Articles & Updates

Arion Legal Signs Strategic Co-Operation Agreement with Yunnan Baqian Law Firm

[:en]Arion Legal Signs Strategic Co-Operation Agreement with Yunnan Baqian Law Firm

Arion Legal together with its associated company in the Lao PDR, Arion Legal Lao (Sole) Co Ltd is pleased to announce the signing on 19 June 2015 of a Framework Agreement for Strategic Co-operation with the Yunnan Baqian Law Firm (Baqian).

The signing of the agreement follows closely on the heels of the signing in Canberra on 15 June 2015 of the China – Australia Free Trade Agreement (ChAFTA). An integral part of ChAFTA is the development of closer cooperation between commercial law firms from China and Australia in the effective provision of transnational legal services.

Baqian is a leading law firm in Yunnan, PR China, with its main office in Kunming, and is recognised as one of the largest, most comprehensive and leading law firms in Western China following years of sustainable and rapid development.

Arion Legal is an international law firm based in Adelaide, South Australia with its associate office in Vientiane, Lao PDR serving clients from Australia, Asia- Pacific, Europe and the US and focusing on the provision of legal services into Australia, Lao PDR and the Greater Mekong subregion.

Under the Strategic Co-operation Agreement the firms will –

work to foster outbound direct investment from PR China into Australia, Lao PDR and other Asia Pacific countries;
recognise each other as their primary strategic partner in each party’s respective territory and pursue business co-operation with that party in its territory;
undertake joint promotional and business development activities in Australia, PR China and Lao PDR in the pursuit of common business goals; and
locate secondee lawyers in each other’s offices.

Since establishing its operations in the Lao PDR in 2008, Arion Legal has worked with China based investors and financiers on a number of large infrastructure developments within that country and the signing of the Framework Agreement for Strategic Co-operation with Baqian is a significant step in the development of closer business and client links in China which will enable both Baqian and Arion Legal to further their transnational legal services.

About Yunnan Baqian Law Firm:

Baqian was established in 2008 by the combination by three law firms in Yunnan Province, including Zhaoyao Law Firm, Lvzheng Law Firm and Xingtianping Law Firm. Baqian is recognised as one of the leading full-service law firms in Western China. Baqian is headquartered in Kunming and has one branch office in Chenggong. The firm has approximately 154 employees and is a member of the Sino-Global Legal Alliance.

Baqian provides legal services in the following practice areas: real estate investment, bank & financial investment, intellectual property strategic management, company business, civil & commercial & administrative litigation, criminal procedure, foreign legal business, research department and marketing. Website: www.baqianlaw.com

About Arion Legal:

Arion Legal is an international corporate and commercial law firm with a focus on providing innovative, commercial and cost effective legal services. Arion Legal is based in Adelaide, Australia and has an associated office in Vientiane, Lao PDR which provides legal services to a broad range of clients from the Asia-Pacific, Europe and the United States.

Arion Legal provides legal services in the following practice areas: corporate and commercial, energy and resources, equity capital markets, corporate & commercial disputes and foreign investment.

Arion Legal is also part of wider cross-disciplinary group which includes its associated company, Arion Consulting Group (ACG). ACG is an independent professional advisory firm specialising in corporate advisory and business strategy advice. ACG advises clients on asset acquisitions and divestments, corporate services, foreign investment facilitation, native title and mining tenement management and geological services/mapping. Websites: www.arionlegal.la / www.arionlegal.com

[:zh]Arion Legal律师事务所和其老挝关联公司ArionLegal老挝(唯一)律师事务所很荣幸宣布其于2015年6月19日和云南八谦律师事务所(八谦)签订了战略框架合作协议。

在此协议签订的几天前，中国-澳大利亚自由贸易协定(ChAFTA)于2015年6月15日签订。ChAFTA的一项重要任务是促进中国和澳大利亚商务法律事务所在有效提供跨国法律服务方面的达成更密切的合作。

云南八谦律师事务所是中国云南一家知名律师事务所，总部位于昆明，经过多年可持续快速发展，该事务所已成为中国西部最大、最具综合实力和最知名的律师事务所之一。

Arion Legal律师事务所是位于南澳大利亚阿德莱德的一家国际律师事务所，其关联公司位于老挝万象，所服务客户来自澳大利亚、亚太地区、欧洲和美国，其专注于为这些客户进军澳大利亚、老挝和大湄公河次区域提供法律服务。

