- According to the New Labour Code in May 2012, companies employing ten employees or more are required to adopt and register Internal Labour Regulations (ILRs) with the local authority.
ILRs are mandatory in Vietnam and any of the following misconducts lead to a fine of 5,000,000 VND to 10,000,000 VND:
- Fail to obtain and adopt ILRs when more than 10 employees are hired.
- Adopting ILRs without registering them with the relevant Department of Labour War Invalids and Social Affairs.
- Using expired ILRs.
WHY DOES AN EMPLOYER NEED TO HAVE REGISTERED INTERNAL LABOUR REGULATIONS (ILRS)
The adoption and registration of Internal Labour Regulations (ILRs) should not only be seen as a mere legal requirement. These are also an opportunity for the employer to establish clear rules and procedures applicable to its employees in the workplace. Internal Labour Regulations (ILRs) which are appropriately registered is regarded as one of the most important documents regulating certain labor matters including disputes, especially dismissal, discipline, compensation, responsibility for damage, and various others.
In case of dispute, the Internal Labour Regulations (ILRs) would not only provide established procedures to address such situations in a predictable manner but would also provide a legal platform for the employer to enforce the procedures contained in the law. For instance, dismissal of an employee is possible only for reasons provided both at law and under the employer’s registered Internal Labour Regulations (ILRs).
Businesses should contact their business consultant to comprehensively build and register Internal Labour Regulations (ILRs) as well as ensure implementation. Internal Labour Regulations (ILRs) typically include provisions relating to:
- Working hours and rest breaks.
- Rules and regulations applicable in the workplace.
- Occupational safety and hygiene in the workplace.
- Protection of assets and confidentiality of the technology and business secrets of the employer.
- Conducts which are in breach of the employee’s duties, as well as the penalties imposed for such breaches.
- Liability in case of damage.
- Handling Principles and Handling Authorization.
- Employee handbook.
- Code of conduct.
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