Vietnam

A new Labour Code came into effect in May 2013.  The new Code followed several years of preparation and intense public discussion. The changes reflected changes in the employment market in recent years and in society generally. The old Code had not been handling these changes well, resulting in high levels of disputes.

The new Code introduces for the first time regulation of manpower outsourcing, including the requirement that manpower outsourcing service providers be licensed. The Code also places limits on the terms of outsourcing contracts.

In a useful development for global employers, where the employment involves technology or business secrets the new Code permits the employer to negotiate contract terms with the employee to protect those secrets and establishes the right to compensation if breaches occur.