

[caption id="attachment_19773" align="aligncenter" width="640"]                                                    ANT Lawyers IP law firm in Vietnam

Through the formal examination stage, on March 2021, WIPO issued a Certificate of Registration, which certifies that the above application conformed to the formal requirements of WIPO. Subsequently, WIPO notifies the Intellectual Property Office of the US and this Office could conduct the substantive examination.

During the substantive examination stage, the United States Patent and Trademark Office (USPTO) issued a Non-final Office Action on May 2021. Subsequently, ANT Lawyers assisted the Client in preparing and submitting the corresponding response letter to USPTO.

After 7 months of substantive examination, on October 2021, the Live Forever Young trademark has been successfully registered in the US and USPTO issued a Registration Certificate. Accordingly, the registration will remain in full force and effect for a term of ten years from the date of issuance and may file a renewal.

Trademark registration in the US is very important for the client as this is the first step that uncovers the considerable opportunities for entering the potential market in the US. With the help of ANT Lawyers from experts in intellectual property as well as close cooperation relationships with IP law firm in different part of the world, ANT Lawyers IP law firm has assisted Clients in achieving their goals and while maximizing their rights and exploiting legal benefits from intellectual property as well as minimizing risks in the process of registration of trademark in Vietnam and international trademark registration in US.

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Final Review for the Safeguard Measure for DAP and MAP Imported Fertilizers (SG06)

 

 The MOIT Receives the Dossier on Final Review for the Safeguard Measure for DAP and MAP Imported Fertilizers (SG06).

On March 03th, 2020, the Ministry of Industry and Trade issued the Decision No.715/QD-BCT on extending the application of safeguard measure to DAP/MAP imported fertilizers holding the HS code: 3105.10.20; 3105.10.90; 3105.20.00; 3105.30.00; 3105.40.00; 3105.51.00; 3105.59.00; 3105.90.00. The extension period for application of safeguard measures is 30 months from March 7^th, 2020 to September 6^th, 2022 (if not extended).

According to the Article 69.1 Decree No.10/2018/ND-CP on guidelines for the law on foreign trade management on trade remedies, at least 09 months before the decision on imposition of safeguard measures expires, the investigating authority shall announce the receipt of dossiers for final review of imposition of safeguard measures. Within 30 days since the announcement of the investigating authority, organizations and individuals may submit the dossier for final review of imposition of safeguard measures.

The Trade Remedies Authority in Vietnam required the domestic producers of like or directly competitive products that wish to extent the duration of the safeguard measure shall submit an application for the extension of the safeguard measure.

The dossier including an application for the extension of the safeguard measure shall obtain the evidence, showing that the domestic industry has made necessary adjustments to raise its competitive capability, and the withdrawal of the safeguard measure will cause the serious injury or threat of serious injury to the domestic industry.

Deadline for submitting the dossier on requiring final review is before 5:00 P.M on October November 09^th, 2021.

If Client needs any more information or request for legal advice or potential dispute regarding trade remedies measures including, anti-dumping, countervailing duty and safeguard measures or international trade dispute matters, our competition, anti-dumping, and countervailing duty lawyers of International trade and tax practice at ANT Lawyers, a law firm in Vietnam always follow up anti-dumping cases and its development to update clients on regular basis.

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The Need for Commercial Mediation in the Performance of International Contracts

 

 In contract dispute resolution, the average time to resolve a commercial contract dispute at the Court in Vietnam, even with the help of dispute lawyers in Vietnam whom know well the process would take long time through multiple proceedings. This period will last longer if there is a foreign party in the dispute, including service of notarization, legalization, authentication (or apostille) the documents. According to World Bank statistics, the cost of resolving a commercial dispute at the Court accounts for about 29% of the contract value (including attorneys' fees, court fees, judgment execution fees).

The practice of resolving the dispute case at the Court appears to face many challenges of time lengthening and possible effective enforcement leading to cost of time and money. Therefore, the selection of dispute resolution in the mediation center is a possible option to resolve this issue.

Vietnam authorities and international agencies have taken active measures needed to promote the application of commercial mediation in international contracts, in order to resolve issues more quickly and effectively in international trade disputes. The application of commercial dispute resolution at mediation centers in Vietnam will save time and costs for dispute resolution. In addition, the dispute resolution at the mediation center will also help the parties maintain the relationship for future business transactions.

Until Aug 2019, in Vietnam, there are 7 commercial mediation centers licensed by the Ministry of Justice with a team of domestic and international certified mediators and lawyers who can contribute to resolving disputes in international trade contracts.  The use of mediation centers in the settlement of disputes in Vietnam with the help of lawyers in Vietnam will help the parties to find common grounds and together save cost, time, keep confidentiality of the dispute and could continue to do business with each other.

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Legal Validity of Criminal Records Card in Vietnam

 Criminal record or judicial record is a record of criminal convictions of convicted persons with criminal judgments and decisions of courts which have taken legal effect, judgment execution status and ban on individuals to hold positions or setting up company in Vietnam, or managing enterprises and cooperatives in Vietnam in cases where enterprises or cooperatives are declared bankrupt by Courts.

The competent state authority will grant individuals a criminal or judicial record card, which is issued by the department of justice or data center of judicial records to provide information whether or not an individual has any criminal record; prohibited or not prohibited from holding the position, establishing company in Vietnam, managing enterprises and cooperatives in Vietnam in case the enterprise or cooperative is declared bankrupt. Within the enterprise, judicial record cards will support human resource management, business registration, establishment, management of enterprises, cooperatives ... Besides, many government agencies and organizations requesting individuals to provide judicial record cards for some necessary activities i.e. criminal record requirement for employment, criminal record for work permit application, criminal record for immigration purposes. According to Clause 1, Article 44, Law on Judicial  Records 2009, there are two types of judicial record cards, including:

- Judicial record card No. 1 issued to Vietnamese citizens, foreigners who have or are residing in Vietnam to serve the purpose of human resource management, business registration, establishment, management of enterprises and cooperatives.

