{"id":13396,"date":"2025-11-04T08:34:36","date_gmt":"2025-11-04T01:34:36","guid":{"rendered":"https:\/\/cdlaf.vn\/?p=13396"},"modified":"2025-11-04T08:46:14","modified_gmt":"2025-11-04T01:46:14","slug":"management-of-senior-level-employees-what-should-enterprises-establish","status":"publish","type":"post","link":"https:\/\/cdlaf.vn\/en\/management-of-senior-level-employees-what-should-enterprises-establish\/","title":{"rendered":"Management of Senior-level employees: What should enterprises establish?"},"content":{"rendered":"<p><strong>Senior-level employees <\/strong>\u2013 including General Director, Chief Executive Officer (CEO), Chief Financial Officer (CFO), Human Resources Director (HRD), or equivalent management positions \u2013 are not simply employees but are <strong>individuals empowered to manage a department or represent the enterprise<\/strong> or be in charge of crucial work groups. They possess strategic information, decision-making power, and directly influence the enterprise\u2019s finances, human resources, and corporate culture. Therefore, the management of senior-level employees <strong>cannot be limited to standard labor contracts,<\/strong> but must be integrated into a strict internal legal document system to ensure three factors: <em>correct empowerment, sufficient control, and comprehensive protection of enterprise interests.<\/em><\/p>\n<figure id=\"attachment_13314\" aria-describedby=\"caption-attachment-13314\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-13314\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/10\/pexels-fauxels-3184295-1-600x400.jpg\" alt=\"\" width=\"600\" height=\"400\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/10\/pexels-fauxels-3184295-1-600x400.jpg 600w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/10\/pexels-fauxels-3184295-1-1200x800.jpg 1200w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/10\/pexels-fauxels-3184295-1-768x512.jpg 768w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/10\/pexels-fauxels-3184295-1-1536x1024.jpg 1536w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2025\/10\/pexels-fauxels-3184295-1-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-13314\" class=\"wp-caption-text\">Source: pexels-fauxels-3184295<\/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\/management-of-senior-level-employees-what-should-enterprises-establish\/#1_Which_documents_does_an_enterprise_need_to_establish_for_managing_senior_employees\" >1. Which documents does an enterprise need to establish for managing senior employees?<\/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\/management-of-senior-level-employees-what-should-enterprises-establish\/#2_Enterprises_non-disclosure_agreement\" >2. Enterprise&#8217;s non-disclosure agreement<\/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\/management-of-senior-level-employees-what-should-enterprises-establish\/#3_Internal_labor_regulations_procedures_and_internal_rules\" >3. Internal labor regulations, procedures and internal rules<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/cdlaf.vn\/en\/management-of-senior-level-employees-what-should-enterprises-establish\/#4_Authorization_document\" >4. Authorization document<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/cdlaf.vn\/en\/management-of-senior-level-employees-what-should-enterprises-establish\/#SEND_CONSULTATION_REQUEST\" >SEND CONSULTATION REQUEST<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_Which_documents_does_an_enterprise_need_to_establish_for_managing_senior_employees\"><\/span>1. Which documents does an enterprise need to establish for managing senior employees?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In this article, we will not discuss documents related to the field of human resources. We will only focus on legal documents aimed at helping the enterprise control risks that may arise when the relationship between the enterprise and its senior employees is no longer smooth or when it terminates upon expiration or by agreement. From the time the employment relationship is established until its termination, the parties typically establish the following documents: Labor contract, Non-Disclosure Agreement (NDA), Non-Compete and Conflict of Interest Agreement, Authorization Document, if the employee is assigned to represent the company in certain operational areas. In addition, general company management documents such as internal labor regulations, financial regulations, and procedures will also include provisions to focus on adjusting potential violations by management personnel. This serves as a preventive step against risks and a basis for management solutions.<\/p>\n<ol>\n<li><strong>Labor Contract with Management and Senior Personnel <\/strong><\/li>\n<\/ol>\n<p>Under current regulations, businesses can establish a probationary contract with management positions for a period of 180 days, instead of the previous 60-day limit. This provides the enterprise with sufficient time to thoroughly evaluate the competence of management positions. However, the enterprise&#8217;s governing document, specifically the Company Charter, must clearly define which titles are considered management positions, as this will serve as the basis for determining the probationary period. Beyond the probationary period, current labor law does not require establishing a labor contract with a minimum term of 12 months as previously mandated. These provisions are considered to give enterprises proactivity and flexibility in managing senior personnel. In addition to flexibility in term length, to manage risks during the employment relationship, enterprises should pay attention to several points in the labor contract: authority to establish the contract, job description recorded in detail in the contract or in an attached job description sheet, provisions on reporting mechanisms, risk control, and financial limits for each executive decision, clauses on contract termination, non-disclosure and non-compete agreement. If the enterprise has developed internal labor regulations or internal rules, the labor contract shall reference the provisions in these general documents.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_Enterprises_non-disclosure_agreement\"><\/span>2. Enterprise&#8217;s non-disclosure agreement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>For senior employees, the risk of leakage of confidential information, trade secrets, customer data, or business strategy is significant. Therefore, in addition to the labor contract, the enterprise must have a separate NDA that is signed independently and remains effective even after contract termination. An effective NDA needs to cover: Scope of confidential information: Strategy, finance, customers, personnel, technical data, operating models, personal data, etc.; Confidentiality term: lasting for at least 24\u201336 months after the termination of the employment relationship; Mechanism for handling violations: Clearly specifying the level of compensation for damages and the right to demand remediation; Provisions on data ownership. In enterprises with FDI elements or those operating in technology, finance, logistics, legal sectors, etc., the NDA should be accompanied by an &#8220;Intellectual Property Transfer Agreement&#8221; to avoid later disputes over creative rights or management systems.