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Some prominent note for employers from 2021 (Labor Code 2019)
Labor Code 2019 takes effect from the date of 01.01.2021. Some prominent notes for employers are as follows:
1. The probationary period
The Labor Code 2019 requires the parties to sign a probationary contract, which can be recorded into a separate contract, agreed by mouth or recorded in the contents of the labor contract; change the regulations on the subjects who are not required to sign the probationary contract (for those with a labor contract of less than 01 month) and expand the probationary audience. The probation period for each subject is specified in Article 25 of the Labor Code 2019, specifically as follows:
1. 180 days for the position of enterprise executive prescribed by the Law on Enterprises, the Law on management and use of state investment in enterprises;
2. 60 days for positions that require a junior college degree or above;
3. 30 days for positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees;
4. 06 working days for other jobs.
2. The employer unilaterally terminates without prior notice (Article 36 Labor Code 2019)
Cases where employers unilaterally terminate without prior notice include:
– The employee voluntarily quit his job without having a plausible reason for 05 or more consecutive working days
– The employee is not present at the workplace after the period specified in Article 31

3. Salary regulations
The Labor Code 2019 has a number of additional requirements for employers in terms of wages as follows:
– Not to limit or interfere with the employee’s right to self-determination to spend salary; do not force the employee to spend the salary on buying goods or using services of the employer or other units designated by the employer.
– Each time the salary is paid, the employer must notify the payroll to the employee, clearly stating the salary, overtime pay, night work salary, content and deductible amount (if any). .
– If due to force majeure, the employer has found all remedies but cannot pay the salary on time, it must not exceed 30 days; If the salary is delayed for 15 days or more, the employee must be compensated an amount as prescribed in Article 95.
– In case of resignation due to water and water problems, but not due to the fault of the employer and not the natural disaster … as prescribed in Article 95, the salary must not be lower than the regional minimum wage.
4. Working time, rest time
Maximum overtime hours 40 hours / month (Article 105)
– Additional cases are not allowed to overtime more than 300 hours / year (Article 107)
– In special cases, there will be no limit on overtime hours (Đ108)
– Add jobs with specified working hours and rest time (Article 109)
– Employers are responsible for setting the annual leave schedule after consulting with the employee and must notify the employee in advance.
5. Retirement age
The retirement age for employees is specified as follows:
2021 | Increase annually | Retirement age | |
Male | 60 years old 3 months | 3 months / year | 62 years old from 2028 |
Female | 55 years old 4 months | 4 months / year | 60 years old from 2035 |
Hard work | Less than 05 years |
Changes in retirement age lead to changes in retirement conditions and retirement conditions in some cases (Article 218). For male employees, the salary used as a basis for pension calculation is the average salary of 20 social insurance contributions..
6. Some other new points of Labor Code 2019
– Form a labor contract agreement may be entered through electronic means (Article 14)
– Type of employment contract (Article 20)
– Quoc Khanh vacation 02 days full salary
– A female employee who “works hard” while pregnant can reduce 1 hour of work per day but still receive full salary (Article 137).
– In addition to monetary rewards, which could be property, or any other form (Article 104)
– The statute of limitations for handling the labor force: It is allowed to extend the time limit for disciplinary action by 60 days in some cases (Article 122)
– Some new points about the settlement of labor disputes: Articles 185, 187, 188, 190, 194, 199, …
Your company needs advice and implementation of the provisions of the Labor Code 2019; or any other need for legal advice, real estate consulting please contact us directly:
Hotline: 0982674857
Email: [email protected]
Best regards.
1. What is M&A?
M&A stands for two English words “merger” and “acquisition“.
M&A is an activity carried out by an individual or an organization that acquires an existing property of another individual or organization. Such existing property can be in the form of a company or a combination of assets, human resources, and methods. model for conducting certain business operations.
2. Types of M&A transactions: M&A is executed under two main types: buying shares and buying assets.
Factors affecting the reason parties choose to buy shares or buy assets to include: commercial, legal, tax, third-party consent, time required to refund transaction, etc. Sometimes, two methods of buying shares and buying assets are combined in one transaction in order to take advantage of advantages and disadvantages of each method.
