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357 Chi Bui Linh 10190454 HRM Finalreport 409 261120020
357 Chi Bui Linh 10190454 HRM Finalreport 409 261120020
Date: 30/11/2020
Words: 1,420
INTRODUCTION
In this assignment I had a change to learn about the human resources department at Viettel
Import- Export Limited Company ( VIETTELIMEX). Limited liability company to a Member
State Trade and Export Viettel is an independent accounting unit under Military Telecom
Corporation established on 10.04.1997. The company has more than 1000 employees.
I. Question 1
According to a book of called “Human Resource Management” , 2016, there are seven main
functions of Human resources department in a company. Of all these functions, recruitment and
selection can be seen as the best practice of human resources department ( HRD) at Viettelimex.
The key purpose of human resource planning is to ensure that companies have adequate
personnel with the requisite expertise and skills to deliver the products or services needed to
meet organizational goals cost-effectively (R. L. Compton, 2010) . Recruitment and selection has
a huge role in improving working productivities. Not only brings benefit for the company but
this practice also help employees on their work. There are several sources for recruitment but
HRD have to choose the most suitable source to build a pool of talents from potential candidates
in order to create more profit for the company. Also, recruitment process of HRD increases the
overall number of applicants finding work at the lowest cost and also helps to improve the
selection process success rate by reducing the number of eligible visits (Neeraj Kumari(2013). If
it fails to locate the individuals with the appropriate qualifications, the organization will not have
any chance of success because the main goal is to attract the best employee and it is a
fundamental principle in the equal work opportunities legislation. One or more acceptable job
applicants and helps identify and prepare potential job applicants who will be the right candidate
for the job and help to strengthen the organization and individual performance of different job
strategies and for all types of job applicants in the final recruitment processes.
II. Question 2
Having an interview with Ms. Hoa from Marketing department, I found that most of employees
claim the method used for calculating salary is not really flexible in some special cases. For
instance, due to Covid-19 from February to May this year the Government decided knock- down
in 64 provinces. The government encouraged people work from home to reduce the risk of
infection from the disease. Viettelimex allowed employees to work without going to the
company( exclude staffs in Viettel store) but the salary would be reduced by 5%- 10% per
month. Some employees believed that it was not fail when they still completed the target of the
company but they paid less, it led to reducing job satisfaction and productivity of employees.
According to the research report of the society of human resource management in 2016 p.23
“Along with job security, compensation/pay has been one of the top five contributors to job
satisfaction since 2002; 63% of employees indicated that it was very important to their job
satisfaction.” The way HRD used to calculate salary for employees during pandemic had been
set as an example for lacking of flexibility in salary calculation. The HR department should take
all external factors can affect their employees into consideration when calculate salary.
III. Question 3
According to the theory of F. Lunenburg, 1987, a decision- making process includes six main
steps: identify decision, find information, give evidence, choose, take action and final step is
review and evaluate the decision. Here is a recruitment and selection process in Viettelimex:
• Step 2: HR Department has responsible for creating a recruitment plan and ensuring
quality of recruitment and selection process.
• Step 5: Candidates will be interviewed by personnel managers and BOD of the company.
• Step 6: Finish recruitment and selection process and HR Department help the company
create labor contracts.
The recruitment and selection process in Viettelimex has been followed a decision- making
process in theory. It help the company hire right people and ensure that their talent is used
efficiently and effectively to achieve organizational objectives (Mathis & Jackson, 2010). Every
step gives more information for the company to identify the most suitable employee. The
recruiting process seeks to include outstanding skills and qualifications with the best
components. The importance of the recruiting process for the Department of Human Resources is
to avoid the wrong person from being employed, which can cost the company a lot. This method
is also one of the most significant processes for human resources management and for the
business as a whole.
HRD and the company have to take employee relations and employment laws into consideration
during their recruitment and selection process. For example, in step 3 of the process when the
company raises announcements on website or branches at Viettel store for people get easier to
access. It means that everyone who meets the requirement has opportunity to recruit even
relatives of employees in the company. Also, HRD must ensure that recruitment process
followed the labor code of government such as people upper 18 years old or employee aged
between full 15 years and under 18 years must have consent of his/her at-law representative
( Article 18 chapter II, labor code 2012). This practice of HRD may create organizational climate
that employees can get involve in recruitment and selection process of the company. It improves
job satisfaction of employees and gives employers multiple perspective of recruitment.
