How Probation is Regulated in Vietnam Labor Code?

How Probation is Regulated in Vietnam Labor Code?

An agreement between an employee and employer for a probationary position for a predetermined amount of time in accordance with legal requirements is known as probation. Both the employer and the employee should go through a trial period before signing a labor contract to see if they can work together in the long run. The Labor Code and other relevant guidelines should be followed during the probation. The Labor Code 2019 comes into force as of January first, 2020, various new guidelines likewise are given in association with the probation, which each organization ought to audit the matter with labour dispute lawyers in Vietnam for compliance.

Concerning conditions which are allowed to go into a trial contract, this agreement isn't material to the work term which is under multi month. The Labor Code 2012 doesn't need that the trial arrangement should be specified in the work contract. As a result, an employer and employee may negotiate the probation, as well as their respective rights and responsibilities during the probation period. If the parties are in agreement about the probation, they can sign a probation contract. The employer is required to sign an employment contract with the employee if the probation work meets the requirements. It is clear from these provisions that a separate probationary contract between the employer and employee is required.

When the probation period is over and the employee satisfies the employer's recruitment requirements, the labor contract should be signed. Employer and employee may agree on a separate probationary contract or the probation that is outlined in the labor contract, as per the most recent provisions of the Labor Code for 2019. If the labor contract includes a probationary period, the employer is obligated to continue carrying out the current agreement once the employee has met all of the requirements. In that case, a new labor contract must be signed.

Based on the nature and complexity of the job, the Labor Code decided how long the probation period had to be. For positions requiring a college degree or higher, the probationary period was previously limited to no more than 60 days. Currently, executives can extend their probationary period by up to 180 days. The owner of a sole proprietorship, the partner of a partnership company, the chairperson or member of the Board of Members, the President of a company, the President or member of the Board of Directors, the Director/General Director, or the holder of another managerial position prescribed in the company's charter (applicable to the enterprise without state capital) are examples of executives who play a significant part in the business and operation of the businesses.

Another amendment to the cancellation of the probationary contract, the Labor Code 2019 removed the limitation of the right to cancel. Accordingly, during the probationary period, each party has the right to cancel the probationary contract or labor contract entered into without prior notice and compensation. On the contrary, the employee and the employer may cancel the probation if the probationary job does not meet the requirements that the parties have agreed upon under the Labor Code 2012.

The primary purpose of probationary periods is to determine whether an employee and employer are compatible at the outset of an employment relationship. To avoid a potential dispute in Vietnam, businesses as employers must have a clear understanding of the principles of entering into a labor contract and a probationary contract.

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What Are Lawful Structures for Fintech in Vietnam?

What Are Lawful Structures for Fintech in Vietnam?

The foundation for the leap forward in all spheres of life has been established by the 4.0 industrial revolution and the explosion of the Internet. Science and technology have a direct impact on the financial sector, which is not exception.

Fintech – Financial Technology is a new type of finance that has emerged alongside traditional finance and has superior characteristics that are appropriate for the current circumstance and actual requirements. Despite the benefits of Fintech, its operation is fraught with difficulties, including legal issues.

Blockchain, big data, cloud computing, artificial intelligence, biometrics, and other technologies may be used by fintech. However, Vietnam currently lacks a comprehensive legal framework for these technologies. As a result, depending on the circumstances, laws pertaining to intellectual property, information technology, high technology, science and technology, cyberinformation security, and cybersecurity can all be enacted. In addition to ensuring the security of databases and the intellectual property that is associated with them, these regulations partially facilitate the research, development, and application of technological innovation.

Digital payment, in particular, is a big part of fintech. Non-cash payments, intermediary payment services, and the Law on Credit Institutions govern this sector. The Top state leader likewise gave Choice 316 since Walk 9, 2021, permitting the utilization of versatile cash to pay for labor and products of little worth. This is the legal basis for Fintech companies that offer digital payment services and for customers to use this method. Applications of fintech include asset management, peer-to-peer lending, and crypto currencies, all of which are not yet clearly regulated in Vietnam.

Due to the significance of establishing legal guidelines for Fintech, Official Dispatch No. 2433/VPCP-KTTH dated August 31, 2021 of the Public authority Office coordinated: “The State Bank of Vietnam chairs and coordinates with relevant agencies to continue studying and concretizing regulations on the pilot mechanism of P2P lending in the process of developing and finalizing the draft Decree on a controlled trial mechanism. Control (Regulatory Sandbox) financial technology activities in the banking sector, report to competent authorities for consideration and decision in accordance with the provisions of the Law on Promulgation of Legal Documents”.

