Decree 75/2014/ND-CP (“Decree 75”) on the recruitment and management of Vietnamese employees working for foreign organisations and individuals in Vietnam was issued on 28 July to replace Decree 85/1998/ND-CP dated 20 October 1998 (“Decree 85”) (as amended by Decree 46/1999/ND-CP dated 1 July 1999 and Decree 75/2001/ND-CP dated 19 October 2001).

This new Decree is one of the many regulations spawned by the enactment of the new Labour Code.

Decree 75 retains the main thrust of Decree 85 on recruiting and signing labour contracts with Vietnamese employees working for various foreign entities e.g. the representative offices of foreign companies, non-governmental organisations, embassies and consulates general.

Decree 75 is not applicable to foreign-owned companies here.

The above mentioned foreign entities must not directly recruit Vietnamese employees, but instead recruit them through organisations set up for this purpose, including: (i) Organisations appointed or authorised by the Ministry of Foreign Affairs; and (ii) Employment service centres established under the decision of theMinister of Labour, War Invalids and Social Affairs or the Chairman of a provincial People’s Committee such as FOSCO in Ho Chi Minh City (“authorised organisations”).

Within 15 working days, if the said authorised organisations are unable to recruit a suitable Vietnamese employee, the foreign entities can directly recruit Vietnamese employees. However, in such case, within seven working days of signing the labour contract with such Vietnamese employee, the foreign entity must inform the authorised organisation in writing and enclose a copy of the signed labour contract.

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