In all successful businesses in Vietnam, the key relies on recruiting the right person for the right role. Every year, 1.5 million young members of the workforce enter the job market. While there are definitely potential employees who are both talented and resilient, when it comes to employment in Vietnam, there are certain things employers need to be aware of, such as legal compliance and recruitment regulations.
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In this article, we asked our HR expert at Cekindo to inform you of the 7 common questions asked by employers in Vietnam. Read on.
Employment in Vietnam: Frequently Asked Questions
Is there a difference between hiring a full-time employee and an independent contractor? If yes, what is the difference?
Yes, there is. In general, independent contractors usually decide the way they operate based on their schedule. Companies hire them on a project-to-project basis and they often bring their own materials to work on the projects.
Perhaps, the biggest difference for hiring independent contractors is that it is not necessary for you to pay for the social security, medical insurance and unemployment taxes as an employer.
At the end of the day, it depends on how often you will require the job to be performed, and what taxes you are responsible for.
What are the requirements for recruiting foreigners in Vietnam?
For employers who wish to hire foreigners to work in Vietnam, foreigners must apply for some permits or visas, such as a work permit, residency permit or business visa, to work and stay legally in Vietnam.
What are work permit, business visa and residency permit?
Foreign nationals who wish to work in Vietnam for more than three months are required to obtain a work permit. It is a permit with a maximum of 12-month validity and can be renewed.
When a foreigner works in Vietnam for no more than 3 months, he or she only needs a business visa. A work permit is then unnecessary. A sponsorship letter is required for the application for a business visa.
Last but not least, a residency visa is for foreigners to stay in Vietnam while they are employed. How long the work permit is will determine the validity of the residency permit.
Related article: Insider Tips on Foreign Employment in Vietnam
What is an employment contract in Vietnam?
An employment contract is an agreement between an employee and an employer that details each party’s obligations and rights. An employment contract is often in written form. The purpose of an employment contract is to minimise the risks of employers and employees, and thus preventing disputes in the future.
What shall be included in an employment contract?
Beyond just the salary and the start date of new employment, there are many items to consider and to be included in an employment contract. The nature of your business may also require you to have a confidentiality agreement under the employment contract to protect your company’s information.
In addition, it may be of both parties’ advantage to lay out all employee benefits such as annual paid leaves, health benefits, sick leaves, maternity leaves, company email policy, etc. Having everything in writing at a very early stage can help avoid troubling issues in the long run.
What are the requirements for the work permit application?
You need the following documents to apply for a work permit:
- A legalized copy of the employee’s passport
- Medical certificate
- Verified work experience certificate (verification is done by the employer)
- Latest criminal record not older than six months
Are there certain questions that an employer shouldn’t ask during an interview?
While Cekindo encourages employers to use an interview session to find out all you need to know of your prospective new hire, there are, in fact, something you cannot ask. Asking those questions is a legal offence to employee’s privacy rights. For instance, you should not pry anything involving residency status, race, family status, religion, age, mental and physical health etc.
Successful Recruitment and Employment in Vietnam with Cekindo
Through outsourcing service from a third-party provider like Cekindo, you can ensure a seamless process of searching for ideal candidates.
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