When Labour Dispute over Bonus Issue Arise and How to Resolve?

When Labour Dispute over Bonus Issue Arise and How to Resolve?

According to the provisions the Labor Code, the bonus, also known as the “other supplement”, is one of the main contents of the Labor Contract. Specifically, bonus is understood as a sum of money paid by an employer to the employees on the basis of annual business results and the level of work performance of employees. When the dispute arises, the employer or the employee could consult with labour dispute lawyers in Vietnam to handle the matter effectively.

Related post: How to Resolve Disputes in Labour in Vietnam?

Bonus regulations of each company must be decided and publicly announced by the employer at the workplace after consultation with the representative organization of the grassroots-level employees’ collective. However, there are companies that do not specify bonus regulations or companies with unclear bonus regulations referring to such generally as “based on capability”, or “based on work results” without referring to specific key performance indicator (KPI). Such regulations will easily cause labor disputes. In most of the case, the employee would face disadvantage because the employer will be the one whom make the final decision on whether or not the capability or work results are satisfied.

A labor dispute means a dispute over rights, obligations and interests among the parties during the establishment, execution or termination of labor relation; a dispute between the representative organizations of employees; a dispute over a relationship that is directly relevant to the labor relation. Labor disputes over bonuses can be individual labor disputes or collective labor disputes. The competence authority to settle labor disputes belongs to the Labor Mediator, the Labor Arbitration Council, and the People’s Court. Normally, individual labor disputes or collective labor disputes must go through the mediation procedure of the labor mediator before referring to the court to settle, unless otherwise provided for by law.

For individual disputes, in case the conciliation is unsuccessful or either party fails to implement the agreements in the minutes of successful conciliation or the settlement time limit expires but if the labour conciliator fails to conduct conciliation, each disputing party has the right to request a court or arbitration council for settlement.

For collective disputes over bonuses, in case the conciliation is unsuccessful or one of the two parties fails to implement the agreements in the minutes of successful conciliation, the parties have the right to request the President of the district-level People’s Committee to resolve the dispute. If the parties disagree with the decision of the President of the People’s Committee of the district or beyond the time limit but the President of the People’s Committee of the district does not settle, the parties have the right to request the Court to settle. In such situation, a litigation lawyer would be engaged to assist for productive result. 

ANT Lawyers – A law firm in Vietnam, always follow up the labour matters to update clients on regular basis.

 Source ANT Lawyers : https://antlawyers.vn/library/when-labour-dispute-over-bonus-issue-arise-and-how-to-resolve.html

Read More

Languages in Arbitration Proceedings in Vietnam

What are Languages in Arbitration Proceedings in Vietnam?

Article 10 of the Vietnam Law on Commercial Arbitration says that if both parties are Vietnamese, the language used in arbitration proceedings to settle a dispute is Vietnamese, or a language agreed upon by both parties if one of them is a foreign-owned business. Specifically:

Except for disputes in which at least one party is a foreign-invested enterprise, the language of arbitration is Vietnamese for disputes with no foreign component. A dispute party may employ an interpreter if it is unable to speak Vietnamese.

For questions including unfamiliar components or debates to which no less than one party is an unfamiliar contributed undertaking, the gatherings will agree on the language to be utilized in arbitral procedures. The arbitration council will decide on the language to be used in arbitration proceedings if they do not have such an agreement.

Arbitration lawyers in Vietnam can also help clients with a variety of issues, such as choosing an arbitrator, choosing the rules for the arbitration, choosing an ad hoc or institutional arbitration, choosing a location for the arbitration, and getting an arbitral award enforced.

Read More

What are the Arbitration Principles of Dispute Resolution?

What are the Arbitration Principles of Dispute Resolution?

Arbitration, mediation, negotiation, and litigation are all methods of dispute resolution. For disputes to be resolved, a law firm in Vietnam needs dispute lawyers who have the expertise and experience necessary to resolve complex cross-border, commercial, and civil disputes.

\

The following principles must be followed when settling a dispute in arbitration, according to Article 4 of the Vietnam Law on Commercial Arbitration:

If the parties' agreement does not violate social ethics or prohibitions, arbitration lawyers must respect it.

Arbitrators must be independent, objective and impartial and shall observe law.

Parties in dispute have the same rights and responsibilities. The arbitration council is responsible for establishing the conditions necessary for disputing parties to exercise their rights and fulfill their responsibilities.

Dispute settlement by arbitration shall be conducted in private, unless otherwise agreed by the parties.

The arbitral awards are final.

Discretion has turned into a very famous technique for question goal, as numerous organizations lean toward it over the significant expenses of prosecution.

Arbitration lawyers in Vietnam may also be able to assist clients with a variety of issues, including choosing an arbitrator, choosing the rules for the arbitration, selecting an ad hoc or institutional arbitration, selecting a location for the arbitration, and obtaining the enforcement of the arbitral award.

Read More

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.

Read More