Does a branch have to register labor regulations?

When establishing a branch office in Vietnam, one of the key considerations for businesses is navigating the country’s labor regulations. Along with representative offices and business locations, a branch is an affiliated unit established by the enterprise to expand business activities. When setting up a branch, it is necessary to comply with the regulations of law, including labor regulations. Therefore, does a branch have to register labor regulations? In the article below, Viet An Law Firm will provide the clients with information about registering the branch’s labor regulations according to current legal regulations.

Some related definitions

What is the branch?

• According to Article 84 of the Civil Code 2015, a branch is an affiliate other than a juridical person. A branch is tasked with performing all or part of the functions of the legal entity.
• According to Clause 1, Article 44 of the Enterprise Law 2020, a branch is an affiliated unit of an enterprise, tasked with performing all or part of the functions of the enterprise, including the function of an authorized representative.

What are the labor regulations?

The labor regulations are regulations, rules, and principles issued by the employer for application at the employing unit.

According to Article 118 of the Labor Code 2019, the employer shall issue its own labor regulations. An employer having at least 10 employees shall have written labor regulations. An employer having less than 10 employees, is not required to issue written labor regulations but has to agree on the content of labor discipline and material responsibilities in the labor contract.

When does the employer have to register labor regulations?

• An employer having at least 10 employees has to register the labor regulations (Clause 1, Article 119 of the Labor Code 2019).
• Location to register: Department of Labour, Invalids and Social Affairs where business registration is applied for.
• Time to apply: Within 10 days from the date of issuance of the labor regulations.
• Processing time: Within 07 working days from the date of receiving the application, if any of the contents of the internal labor regulations is found contrary to the law.

Does a branch have to register labor regulations?

A branch is an affiliated unit of an enterprise. According to Clause 2, Article 119 of the Labor Code 2019, an employer whose branches, units, or business locations are in different provinces shall send the registered labor regulations to the labor authority of those provinces.

In case the branch headquarters is in the same province as the enterprise’s headquarters

• If the branch headquarters is in the same province as the enterprise’s headquarters, there is no need to send labor regulations.
• Explanation: The labor authority of the province under the Provincial People’s Committee where the branch is located and where the enterprise’s headquarters is located overlap.

In case the branch headquarters is in a different province than the enterprise’s headquarters

• If the branch headquarters is not in the same province as the enterprise’s headquarters, it is necessary to send the enterprise’s labor regulations to the labor authority of the province under the Provincial People’s Committee where the branch is located.
• Labor regulations are sent to the labor authority of the province under the Provincial People’s Committee where the branch is located, not where the enterprise’s headquarters is located.

Thus, the branch does not have to issue and register new labor regulations, the employer only shall send the registered labor regulations to the labor authority of the province under the Provincial People’s Committee where the branch is located.

Form of the labor regulations

• An employer having at least 10 employees shall issue written and register the labor regulations (Article 118 of the Labor Code 2019).
• An employer having less than 10 employees, is not required to issue written labor regulations but has to agree on the content of labor discipline and material responsibilities in the labor contract.

The basic contents of the labor regulations

According to Clause 2, Article 69 of Decree 145/2020/ND-CP, the labor regulations shall include the following basic contents:

• Working hours and rest periods;
• Workplace order; work area, movement during working hours; code of conduct; dress code; compliance to job assignment by the employer;
• Occupational hygiene and safety in the workplace;
• The employer’s regulations on preventing and combating sexual harassment in the workplace;
• Protection of the assets, technological and business secrets, and intellectual property of the employer;
• Specific employees’ violations and corresponding disciplinary actions;
• Material responsibility;
• Persons having the power to take disciplinary actions.

The competent agency processes applications to register labor regulations

• According to Clause 2, Article 119 of the Labor Code 2019, the labor authority of the province under the Provincial People’s Committee (usually the Department of Labor, Invalids and Social Affairs) where business registration is applied for, has authority to receive applications for registration of the labor regulations.
• In addition, based on specific conditions, the labor authority of the province under the Provincial People’s Committee can authorize the labor authority of the district under the Provincial People’s Committee (the Division of Labor, Invalids and Social Affairs) to register labor regulations.

Thus, the authority to register labor regulations is the Department of Labor, Invalids and Social Affairs, or the Division of Labor, Invalids and Social Affairs (in case of authorization).

Some related questions about registering labor regulations

Does a branch have to register new labor regulations?

The branch is an affiliated unit of the enterprise, so labor regulations have also to be applied consistently between the branch and the enterprise. The branch does not need to issue new labor regulations.

If an enterprise has less than 10 employees, does it have to register labor regulations?

An employer having less than 10 employees, is not required to issue written labor regulations but has to agree on the content of labor discipline and material responsibilities in the labor contract.

When is the effect of labor regulations?

• If registration is required, the labor regulations shall start to have effect after 15 days from the day on which the satisfactory application is received by a competent authority and there is no request for amendment or supplement.
• The effect of the written labor regulations issued by an employer having fewer than 10 employees shall be decided by the employer.

Who shall the issued labor regulations be sent to?

After being issued, the labor regulations shall be sent to the employee representative organization (if any) and notify the employees. The major contents must be displayed at the workplace where they are necessary.

Please further refer the related article on procedure for labor regulation registration in Vietnam.

Consulting labor law services of Viet An Law Firm

• Consulting on conditions, dossiers, and procedures to register branch operations;
• Consulting on labor law, branch labor regulations, obligations under the branch’s labor law;
• Service of drafting labor regulations;
• Representative to register labor regulations for enterprises;
• Tax accounting services, intellectual property protection registration for branches;
• Regular legal consultancy for enterprises and branches during their operations.

Clients who have related questions or need legal support about the question “Does a branch have to register labor regulations?”, please contact Viet An Law Firm for the best support!