HR Compliance Services | Manpower Vietnam

What is HR compliance

HR compliance refers to ensuring that a company’s policies and procedures are in line with legal requirements and ethical principles. This means adhering to laws, regulations, and industry standards that govern human resources practices.

For instance, employers in Vietnam must abide by various labor laws, including the Labor Code of Vietnam 2019, Law On Occupational Safety And Hygiene 2015, Law on Employment 2013, among others. Other laws that Vietnamese businesses need to adhere to include Law on Social Insurance 2024, Law on Trade Union 2013, Regional Minimum Wage Policy, Law on Personal Income Tax 2007, Law on Tax Administration 2019, and Law on Gender Equality 2006.

Companies operating or looking to scale regionally or globally should also look at maintaining a consistent process of staying compliant as well as work culture within the organization across the globe.

Areas of HR compliance include:

Equal Employment Opportunity: Ensuring non-discrimination in hiring, promotion, compensation, and other employment practices.
Wage and Hour Laws: Complying with minimum wage, overtime, and child labor laws.
Safety and Health: Providing a safe and healthy work environment.
Data Privacy: Protecting employee personal information.
Employee Benefits: Ensuring compliance with benefits laws, such as health insurance.
Leave Laws: Adhering to laws related to family and medical leave, paid time off, and other leave entitlements.

Why is HR compliance important?

One of the most pressing reasons for compliance is to prevent legal repercussions. For example, under Decree 12/2022/ND-CP, employers in Vietnam who require employees to work beyond legal hours may face fines of VND 40 - 50 million (approximately USD 1,538 to USD 1,923 at exchange rate of 1 USD = 38,000 VND).

Beyond avoiding legal penalties, HR compliance is crucial for maintaining a company's employer branding and fostering a positive workplace environment. Violations of laws and regulations are often reported in the media, which can lead to public scrutiny and damage to the company's image.

Additionally, non-compliance can result in decreased employee morale, higher turnover rates, and potential loss of business opportunities. Ensuring compliance not only protects the company legally but also contributes to its overall success and sustainability.

Top Compliance Concerns for Businesses in Vietnam

As a trusted HR partner to local and multinational companies across various industries in Vietnam, Manpower Vietnam leverage its expertise and experience to address critical compliance concerns among employers in HR practices, employee benefits, and recruitment processes. Below are the top compliance areas we help businesses master:

Regulatory Compliance: Tax, Social Insurance, and Labor/Employment

Assessing businesses’ current levels of compliance with local regulations
Identifying and addressing gaps in adherence to tax, social insurance, and labor standards
Guiding decision makers to

Register employees for compulsory social, health, and unemployment insurance with full contributions
Comply with the Labor Code of Vietnam on contracts, working hours, leave entitlements, and termination procedures
Maintain accurate payroll records and conduct regular internal audits
Stay informed with regulatory updates to align HR policies

Salary Benchmarking

Building customized salary structures by specific criteria (industry, sector, province, job function), ensuring compliance with Vietnam’s Wage regulations
Ensuring compensation frameworks align with market trends and legal requirements

Employee Background and Reference Checks

Verifying previous employment history and academic qualifications;
Screening for financial integrity.

Challenges of ensuring HR compliance

In recent years, the rise of remote work and addressing data privacy concerns in the digital age brings an added layer of complexity to ensuring HR compliance. However, the key challenge most companies face when ensuring HR compliance is keeping up with the complex regulatory landscape of constantly changing laws and regulations. This is particularly challenging for multinational companies.

For instance, in Asia Pacific and Middle East, one commonality across most countries is that managers and directors of a company can be held criminally liable for violations of employment laws.

A quick snapshot gives an insight into the various regulations employers across the region have to take note of:

In the Philippines, providing or using labor-only staffing services is illegal.
In Australia, legal entitlements to salary, leave, severance, and other employment benefits vary depending upon which of approximately 100 different industry and occupation-specific awards applies.
In the UAE Free Zone, the number of employment visas your company can obtain is related to your office space.

When ensuring compliance, the devil is in the details. Even countries such as Japan, Thailand, and Korea where there is a quota on employing disabled persons, the details significantly vary.