IV. Question 4
From my perspective, there are three main problems that the company should pay more
attention:
Stepped-up workforce competition: As labor market conditions change and the demand
for professional and trained professionals expands across the world, it is increasingly
difficult for the company to recruit the best employees. This makes it more and more
important for HR to help create a positive reputation for employers. HRD should discuss
cultures implementing the fundamentals of a better place to work including corporate
social responsibility activities, consistent workplace safety and security strategies and an
overall civility and mutual confidence atmosphere. Tight competition for talent is now
affecting pay and pension programs, immigration rules, and global relocations.
Latest technical advances: generally speaking, technology has greatly influenced on the
practice of HRM, it changes the way we work. Viettelimex used KPI system to evaluate
their employees. KPIs are presented in the dashboard in a manner that provides HR with
an increased statistical viewpoint, highlighting not only the actual production rate toward
each KPI, but also the potential to construct "what-if" scenarios and exception
assessments that are highly beneficial in delivering vital information to HR to initiate
effective corrective or preventive actions) measures. According to Jen Schramm’s
research in 2016, New technologies, such as talent networks, crowdsourcing and internal
social networks, offer improved versatility and efficiency. Yet their use to sustain a
simulated workforce will continue to find it difficult for staff management and team
building.
Demographic changes: following National Assembly (NA) from 2021, the retirement age
under usual working conditions is 60 years for men and 3 months for women, and 55
years and 4 months for women. The retirement age will be increased by three months a
year for men to reach 62 in 2028 and by four months for women to reach 60 in 2035. This
article may affect HR practice to find the most suitable people to improve company
profits and productivity. Also, it can reduce job opportunities for young people without
experience. Changes in demographics can have a growing influence on certain facets of
work and HR activities.HR should have a plan to divide wok based on age appropriately
to achieve organizational objectives.
V. Question 5
From my point of view, employee relations, compensation and employment laws are three
important things when I think about Human resource management. First of all, creating good
organizational clime is really important to the employees. HR department create an equal
environment that everyone in the company has the same rights to give their personal opinion and
build better working environment, increase job satisfaction. Employment laws help employees
protect themselves when they have a labor contract with employers. Compensation such as
health insurance or overtime pay improve motivation for employees.
VI. Question 6
In workshop 1, I would like to add a question: “ what are the essential elements for the company
to have a good HR department?”
The title of WS1 is “ what is HRM? ” it only asked about the functions and way the company do
to evaluate HRD performance but we do not ask how we get a good human resources
department?. HRM has an important role in operation of the company. To achieve organizational
objectives, the company must have a good HRD with excellent employees.
CONCLUSION
By the end of this semester, I had an overview of the HR department in a company and found out
the functions and duties of a HRD.
REFERENCES
1. University of Minnesota Libraries Publishing (2016) “Human Resource Management”
2. R. L. Compton, 2010, Effective Recruitment and Selection Practices. Available at:
https://books.google.com.vn/books?
hl=vi&lr=&id=ndwp9W6TYi4C&oi=fnd&pg=PA1&dq=recruitment+and+selection+ben
efits&ots=Id0NwVBW3x&sig=lBS1H8DVlYf7GzCrMmDpwMbng4M&redir_esc=y#v=
onepage&q=recruitment%20and%20selection%20benefits&f=false
3. The Neeraj Kumari(2013) A Study of the Recruitment and Selection process: SMC
Global
4. F. Lunenburg, 1987,The decision-making process. Available at:
semanticscholar.org/paper/The-decision-making-process.-
Lunenburg/7cd2d30fe5cbec987530b93ce2584c173a5c4b09?
sort=relevance&page=2&citationRankingModelVersion=v0.2.0-0.1
5. Mathis, R. L., & Jackson, J. H. (2010). Human Resource Management (13th ed.). Ohio:
South-Western Cengage Learning.
