Lawyers providing review services for human resources risks play a crucial role in assisting enterprises in identifying, controlling, and minimizing legal risks in labour management. Through such services, enterprises can prevent labour disputes, ensure compliance with applicable laws, and maintain stability in their workforce management.
I. The role of lawyers in reviewing human resources risks
In the course of corporate governance, lawyers specializing in human resources risk reviews play a vital role in assessing the legal compliance of the entire labour management system, including labour contracts, internal regulations, compensation policies, and labour disciplinary procedures. Such reviews enable enterprises to identify non-compliant practices at an early stage, thereby making timely adjustments and reducing the likelihood of labour disputes.
In addition, lawyers assist enterprises in establishing robust human resources management mechanisms that comply with the current Labour Code while minimizing the risk of administrative sanctions and legal proceedings arising from employment-related issues.
II. The concept of lawyers providing human resources risk review services
1. What is a lawyer providing human resources risk review services?
A lawyer providing review services for human resources risks is a legal practitioner who examines and evaluates the entirety of a company’s labour management system, including labour contracts, internal regulations, compensation policies, and labour disciplinary mechanisms, with the objective of identifying potential legal risks and recommending solutions to address such risks and prevent disputes in accordance with labour laws.
2. How can human resources risks affect business operations?
Human resources risks may directly affect a company’s business operations through labour disputes, complaints, and lawsuits, which can disrupt production and business activities and increase operational costs.
Pursuant to Article 5 of the Labour Code 2019, employers are obligated to comply with their rights and obligations toward employees. If not, it may result in disputes and legal consequences in accordance with applicable laws.
Furthermore, deficiencies relating to labour contracts, wages, labour discipline, or material liability under Articles 14, 122, and 130 of the Labour Code 2019 may result in disciplinary decisions being declared invalid, administrative sanctions being imposed, or compensation obligations arising.
Such issues not only increase operational costs but may also negatively impact the company's reputation and workforce stability.
3. Can human resources risk reviews help prevent labour disputes?
Human resources risk reviews play a significant role in preventing labour disputes by enabling enterprises to identify and rectify deficiencies in labour contracts, internal regulations, wage policies, and labour disciplinary procedures before conflicts arise.
In accordance with the principles embodied in Articles 3 and 5 of the Labour Code 2019, employment relationships are established on the basis of equality, voluntariness, and compliance with the law.
Accordingly, reviewing and standardizing the human resources management system helps enterprises ensure legal compliance in labour management, eliminate potential grounds for disputes, and reduce the likelihood of complaints or legal actions initiated by employees.
III. Legal regulations relevant to lawyers providing human resources risk review services
1. Scope of work of lawyers conducting reviews of human resources risks
The scope of work of lawyers providing review services for human resources risks is designed to comprehensively assess an enterprise’s labour management system in accordance with the Labour Code 2019 and other relevant regulations.
Specifically, lawyers review the legal validity and compliance of labour contracts, internal labour regulations, collective labour agreements, wage and bonus policies, and internal human resources policies.
In addition, lawyers analyze compliance with legal requirements throughout the recruitment, employment, and termination processes; identify risks that may lead to disputes, complaints, or administrative sanctions; and recommend corrective measures to improve the human resources management system and reduce legal exposure for the enterprise.
2. What principles must lawyers comply with when conducting human resources risk reviews?
When providing review services for human resources risks to enterprises, lawyers must comply with the professional practice principles prescribed in Article 5 of the Law on Lawyers (as amended by Clause 37, Article 1 of the Law amending and supplementing a number of articles of the Law on Lawyers 2012) and the principles governing lawyer management and legal practice under Article 6 of the Law on Lawyers 2006 (as amended by Clause 2, Article 1 of the amended Law 2012).
Specifically:
- Compliance with the Constitution and laws under Clause 1, Article 5. Lawyers must review and advise on human resources matters in accordance with labour laws, social insurance regulations, tax laws, and other relevant legislation.
