Decisive Role Of Work Permit In Resolving Labor Disputes

One of the requirements for foreigners to work in Vietnam is to be granted a work permit by the competent Vietnamese authorities. However, due to the practical, day-to-day demands of business, many companies do not comply with this regulation and often sign labor contracts with foreign employees without valid work permits. In the event of a dispute, the issues become: “Is the labor contract with a foreign employee without a work permit valid?” and “What role does a work permit play in a labor dispute with foreign employees?”

From both legal and practical perspectives, a work permit is the basis for determining not only the validity of a labor contract and its duration but also the related compensation which a company might incur when a dispute arises.