– Share acquisition: the purchaser will buy shares / capital contribution in an existing and established company to become the sole owner, shareholder or member of that company -> The purchaser has the right to operate and indirectly own the assets that the target company has. Shares purchased by the purchaser become the property of the purchaser and the purchaser has the right to dispose of such shares in accordance with the laws, the charter and a separate agreement between the buyer and other shareholders of the company.
– Buying assets (Business acquisition): the purchaser acquires ownership of the property sold by the seller. Assets can be tangible or intangible, in a broad sense: reputation, human resources, resources, distribution network mạng The purchaser becomes a direct owner of the property and operates the business according to his way. Business acquisition is executed in Vietnam under the form of transfering of investment projects.
– Merger / consolidation (Merger): can also be considered as the third type of M&A transaction, however, in essence, merger / has many similarities with the share purchase: the shareholders of the merged or consolidated company often become shareholders of the merging or acquiring party; The merging or acquiring party inherits the rights and obligations of the merged or consolidate company and often does not have a choice of assets when conducting the merger / consolidation process. This is a stepping stone for two or more companies to be merged / merged together because they are the same owners.

3. The legal nature of M&A:
The decision made by an individual or organization to whether to buy property or to buy shares will be affected by the laws of Vietnam. For example, Vietnamese law does not allow foreign investors to directly buy land in Vietnam, but it is allowed to buy shares in Vietnamese enterprises even if they are “owned many land lots.
Vietnamese regulations is also the reason why this method has many advantages over the other. For example, the law also sets out quite strict conditions that a company that is an investor of a real estate project must meet many conditions in order to be allowed to transfer a real estate project but hardly sets any coditions to shareholders of that company to sell their shares in the company.
An advantage of the ethod of share acquisition:
The purchaser will indirectly own all the assets of the target company and all the government licenses and approvals which the target company has in order to continue conduct current business. In contrast, the purchaser in business acquisition must apply for re-issuance (by amendment or new grant) of almost all the licenses and approvals of the government necessary to carry out the acquired business operation.
If in the business acquisition, the buyer does not inherit any of the seller “sobligations and responsibilities with respect to the purchased property, then in share acquisition, the purchaser must inherit the obligations and responsibilities. of the target company from the seller, equivalent to the
percentage of traded shares. Such obligations and responsibilities may be obligations to partners in contracts signed by the target company, obligations to employees in collective labor agreements, tax obligations to the state or legal liability that has arisen or is potential due to the law violation of the target company.
4. M&A in Vietnam
In fact, merger is rarely used in M&A transactions in Vietnam because the laws of Vietnam are still sketchy, general and lack of detailed instructions. The administrative procedures for transferring assets from the merged or consolidated company to the merging or acquiring company are unclear, time-consuming and do not have a common operating mechanism. The merging or acquiring company must inherit the debts and other obligations of the consolidating companies and the merged companies. This creates a risk for the buyer.
When buying shares in the merged or consolidated company, the purchaser is only at risk with all the assets of the company being merged or merged. When consolidating, merging, the purchaser must be responsible with all his assets.
5. M&A support services
M&A in Vietnam is a form of activity that has not really developed, therefore businesses and investors, especially foreign investors, often face many difficulties.. Clients wishing to transfer, purchase, merge or consolidate can contact us for assistancein finding a transfer partner and legal support.
If you need to use the service, please contact us:
INCO MINH ANH Co,.Ltd
Hotline: 0982674857
Email: [email protected]
Best regards.
Intellectual Property Service, News & Legislation, Service
Supporting employees (Hỗ trợ người lao động) at 1.8 million/person because epidemic Covid-19
The covid-19 pandemic has been badly affecting the global economy, and Vietnam is no exception. Falling sales, stagnant production, delayed or even canceled orders have led to a financial burden for businesses, especially manufacturing enterprises – a group of enterprises with a lot of workers and employees (Hỗ trợ người lao động). As a result, businesses have difficulty in ensuring the lives of their employees while balancing their financial position.
In such difficult period, Resolution 42 / NQ-CP was issued in a timely manner, reassuring enterprises and reassuring workers to continue to feel secure in production and business. Accordingly, Resolution 42 has a very important content that both businesses and employees are interested in, that is: “Supporting employees who have their labor contracts suspended, unpaid leave at 1.8 million / person, maximum time of 03 months.”

