Labor compliance consulting for FDI firms vietnam 2026
FDI enterprises (“Foreign Direct Investment”) are enterprises with direct foreign investment capital. Thanks to the promotion and facilitation of attracting foreign investment into our country, the number of FDI enterprises in Vietnam is increasing. Therefore, the need for legal consulting services for these FDI enterprises is also increasing, especially in the field of labor law. In the article below, S4B Vietnam will introduce to our clients the HR outsourcing with social insurance compliance vietnam.
1. Overview of Labor Law
Currently in Vietnam, labor law is governed by the 2019 Labor Code No. 45/2019/QH14 issued by the National Assembly, effective from January 1, 2021, and other related laws, such as the Law on Occupational Safety and Health, and other Decrees, Resolutions, and Circulars.
Labor law is a system of legal regulations that governs labor relations between employees, apprentices, trainees, and those working without an employment relationship, as well as employers, agencies, organizations, and other individuals directly involved in labor relations. Specifically, labor law regulates the following issues:
- Labor standards: a set of minimum recognized working conditions and employment conditions within a specific scope of application;
- Rights, obligations, and responsibilities of employees, employers, employee representative organizations at the workplace, and employer representative organizations in labor relations;
- Other relations directly related to labor relations;
- State management of labor.
Labor law plays a crucial role in regulating labor relations, protecting the legitimate rights and interests of workers in general, and limiting situations of labor exploitation and abuse of power by employers against workers.
HR outsourcing with social insurance compliance vietnam
2. Legal Issues Regarding Labor Law in FDI Enterprises
2.1 Regulations on Social Insurance, Health Insurance, and Unemployment Insurance
The implementation of social insurance, health insurance, and unemployment insurance in FDI enterprises is currently receiving a great deal of attention. The State is also tightening the participation of these enterprises in insurance schemes. However, the discrepancy between the amount of salary used for social insurance contributions and the actual wages of workers remains quite significant.
FDI enterprises need to be familiar with labor law regulations when participating in mandatory social insurance to ensure the legal rights and benefits of employees, while complying with legal regulations and avoiding penalties from competent state agencies.
2.2 Wage policies, allowances and rewards
Currently, although employee documentation and record-keeping compliance vietnam 2026 has significantly improved and there is no longer a situation where enterprises impose policies and regulations on employees, most FDI enterprises have now shifted to implementing a wage and bonus mechanism, agreeing on wage policies, allowances and rewards with employees.
Therefore, FDI enterprises are currently focusing on improving their wage and bonus policies for employees, leading to an increasing demand for labor law consulting, especially regarding improving working conditions, increasing income, and supporting and caring for the health and well-being of employees.
In particular, businesses need to balance their profits with their employee wage and bonus policies to build the most appropriate wage and bonus scale.
2.3 Disputes between employees and FDI enterprises
Many FDI enterprises still fail to fulfill, or fail to fulfill, their commitments in labor contracts, violating the rights of employees, leading to labor disputes or strikes. One of the main reasons for disputes between employees and FDI enterprises is the payment of wages, bonuses, and attendance; Social insurance, foreign staff employment compliance under new laws vietnam, etc.
Resolving this dispute must be done in accordance with the law and ensure the legitimate rights and interests of the client.
Foreign staff employment compliance under new laws vietnam
3. Labor Law Consulting Services for FDI Enterprises
S4B Vietnam provides legal support and consulting services for FDI enterprises, including:
- Labor dispute resolution;
- Applying for work permits for foreigners;
- Internal document drafting services: labor contracts, probationary contracts, regulations, HR & payroll integration services for FDI vietnam, collective labor agreements, etc.;
- Registration of collective labor agreements;
- Consulting services on social insurance, health insurance, unemployment insurance, allowances, wages;
- Representing clients to carry out labor procedures and related procedures at relevant state agencies.
S4B Vietnam currently offers a diverse range of legal consulting services for Labor compliance consulting for FDI firms vietnam 2026. Depending on client needs, we can provide appropriate solutions, ensuring the protection of clients’ legal rights and interests while complying with labor laws.
In addition to case-by-case consulting services, S4B Vietnam also provides ongoing labor law consulting services to businesses, ensuring all company policies comply with regulations.
The above is information provided by S4B Vietnam regarding compliance advisory for multinational HR operations vietnam. For further details and to utilize our services, please contact S4B Vietnam for the best possible support.
>>>Read more: Staff outsourcing vietnam – Hr outsourcing service provider vietnam
S4B Vietnam
- Address: Unit 701B – 701C, Tower A, Handi Resco Towers, 521 Kim Ma Street, Giang Vo Ward, Hanoi, Vietnam
- Tel: +84 24 3974 4181
- Email: service@s4b.com.vn
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