VIETNAM – New Labour Code Reduces Work Permit Validity
After several drafts and extensive discussion, Vietnam’s National Assembly ratified the country’s new Labour Code on 18 June 2012. The new Labour Code will take effect from 1 May 2013. The main impact on expatriate employees/assignees will be that the initial maximum duration of a work permit will be reduced from three years to two years.
Probably the biggest impact on expatriate employees or assignees is that the initial maximum duration of work permits will be reduced from three years to two years, meaning that it will be necessary to apply to renew, and justify the need for renewal, earlier.
The new Labour Code also makes it clear that short term assignments for under three months may not be carried out on business visitor status, although some short term technical services may still qualify as “business”.
The new Labour Code will come into force next May. We anticipate that it will be followed several new decrees and circulars to amend current regulations.
- No action currently necessary; but note that significant changes are expected to begin next year.