Decisive Role of Work Permit in Resolving Labor Disputes

One of the requirements for foreigners to work in Vietnam is to be granted a work permit by the competent Vietnamese authorities (Article 151.1.(d) of the 2019 Labor Code). However, in practice, many companies do not comply with this regulation and sign labor contracts with foreign employees without valid work permits. In the event of a dispute, the issues become: “Is the labor contract with a foreign employee without a work permit valid?” and “What role does a work permit play in a labor dispute with foreign employees?” 

From both legal and practical perspectives, a work permit is the basis for determining not only the validity of a labor contract and its duration but also the related compensation which a company might incur when a dispute arises.

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