6. Labor code, THE NATIONAL ASSEMBLY, 2012 Number: 10/2012/QH13. Available
at: http://vbpl.vn/TW/Pages/vbpqen-toanvan.aspx?ItemID=11013
7. The society of human resource management, 2016, EMPLOYEE JOB SATISFACTION
AND ENGAGEMENT-Revitalizing a Changing Workforce . Available at:
https://www.shrm.org/hr-today/trends-and-forecasting/research-and-
surveys/Documents/2016-Employee-Job-Satisfaction-and-Engagement-Report.pdf
8. Jen Schramm, 2016, The Big Issues Facing HR. available at: https://www.shrm.org/hr-
today/news/hr-magazine/0316/pages/the-big-issues-facing-hr.aspx
9. Labor code, 2019https://www.bakermckenzie.com/en/insight/publications/2019/12/new-
labor-code-of-vietnam
WORKSHOP SLIDES
WS1:
Slide 1
Slide 3
ABOUT US
Functions of HRM
• Staffing
• Development of workplace policies
• Compensation and Benefits administration
• Retention
• Training and development
• Dealing with laws affecting employment
• Worker protection
Slide 6
How does HRM help Viettelimex ?
1 2 3
The company uses KPIs (Key Performance Indicators) to evaluate their employees
• Average labor productivity: Complete > 120% of the target: 120 points + 100% completion -
<120%: each% exceeds + 1 point. 80% -100% Completion: each% fails - 2 points. + <80%: 0 points.
• Ensuring human resources for the system: in new store: 50% old, 50% new; Old store: No case
guarantee> 15 days.
Ensuring departmental staff: Enough according to the manpower, additional personnel within 15 days
from the date of shortage.
Slide 8
References
• Staffing: involves the entire hiring process from posting a job to negotiating a salary package
• Retention: involves keeping and motivating employees to stay with the organization.
Workshop 2:
Slide 2
ABOUT US
Slide 4
Recruiting techniques
Internal External
Slide 5
Internal External
Strengths • Assess candidates’ • Easy to measure and • The candidate can find out
experience compare results their strengths and
• Explain the employee • Ensure an unbiased weakness and improve
value proposition approach their performance
• Give the candidate a • It cannot be faked • It is more valid because the
positive impression of the • Cost-effective candidate is evaluated by
organization • Can be completed at many different experts
home
Slide 7
Pros:
- Time saving and cheap
- Easy to access
Cons:
- Receive unwanted applications
-> this method help the company minimize hiring cost, quick and good for diversity option, however company
might have to deal with many candidates.
71% of their survey respondents used Online recruitment to minimize hiring cost, 60% to widen the selection
pool ( CIPD, 2016)
Slide 8
Selection: 6 steps:
Determine recruitment needs -> planning -> published recruitment -> short- list -> interview -> complete.
Strengths:
- Time saving
- Minimize cost
Weaknesses:
- Don’t have training time and probationary staffs -> employees may not understand organizational
culture of company.
It only takes 2 weeks to finish all process.
All recruitment and selection don’t requite language skill of employees-> the company might be charge
for training cost or hire interpreters when needed
Slide 9
Slide 10 References
Slide 11
Presentation notes
There are two main ways a company can do recruitment and selection: Internal and External.
1. Internal: employees working in the company can rotate between departments or be promoted.
Transfer - Saving time and cost - Lack of new ideas and fresh
employees to - Reduce turnover rate in the company talent
different - Employees already know cultural of the company
department
Workshop 3:
Slide 2
ABOUT US
Slide 3
HRM PRACTICES
The best practice school argues that there is a set of universal HR processes that
lead to superior business performance. According to its proponents, there are
certain bundles of HR activities that support companies in reaching a
competitive advantage regardless of the organizational setting or
industry (Redman & Wilkinson, 2009)
2 examples of how HRM practices can benefit both company and employees in Viettelimex
• Training and development
• Organizational culture
Slide 4
Training and development
Slide 5
Organizational culture
• Creating a flat and egalitarian organization • Creating a flat and egalitarian organization
The human resource team may also come up In the company, this is expressed with
with a flexible time management policy that common canteens, company uniforms, and
will value the freedom of employees to similar sickness and holiday entitlement. Such
an egalitarian culture shows that everyone
manage their schedules. Therefore, the deserves equal respect and could help in
culture of the organization will affect how promoting the sharing of ideas.
people will function on their duties.
