PRINCIPLE RESPONSIBILITIES

Reported:

Nguyen Thi Ha Thanh

Legal Department

RESPONSIBILITIES

Ensure that company’s policy and procedures are reviewed and revised regularly to keep up date with changes in the business environment and legal system of Vietnam.

Ensure that legal frameworks and current policies promulgated by the Government are kept updated regularly and in time.

Be responsible for overseeing and managing compliance issues to ensure that the company and its employees are fully compliant with current laws, regulations, internal policies and procedures.

LEGAL DEPARTMENT’S ACTIVITIES

Revise and review new life insurance products (Terms & Conditions). Provide legal consultancy and advices to Board of Directors, department managers and staff. Check and review all kinds of business contracts signed between company and Clients/partners. Give suggestion to Government regarding current laws and draft laws.

LEGAL DEPARTMENT’S ACTIVITIES

Design and implement policies and procedures of legal compliance to prevent the company and its business from any potential risk. Update related departments and employees with new laws, regulations, legal frameworks and policies promulgated by the Government. Work with Governmental organizations about Legal and Compliance issues. Other tasks as assigned by Boards of Director.

INTERNAL REGULATION

- All contracts must be checked by legal dept.

- Other dept. can ask for an advice on legal sector by email or form (Request for legal advice form) in which state clearly the requirement, deadline, extension number.

- All request should be sent to all members of legal department.

LABOR CONTRACT

Reported:

Nguyen Thi Ha Thanh

Legal Department

LEGAL FOUNDATION

Chapter II of Labor Code – Employment

Chapter IV of Labor Code – Labor contract

Decree No. 39/2003/ND-CP dated 18/04/2003

Decree No. 44/2003/ND-CP dated 09/05/2003

Circular No. 20/2003/TT-BLDTBXH dated 22/09/2003 guiding some Articles of Decree No. 39/2003/ND-CP on recruitment

Circular No. 21/2003/TT-BLDTBXH dated 22/09/2003 guiding some Articles of Decree No. 44/2003/ND-CP

OUTLINE

1. Definition2. Form of labor contract3. Terms & Conditions of

labor contract

4. Performance of labor contract

5. Termination of labor contract

6. Responsibility of employer and employee

1. Definition

A labor contract is an agreement between the employee and the employer specifying remunerated employment, conditions of work and the rights and obligations of each party in the labor relationship.

(Article 26 of Labor Code)

2. Form of labor contract

b. Based on form of labor contract• In written• In verbal

a. Based on term of performance •A contract with an indefinite term.•A contract with a definite term•A contract for seasonal work or a specific task with a term of less than 12 months

(Article 27 of Labor Code)

3. Terms & Conditions

Terms & conditions of labor contract will be agreed between two parties and recorded in labor contract, however a labor contract must include the following main provisions:

• the nature of work,• time of work, time of rest,• the amount of pay,• the place of work,• the duration of the contract,• conditions regarding occupational safety and hygienic• and social insurance(Article 29 of Labor Code)

4. Implementation

The parties are responsible for performance the terms & conditions of labor contract. There are some issues raised during performance of labor contract

4.1 Probation4.2 The effective date of labor contract4.3 In cases where an enterprise mergers, unifies, divides, separates or

transfers the ownership, the right to management, or to the use of property of the enterprise

4.4 Modify the content of labor contract4.5 Temporarily transfer an employee to another work different from the

latter's Occupation4.6 Temporary suspension of implementation of labor contract4.7 Reinstatement of implementation of labor contract

5. Termination

5.1 Natural terminationa. The contract expires;b. The tasks stated in the contract have been completed;c. Both parties agree to terminate the contract;d. The employee is sentenced to imprisonment or is prohibited from

resuming the former employment in accordance with a decision of the Court;

e. The employee dies or is declared missing by the Court( Article 36 of Labor Code)5.2 Unilateral terminationa. Unilateral termination of employeeb. Unilateral termination of employer

