Entering Vietnam's Market Quickly and Compliantly with PEO/EORIn this episode, you will understand how a PEO or EOR can help your business to expand into Vietnam in a more cost-effective and compliant way.
How Does a POE/EOR Work in Vietnam?It involves a co-employment relationship between the PEO/EOR and your company. In this regard, the PEO/EOR will service your company in areas like HR consulting, payroll processing, employee benefits administration and labour law compliance management. On the other hand, your company retains control over its core business and maintains management rights.
AYP Group's Scope of PEO/EOR ServicesThe following are key HR functions we can manage on behalf of your business:
- Drafting and maintenance of employment contracts
- Providing insurance coverage for your employees and their dependents
- Processing of payroll, salary and statutory contributions
- Aligning your business in compliance to Vietnam's labour laws
- Supporting your business in day to day HR operations
Understanding Vietnam's Contract Types, Labour Laws and Employee BenefitsFor detailed explanations and elaborations on the mentioned terms, you may refer to the Webinar recording that has been uploaded on YouTube: https://youtu.be/OpKoVgg8OfI
1. Contract TypesIn Vietnam, there are two types of contracts:
- Indefinite term
- Fixed term
2. Labour LawsCurrently, the main law regulating employment relationships in Vietnam is the 2012 Labour Code. It provides the legal options of probation, indefinite and definite labour contracts. The new Labour Code that was passed in 2019 will not take effect until 1 January 202.
Employee BenefitsThe main employee benefits include the following:
- Medical reimbursements
- Statutory contributions
- Leave entitlement (annual, childcare, maternity etc.)
- Severance compensation