• Cost per hire – one of the most common metrics, this measures the cost of acquiring
new talent.
• Revenue per employee – this measures how much each employee earns your
organization, on average.
• Absence rate – by looking at how many days your employees miss work, you can help
gauge overall employee satisfaction.
• Benefit cost – a measure of what your benefits package costs per employee, which is
included in total compensation.
• Satisfaction – a more subjective measure and, therefore, more difficult to gauge, but
employee satisfaction surveys can give insight into retention efforts.
• Turnover – relatively straight-forward, this tells you how many employees leave the
organization in a given year.
• Tenure – conversely, tenure measures how long employees have stayed with the
organization.
• Turnover costs – an often surprising measure of how much it costs when you lose an
employee, including separation costs, lost productivity, new hiring costs, and new
training costs.
• Time to fill – this measures the efficiency of your human resources department’s ability
to recruit new talent to fill vacancies.
• Measure employee recruiting and turnover before versus after implementation of the
benefits package.
Every month, HM Department create an online survey to ask their employees about their
satisfaction
Slide 8
Re fe re nce s
• Redman & Wilkinson, 2009, Human Resource best practices.
• Nicki Jenns, 6th Sep 2017, How HR plays an Important role in Employee
Safety? Available at:
https://www.hrzone.com/community/blogs/nickijenns/how-hr-plays-an-
important-role-in-employee-safety [ accessed at 13th october]
HRM has responsible for making information easily accessible to those who need it.
- Firstly, open communication about strategy, financials, and operations creates a culture in which
people feel they are trusted. It truly involves employees in the business. As an additional effect, it
discourages hear-say and negative informal chatter.
- Secondly, if you want your people to share their ideas, they need to have an informed
understanding of what’s going on in the business.
Being informed about the business is also something that employees often mention as something
they find important in attitude surveys, as well as having a chance to contribute to and influence
decisions affecting their working life.
• Organizational culture
Teams provide value because they consist of people who are and think differently but are working
towards a common goal. This means that different ideas are generated to help achieve the goal.
These ideas are then processed and combined, resulting in the best ones being selected.
Workshop 4:
Slide 2
ABOUT US
Slide 3
HRM PRACTICES
The best practice school argues that there is a set of universal HR processes that
lead to superior business performance. According to its proponents, there are
certain bundles of HR activities that support companies in reaching a
competitive advantage regardless of the organizational setting or
industry (Redman & Wilkinson, 2009)
2 examples of how HRM practices can improve company profits and productivity
• Recruitment and selection
• Compensation and benefits administration
• Hiring Plan – Know your employee’s strengths and weaknesses. Establish what type of person
you need to hire so that you are constantly balancing the skills and personalities of your staff
to build a stronger team.
For employees
• When we hire the right people, employees are given adequate training and equipped with the
right tools, they can perform their jobs more effectively and become more productive.
-> HR plays a key role in the onboarding process and can take measures to ensure that new employees
suitable for this job and are ready to perform their jobs at the highest level possible.
Example: HR department have to ensure departmental staff no case guarantee >15 days from the date
of shortage
For employees
• Compensation Packages – Money, perks, and benefits are important to every employee. Offer
competitive wages that allows them to live the life they want to live.(A. Bhavani Shree, 2016)
• Rewards Programs – Give your employees an incentive to do a better job. Reward them for
their hard work. Recognize their accomplishments. Let them know they are valuable.
( jobmonkey.com)
For company
• Compensation strategy has the potential beneficial effects of enhancing workers' productivity
and by extension improving the overall organizational performance. (OBASAN, Kehinde
A,2002)
Example: In the United States, health insurance makes up a key component of benefits. Who your
employer is, determines your health care options – even down to which doctors you can see and which
medications are covered.
