{"id":12776,"date":"2025-08-25T09:51:13","date_gmt":"2025-08-25T02:51:13","guid":{"rendered":"https:\/\/cdlaf.vn\/?p=12776"},"modified":"2025-08-25T09:57:16","modified_gmt":"2025-08-25T02:57:16","slug":"labor-regulations-are-they-truly-necessary-for-businesses-and-guidelines-for-drafting-part-1","status":"publish","type":"post","link":"https:\/\/cdlaf.vn\/en\/labor-regulations-are-they-truly-necessary-for-businesses-and-guidelines-for-drafting-part-1\/","title":{"rendered":"Labor Regulations \u2013 Are they truly necessary for Businesses and Guidelines for Drafting (Part 1)"},"content":{"rendered":"<p>If the company\u2019s charter is regarded as the fundamental document governing the operation of the enterprise and the relationships among its members, shareholders, and managers, then the Internal Labor Regulations are likewise considered an indispensable instrument for ensuring employees\u2019 compliance within the enterprise. Therefore, in recent times, it can be observed that many enterprises, although falling within the cases where the issuance of Internal Labor Regulations is mandatory, have chosen to formulate such Regulations together with other internal rules, policies, and procedures from the outset of their establishment, in order to maintain compliance and in light of the requirements under the Personal Data Protection Law. To gain a clearer understanding of why the formulation of Internal Labor Regulations has become a matter of concern for enterprises, please refer to our analysis below.<\/p>\n<figure id=\"attachment_12745\" aria-describedby=\"caption-attachment-12745\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-12745\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/08\/pexels-joshuamiranda-4027658-600x400.jpg\" alt=\"\" width=\"600\" height=\"400\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/08\/pexels-joshuamiranda-4027658-600x400.jpg 600w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/08\/pexels-joshuamiranda-4027658-1200x800.jpg 1200w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/08\/pexels-joshuamiranda-4027658-768x512.jpg 768w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/08\/pexels-joshuamiranda-4027658-1536x1024.jpg 1536w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/08\/pexels-joshuamiranda-4027658-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-12745\" class=\"wp-caption-text\">Source: pexels-joshuamiranda-4027658<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #a32411;color:#a32411\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #a32411;color:#a32411\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/cdlaf.vn\/en\/labor-regulations-are-they-truly-necessary-for-businesses-and-guidelines-for-drafting-part-1\/#1_Are_internal_labor_regulations_mandatory\" >1. Are internal labor regulations mandatory?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/cdlaf.vn\/en\/labor-regulations-are-they-truly-necessary-for-businesses-and-guidelines-for-drafting-part-1\/#2_Fundamental_provisions_required_in_Internal_labor_regulations\" >2. Fundamental provisions required in Internal labor regulations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/cdlaf.vn\/en\/labor-regulations-are-they-truly-necessary-for-businesses-and-guidelines-for-drafting-part-1\/#SEND_CONSULTATION_REQUEST\" >SEND CONSULTATION REQUEST<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_Are_internal_labor_regulations_mandatory\"><\/span>1. Are internal labor regulations mandatory?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Pursuant to the provisions of labor law and the relevant implementing decrees, an enterprise is required to issue Internal Labor Regulations in writing if it employs ten or more employees. In cases where the enterprise employs ten or fewer employees, it may, at its discretion, choose whether or not to promulgate such Regulations. However, if an enterprise with fewer than ten employees does not adopt Internal Labor Regulations, the employment contracts must contain provisions on labor discipline and material liability, which shall serve as the legal basis for application in the course of labor management.<\/p>\n<p>In addition, under the provisions of labor law, an enterprise shall not be permitted to impose labor disciplinary measures in cases where the employee\u2019s misconduct is not stipulated in the Internal Labor Regulations (where such Regulations have been promulgated), or not provided for in the employment contract in cases where no Internal Labor Regulations are in place. In practice, acts of disciplinary misconduct, the extent of their impact, and the corresponding disciplinary sanctions are not uniform among employees. Rather, they vary depending on the employee\u2019s position, role, and the importance of such position, as well as the degree of damage caused to the enterprise, thereby resulting in different forms of disciplinary measures. Therefore, if such provisions are stipulated solely in the labor contract, they will not be sufficiently comprehensive, and the enterprise will be unable to establish a standardized labor contract template. Instead, it would be compelled to adjust the contractual terms regarding violations, disciplinary measures, and material liability in the individual contracts of different employees.<\/p>\n<p>In cases where the enterprise is able to exercise control over the issuance of labor contracts as well as the inclusion of the aforementioned provisions therein, and employs fewer than ten employees, the enterprise may consider postponing the promulgation and registration of internal labor regulations until it meets the statutory personnel threshold. Conversely, where management is unable to maintain such control, the formulation and registration of internal labor regulations with the competent authority becomes necessary in order to mitigate potential risks and disputes.