Managing Contracts and Separation in ASEAN - Preview

2 Introduction ALBERTO VETTORETTI Managing Partner Dezan Shira & Associates As labor costs in China continue to rise amid an escalating trade war with the US, foreign investors are seen considering options for moving a part of their production lines to some of the lower-cost economies in ASEAN. While an expansion to ASEAN could prove immensely rewarding, overseas companies may find it daunting to keep pace with the region’s changing regulatory environment. Existing compliance requirements related to issues such as labor contracts, social insurance, severance payments, andminimumwages vary widely across the 10-member ASEAN bloc. A thorough understanding of contracting regulations and severance obligations will not only enable companies to take more effective HR decisions but also to mitigate any associated reputational and legal risks. In this issue of ASEAN Briefing magazine, we discuss how to manage contracts and separation in five major ASEAN economies. We begin by describing the salient features of labor contracts and social security obligations.We next discuss the various compliance requirements associated with separation of employees. Finally, we compare current minimumwage rates across ASEAN. Withoffices across the region, DezanShira&Associates' HRandPayroll services aredesigned tohelp foreign invested companies with compliance and best practices in ASEAN. For more information on how we can help your company monitor local labor regulations as well as find cost-effective solutions for HR and payroll compliance in ASEAN, please contact us at hr@dezshira.com. With kind regards, Alberto Vettoretti Credits Publisher / Alberto Vettoretti Senior Editor / Saponti Baroowa Editor / Vasundhara Rastogi Design / Belén Rodríguez Reference ASEAN Briefing and related titles are produced by Asia Briefing Ltd., a wholly owned subsidiary of Dezan Shira Group. Content is provided by Dezan Shira & Associates. No liability may be accepted for any of the contents of this publication. Readers are strongly advised to seek professional advice when actively looking to implement suggestions made within this publication. For queries regarding the content of this magazine, please contact: editor@asiabriefing.com All materials and contents © 2018 Asia Briefing Ltd. Asia Briefing Ltd. Unit 507, 5/F, Chinachem Golden Plaza, 77 Mody Road, Tsim Sha Tsui East Kowloon, Hong Kong. www.asiabriefing.com www.dezshira.com www.aseanbriefing.com www.india-briefing.com www.indonesiabriefing.com www.vietnam-briefing.com www.china-briefing.com