Slide 6
Strengths and weaknesses of Recruitment and Selection
at Viettelimex
Strengths Weaknesses
• Create a pool of talents from potential candidates for • Both recruitment and selection process don’t
the benefit of the company. (Neeraj Kumari(2013)) requite language skill of employees-> the
• Increases the total number of candidates looking for company might be charge for training cost or
work at the lowest cost and it also helps to increase
the success rate of the selection process by reducing
hire interpreters when needed.
the number of qualified visits. (Neeraj Kumari(2013)) → increase costs incurred and reduce
• The process of selecting qualified individuals to fill productivity
vacancies in the company.
→ the company will not have much chance of success if
it fails to choose the people with the necessary
qualifications because the main goal is to hire the best
person and it is a fundamental principle in equal
employment opportunities laws.
→ Time saving and higher quality applications ( use
recruitment agencies in recruitment process)
Slide 7
Strengths and weaknesses of Recruitment and Selection
for Viettelimex’s employees
Strengths Weaknesses
• One or more qualified job applicants and - Don’t have training time and probationary
helps in identifying and preparing potential staffs -> employees may not understand
job applicants who will be the appropriate organizational culture of company →
candidate for the job and in the end reduce productivity
recruitment processes help to increase the
organization and individual effectiveness of
different employment techniques and for all
types of applicants for jobs
Sales Department
The company uses KPIs (Key Performance Indicators) to evaluate their employees
• Products are sold per month : Complete > 120% of the target: 120 points + 100% completion -
<120%: each% exceeds + 1 point. 80% -100% Completion: each% fails - 2 points. + <80%: 0
points.
• Customers satisfaction: the customers of Viettel Store can rate service attitude after buying
• Every month employees from Sales department have to sit an exam about all the products in
Viettel store such as cellphones, laptops, tablet, etc.
• Peer evaluation between Sales department and others department in the company
Slide 9 References
• JobMonkey, nd,13 HR Strategies That Drive Profit For Your Company. Available
at:https://www.jobmonkey.com/employer-insights/hr-strategies-drive-profit/
• A. Bhavani Shree, Bharathi.T, Manjunath.S, 2016, A Study on Compensation and Benefits its
Influence on Employee’s Performance in Milk Industry
• The Neeraj Kumari(2013) A Study of the Recruitment and Selection process: SMC Global
• Compensation strategy has the potential beneficial effects of enhancing workers' productivity
and by extension improving the overall organizational performance. Therefore, the
significance of compensation cannot be overemphasized in an organization and is in fact a
veritable option for attracting, retaining, and motivating employees for improved
organizational productivity.
• The recruitment process aims to provide the best elements with excellent qualifications and
qualifications. The importance of the recruitment process to the Human Resources
Department is to prevent hiring the wrong person, who may cost the organization very much.
Away from the salaries and incentives offered, the process of employing an inappropriate and
effective component may cost larger losses based on the decisions and activities wrongly
practiced. Therefore, this process is one of the most important processes for managing
human resources and for the company as a whole.
Slide 11 The Neeraj Kumari(2013) study mentioned the benefits and benefits related to employment in another
way, as it was mentioned that employment helps to create a pool of talents from potential candidates
for the benefit of the organization and it also increases the total number of candidates looking for work
at the lowest cost and it also helps to increase the success rate of the selection process by reducing the
number of qualified visits One or more qualified job applicants and helps in identifying and preparing
potential job applicants who will be the appropriate candidate for the job and in the end recruitment
processes help to increase the organization and individual effectiveness of different employment
techniques and for all types of applicants for jobs
Workshop5:
Slide 2
ABOUT US
Slide 3
Slide 4
Decision- making process in theory
• Decision making is so
important and can have
such significant effects
on the operation of
organization.
Step 2: People satisfied requirement nominated by other employees or personnel managers will be
taken into consideration and have to sit an exam.
Step 3: The company considers about employee’s personal characteristics, academic level, work
experience, relationships with other employees.
Step 4: Choose.
Step 5: Gives she/ he a special situation and limited time to complete it.
Step 6: She/ he will receives feedback from superiors, subordinates then the company decides
whether to appoint she/he to the position.
