Page 11 - VSIP E-Newsletter Q_1_2012

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VSIP Binh Duong:
Tel: 84-650-3743 898
Fax: 84-650-3743 430
VSIP Bac Ninh:
Tel: 84-241-3765 668
Fax 84-241-3765 666
The Leading Township & Industrial Park Developer in Vietnam
VSIP Hai Phong:
Tel: 84-31-3959 868
Fax: 84-31-3959 886
VSIP Quang Ngai:
Tel: 84-650-3743 898
Fax: 84-650-3743 430
Contents of the ILRs
ILRs typically include provisions relating to:
(i) Working hours and rest breaks;
(ii) Rules and regulations applicable in the workplace;
(iii) Occupational safety and hygiene in the workplace;
(iv) Protection of assets and confidentiality of the technology and business secrets of the employer;
(v) Conducts which are in breach of the employee’s duties, as well as the penalties imposed for such
breaches; and
(vi) Liability in case of damage.
The process of registration and approval of ILRs is regarded as time consuming and challenging,
especially in circumstances when the employer incorporates into the ILRs provisions or policies from a
parent company, such as provisions relating to business ethics, non-entitlement of overtime payment
for senior or managerial positions and immediate dismissal, etc. The Labor Authority generally
carefully reviews the provisions of the ILRs and requests clarifications and sometimes amendments if
the Labor Authority is of the opinion that the provisions are contrary to the Vietnamese labor
regulations. Hence the employer may need to compromise and negotiate the extent of some of its
proposed policies in the event that these are to found incompatible with the Vietnamese labor
regulations by the Labor Authority.
Once the ILRs are registered, the employer may amend the ILRs but the employer must first discuss
the proposed changes with the trade union (if any) and then re-register the amended ILRs with the
Labor Authority.
We strongly recommend that companies contemplating establishing operations in Vietnam customize
ILRs which are compatible to the business activities in which the company is involved, including the
inclusion of labor-related policies which form part of the company at an international level. Doing so at
an early stage will protect the company from undesirable and unexpected outcomes in a labor dispute.
Source: DFDL Legal & Tax services - 26 March 2012 -
Legal Updates