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_Fundamental_provisions_required_in_Internal_labor_regulations\"><\/span>2. Fundamental provisions required in Internal labor regulations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Internal Labor Regulations must contain all the principal contents as prescribed by labor law, including working hours and rest periods; workplace order; occupational safety and hygiene; prevention of sexual harassment in the workplace, as well as the procedures and processes for handling acts of sexual harassment in the workplace; protection of the employer\u2019s property, business secrets, technological secrets, and intellectual property; circumstances in which the employee may be temporarily reassigned to perform work other than as stipulated in the labor contract; acts constituting violations of labor discipline and forms of disciplinary measures; material liability; and persons having authority to impose labor disciplinary measures. However, when formulating internal labor regulations, we always recommend that enterprises structure such regulations as follows in order to ensure both comprehensive applicability in practice and the inclusion of all statutory contents required for internal labor regulations, specifically:<\/p>\n<p><strong>Scope \u2013 Subjects \u2013 Definition of Terms<\/strong><\/p>\n<p>A standard labor regulation cannot be deemed complete without provisions determining its scope of application and the entities subject to its governance. The inclusion of defined terms ensures a uniform interpretation among all company personnel and guarantees compliance in line with the company\u2019s intent upon promulgation. Typical concepts requiring clarification include: conflict of interest, company assets, personal data, and confidential information. Furthermore, it is essential to specify the entities and areas to which the labor regulation applies\u2014particularly in cases where an enterprise operates multiple subsidiaries, branches, or even overseas subsidiaries\u2014to ensure clarity as to which subjects are governed by such regulation.<\/p>\n<p><strong>Working hours, rest periods, annual leave, overtime, on-call duties, and night work\u2026<\/strong><\/p>\n<p>In practice, certain companies\u2019 internal labor regulations only stipulate the daily working hours, such as the start time and end time. However, such a provision alone is insufficient, as enterprises must determine working hours and rest periods in accordance with their operational model and the nature of their workforce, ranging from office staff to production staff and field personnel. This determination also serves as the basis for establishing the wage structure. In the absence of a clear specification, enterprises may face excessive overtime, increased costs, or internal labor disputes when the company fails to clearly classify additional working hours as overtime.<\/p>\n<p>Corresponding to working hours, rest periods, annual leave, and unpaid leave are the procedures and mechanisms for approving such time off for employees in each specific case. Failure to comply with the company&#8217;s established procedures shall also be considered a violation of the labor regulations, as well as taking leave without a legitimate reason. Therefore, the labor regulations should not merely specify the time frames but must also set out the mechanisms for managing these matters.<\/p>\n<p><strong>Workplace Order, Safety, and Hygiene<\/strong><\/p>\n<p>Not merely general provisions, the labor regulations shall be based on the company\u2019s operational activities and the potential risks to occupational safety, thereby stipulating rules on workplace order, safety, and hygiene, along with the accompanying management mechanisms, such as: regulations on controlling access, bringing in assets, and transferring information outside controlled areas; regulations on personal protective equipment, including the corresponding sanctions for non-compliance; mechanisms for fire prevention and safety control at the workplace; procedures for reporting incidents; and obligations to participate in periodic training programs.<\/p>\n<p><strong>\u00a0Workplace Sexual Harassment Prevention and Control<\/strong><\/p>\n<p>This is a matter that many Vietnamese enterprises previously avoided, but it is now a mandatory legal requirement. A large enterprise cannot simply state \u201csexual harassment is prohibited.\u201d The labor regulations must: provide a clear definition and examples of prohibited conduct; establish confidential reporting channels (dedicated email, hotline, suggestion box); stipulate processing timeframes, as well as protections for victims and whistleblowers; and explicitly prohibit any acts of retaliation or discrimination.<\/p>\n<p>Currently, large enterprises place great emphasis on this issue; therefore, the provisions should not be merely formalities but must include mechanisms for immediate action to protect employees and prevent reputational damage to the enterprise caused by media exposure.<\/p>\n<p><strong>Protection of Company Property and Confidential Information<\/strong><\/p>\n<p>In the context of the digital economy, the concept of \u201ccompany property\u201d is no longer limited to factories, machinery, or raw materials. The core value of many enterprises today lies in customer data, software source code, technological secrets, business strategies, intellectual property, and personal data. Although intangible, these assets directly determine a company\u2019s competitiveness and market valuation. In practice, enterprises also have commitments to customers, partners, and governmental authorities regarding the maintenance of information confidentiality.<\/p>\n<p>Therefore, the labor regulations should not merely stipulate that \u201cemployees must protect company property and shall not disclose confidential company information.\u201d They must also specify the criteria for identifying company assets, define which information is considered confidential or requires protection, determine who is authorized to access such information, establish principles for the use and safekeeping of assets, set out data protection mechanisms, and outline prohibited conduct along with the corresponding enforcement measures. In practice, many serious disputes arise from former employees taking customer data, formulas, or pricing information to competing companies. If the labor regulations do not contain specific provisions, the enterprise virtually has no legal basis to claim compensation or impose disciplinary measures. Conversely, when the labor regulations are carefully drafted, the enterprise can demonstrate the employee\u2019s confidentiality obligations and protect its legitimate interests before courts or arbitration tribunals.