5.2 Unilateral termination of employee

Condition

Form of labor contract

Indefinite term Definite termTerm of less than 12 months or seasonal

work

Reasonno Based on the Article 37.1 of Labor Code

and the Article 11.1 of Decree 44/2003/ND-CP

Notice

At least 45 daysIn case the employee is ill or victim of an accident and having received treatment for 6 consecutive months: at least 3 days

At least 30 days, except the Article 37.1.a,b,c,g: at least 3 days

At least 3 days

5.2 Unilateral termination of employer

Condition

Form of labor contract

Indefinite term Definite termTerm of less than 12 months or

seasonal work

Reason

Based on the Article 38.1 of Labor Code:a) The employee regularly fails to fulfill the task assigned by contract;b) An employee is disciplined and dismissed according to the provisions of Article 85 of this Code;c) An employee is ill and no recovery of working ability is in sight after having received treatment for 12 consecutive months in respect of a labor contract with an indefinite term, or for 6 consecutive months in respect of a contract with a definite term of full 12 months to 36 months, or for more than half the duration of the contract in respect of a contract for seasonal work or a specific task of less than 12 months. Upon the recovery of the employee, the consideration shall be given to resuming the labor contract;d) In case of natural disasters, fire or other cases of force majeure defined by theGovernment, when the employer has made every effort to overcome difficulties but is nevertheless compelled to make cuts in production and workforce;e) The enterprise, body or organization ceases activities.

Notice

At least 45 daysIn case the employee is disciplined and dismissed: none

At least 30 daysIn case the employee is disciplined and dismissed: none

At least 3 daysIn case the employee is disciplined and dismissed: none

5.2 Unilateral termination

The employer shall not unilaterally terminate a labor contract in the following cases:

1. The employee is under treatment or care as prescribed by doctors for sickness, work accident or occupational disease, except the cases stipulated in sub clause c and e of clause I of Article 38 of this Code;

2. The employee is on annual leave, personal leave of absence, or any other type of leave permitted by the employer;

3. The female employee in cases referred to in clause 3 Article 111 of this Code

(The Article 39 of Labor Code)

5.3 Termination of labor contract due to be re-disposed

• Where, as a result of structural or technological changes, an employee who has been regularly employed in the business for more than 12 months becomes unemployed, the employer shall have the responsibility to re-train him for continued employment in new jobs; if no new jobs are available and employment has to be terminated, the employer must pay an allowance for loss of work equivalent to the aggregate amount of one month's salary for each year of employment but no less than two months salary

(The Article 17 of Labor Code)• In cases where an enterprise mergers, unifies, divides, separates or transfers

the ownership, the right to management, or to the use of property of the enterprise, the new employer shall be responsible for the continued implementation of the contract entered into with the employees. In the case of insufficient employment for all existing employees, there shall be a proposal on appropriate measures for the utilization of the labor force in accordance with the provisions of the law.

(The Article 31 of Labor Code)

6 Responsibility of employee & employer

• 6.1 Termination of labor contract under the Labor Code

• 6.2 Termination of labor contract which is infringement of the Labor Code

6.1 Termination of labor contract under the Labor Code:

Within seven days from the date of termination of the labor contract, the two parties are responsible for settling all questions relating to the rights and interests of each party. In exceptional circumstances, this period may be extended but is not exceed 30 days.

(The Article 43 of Labor Code)

6 Responsibility of employee & employer

6 Responsibility of employee & employer

6.2 Termination of labor contract which is infringement of the Labor Code:

• When unilaterally terminating a labor contract in infringement of the law, the worker is not entitled to the above mentioned severance allowance and shall pay the employer a compensation equal to the amount of a half of his/her monthly wage rate plus salary allowance, if any.

• When unilaterally terminating a labor contract in infringement of the law, the employer must re-employ the employee to the work as agreed upon in the contract and pay a compensation equal to the amount of wage and additional payment to wage (if any), corresponding to the period the worker was not allowed to work, and an addition of at least two month wages plus allowances

(The Article 41 of Labor Code)