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ARTICLE · 17 FEBRUARY 2014

New Decree Guiding The Labor Code On Employment

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The new Labour Code of Vietnam came into force on 1 May 2013.

VietnamEmployment and HR
Mai Phuong Nguyen
Mai Phuong Nguyen
Thi Nguyen
Thi Nguyen
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Keywords: new decree, labor code, employment, recruitment, Vietnam

The new Labour Code of Vietnam came into force on 1 May 2013. To provide guidelines on the provisions of the Labour Code on the employment and recruitment processes, the government issued Decree No. 03/2014/ND-CP (Decree 03) on 16 January 2014. Decree 03 applies to both local and foreign-invested enterprises (FIE), and will come into force as from 15 March 2014, replacing Decree No. 39/2013/ND-CP on the same subject.

Can FIEs recruit employees directly?

Under the new Labour Code and Decree 03, an FIE may recruit its employees directly or through a labour supply company or labour outsourcing company. In practice, most FIEs choose to recruit their employees directly.

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