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ARTICLE · 28 JULY 2020

Vietnam's NEW Labor Code – 15 Notable Changes Coming Your Way Effective January 2021

Duane Morris LLP
Duane Morris LLP
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The New Labor Code 2019 will soon come into effect on 1 January 2021 and entirely replace the current labor regime (‘Labor Code 2012').

VietnamEmployment and HR

The New Labor Code 2019 will soon come into effect on 1 January 2021 and entirely replace the current labor regime ('Labor Code 2012'). The below fundamental amendments should be taken into account with a view to best protecting an employers' legitimate rights and entitlements under Vietnamese labor law.

1. The definition of 'employment relationship' has been broadened

Pursuant to the Labor Code 2019, a legally valid employment relationship is deemed to exist even where two parties agree to a document by a different name rather than 'a labor contract', as long as the document includes a description of the job, salary, management, and supervision conditions. In other words, a contractual document with a different name is still considered to be a labor contract assuming the above general terms are included.

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Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.

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