Resolution No. was published by the government on September 6, 2021. 100/NQ-CP supporting the proposition to plan a Pronouncement on a system for controlled testing of Fintech exercises in the field of the financial area. After conducting research, the Draft Decree on the controlled trial mechanism for Fintech activities in the banking sector was published by the State Bank of Vietnam in April 2022. This draft is currently at the phase of looking for public remark and has not been endorsed. The development of the draft denotes another move toward Vietnam's lawful system for Fintech, establishing a strong starting point for the later birth of the Declaration.

The Decree on Controlled Trial Mechanism for Fintech in the banking sector will be officially issued by the government in the event that the Draft is approved. Credit institutions and financial technology companies will be able to test Fintech technology in a controlled manner as a result of this Decree. They can survey the adequacy and potential dangers while utilizing Fintech arrangements. The experiment's findings can be used to identify problems that need to be addressed in order for the legislature to pass legislation to regulate Fintech in the banking sector. If this is the case, banking will be a ground-breaking industry that will inspire Fintech regulations in other areas.

Despite the solid and quick improvement of web and its application, having a different lawful system for Fintech in Vietnam in the future is normal. Fintech lawyers in Vietnam who are interested in Fintech could also contribute by commenting on draft laws and providing clients with advice based on real-world examples. It goes without saying that the technology sector is home to some of the most successful businesses in the world. Fintech is the startup with the fastest growth rate among them. The sooner legitimate system of Fintech can be given, the better for Vietnam to gobble up amazing chances to draw in venture and find the world.

Our Fintech, banking legal counselors at Insect Legal Advisors - a law office in Vietnam will continuously circle back to the improvement of the legitimate system in Fintech in Vietnam to give updates to clients.

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How an International Organization Could Set up Branch Office in Vietnam?

How an International Organization Could Set up Branch Office in Vietnam?

An unfamiliar business substance or an unfamiliar dealer is permitted to set up a branch office in Vietnam to direct business exercises.

A branch in Vietnam is distinct from a representative office in that it is granted the authority to carry out business activities and generate revenue. While a foreign-owned company established in Vietnam exists independently, a branch is dependent on the foreign business entity that established the branch. The establishment of a branch office in Vietnam will be approved by the Vietnam Department of Industry and Trade, and the Vietnam Ministry of Planning and Investment will be the state agency in charge of coordinating company formation in Vietnam.

In particular, the term "Branch" refers to a subsidiary unit of a foreign business entity that has been established in accordance with Vietnamese law to be able to enter into contracts and engage in the purchase and sale of goods and other commercial activities in accordance with its license for establishment granted in accordance with Vietnamese law and any international treaty to which the Socialist Republic of Vietnam belongs.

The establishment license must be applied for and obtained by the Branch; and have a seal with the branch's name on it.

1. Rights of the Branch in Vietnam

-To rent offices and to lease or purchase the equipment and facilities necessary for the operation of the branch.

-To recruit Vietnamese and foreign employees to work for the branch in accordance with the law of Vietnam.

-To enter into contracts in Vietnam in accordance with the activities stated in the license for establishment of such branch and in accordance with the Vietnam Law.

-To open Vietnamese dong and foreign currency accounts at banks which are licensed to operate in Vietnam.

-To remit profits abroad in accordance with the law of Vietnam.

-To have a seal bearing the name of the branch in accordance with the law of Vietnam.

-To conduct activities being the purchase and sale of goods and other commercial activities consistent with its license for establishment in accordance with the law of Vietnam and any international treaty to which the Socialist Republic of Vietnam is a member.

2. Requested Conditions to Set Up a Branch Office in Vietnam

An unfamiliar organization which has viability business exercises will be permitted to open branch office in Vietnam in the event that this organization has genuine interest to open the market in Vietnam and meet a few circumstances as underneath:

-Being a trader recognized by the law of the country where it has been lawfully established or made its business registration;

-Having been operating for at least five years after its lawful establishment or business registration.

3. Issuance the Certificate of Branch:

The Department of Industry and Trade Department will carry out the issuance of the Certificate of Branch once the foreign company satisfies all Vietnam legal requirements.

The responsible period will be inside 20 working-days after the date of presenting the full substantial records as mentioned.

 

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How to Protect Copyright in Vietnam?

How to Protect Copyright in Vietnam?

Copyright refers to an individual or organization's rights to a work that they created or own, as defined by Vietnam's Intellectual Property Law. Additionally, works of literature, art, and science shall constitute the subject matter of copyright; Performances, audio and visual fixation, broadcasts, and satellite signals carrying coded programs are all eligible subjects for copyright-related rights.

