Common workplace conflict in Vietnam & resolution

Workplace conflict in Vietnam often stem from a combination of legal compliance issues, cultural nuances, and the rapid economic development that has shaped its labor market. Understanding these factors is key to navigating and resolving disputes effectively.

Common workplace conflict in Vietnam

Workplace conflict to employment contracts and compensation:

• Breach of Employment Contract: This is a very common source of conflict. It can involve either the employer or employee failing to fulfill the terms agreed upon, such as:
  • Failure to adhere to agreed working hours or job responsibilities.
  • Delayed or incomplete payment of wages, bonuses, or other benefits.
  • Inconsistent policies or misalignment between contract terms and actual workplace practices.
• Working Hours and Overtime Disputes: Disagreements often arise regarding the number of hours worked, adherence to schedules, and proper compensation for overtime. Vietnam has clear laws on overtime pay (e.g., 150% on weekdays, 200% on weekends, 300% on holidays), and non-compliance can lead to disputes.
• Social Insurance and Benefits Disputes: Conflicts can occur over employee entitlements and contributions to social insurance programs (health insurance, retirement plans, unemployment insurance). Employers failing to register employees or pay correct contributions are a frequent source of conflict.
• Severance Pay and Termination Benefits: Disputes commonly arise from the calculation, eligibility, and timely payment of severance pay, especially in cases of company bankruptcy or liquidation.

Workplace conflict to related to termination and disciplinary actions:

• Unfair/Unlawful Dismissal: This is a significant issue. Employers may terminate contracts without justified reasons, failing to follow proper legal procedures (e.g., required notice periods), or without clear and pre-established performance assessment criteria. The law provides strong protections against wrongful termination, especially for pregnant women or nursing mothers.
• Disciplinary Actions: Disputes can arise over the fairness or legality of disciplinary measures imposed on employees, particularly if they are not aligned with registered Internal Labor Regulations (ILRs).
• Job Duties Disputes: Conflicts can occur when there are discrepancies, misunderstandings, or disagreements about the scope, nature, or execution of job responsibilities outlined in an employee’s job description or contract.

Workplace conflict stemming from Vietnamese workplace culture:

• Hierarchy and Respect for Authority: Vietnamese culture places a high value on hierarchy and respect for superiors. This can lead to conflicts if:
  • Employees are reluctant to openly challenge superiors or express dissent, even if they disagree.
  • Decision-making is top-down, and junior employees are not comfortable making high-level decisions.
  • Foreign managers are unaware of the importance of addressing colleagues and superiors with appropriate titles.
• Indirect Communication: Vietnamese communication often leans towards indirectness to maintain harmony and “save face.” This can lead to misunderstandings, especially for foreigners who are used to more direct communication:
  • Criticism or disagreement may be expressed subtly or through non-verbal cues.
  • A “yes” might not always mean agreement but could be said to avoid conflict.
  • Public criticism or calling out mistakes can cause a loss of “face” and lead to significant resentment.
• Conflict Avoidance: There is a cultural tendency to avoid direct confrontation, making open discussion of problems challenging. Conflict resolution might be culturally avoided, with terms like “innovation enhancement” or “goal alignment” preferred over “conflict resolution.”
• Work-Life Balance Expectations: With a growing young workforce (Gen Z and Millennials), there’s an increasing emphasis on work-life balance. Expectations around working hours and personal time (e.g., avoiding calls/emails after work) can lead to conflicts if not managed well.
• Relationship Building (Guanxi): Building personal connections and trust is crucial in Vietnamese business culture. A lack of effort in this area can hinder collaboration and lead to strained workplace relationships.

See also: Bargaining in Vietnam: Culture and tips for you!

Other Common Disputes:

• Labor Health and Safety Disputes: Concerns about employee well-being, perceived violations of health and safety regulations, inadequate safety measures, or incidents leading to workplace injuries.
• Discrimination and Harassment: While prohibited by law, disputes can arise from alleged discrimination based on gender, age, race, disability, or instances of sexual harassment.
• Intellectual Property Disputes: Allegations of misappropriation of trade secrets or breaches of non-compete agreements.
• Collective Bargaining Disputes: Conflicts arising during negotiations between employers and labor unions/employee representatives regarding terms such as wages, working hours, and benefits.

Resolution for common workplace conflict in Vietnam

Resolving workplace conflict in Vietnam, at its core, involves a blend of clear communication, adherence to the law, and cultural sensitivity. Here’s a simplified approach:

1. Act Early & Communicate Clearly:

• Don’t ignore it: Small issues can become big problems. Address workplace conflict as soon as they arise.
• Talk directly (but respectfully): If comfortable, speak to the person involved first. State the problem clearly and calmly, focusing on the issue, not the person.
• Listen actively: Understand the other person’s side. What are their concerns or perspectives?
• Be specific: Instead of “You’re always late,” say “When you arrived 15 minutes late for the meeting, we couldn’t start on time.”

2. Know the Rules (Labor Law & Company Policy):

• Understand Vietnam’s Labor Code: Many conflicts (like overtime, termination, social insurance) are covered by law. Ignorance isn’t an excuse.
• Refer to your Internal Labor Regulations (ILRs): Your company’s specific rules should be clear and followed by everyone. Make sure employees know them.
• Check contracts: Re-read employment contracts to confirm agreed terms.

3. Seek Help (Internal & External):

• Manager/HR: If direct discussion doesn’t work, involve your manager or the HR department. They are there to mediate and ensure fair treatment.
• Mediation (first formal step): For many disputes in Vietnam, mediation by a labor mediator is the required first step before going to court. This is a neutral person helping both sides find a solution.
• Arbitration/Court (last resort): If mediation fails, the conflict might go to a Labor Arbitration Council or, as a final step, a labor court. This is usually time-consuming and costly.

4. Respect Vietnamese Culture:

• Save face: Avoid public criticism or embarrassing anyone. Solutions should allow everyone to maintain their dignity.
• Be patient and indirect: Sometimes, issues are best discussed in a less direct way. Give people time to consider things.
• Build relationships: A good working relationship (trust, respect) can prevent many conflicts from even starting.
• Understand hierarchy: Respect leaders and senior colleagues.