<\/p>\n<p>In addition to the aforementioned content, when developing labor regulations, enterprises must also pay attention to other matters, such as temporarily assigning employees to different tasks, procedures for handling labor discipline, authority to impose sanctions, and commitments regarding employees\u2019 personal data. All these elements, when anticipated, properly drafted, communicated internally, and fully registered with the competent authorities, form a solid foundation for effective human resource management. For more detailed information on the remaining content that should be included in labor regulations, please refer to the article<strong> \u201cLabor Regulations \u2013 Are They Truly Necessary for Businesses and Guidelines for Drafting (Part 2).\u201d<\/strong><\/p>\n<p><strong><em>Time of writing:<\/em><\/strong> 19\/08\/2025<\/p>\n<p><em>The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer \u00a0at\u00a0 <a href=\"https:\/\/mail.google.com\/mail\" target=\"_blank\" rel=\"noopener\"><strong>info@cdlaf.vn<\/strong><\/a><\/em><\/p>\n<div class=\"content-post-nd\">\n<div style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5519 size-full aligncenter\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png\" alt=\"\" width=\"1080\" height=\"600\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png 1080w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-720x400.png 720w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-768x427.png 768w\" sizes=\"auto, (max-width: 1080px) 100vw, 1080px\" \/><\/div>\n<\/div>\n<div class=\"content-post-nd\">\n<p><strong>Why choose CDLAF\u2019s service?<\/strong><\/p>\n<ul class=\"li-content\">\n<li>We provide effective and comprehensive legal solutions that help you save money and maintain compliance in your business;<\/li>\n<li>We continue to monitor your legal matters even after the service is completed and update you when there are any changes in the Vietnamese legal system;<\/li>\n<li>Our system of forms and processes related to labor and personnel is continuously built and updated and will be provided as soon as the customer requests it;<\/li>\n<li>As a Vietnamese law firm, we have a thorough understanding of Vietnam&#8217;s legal regulations, and grasp the psychology of employees, employers, and working methods at competent authorities;<\/li>\n<li>CDLAF&#8217;s team of lawyers has many years of experience in the field of labor and enterprises, as well as human resources and financial advisory.<\/li>\n<li>Strict information security procedures throughout the service performance and even after the service is completed.<\/li>\n<\/ul>\n<\/div>\n<p><strong style=\"color: #a32411;\">You can refer for more information:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/procedures-for-adjustment-of-investment-project-implementation-location-and-enterprise-headquarters-in-accordance-with-the-2025-legal-provisions\/\">Procedures for adjustment of investment project implementation location and enterprise headquarters in accordance with the 2025 legal provisions<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/the-uks-approach-to-beneficial-ownership\/\">The UK\u2019s approach to beneficial ownership<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/changes-related-to-work-permits-of-foreign-employees-working-in-vietnam-2\/\">Changes related to work permits of foreign employees working in Vietnam<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/transfer-of-personal-data-abroad-is-notification-or-prior-approval-required-for-businesses\/\">Transfer of personal data abroad: Is notification or prior approval required for businesses?<\/a><\/li>\n<\/ul>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f2681-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"2681\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/en\/wp-json\/wp\/v2\/posts\/12776#wpcf7-f2681-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"2681\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.5\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f2681-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<h2 class=\"tt-form\"><span class=\"ez-toc-section\" id=\"SEND_CONSULTATION_REQUEST\"><\/span>SEND CONSULTATION REQUEST\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><label>Full name<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"full-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"text\" name=\"full-name\" \/><\/span><br \/>\n<label>Email<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"email\" name=\"email\" \/><\/span><br \/>\n<label>Phone Number<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-text wpcf7-validates-as-tel\" aria-invalid=\"false\" value=\"\" type=\"tel\" name=\"phone\" \/><\/span><br \/>\n<label>Message<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"coment\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" aria-invalid=\"false\" name=\"coment\"><\/textarea><\/span><br \/>\n<input class=\"wpcf7-form-control wpcf7-submit has-spinner btn-yellow\" type=\"submit\" value=\"Send\" \/>\n<\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>If the company\u2019s charter is regarded as the fundamental document governing the operation of the enterprise and the relationships among its members, shareholders, and managers, then the Internal Labor Regulations are likewise considered an indispensable instrument for ensuring employees\u2019 compliance within the enterprise. Therefore, in recent times, it can be observed that many enterprises, although&#8230;<\/p>\n","protected":false},"author":4,"featured_media":12745,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[64],"tags":[],"class_list":["post-12776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/12776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/comments?post=12776"}],"version-history":[{"count":2,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/12776\/revisions"}],"predecessor-version":[{"id":12778,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/12776\/revisions\/12778"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media\/12745"}],"wp:attachment":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media?parent=12776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/categories?post=12776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/tags?post=12776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}