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In the current epidemic, many companies have had to close due to many senior employees have been transferred to other companies in Vietnam of the same owner. At this time, these employees are transferred to a workplace, which is different from the workplace in the employment contract signed between the employee and the employer.
Thus, in case these senior employees are transferred to other companies in Vietnam, the Vietnam labor law, specifically Article 28, regulates that: “Work under a labor contract must be performed by the employee who has signed in the contract. The workplace shall be announced according to the labor contract or other agreement between the two parties.”. Thus, the job and workplace are the two basic contents of the labor contract and the employer must arrange for his employees to work at the right place as agreed. Therefore, in the case of transferring to another company, the workplace has changed, so the employer needs to amend and supplement the labor contract.
According to Article 33 of the Vietnam Labor Code, during the performance of the contract, if the employer requests to amend and supplement the contents of the labor contract, he must notify the employee, who is proposed to amend and supplement the contract, 3 days in advance about the contents that need to be modified and in particular, transferring to a new the workplace. In case the two parties can come to an agreement, the amendment and supplementation of the labor contract shall be carried out by signing an appendix to the labor contract or concluding a new labor contract. If the parties cannot come to an agreement, they shall continue to perform the signed contract.
However, because of the Covid-19 epidemic, the company may be closed, so this employee may now have to choose between stopping their work at the company or transferring to another company and follow the contract appendix or a new one. In the case of both domestic workplace and job are transferred, the employer may consider applying Article 29 of the Vietnam Labor Code in transferring employees to a new work other than the one in the Labor contract. Accordingly, the employer is entitled to temporarily transfer the employees to a new work that not be mentioned in the previous contract but not exceeding 60 working days in a year in total, unless this employee agrees.
Regarding the issue of compensation for work loss, in the case of transferring an employee to another company to work, the employee does not lose his work but has a new workplace when the contract has been amended and supplemented and the employee can receive a salary under that contract. Therefore, employers will not have to compensate their employees for work loss.
Currently, because of the Covid-19 pandemic, many problems about labor and employment have emerged in society. One of the most prominent issues that need to be addressed is the problem of the relocation of the employee’s workplace. Employers need to pay close attention to changes occurring in this tumultuous period and deal with problems arising when moving employees’ workplaces in accordance with the law. In addition, employers can also contact a reputable law firm to receive advice and in-depth answers to labor and employment issues during the Covid period.
ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.