However, if there is no prior prepared evidence, it is difficult to demonstrate the owner's copyright. In the event of a dispute or violation, the most crucial piece of evidence is a copyright registration. When the owner can demonstrate that the Work is covered by copyright law, the registration of the copyright will prevent infringement.

ANT Lawyers – A registering copyright services in Vietnam would like to assist you in registering and safeguarding your copyright and related rights in Vietnam in the following ways with their highly skilled staff and extensive knowledge of the intellectual property landscape in Vietnam:

Our services in copyright registration

-Provision of professional opinions and advice in relation to registration of copyright and related copyright;

-Advising, preparation, drafting, filing and prosecution of registration of copyright and related copyright;

-Provision of professional opinions and advice in relation to license and assignment of copyright and related copyright;

-Appeal and cancellation;

-Proceedings before the judicial authorities.

How to register a copyright or related rights in Vietnam?

Condition of copyright registration

If a work meets the following requirements, its owner's copyright will be registered:

-The ideas of the Work shall be presented particularly in a visible material

-The Work shall be original (Be made directly by the author without copying from any other works or people).

Required information and document

-Original Power of Attorney (POA) from the Applicant;

-Information of the author such as: Full name, Identify Card Number, Current address, permanent address; …

-Information of the Works such as: Name, the date of publication (if any), the place of Publication (if any); …

–Business registration certificate or establishment certificate (if applicant is association or organization);

-Written promise of being ownership of the work of the applicant;

-Some other specialized document with each specified aspect.

Note: The POA must be signed by the applicant or a duly authorized representative on behalf of the Applicant and no further notarization or legalization is required.

 Duration of copyright protection

-The following rights are protected forever:

-Right to give titles to their works.

-Right to attach their real names or pseudonyms to their works; to have their real names or pseudonyms acknowledged when their works are published or used.

-Right to protect the integrity of their works; and to forbid other persons to modify, edit or distort their works in whatever form, causing harm to the honor and reputation of the author.

The following rights are protected within the stipulated duration in law

-Right to make derivative works;

-Right to display their works to the public;

-Right to reproduce their works;

-Right to distribute or import the original or copies of their works;

-Right to communicate their works to the public by wireless or landline means, electronic information networks or other technical means;

-Right to lease the original or copies of cinematographic works and computer programs;

-Right to reproduce their works.

The duration of each type of work protected by the aforementioned rights will vary. The term of protection for cinematographic, photographic, stage, applied, and anonymous works, in particular, shall be fifty (50) years from the date of first publication. Other works are protected throughout the author's lifetime and for fifty (50) years after their death.

 

 

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8 Important Steps Guide to Establish Company in Vietnam

8 Important Steps Guide to Establish Company in Vietnam

It is possible for foreign investors to establish company in Vietnam. Foreign investors have the right to choose the appropriate forms of enterprise such as a limited liability company, joint stock company... with particular steps including:

Step 1: Register the investment project to establish company in Vietnam

Investors submit a registration file for an investment project to the business registration office of the province, city, or management board of an industrial, export processing, or high-tech zone for approval within 15 days (without additional time for clarification).

Step 2: Apply for Certificate of investment registration

Investors can apply for a business registration certificate in Vietnam by submitting a valid record to the Department of Planning and Investment within ten days of the investment project's approval.

Step 3: Apply for the certificate of business registration

After obtaining the business registration certificate, the investor shall submit the application for enterprise registration certificate to the enterprise registration office within 3 days.

Step 4: Publish the content of the business registration

Within 30 days of receiving the certificate of enterprise registration, the investor is required to disclose the following information about the company on the national enterprise registration portal:

i, Business lines;

ii, List of founding shareholders and shareholders being foreign investors for joint-stock companies.

Step 5: Registered business stamp

The form, quantity, and contents of the company's stamp are entirely up to the business. The following information must be displayed in the stamp's content:

-Company’s name;

-Business code.

After receiving the legal entity stamp and before using the business stamp, the enterprise must send a notice on the stamp of the enterprise to the business registration office for publication in the National Information Portal on the business registration.

Step 6: Notice of use of stamp

Investors send notices on use of stamp forms to the Investment registration agency after getting a stamp. The Investment registration agency stamps samples of businesses, branches, and representative offices for businesses, publishes the business's notice on the National Business Information Portal, and issues a receipt for the business following receipt of the record.

Step 7: Open bank account

Financial backers need to open two sorts of ledgers, to be specific the speculation capital record to get the venture sum and the exchange represent going through with everyday exchange in Vietnam.

