ADVERTORIAL
Malaysia Malaysia’s employment framework balances investor flexibility with statutory protections for employees, making understanding termination and severance obligations critical for foreign businesses. Key laws include the Employment Act 1955, the Industrial Relations Act 1967, and the Employment (Termination and Lay-Off Benefits) Regulations 1980, which collectively set out requirements for notice, inquiry, and severance. Amendments, introduced in January 2023, expanded coverage, increased employer responsibilities, introduced flexible work arrangements, and strengthened protections against discrimination. Employment can only be terminated for valid reasons, including misconduct, poor performance, redundancy, or the expiry of a fixed-term contract, and must follow fair procedures. Foreign nationals are subject to the same rules as local employees, and employers must also notify immigration authorities when ending employment. For foreign investors, clear policies, proper documentation, and consistent process application are essential to managing workforce risk. ASEAN Briefing from Dezan Shira provides detailed guidance on navigating Malaysia’s evolving employment laws.
Vietnam In Vietnam, the Hanoi Department of Home Affairs (HDHA) has issued Official Letter No. 5256, providing detailed guidance on work permit procedures for foreign employees. Effective immediately, the guidance aims to clarify application processes under Decree No. 219/2025/ND-CP, helping enterprises, organisations, and institutions in Hanoi navigate work permit requirements more smoothly. Under Decision No. 4464/QD-UBND, the HDHA is authorised to manage foreign employee matters in the city, including issuing and renewing work permits and exemptions, receiving employer notifications, enforcing compliance, and reporting workforce data to the Ministry of Home Affairs. The authorisation is valid until December 31, 2025, giving companies a clear framework for managing foreign staff. Dezan Shira’s Vietnam Briefing has further details of the new procedures and compliance obligations.
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ISSUE 17 GLOBAL PAYROLL MAGAZINE
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