- Judicial record card No. 2 issued to Vietnamese citizen or foreigners whom have or are residing in Vietnam to serve the purpose of immigration, or others.

Depending on the purpose of using judicial record cards, individuals, agencies and organizations request the issuance of judicial record cards No. 1 or No. 2.

Pursuant to the Law on Judicial Records in 2009, Decree 111/2010 / ND-CP guiding the implementation of the Law on Judicial Records, the time limit for judicial record cards of Vietnam so far has not been clearly defined. Criminal record card’s time limit depend on the provisions in the documents of each relevant legal field and depending on the decision of the agency or organization that need to verify the status of judicial record of this individual.

As Articles 20, 24 and 28 of the Nationality Law of 2008, amended and supplemented in 2017, the application for admission, renunciation and return to Vietnamese nationality must have a judicial record card issued within no more than 90 days. For visa applications (VISA) at the US Embassy or the US Consulate General, the individual must have a judicial record card issued within 1 year for immigration verification.

Therefore, when individuals are required to provide judicial record cards at agencies and organizations, they must consider the regulations on the time limit that such agencies allow for judicial record cards. It is not contrary to the Law on Judicial Records in 2009, because the Law does not clearly stipulate the legal effect on two judicial record cards No. 1 and 2, as well as there are no regulations limiting the agencies and organizations to set the time limit for the criminal record cards in Vietnam.

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How to Obtain Business Registration Ce rtificate in Vietnam?

  

How to Obtain Business Registration Certificate in Vietnam?

Every organization and individual wishing to set up a foreign owned company in Vietnam shall need to meet some specifics conditions as promulgated under the Law on Investment and Law on Enterprise.  In specific areas being considered as conditional investment, the investor shall also need to consult with the law governing the area of investment. Once the investment registration certificate is completed, the investor has the obligation to apply for enterprise registration.

The procedure to register for a certificate of enterprise registration of a joint stock company or limited liability with two or more members are herein mentioned:

Dossiers:

i) Application form for enterprise registration

ii) The company’s charter.

iii) A list of founding shareholders and shareholders being foreign investors/ a list of capital contribution members.

iv) Valid copies of:

Copies of the ID card or other ID papers of founding shareholders and foreign investors/members being individuals; list of authorized representatives of foreign shareholders being organizations.

Decision on establishment, certificate of business registration, or an equivalent document of the organization and the letter of authorization; the ID card or other ID papers of the authorized representatives of founding shareholders and foreign investors being organizations.

If shareholders are foreign organizations, the copy of the certificate of business registration or an equivalent document must be notarized, legalized and authenticated.

The Certificate of Investment registration of the foreign investors as prescribed by the Law on Investment.

State Authority: Business registration office of the province where the enterprise’s headquarters is situated.

Period: within 03 working days from the full receipt of the dossiers

Result: Business registration office shall issue the certificate of enterprise registration or if the application is not satisfactory, business registration office shall inform the applicant of necessary revisions and supplementation to company.

In general, Vietnam government encourages foreign direct investment.  If the investor faces challenges at state authority, whom do not issue notification or request of supplementation to the application for enterprise registration, the investor cold lodge a complaint as prescribed by regulations of law on complaints and denunciation to the state authority to protect its right in doing business and investment in Vietnam. A law firm in Vietnam with expertise in both business registration and dispute resolution could assist the investor in the process.

The enterprise is entitled to do business from the issuance date of the certificate of enterprise registration. For conditional business lines, enterprises are entitled to engage in conditional business lines if they satisfy all conditions and are capable to maintain fulfillment of such conditions throughout their operation.

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Danang To Cooperate With the US Enterprises to Build an IT Center

  On Oct 10^th, 2019 representatives of Danang city met the US business delegation including Hayward Quartz Technology Inc., Westcoast Precision, Inc., Majestic Beauty Supplies, Inc., Lee's Sandwiches International, Inc., Hung Phat USA. These are businesses in the field of manufacturing, processing diamonds and gold, silver and gems; production and distribution of beauty accessories, cosmetics; manufacturing and producing metal and hardware, supplying customized high-quality spare parts and semiconductor devices for the medical and biotechnology equipment industry; Manufacturing and distributing semiconductor equipment in the United States, whom shown interest to set up business and expand operation to Vietnam.

Representatives of US enterprises affirmed that Danang City is a potential destination for businesses in the High Technology and Information Technology. With the coordination, as well as the city's incentives in the field of high technology and investment in Danang High-Tech Park, enterprises from the United States consider opportunities to invest in the high technology sector in Danang.

Danang city has many benefits that investors are interested in such as the safe and stable living environment, the young and highly qualified labours from more than 25 universities and colleges in the city, in addition the city is also a destination for many domestic and foreign investors in many different fields, which is an opportunity for investors to compete, distribute the productions.

Currently, in Danang, there are more than 60 investment projects of the US investors with the registered capital of nearly 6 million USD, including large projects such as the Sunshine Aerospace Components Plant Project in Danang high-tech park of Universal Alloy Corporation (USA) with total registered capital of USD 170 million; the factory of electronics and electronic equipment manufacturing and assembling project, total capital of USD 50 million, in Hoa Khanh Industry Zone Expansion invested by Key Tronic EMS Group. Besides there are many other projects being implemented and effective in the process of operation.

Danang City and investors from the United States hoped to achieve more business achievements in the future to help investors and the city achieve development goals in the future to welcome company to set up company, factory, and invest in Vietnam.

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