Improving the Legal Capacity of Enterprises Through Legal Training Courses

In the context of Vietnam’s increasing international integration, alongside improving competitiveness to adapt to a challenging business environment, enterprises also need to improve their legal capacity. This is one of the decisive factors for success and contributes significantly to the sustainable development of enterprises. Deep understanding and flexible application of legal regulations not only help enterprises prevent and mitigate legal risks but also establish a solid foundation to help enterprises implement their business plans and development strategies. Therefore, Improving the Legal Capacity of Enterprises Through Legal Training Courses has become one of the strategic and useful tools to help enterprises survive and sustainably develop during their business operations.

1. The purpose of legal training courses for enterprises

Legal training for enterprises is an activity aimed at equipping participants with legal knowledge and skills to apply legal regulations to the business activities and operations of the enterprise. As a result, enterprises and individuals can acquire necessary legal knowledge, which may support the enterprise in making reasonable decisions, aligning with legal regulations and preventing, and mitigating legal risks that may arise.

2. Subjects participating in legal training courses

With the purpose mentioned above, legal training courses are designed diversely for various subjects. Some subjects are encouraged to participate in legal training courses for enterprises including:

• Business owners and Senior managers: These subjects include individuals directly responsible for strategic decision-making and managing the legal risks of the enterprise.
• Human resources professionals: Individuals involved in human resources management need to have a clear understanding of legal regulations, especially labour laws, to maintain a harmonious work environment and ensure the legitimate rights and interests of both employees and employers.
• Legal specialists and in-house lawyers: Vietnam law is constantly updated and amended from time to time. Therefore, legal specialists and in-house lawyers should participate in legal training to be updated on new regulations to provide advice to the enterprise on compliance activities.

3. Benefits of legal training courses

Below are some significant benefits when an enterprise organises legal training courses:

• Strengthening legal knowledge for participants

If employees and employers participate in legal training courses, this would help them gain additional knowledge and have a better understanding of legal regulations, enabling them to apply this knowledge during their work and decision-making processes. This not only assists enterprises in operating in accordance with legal regulations but also enables them to handle complex legal situations.

• Supporting enterprises minimise costs arising from non-compliance with legal regulations

A decision issued that does not comply with legal regulations could cause the enterprise to suffer legal consequences, such as administrative fines or the risk of disputes.

For example, if an enterprise unilaterally terminates an employment contract with an employee, then the competent court declares that the termination decision of enterprise was unlawful, the enterprise may face legal consequences such as[1]:

• Paying salary, contributing to social insurance, health insurance, and unemployment insurance for the days during which the employee is not allowed to work and an amount equivalent to at least 02 months’ salary according to the employment contract;
• In the case where the employment contract of the employee is still effective at the time the competent court makes a decision, the enterprise is also forced to reinstate the employee according to the employment contract signed between both parties. If the employee’s working position is no longer available, both parties will negotiate to amend, and supplement the employment contract according to the new working position and the corresponding new salary;
• If the employee does not wish to continue working for the enterprise, in addition to the payments mentioned above, the enterprise is also pay severance allowance to the employee according to the regulations of labour laws;
• If the employer does not wish to reinstate the employee and the employee agrees, in addition to the payments mentioned above, the two parties shall reach an agreement on an additional amount of compensation for the employee which shall be at least 2 months’ salary in order to terminate the employment contract.

In case an enterprise has obtained legal advice on the conditions, and procedures for terminating an employment contract in accordance with the legal regulations before implementing it in practice, the enterprise might mitigate the potential risks for disputes with employees and legal consequences mentioned above. Additionally, through legal training courses, enterprises could save costs on using services from external legal counsel to consult and handle cases.

• Strengthening the position and reputation of the enterprise

Strict adherence to legal regulations within an enterprise is not only a commitment but also a crucial factor that determines the positive image of the enterprise amongst its partners and clients. This not only helps the enterprise contribute to sustainable operation but also increases the trust of partners and clients in utilising services, engaging in business cooperation with the enterprise, and establishing and maintaining long-term business relationships.

• Establishing a positive working environment

Participating in legal training not only equips enterprises and employees with legal knowledge but also helps them gain a better understanding of their rights and obligations during the execution of employment contracts. Consequently, enterprises could establish a fair and positive working environment, minimising issues such as go-slow strikes, strikes or other legal risks that may arise when employees file complaints or lawsuits.

4. How should a legal training course for enterprises be established?

To establish a legal training course, enterprises should have thorough investment and preparation. Here are some guidelines on how to establish effective legal training courses for enterprises:

• Identifying needs, objectives and participants

Enterprises need to clearly identify their needs and objectives so that they can choose appropriate topics and establish suitable, effective legal training content, focusing on crucial legal issues related to the enterprises’ business operations.

In addition, enterprises should determine the appropriate participants for the training course to ensure that the content is delivered to the right individuals in an effective manner.

• Choosing appropriate legal training methods

Based on their actual situation, needs and desires, enterprises may choose appropriate training methods in the following formats: weekly/quarterly/annual training sessions, short seminars, intensive courses, etc. Enterprises can consider organising these training courses in in-person or online formats.

• Choosing suitable legal trainers

Choosing trainers is a crucial factor in the success of legal training courses for enterprises. Trainers need to possess solid expertise, a deep understanding of legal fields, and practical experience to offer recommendations for effective compliance in line with the specific business of each enterprise. Legal trainers may include lawyers, and leading legal experts who are practising in law firms, and legal offices.

• Receiving the opinions and feedback from participants

After each legal training course, enterprises should collect feedback from participants to evaluate the effectiveness of the training course. Based on that, enterprises can adjust training content and methods to improve the quality of subsequent training courses.

5. Effective legal training courses for enterprises

Enterprises could consider organising appropriate legal training courses related to their business and operations, such as:

• Compliance training on labour law such as: employment contracts, internal labour regulations, collective labour agreement, democratic regulations, using foreign employees, handling labour discipline, etc.
• Legal training on tax, commercial contracts, intellectual property;
• Legal training on labour safety and hygiene;
• Training on dispute resolution.

With over 20 years of experience in establishing and designing legal training/seminars, Phuoc & Partners continuously assert its position as reliable and reputable legal training expert. Our team of legal experts includes highly experienced lawyers who have directly provided legal training for various enterprises and corporations in Vietnam, and served as speakers at lawyer training courses organised by Vietnam Bar Federation, Ho Chi Minh City Bar Association, and Ministry of Justice. Therefore, we are proud to be one of the pioneers in providing legal training services to enterprises, assisting clients in acquiring the necessary knowledge to comply with legal regulations. Please refer to further information related to our seminars at: https://phuoc-partner.com/category/seminars/

The above is an overview of Improving the Legal Capacity of Enterprises Through Legal Training Courses. If you have difficulties in finding a Law Firm to advise and support in the relevant legal field, please contact us. Phuoc & Partners is a professional consulting firm established in Vietnam and currently has nearly 100 members working in three offices in Ho Chi Minh City, Hanoi and Danang. Phuoc & Partners is also rated as one of the leading consulting firms specialising in business law in Vietnam that has leading practice areas in the legal market such as Labor and Employment, Taxation, Merger and acquisition, Litigation. We are confident in providing clients with optimal and effective service.

[1] Article 41 of Labour Code 2019