The company have to call a meeting of selected plant personnel managers regularly to catch up with
the information. The HR management has responsible for creating promotion plan
- All employees in the company meeting the requirement of appointment have the right to
participate in.
→ Employers may have multiple perspectives for accurate and efficiency appointment
→Employees can feel respected and the may support decisions of the company.
Slide 7
Employee relations
Slide 8
How HR Department help the company measure employee relations
• Measure engagement across groups and teams
• Measure engagement across the organization
• Measure engagement among individuals
• Measure the institutional relationship
• Measure the vertical relationship
• Measure the horizontal relationship
The company will use organization climate survey
In 30th every month, the HR management creates a workshop to communicate with
employees.
→ The 7 Benefits of Good Employee Relationships
o Heightened Employee Loyalty
o Increased Motivation
o Fewer Chances of Workplace Conflicts
o Improves the Trust and Confidence
o Ensures a Better Workplace Culture
o Enhanced Work-life Balance Vantage Circle, 2020
o Better Employee Engagement
Slide 9 References
• Paul Blyton, Peter Turnbull, 2004, The Dynamics of Employee Relations. Available at:
https://books.google.com.vn/books?
hl=vi&lr=&id=J9QcBQAAQBAJ&oi=fnd&pg=PP1&dq=employee+relations+definition&ots=dvJ
TInGefK&sig=AtDQMziipxo4XOiXpSsoTR4tp_Y&redir_esc=y#v=onepage&q=employee
%20relations%20definition&f=false
• Jen Ciraldo, 2020, 15 Actionable Ways to Improve Your Employee Relations in 2020
• Vantage Circle, 2020, 7 Benefits of Having Strong Employee Relations in your Organization.
Available at : https://vantagecircle.com/strong-employee-relations /
• Personality affects all aspects of a person's performance, even how he reacts to situations on
the job. Not every personality is suited for every job position, so it's important to recognize
personality traits and pair employees with the duties that fit their personalities the best. This
can lead to increased productivity and job satisfaction, helping your organization to function
more efficiently. Personality can be seen as the motor which drives behavior. It's consistent
over time and across situations, and has been proven to predict our success at work over the
course of 50 or more years.
Measuring engagement across the organization helps you establish a baseline. This is the type of
measurement you're probably most familiar with. You'll benefit from a high-level overview of
strengths and opportunities. You'll also have a benchmark to measure against for different groups and
teams, as well as future engagement surveys.
Once you have company-wide engagement data, you should slice and dice it in ways that are
meaningful to your organization. Consider how your organization functions, breaking employees down
into more targeted groups like division, department, job level, or location. Identify areas where you
need to dig deeper with more targeted questions.
The right tools for the job: annual engagement survey, pulse and lifecycle surveys, feedback cycles
If you want to impact a specific group or team, you'll need to engage the individuals within it. This is
where managers become critical to the mission of engagement. You simply can't rely on surveys to
collect and analyze individual perceptions. You need your managers to keep a constant pulse on
what's happening at an individual level.
The right tools for the job: feedback, one-on-one meetings, talent review metrics, goal tracking,
recognition
This is the relationship between employees and your organization. It includes general sentiment and
perceptions on procedures and policies, goals, company vision, management, technology and
equipment, fairness, and more. It helps you understand high-level concerns that need to be
addressed.
The vertical relationship is the relationship between manager and employee—going both ways.
Employees rely on their managers for clear communication, coaching, and feedback.
Managers rely on employees to get their work done, perform well, and help build a positive reputation
for their team. Measuring this relationship will help you identify strong and struggling teams.
The horizontal relationship is the relationship among coworkers. Employees rely on their coworkers to:
Be team players
Be respectful
Be accepting
Be inclusive
Understanding what’s going on between employees and their peers will help you identify
opportunities to align and motivate teams and individuals.
Workshop 6:
Slide 2
ABOUT US
Slide 3
Decision- making process in theory
• Decision making is so
important and can have
such significant effects
on the operation of
organization.
• Step 2: HR Department has responsible for creating a recruitment plan and ensuring quality of
recruitment and selection process.
• Step 3: The company raises announcements on website of company: viettelstore; and website
vietnamworks, students from universities and put recruitment notices at viettelstore branches.