Step 8: The post licensing procedures

For the conditional business lines:

Investors investing in conditional business lines as defined in Appendix 4 of the Investment Law 2014 are required to have professional liability insurance, a certificate of business qualification, practicing certificates, and other documentation… prior to directing business in Vietnam.

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Why Client Should Retain Real Estate Dispute Lawyers in Vietnam?

Why Client Should Retain Real Estate Dispute Lawyers in Vietnam?

Foreigners are becoming increasingly interested in investing and purchasing real estate as a result of changes in the law that are attracting foreigners to live and invest in Vietnam. However, the law regarding real estate ownership and transactions is complicated, particularly for foreigners, given that real estate is a valuable asset.

In Vietnam, the entire population owns land, with the State acting as the owner's representative and managing the land uniformly. Therefore, land users will have the right to use the land in Vietnam without private ownership. Foreigners are prohibited from owning land use rights in Vietnam under the Land Law of 2013. It only permits businesses with foreign investments to use land through leases or allocations.

According to the Law on Housing, foreigners are permitted to own homes in Vietnam even though they do not have rights to use land. Furthermore, the Law on Land Business has specific impediments for unfamiliar financial backers to direct land business in Vietnam and should meet the legitimate necessities.

To minimize risks, foreign investors investing in Vietnam who intend to use the land for business purposes, conduct real estate business in Vietnam, or simply purchase and own real estate in Vietnam should be aware of the legal provisions governing the conditions of implementation, orders, and procedures. In Vietnam, the assistance of real estate dispute lawyers will be valuable.

In Vietnam, real estate lawyers would be well-versed in the Land Law, Housing Law, Real Estate Law, and related regulations. In addition, they would have practical experience supporting real estate transactions, resolving disputes, and carrying out legal procedures in Vietnam. The real estate dispute lawyers in Vietnam could talk about the conditions for doing business in real estate and the restrictions on foreign organizations and individuals' land use rights in Vietnam. In order to better work with state agencies to obtain land use rights for businesses and individual home ownership rights, the foreigners could benefit from the assistance of lawyers upon request.

Real estate lawyers may also offer assistance with legal due diligence of the real estate in order to reduce clients' legal risk when carrying out real estate-related transactions like buying, selling, transferring, renting, and leasing. Before the developer and the people who are eligible to enter into the transaction, it is essential to evaluate the property's legal status, the owner, and whether the property is the subject of a dispute or additional government requirements. Likewise, the lawyers in Vietnam can encourage clients to draft or survey the arrangements, deal as well as the cycle to authorize the interaction to consent to the law in Vietnam.

ANT Lawyers, as a reliable law firm in Vietnam always follow up real estate dispute cases and their development to update clients on regular basis.

 

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How Does the ASEAN Dispute Resolution Mechanism Work?

How Does the ASEAN Dispute Resolution Mechanism Work?

Having an efficient means of resolving disagreements that arise between member nations has become an essential requirement as economic cooperation has grown. As a result, ASEAN has been working on a Protocol on a Dispute Settlement Mechanism since 1996. On November 20, 1996, ASEAN Economic Ministers signed the Protocol in Manila (Philippines).

Dispute Settlement Mechanism of ASEAN

The spirit of negotiation and mediation is the foundation of ASEAN's dispute resolution system. Parties to the dispute in Member States have the option to select mediation methods at any time. These structures might start or end out of the blue. The complainant took the matter to the Senior Economic Officials Meeting of ASEAN (SEOM) only after the mediation process had ended. Mediation procedures will continue to apply while the dispute is ongoing if the parties to it agree.

The matter will be referred to SEOM if the consultation does not resolve the dispute within sixty (60) days of receipt. SEOM will either form a panel or, if that is not possible, send the matter to the special rules and procedures team or another group for evaluation. However, in some instances, SEOM may decide to settle the dispute without appointing a panel if deemed necessary.

Within thirty (30) days of the panel's submission of the report, SEOM will evaluate it during its discussion and make a decision regarding the dispute. SEOM may have an additional ten (10) days to resolve a dispute in exceptional circumstances. Parties to the dispute may be represented by SEOM representatives at the meeting, but they may not vote on SEOM decisions. SEOM will decide by majority vote.

Within thirty (30) days, parties to the dispute may appeal the SEOM's decisions to the ASEAN Economic Ministers (AEM). Within thirty (30) days of receiving the appeal, AEM must issue a decision. AEM may have an additional ten (10) days to resolve the dispute in exceptional circumstances.

ANT Lawyers have Litigation and Dispute lawyers in Hanoi, Da Nang and Ho Chi Minh City that help clients dealing with dispute resolution and alternative dispute resolution in Vietnam.

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