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Additional Regulations on Pilot Management of Labor, Salary and Bonus for Some State-owned Economic Groups and Corporations

New Order or Decree

Authors: Tran Trong Binh, Of Counsel, and Bernadette Fahy, Partner – APFL & Partners Legal Vietnam LLC

On August 23, 2023, the Vietnamese Government issued Decree No. 64/2023/ND-CP to add a provision on management of salary of Vietnam Airline Corporation (VNA) when paying salaries to Vietnamese pilots working for VNA under a labor contract. Accordingly, if after paying salary to Vietnamese pilots working for VNA under a labor contract from the realized salary fund, the salary of such Vietnamese pilots is still lower than the salary paid to their peer foreign pilots also working for VNA, then VNA shall be allowed to determine supplementary salary sources to make additional payments to Vietnamese pilots in accordance with the regime specified in this decree.

The Decree entered into force on August 23, 2023.

Amendments to Regulations on Management of Foreign Employees Working in Vietnam

New Order or Decree

Authors: Tran Trong Binh, Of Counsel, and Bernadette Fahy, Partner – APFL & Partners Legal Vietnam LLC

The Vietnamese Government issued Decree No. 70/2023/ND-CP, which is effective on September 18, 2023, to amend the rules on work permits for foreigners working in Vietnam, as follows:

• The time period for the employer’s registration with MOLISA/DOLISA to hire a foreign employee is shortened from 30 days to 15 days.
• To be considered as an expert, foreign employees must hold a university degree and have three years’ experience suitable for the job.
• The head of a branch, representative office or a business location of the enterprise is considered as an “executive.”
• Technical workers must have been trained for at least one year and have at least three years’ experience suitable for the job to which they are appointed.
• Since January 1, 2024, the employer’s notice of recruitment of Vietnamese employees for jobs intended for the recruitment of foreign employees shall be published on the website of the Ministry of Labor, War - Invalids and Social Affairs (MOLISA) or provincial job service centers for at least 15 days from the date of registration of the foreign employee demand.
• The application file for re-issuance of a work permit does not need a written acceptance of requirement to hire foreign employees.
• MOLISA will be in charge of granting work permits if the foreign employee works for the same employer in multiple provinces in Vietnam.
  

  New Regulations on Labor Regime and Specific Labor Disciplines for Airline Staff

  New Regulation or Official Guidance

  Authors: Tran Trong Binh, Of Counsel, and Bernadette Fahy, Partner – APFL & Partners Legal Vietnam LLC

  On July 17, 2023, the Ministry of Transportation issued Circular No. 23/2023/TT-BGTVT providing for the labor regime and specific labor disciplinary measures for employees working in the airline industry.

  Accordingly, in addition to various labor disciplinary measures provided by the Labor Code, airline staff may be subject to industry specific labor disciplinary measures including immediate suspension from work if they commit specific violations such as those causing incidents, accidents, threatening aviation safety, being investigated and prosecuted in criminal cases, drinking alcohol during working hours, using drugs or having positive drug test results, taking advantage of working position for smuggling and illegal transportation of people, property, goods, etc. This Circular entered into on September 1, 2023.

  Amendments to the Law on Social Insurance

  Proposed Bills or Initiatives

  Authors: Tran Trong Binh, Of Counsel, and Bernadette Fahy, Partner – APFL & Partners Legal Vietnam LLC

  The Vietnamese Ministry of Labor – War Invalids and Social Affairs has presented to the 25th session of the Standing Committee of the National Assembly on the draft amended Law on social insurance. It is proposed in the draft amended law to add, amongst others, five groups of subjects participating in compulsory social insurance including, inter alia: Business household owners (with business registration); employees doing part-time jobs (employees working on a flexible basis); cases where a labor contract is not concluded or an agreement is signed with another name rather than being called a labor contract but its contents indicate an employment relationship, salary, management and supervision of one party in accordance with the Labor Code 2019.

  Amendments to the Regulations on Management of Labor, Salary, Bonus for Employees and Managers of 100% State-owned Limited Liability Companies

  Proposed Bills or Initiatives

  Authors: Tran Trong Binh, Of Counsel, and Bernadette Fahy, Partner – APFL & Partners Legal Vietnam LLC

  The Vietnamese Ministry of Labor – War Invalids and Social Affairs is canvassing opinions of various ministries, State cooperations and groups, banks and local labor authorities on a new draft decree amending a number of rules on the management of labor, salary, and bonuses with respect to employees and managers of 100% State-owned limited liability companies.