- Compliance with the Code of Ethics and Professional Conduct for Vietnamese Lawyers under Clause 2 Article 5. Lawyers are required to maintain client confidentiality, act ethically and honestly, and refrain from advising clients to engage in unlawful conduct.
- Independence, honesty, and respect for objective truth under Clause 3, Article 5. Human resources risk reviews must accurately reflect the legal status of the enterprise without concealing violations or providing biased evaluations.
- Use of lawful measures to best protect the legitimate rights and interests of clients under Clause 4, Article 5. Lawyers may only recommend solutions that comply with applicable laws and effectively minimize labour-related risks and disputes.
- Accountability before the law for professional activities under Clause 5, Article 5. Lawyers take legal responsibility for the content of their advice and any legal consequences arising from their professional services.
Furthermore, under Article 6 of the Law on Lawyers, legal practice is managed through a combination of state supervision and self-regulation by professional legal organizations. Therefore, lawyers and law-practicing organizations must also comply with the Charter of the Vietnam Bar Federation and the Code of Ethics and Professional Conduct for Vietnamese Lawyers when providing legal advisory services to enterprises.
3. What are the main components of a human resources risk review?
Human resources risk reviews are conducted based on the provisions of the Labour Code 2019 and are intended to assess the level of legal compliance throughout an enterprise’s labour management system.
The principal review areas include:
- Labour contracts under Articles 13 and 14;
- Internal labour regulations under Article 118;
- Collective labour agreements under Articles 75 to 86;
- Wage policies under Articles 90 to 94;
- Labour disciplinary measures and material liability regulations under Articles 117 to 130.
In addition, lawyers review recruitment procedures, labour utilization practices, social insurance compliance, and labour contract termination procedures in order to identify legal risks and ensure compliance with current legal requirements.
4. Lawyers’ obligations during human resources risk reviews
When providing human resources risk reviews, lawyers must comply with the obligations prescribed in Article 21 of the Law on Lawyers (as amended by Clause 12, Article 1 of the Law amending and supplementing a number of articles of the Law on Lawyers 2012).
Specifically, lawyers are required to:
- Comply with the principles of legal practice under Point a, Clause 2, Article 21. Lawyers must act independently, honestly, objectively, and in compliance with applicable laws and the Code of Ethics and Professional Conduct for Vietnamese Lawyers when reviewing labour records, labour contracts, wage policies, social insurance matters, and internal company regulations.
- Strictly comply with relevant legal provisions during practice under Point b, Clause 2, Article 21. When working with labour inspectorates, social insurance authorities, or judicial bodies, lawyers must maintain a cooperative attitude and comply fully with legal requirements.
- Participate fully and promptly in legal proceedings when disputes arise under Point c, Clause 2, Article 21. If labour disputes arise following a human resources review, lawyers are responsible for protecting the lawful rights and interests of their clients in accordance with the law.
- Undertake mandatory professional development under Point d, Clause 2, Article 21. Lawyers must continuously update their knowledge of labour law, social insurance regulations, tax legislation, and professional skills to effectively support human resources advisory activities.
In addition to the foregoing obligations, under Article 22 of the Law on Lawyers 2006 (as amended and supplemented in 2012), lawyers are entitled to perform activities within the scope of legal practice, including providing labour law advice, acting as non-litigation representatives for enterprises, participating in the resolution of labour disputes, and delivering other legal services related to human resources management.
IV. Questions regarding lawyers providing human resources risk review services
1. Are lawyers providing human resources risk review services truly necessary for enterprises?
Engaging lawyers to conduct human resources risk reviews is essential for enterprises seeking to ensure compliance with the Labour Code 2019, while minimizing errors in labour contracts, internal labour regulations, and human resources policies.
Through the review process, lawyers help enterprises identify potential legal risks at an early stage that could otherwise lead to labour disputes, administrative sanctions, or financial losses. Based on such findings, lawyers can recommend effective corrective measures and preventive solutions.