However, the resolution was issued but there was no specific guidance, making localities stuck in the implementation of the resolution.
On April 25, Prime Minister Nguyen Xuan Phuc issued Decision No. 15/2020 / QD-TTg regulating the implementation of policies to support people facing difficulties due to COVID-19 epidemic.
Accordingly, the above content will be implemented as follows:
1. The employee who is entitled to the policy must meet the following requirements (Hỗ trợ người lao động)
+ Unpaid leave, postponement of employment contracts for 01 month or more in a row
+ Currently attending compulsory insurance
+ Working at a business with no revenue or no financial resources to pay salaries.
Therefore, in the condition of No. 3, enterprises will need to prove their financial difficulties through books and vouchers so that employees can enjoy this policy.
2. The order of procedures (Hỗ trợ người lao động)
+Firstly: The enterprise makes a list of employees who meet the above conditions according to the form in Annex 1 issued with this decision, requesting the grassroots trade union to certify this list.
+ Secondly: The enterprise submits the list of above certifications to the social insurance agency in suspicion of certification within 3 days from the time of submission.
+ Thirdly: After receiving the confirmation from the social insurance agency, the enterprise submits the list and proofs mentioned above to the one-stop section of the district People’s Committee where the head office is located. Within 3 days, the district People’s Committee will carry out the procedures to approve the list and support budget, and direct the payment of support.
Thus, the policy is both a right and an obligation of the business. Enterprises implement procedures so that the new employees can enjoy the policy. Because the policy shares with businesses about taking care of the lives of workers during the epidemic. Since then, it helps workers feel more secure, accompanies businesses through difficulties. Later, when the epidemic is over, workers are ready to return to work to help businesses stabilize production and business.
If you need to use the service, please contact us:
INCO MINH ANH Co,.Ltd
Hotline: 0982674857
Email: [email protected]
Best regards.
Chưa được phân loại, Investment & Consulting, News & Event, Tin tức văn bản pháp luật, Tu van Doanh nghiep
CHANGE OF RETIREMENT AGE IN LABOR LAW 2019
The Labor Code 2019 was officially passed by the National Assembly Viet Nam XIV on November 20, 2019. The Labor Code includes many new provisions compared to the Labor Code 2012 and if the Labor code takes effect, it’s will affect many aspects of the lives of workers. Especially in those new regulations, the increase in retirement age is most concerned by the majority of employees.
Accordingly, Clause 2, Article 169 of the 2019 Labor Code provides: “The retirement age for workers in normal working conditions is adjusted to full 62 years old for male workers in 2028 and full 60 years old for female workers in 2035.
From 2021, the retirement age for ordinary employees is 60 years and 03 months for male workers and 55 years and 04 months for female workers; after that, every year it will increase by 3 months for male workers and 04 months for female workers. ”
Therefore, the retirement age for employees in Labor Code 2019 is increase to more 02 years for male workers and 05 years for Woker women than to the old rule. This change will increase according to the roadmap so that workers can adapt to this change, as follows:
Male Worker | Female Worker | |
2021 | Full 60 years 03 months | Full 55 years 04 months |
2022 | Full 60 years 06 months | Full 55 years 08 months |
2023 | Full 60 years 09 months | Full 55 years |
2024 | Full 61 years | Full 56 years 04 months |
2025 | Full 61 years 03 months | Full 56 years 08 months |
2026 | Full 61 years 06 months | Full 57 years |
2027 | Full 61 years 09 months | Full 57 years 04 months |
2028 | Full 62 years | Full 57 years 04 months |
2029 | Full 62 years | Full 58 years |
2030 | Full 62 years | Full 58 years 04 months |
2031 | Full 62 years | Full 58 years 08 months |
2032 | Full 62 years | Full 59 years |
2033 | Full 62 years | Full 59 years 04 months |
2034 | Full 62 years | Full 59 years 08 months |
2035 | Full 62 years | Full 60 years |
If you need to use the service, please contact us:
INCO MINH ANH Co,.Ltd
Hotline: 0982674857
Email: [email protected]
Best regards.
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