How to Terminate the Employment Contracts Due to Economic Reasons?

Termination of a labor contract is an event that terminates the employment relationship between the employee and the employer.  This event might lead to labour disputes.  The employer and the employee could consult with lawyers at an employment dispute law firm in Vietnam for advice and representation.

What cases of labour contract termination in Vietnam?

In particular, there are many cases of termination of labour contracts such as the labour contract expires, the work stated in the labour contract has been completed, both parties agree to terminate the labour contract, the employer lays off the employee due to structural or technological changes or because of economic reasons, merger, consolidation or division of the enterprise or cooperative,…

Steps taken to terminate labour contract due to economic reasons 

In case more than one employee faces the risk of unemployment for economic reasons, the employer shall propose and implement a labor utilization plan in accordance with labour code.

Specifically, the labor utilization plan must contain the following main contents: list and number of employees who continue to be employed, employees sent for re-training to continue using; list and number of retired employees; list and number of employees transferred to work part-time; employees must terminate labor contracts and measures and financial sources to ensure the implementation of the plan.

In case the employer cannot employ and have to dismiss employees, the employer shall pay job-loss allowances to the employees. Accordingly, the employer shall pay a job-loss allowance to an employee who loses his/her job and has worked regularly for the employer for 12 months or longer. The job-loss allowance is equal to 1 month’s wage for each working year, but must not be lower than 2 months’ wage.

The working period used for the calculation of job-loss allowance is the total time during which the employee actually works for the employer minus the time during which the employee benefits from unemployment insurance in accordance with the Law of Social Insurance and the working period for which the employer has paid a severance allowance to the employee.

The wage used for the calculation of job-loss allowance is the average wage in accordance with the labor contract during 6 months preceding the time the employee loses his/her job.

The dismissal of more than one employee in accordance with this regulation may be implemented only after discussion with the representative organization of the grassroots-level employees’ collective and notification 30 days in advance to the provincial-level state management agency of labor.

How lawyers at an employment dispute law firm in Vietnam could help?

While implementing the procedures of termination of the labour contract due to economic reasons, there are potential disputes arisen between the employer and the employee.  The conflict might be resulted from many issues i.e. the unpaid amount of salary, amount of allowances, the time duration to calculate the amount…

Such conflict might make the process of following the procedure to submit the labour utilization plan at the state authorities.  Hence, it is important for the employer to consult with dispute lawyers specializing in labour matters at an employment dispute law firm in Vietnam for the avoidance of potential dispute with the employee, cause negative social impact when deciding to terminate contract due to economic reasons, and at the same time complying with the procedures of implementing labour utilization plan submitted and approved by the labour related authorities while doing business in Vietnam. 

 Cre:https://lawyersindanangvietnam.blogspot.com/2023/12/how-to-terminate-employment-contracts.html

Why employee background check is important?

Risk of wrong hiring without employee background check in Vietnam

It has been increasingly important for employer to understand about the employee through employee background check in Vietnam to reduce potential hiring risks.

The risk of wrong hiring could be accessing the wrong talent, exposure to criminal activities, legal issues, reputation matters that impact the business, workforce or customers.

It is understandable that if applicants are dishonest in how they obtained a job, they may be dishonest once they have the job.  This could not be found out during the interview.

Hence, it is important to consider investment in background screening service to minimize the risks associated with workplace violence, lost customers, negligent hiring lawsuits, identity theft and fraud, embezzlement, data breaches, and high turnover.

How to undertake employee background check in Vietnam?

The pre-employment screening by verification and validation of the information and documents provided by the potential candidates could cover the following matters.

Government-issued identification document.  The candidate will provide one or more identification (ID) documents i.e. a photo ID card or passport. The employee background screening firm is asked to verify that the ID document provided by the candidate is valid.

Criminal record check. This information cannot be provided by the candidate. This record check will likely be obtained directly from Provincial Department of Justice, and possibly other local or national law enforcement organizations.  With the authorization of the application, such criminal record could be obtain by background check company.

Employment history.  The candidate will provide the name and location for his or her previous employers for a number of years.  The background screening  firm is asked to verify that the candidate actually worked for the previous employers listed.

Education history.  The candidate will provide a copy of the highest degree or certificate of completion issued by the educational institution i.e. university, industrial training academy.  The background check service company is asked to verify that the degree, certificate was actually issued by the institution to the candidate. The candidate may be asked to provide official transcripts from the educational institution in lieu of, or in addition to, the copy of a degree, certification in order to assist in the verification process.

Professional accreditation. If a candidate claims to have a professional accreditation or certificate, the candidate should also provide a copy of this to verify.

Managerial position.  This information, a search of government records cannot be provided by the candidate. This record check will be obtained directly from Business Registration Office by employee background check service.

Risk management consulting company helps employee background check in Vietnam

If a person passes a background check, it does not mean such hiring would not encounter issues in the future but it is important to have as much information about applicants being verified to warn the risks if found before making hiring decisions to reduce the potential risks to the employer and its workforce, customers.

Why employee background check is important?

It has been increasingly important for employer to understand about the employee through employee background check to reduce potential hiring risks.

The risk of wrong hiring could be accessing the wrong talent, exposure to criminal activities, legal issues, reputation matters that impact the business, workforce or customers.

It is understandable that if applicants are dishonest in how they obtained a job, they may be dishonest once they have the job. This could not be found out during the interview.

Hence, it is important to consider investment in background screening service to minimize the risks associated with workplace violence, lost customers, negligent hiring lawsuits, identity theft and fraud, embezzlement, data breaches, and high turnover.

The pre-employment screening by verification and validation of the information and documents provided by the potential candidates could cover the following matters.

Government-issued identification document. The candidate will provide one or more identification (ID) documents i.e. a photo ID card or passport. The employee background screening firm is asked to verify that the ID document provided by the candidate is valid.

Criminal record check. This information cannot be provided by the candidate. This record check will likely be obtained directly from Provincial Department of Justice, and possibly other local or national law enforcement organizations. With the authorization of the application, such criminal record could be obtain by background check company.

Employment history. The candidate will provide the name and location for his or her previous employers for a number of years. The background screening firm is asked to verify that the candidate actually worked for the previous employers listed.

Education history. The candidate will provide a copy of the highest degree or certificate of completion issued by the educational institution i.e. university, industrial training academy. The background check service company is asked to verify that the degree, certificate was actually issued by the institution to the candidate. The candidate may be asked to provide official transcripts from the educational institution in lieu of, or in addition to, the copy of a degree, certification in order to assist in the verification process.

Professional accreditation. If a candidate claims to have a professional accreditation or certificate, the candidate should also provide a copy of this to verify.

Managerial position. This information, a search of government records cannot be provided by the candidate. This record check will be obtained directly from Business Registration Office by employee background check service

If a person passes a background check, it does not mean such hiring would not encounter issues in the future but it is important to have as much information about applicants being verified to warn the risks if found before making hiring decisions to reduce the potential risks to the employer and its workforce, customers.

Cre:https://www.antconsult.vn/news/why-employee-background-check-is-important.html