• Step 4: HR Department chooses a short-list that all people satisfy recruitment’s requirement.
• Step 5: Candidates will be interviewed by personnel managers and BOD of the company.
• Step 6: Finish recruitment and selection process and HR Department help the company create
labor contracts.
When HR Department creates recruitment plan they have to consider Article 9, 10, 11 in chapter II
LABOR CODE, Number: 10/2012/QH13 by THE NATIONAL ASSEMBLY that:
• To work for any employer in any location that is not prohibited by law.
• An employer has the right to recruit labor directly or through employment service institutions
and labor leasing institutions, to increase or reduce the number of employees according to
production and business requirements.
- In Article 4, chapter I about State policies on labor said: “To guarantee the rights and legitimate
interests of employees; to encourage agreements providing employees with conditions more
favorable than those provided by the labor law; and to adopt policies which enable employees
to purchase shares and make capital contributions for production and business development.”
→ In recruitment notices the company have to disclose necessary information about the vacancy such as
salary, compensation and administration, legal requirement.
• The age of labor have to put on priority: A labor contract must be directly entered into
between an employee and an employer before the employee is admitted. For an employee
aged between full 15 years and under 18 years, the labor contract must be entered into with
the consent of his/her at-law representative. ( Article 18 chapter II, labor code 2012)
• A labor contract must be directly entered into between an employee and an employer about
probation period wage during the probation period expiry of the probation period. ( Article
27,28,29 chapter II, labor code 2012).
• The company have to ensure health insurance, severance allowance and job-loss
allowance( Article 48,49. sector 4 chapter III labor code 2012).
• Working time and Working overtime in special cases: Normal working time must not exceed 8
hours per day or 48 hours per week. An employer may determine the working time on an
hourly, daily or weekly basis; in case of working on a weekly basis, the normal working time
must not exceed 10 hours per day and not exceed 48 hours per week. (Article 104 and 107
sector 1 chapter VII).
Slide 8 What should the company do to come into compliance with any laws they are
currently violating?
Problem: Normal working time must not exceed 8 hours per day or 48 hours per week. In some
cases the managers may require their subordinates to work overtime( 10h per day or work on
holidays, weekend)
→ Recommendation
1. Offering wage for overtime work and night work
• On normal days, at least equal to 150%;
• On weekends, at least equal to 200%;
• On public holidays and paid leave days, at least equal to 300%, excluding the wage for public
holidays and paid leave days of employees who receive daily wages.
2. Hiring more employees
Slide 9
References
• Labor code, THE NATIONAL ASSEMBLY, 2012 Number: 10/2012/QH13. Available at:
http://vbpl.vn/TW/Pages/vbpqen-toanvan.aspx?ItemID=11013
• Labor code, 2019https://www.bakermckenzie.com/en/insight/publications/2019/12/new-labor-code-of-
vietnam
• F. Lunenburg, 1987,The decision-making process. Available at: semanticscholar.org/paper/The-decision-
making-process.-
Lunenburg/7cd2d30fe5cbec987530b93ce2584c173a5c4b09?sort=relevance&page=2&citationRankingModelVer
sion=v0.2.0-0.1
2. The State, employers and the society have the responsibility to create employment and guarantee that
all people with working ability have access to employment opportunities.
1. To work for any employer in any location that is not prohibited by law.
2. To directly contact an employer or through an employment service institution in order to find a job
that meets his/her expectation, capacity, occupational qualification, and health.
An employer has the right to recruit labor directly or through employment service institutions and labor
leasing institutions, to increase or reduce the number of employees according to production and
business requirements.
Slide 11 • Employers are prohibited from employing female employees, pregnant employees, child
employees, and old employees for hazardous and hard work that may cause health problems.
Normally, the minimum working age is 15. There is no restriction on the maximum working
age. The daily working hours of senior workers (over 60 for men or over 55 for women),
however, should be reduced.
• From 1 January 2021, employees will be entitled to terminate labor contracts if the information
provided by the employer is incorrect and affects the performance of the labor contract. No
particular paperwork must be given to new employees apart from a written labor contract
( Labor code, 2019)