How to ensure HR legal compliance

To ensure HR compliance, organizations can:

Identify relevant compliance obligations based on factors like location, industry, and business size.
Stay updated on legal changes by subscribing to industry newsletters or following relevant news sources.
Assign compliance responsibilities within the HR team, potentially hiring a dedicated compliance officer.
Create an HR compliance checklist to cover areas like recruiting, hiring, company policies, and employee handbooks.
Ensure consistent application of HR policies through clear procedures, documentation, and manager training.
Regularly audit HR policies to ensure compliance and update them as needed.

Apart from managing it internally, collaborating with local experts or partnering with HR service providers is one way of ensuring compliance with local laws and regulations.

Companies can mitigate compliance risks by leveraging on the expertise of HR service providers, like ManpowerGroup, for the following:

Outsourcing of specific business operations or tasks
Staffing services
Payrolling services
Outplacement of excess employees
HR Compliance

Why choose ManpowerGroup

ManpowerGroup is a leading provider of workforce solutions, with over 75 years of experience and unmatched expertise in sourcing and managing talent.

Here's why we're the ideal partner:

Deep-rooted Expertise: Benefit from ManpowerGroup's decades of experience as a global leader in HR services.
Global Reach: Our extensive network ensures compliance with local labor laws worldwide.
Proactive Solutions: Our experts identify potential risks and develop tailored compliance strategies.
Technology-Driven Approach: Leverage our advanced technology for efficient processes and data security.
Avoid Legal Penalties: Our expertise helps you proactively address compliance issues and minimize financial risks.
Foster a Positive Workplace: Compliant HR practices improve employee morale and satisfaction.
Strengthen Your Reputation: Demonstrate your commitment to ethical business practices and attract top talent.

Ready to start? Contact us to learn how we can help you.

ManpowerGroup in Asia

By partnering with ManpowerGroup, you can help your business mitigate common risks of non-compliance in Asia related to:

Compensation	Employment Contract	Workplace
Not paying employee salaries on time Not making required social welfare deductions for employees Failure to pay statutory overtime Liability for failing to withhold taxes Deducting “fees” or other amounts from employee wages Compliance to pay parity	Failure to properly notify employees that their employment has been terminated Unlawful termination of employment Co-employment risks	Unauthorized loss, use or disclosure of employee personal data Allowing/causing workers to exceed maximum statutory overtime hours Poorly-handled employee complaints

ManpowerGroup, with a strong presence across the Asia-Pacific and Middle East, including Singapore, Malaysia, Thailand, Vietnam, India, Japan, and Australia, offers deep expertise in HR compliance, local laws, and regulations. The following table showcases some examples of employers' obligations and possible penalties that come with violating them in various countries within the region.

Countries and the nature of violation of employer obligation

Country	On-time payment of wages	Payment of statutory costs	Payment of withholding taxes	Lawful Termination	Discrimination & Forced Labor
Vietnam	Fines	Administrative & Criminal fine Negative impact on company reputation and business operations	Administrative & Criminal fine Negative impact on company reputation and business operations	Fines and compensation payable to employee	Fines and/or imprisonment Leadership will be held responsible
Philippines	Fines and imprisonment	Fines and/or imprisonment Surcharge for late payment	Administrative penalties Criminal Penalties	Compensation payable to employee	Fines and/or imprisonment
Thailand	Fines and/or imprisonment	Fines and/or imprisonment Compensation plus interest	Criminal fine per default	Compensation payable to employee	Fines or imprisonment

Country	On-time payment of wages	Payment of statutory costs	Payment of withholding taxes	Lawful Termination	Discrimination & Forced Labor
Australia	Penalty + damages to employee	Penalty on amount due	Penalty + damages to employee	Penalty + damages to employee	Penalty + damages to employee
India	Fines or imprisonment	Fines or imprisonment or both.	Interest payable per month or day	Fines and/or compensation payable to employee	Fines or Imprisonment
Korea	Imprisonment or fines + interest on wages	Administrative penalties	Administrative penalties	Compensation payable to employee Imprisonment or penal fine.	Fines and/or imprisonment
Singapore	Fines and imprisonment	Fines and/or imprisonment	Fines Defaulting on fines can result in imprisonment	Compensation payable to employee	Fines and/or imprisonment and caning

Contact Manpower today for a free consultation and discover how our customized solutions can help your business thrive in the region and globally.

Compliance Services