2. How much does it cost to hire a lawyer to conduct a human resources risk review?
Pursuant to Article 55 of the Law on Lawyers 2006 (as amended and supplemented in 2012), lawyers’ fees are determined based on an agreement between the lawyer and the client, taking into account the nature and scope of the services, the time required, the complexity of the matter, and the lawyer’s experience and reputation.
In addition, the following factors may be considered when assessing an appropriate fee level:
- Scope of services: Whether the business requires a partial review (e.g., labour contracts, internal labour regulations, collective labour agreements) or a comprehensive review of the entire human resources system.
- Scale and complexity of the enterprise: Enterprises with a large workforce, multiple branches, or complex management structures generally incur higher service fees.
- Duration and method of engagement: Fees may be calculated on an hourly basis, per assignment, under a service package, or pursuant to a long-term retainer agreement.
- Extent of legal risks requiring assessment: The more legal issues involved, the greater the time and effort required, resulting in higher fees.
- Reputation and experience of the law firm or lawyer: Established legal service providers with extensive experience typically charge fees commensurate with the quality of their services.
3. How long does a human resources risk review typically take?
The duration of a human resources risk review varies depending on the size of the enterprise, the volume of employment-related documents, and the complexity of the human resources management system.
In practice, a basic review may be completed within approximately 03 to 07 working days, whereas a comprehensive review of the entire human resources system may take from 01 to 03 weeks, or even longer in the case of large enterprises.
The timeframe also depends on the level of cooperation from the enterprise in providing documents and information, as well as the specific scope of review required for each engagement.
4. Can an enterprise conduct a human resources risk review without engaging a lawyer?
An enterprise may conduct a basic internal review of its human resources risks; however, such reviews are generally limited in scope and may not adequately ensure legal compliance.
In practice, labour legislation contains numerous detailed provisions and is subject to frequent amendments, particularly in areas such as labour contracts, internal labour regulations, wages, and labour discipline. A lack of legal expertise may result in risks being overlooked or compliance issues being improperly assessed.
Thus, the involvement of a lawyer enables enterprises to identify legal risks comprehensively, improve the accuracy of compliance assessments, and reduce the likelihood of labour disputes or administrative sanctions.
5. What documents and records should an enterprise prepare when working with a lawyer conducting a human resources risk review?
When engaging a lawyer to conduct a human resources risk review, enterprises should prepare comprehensive documents to ensure that the assessment is accurate and thorough.
Such documents should include:
- Labour contracts and contract appendices;
- Internal labour regulations and collective labour agreements (if any);
- Salary, bonus, and employee welfare policies;
- Social insurance records and employees’ personal income tax documentation.
In addition, enterprises should provide decisions relating to recruitment, transfers, disciplinary actions, and labour contract termination, together with internal forms, procedures, and any other relevant documents. These materials enable the lawyer to conduct a comprehensive assessment of potential legal risks and compliance issues.
V. Why should you seek legal advice from NPLaw regarding human resources risk review services?
Conducting a human resources risk review requires in-depth knowledge of labour law and substantial practical experience to identify all potential risks associated with workforce management. If performed improperly, enterprises may overlook deficiencies in labour contracts, internal labour regulations, or wage policies, potentially resulting in disputes or administrative penalties.
With a team of highly experienced lawyers, NPLaw assists enterprises in conducting comprehensive reviews of their human resources systems, assessing compliance with applicable laws, and proposing practical corrective measures in accordance with the provisions of the 2019 Labour Code.
Furthermore, NPLaw supports enterprises in developing standardized human resources management systems, minimizing legal risks to the greatest extent possible, and providing ongoing assistance in resolving labour disputes should they arise.
The information provided above is for reference purposes only. Should you require detailed advice regarding a specific situation, please contact NPLaw Firm for prompt legal consultation.
