Foreign Representative Office or Foreign Invested Company in Vietnam should comply with the compulsory procedure in managing and recruiting Vietnamese employees to avoid any potential risks relating to internal labor management.
The new Decree 75/2014/ND-CP which took effect on September 15th 2014 detailing the compulsory procedure for recruiting Vietnamese employees working for foreign employers, including foreign representative office in Vietnam as follows:
- Step 1. When there is a need to recruit Vietnamese employees, a foreign employer must submit a request for recruiting Vietnamese employees to Vietnamese employee recruiting agencies. The request must specify requirements for the recruiting positions: quantity, professional qualifications, foreign language qualifications, deadline, rights and duties of Vietnamese employees and the foreign employers during the employment and upon the resignation for each recruiting position.
- Step 2. Within 15 (fifteen) working days, since the receipt of the request of a foreign employer, the Vietnamese employee recruiting agency has the responsibility to select and introduce Vietnamese employees at the request of the foreign employers.
- Step 3. When the time limit prescribed at Clause 2 of this Article is expired, the Vietnamese employee recruiting agencies cannot select and introduce any Vietnamese employee at the request of the foreign employer, the foreign employer has the right to directly recruit Vietnamese employees.
- Step 4. Within 07 (seven) working days after the signing of a labor contract with a Vietnamese employee, foreign employers must inform in writing and enclose a copy of the labor contract to Vietnamese employee recruiting agencies.
IN ADDITION, THE COST INCURRED RELATED TO THE RECRUITMENT WILL BE CALCULATED AS FOLLOWS
In case the employees were successfully introduced by headhunting agencies:
- Employees obtaining University degree or higher: 20% worth of 1 month salary stated in the labor contract.
- Employees obtaining college degree or higher: 15% worth of 1 month salary stated in the labor contract.
- Employees obtaining intermediate degree or higher: 10% worth of 1 month salary stated in the labor contract.
In case the employees were recruited directly by the company as mentioned in step 3:
- 1 month 5% wage on labor contracts.
ABOUT VIVA BUSINESS CONSULTING
Who we are?
- VIVA is a business consulting company, specializes in business compliance procedures according to local business laws and regulations since 2006. VIVA has been continuously trusted by thousands of well-known clients since 2006.
- The insights and consistent backgrounds in Business Laws – Accounting and Corporate Finance – Tax Management – Labor Relations and Payroll – Secretarial services help us build trust and confidence in the entrepreneur's community.
- We have been successfully providing service for thousands of leading companies from Hong Kong, Japan, US, EU, Singapore, India, China, Korea…. in forms of FDI companies, Foreign representative offices, Foreigners working in Vietnam, Vietnamese SMEs, Chief Operation Officers.
What we do
- Services for Expats in Vietnam: Visa, Work Permit, Temporary residence card, Compulsory Insurances, Personal Income tax, Labor contracts, Employment Records and Relations, Other Secretarial Services.
- Services for Representative offices in Vietnam: Establishment, extension of representative office licenses. Required compliance procedures during operation. Rights and obligations of the chief of representative office. Closure of representative office risks management.
- Services for a company in Vietnam: Setting up a new company and licensing service. Business records management. Daily business transactions management. Tax management. Accounting and financial statements. Employments, payroll and compulsory insurances. Representative on behalf of competent state agencies for any business administration procedures.
Motivated by our core values of ceaseless improvement, our great insights in local business culture and regulations, as well as the exclusive services, promise to offer you one-stop and tailored-made solutions that optimize every of your business in Vietnam in the lawful manner.
We are looking to be your valued business partner and resources in Vietnam as we have been choosing since 2006.
VIVA not only manage business required procedures by laws but firstly places client’s compliance and good standing, in the optimal methods when offering any solution, and integrated with our intensive resources that allow us to prevent most of the risks in advance, create more benefits, advantages and business inspiration for entrepreneurs.
The insights and consistent backgrounds in Business Laws – Accounting and Corporate Finance – Tax Management – Labor Relations and Payroll – Serectarial and consistent with our exclusive standard operation processes, consisting of consultation – implementation – pratice operation help us fully protect client interests as one-stop solution.
- An email and a phone call from us
- A copy of our Confidentiality Commitment
- An appointment with our experts
- A suitable solution for your concern
“If you ask any successful businessperson, they will always have had a great mentor at some point along the road.”
Read more:
- Three key points on salary and compulsory insurance
- Foreign employees in Vietnam – what you need to know
- Vietnam work permit for foreigners – what you need to know
- Temporary residence card in Vietnam – what you need to know
- The proactive management of wage labor compliance procedure
- Full compliance procedures for foreigners who are working in Vietnam
- Chief of representative office or head of branch in Vietnam – role and responsibility
- Foreign representative office in Vietnam – full service for local compliance procedures