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_Internal_labor_regulations_procedures_and_internal_rules\"><\/span>3. Internal labor regulations, procedures and internal rules<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Even a meticulously drafted labor contract cannot cover all operating rules, control mechanisms, and internal conduct of the enterprise. This is particularly true for senior positions, where the authority, responsibility, and influence far exceed the scope of a standard labor contract.<\/p>\n<p>In management practice, an enterprise can only effectively manage its senior management team when it has a system of internal rules, procedures, and regulations that is clearly designed, unified, and legally binding. These documents not only govern the employee&#8217;s behavior but also establish the mechanism of power and responsibility throughout the entire executive apparatus. They help the enterprise control both the &#8220;power to make decisions&#8221; and the &#8220;legal consequences&#8221; of each management action. Specifically:<\/p>\n<ul>\n<li>Internal Labor Regulations define the behavioral standards, ethical principles, and discipline that the executive must comply with;<\/li>\n<li>Internal Procedures describe the methods for decision-making, approval, signing, reporting, and control of executive operations, helping to prevent abuse of power or conflicts of authority among management levels;<\/li>\n<li>Internal Rules act as the &#8220;framework of power,&#8221; clearly defining the delegation mechanism, financial limits, HR processes, asset usage, and information security of the enterprise.<\/li>\n<\/ul>\n<p>When these three elements are designed synchronously, the enterprise not only creates a transparent and disciplined operating environment but also protects the senior management team itself from the risk of exceeding authority or violating legal regulations.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"4_Authorization_document\"><\/span>4. Authorization document<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under the law, an authorized person may only perform tasks within the scope of the authorization. If they exceed the scope, the authorized person must bear personal responsibility, unless the enterprise was clearly aware of the excessive action. For management positions, the legal representative typically delegates the authority to decide on a specific set of tasks and to sign related documents. However, if this is recorded too generally, it can easily lead to the manager making decisions beyond the control of the representative. Therefore, the Authorization Document needs to clearly list each work item and the financial limit that the personnel is authorized to decide. Example: For personnel managing the finance &#8211; accounting department, the scope of authorization needs to clearly state the right to: sign contracts with specific groups of suppliers, approve costs, conduct bank transactions, and whether there are transaction limits, etc. The Authorization Document should be drafted as a separate document, signed and sealed by the enterprise, and ensure that the authorized person has received and clearly understood the content of the authorization.<\/p>\n<p>Managing senior employees is not just about signing contracts and paying salaries, it requires a plan to govern risks that may arise both during and after the termination of the employment relationship. Disputes arising from employment contracts with management personnel often lead to losses in finance, reputation, data leakage, and negatively impact the team they manage. Therefore, an effective senior employee management system typically includes: Labor Contract, Non-Disclosure Agreement, Internal Labor Regulations, Accompanying Procedures and Rules, and Power of Attorney . These tools not only help the enterprise prevent the risk of abuse of power or misconduct but also create a culture of governance compliance \u2013 where all power is accompanied by clear control mechanisms and legal responsibility.<\/p>\n<p>CDLAF accompanies enterprises in establishing a complete package of high-level labor management systems, from drafting contracts, regulations, and authorization mechanisms, to advising on operation and information security \u2013 helping the enterprise delegate power correctly, control sufficiently, and achieve sustainable development.<\/p>\n<p><em style=\"font-size: 14.4px;\"><strong>Time of writing<\/strong>: 28\/10\/2025<\/em><\/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\/non-compliance-with-social-insurance-regulations-in-vietnam-legal-risks-for-fdi-enterprises\/\">Non-Compliance with Social insurance regulations in Vietnam: Legal risks for FDI Enterprises<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/when-can-enterprises-use-foreign-currency-within-vietnams-territory\/\">When can enterprises use foreign currency within Vietnam\u2019s territory?<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/discussion-on-the-form-of-capital-contribution-by-management-experience-in-enterprises\/\">Discussion on the form of capital contribution by management experience in enterprises<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/why-must-enterprises-protect-employees-personal-information\/\">Why must enterprises protect employees\u2019 personal information?<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/analysis-of-the-roles-and-responsibilities-of-the-parties-involved-in-data-processing-under-vietnamese-law\/\">Analysis of the roles and responsibilities of the parties involved in data processing under Vietnamese law<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/sensitive-data-what-your-business-might-be-handling-without-knowing-it\/\">Sensitive Data: What your business might be handling without knowing it<\/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\/13396#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\" 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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>Senior-level employees \u2013 including General Director, Chief Executive Officer (CEO), Chief Financial Officer (CFO), Human Resources Director (HRD), or equivalent management positions \u2013 are not simply employees but are individuals empowered to manage a department or represent the enterprise or be in charge of crucial work groups. They possess strategic information, decision-making power, and directly&#8230;<\/p>\n","protected":false},"author":4,"featured_media":13314,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[64],"tags":[],"class_list":["post-13396","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\/13396","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=13396"}],"version-history":[{"count":2,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/13396\/revisions"}],"predecessor-version":[{"id":13398,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/13396\/revisions\/13398"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media\/13314"}],"wp:attachment":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media?parent=13396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/categories?post=13396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/tags?post=13396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}