根据战略合作协议，该律师事务所将–

致力于加速中国对澳大利亚、老挝和其他亚太国家的境外直接投资；
在各自的领土将对方视为其主要战略合作伙伴并且在其领土内寻求与另一方的商务合作；
在澳大利亚、中国和老挝联合开展促销和业务开发活动，以寻求共同业务目标；以及
在对方的办公室安排派驻联络律师。

自Arion Legal律师事务所于2008年在老挝成立以来，该事务所就与中国投资者和金融家针对众多大规模基础设施开发项目在当地达成合作，同时与八谦签订框架合作协议是其在中国发展更密切的业务和客户关系的重要一步，这些举措都便于八谦和Arion Legal律师事务所进一步开展跨国法律服务。

关于云南八谦律师事务所：

八谦律师事务所于2008年在云南省成立，由照耀律师事务所、律证律师事务所和兴天平律师事务所合并而成。八谦律师事务所被公认为中国西部提供全方位服务的知名律师事务所之一。八谦律师事务所总部位于昆明，在呈贡新区设有办公室。该事务所拥有大约180名员工，并且是中世律所联盟的成员。

八谦提供法律服务的领域涵盖：房地产投资、银行和金融投资、知识产权战略管理、公司业务、民事/商务/行政诉讼、刑事诉讼程序、涉外法律事务以及研究开发和市场营销。网址： www.baqianlaw.com

关于Arion Legal律师事务所：

Arion Legal律师事务所是一家国际公司和商务法律事务所，专注于提供创新、商务和高性价比法律服务。Arion Legal律师事务所是位于南澳大利亚阿德莱德的一家国际律师事务所，其关联公司位于老挝万象，所服务客户来自澳大利亚、亚太地区、欧洲和美国。

Arion Legal律师事务所提供法律服务的领域涵盖：公司和商务、能源和资源、股权资本市场、公司及商务纠纷和外国投资。

Arion Legal也是一家大型跨领域集团，其中一家关联公司为Arion Consulting Group (ACG)。 ACG是一家独立的专业法律咨询公司，专注于企业顾问服务和业务战略咨询服务。 ACG在资产并购和资本剥离、公司服务、外国投资便利化、原住民地权和矿权管理以及地质服务/绘图等方面为客户提供咨询服务。网址：www.arionlegal.la / www.arionlegal.com

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Country Manager Kate Baillie with Lord Puttnam in Vientiane

More than 50 mining operators found in violation of agreements in Lao

The Vientiane Times reported on 12 March 2015 that several mining operators had breached agreements made with the Lao government.

Such breaches include failure to comply with environmental guidelines or pay obligation fees to the government and local communities.

The full report can be viewed at http://www.vientianetimes.org.la/FreeContent/FreeConten_Many.htm

Kate Baillie meets Bronwyn Bishop in Vientiane

Arion Legal’s Country Manager Kate Baillie with The Hon Bronwyn Bishop MP, Speaker of the House of Representatives (Australia) and Member for Mackellar.

Country Manager Kate Baillie meets with Julie Bishop in Vientiane

Arion Legal’s Country Manager Kate Baillie was among a select group invited to participate in a luncheon with The Hon. Julie Bishop MP, Minister of Foreign Affairs for Australia on 5 July in Vientiane.

This presented a great opportunity to discuss the performance and challenges concerning Australian companies currently operating in Laos.

Photo: Kate Baillie, Bob Gordon, Australian Ambassador to Laos, Mr John Williams, Hon Julie Bishop MP, Tammy Medard, Richard Taylor, Amanda Roberts, Rick Watsford, Alan McKeown.

Arion Legal appointed British Embassy’s Honorary Legal Advisor

Arion Legal (formerly McDonald Steed McGrath) was appointed the Honorary Legal Advisor to the British Embassy in Vientiane on 20 August 2014.

We look forward to continuing our work in this role and building relations in the future.

Arion Legal Involved in $916 million Laos Hydropower Project

Asian Legal Business featured Arion Legal’s involvement in Nam Ngiep 1 Power Company’s $916 million hydropower project on Laos’ Nam Ngiep river.

The project was financed by the Japan Bank for International Cooperation and the Asian Development Bank, which Arion Legal (then McDonald Steed McGrath) acted as Laos counsel. It is expected to take five years to complete.

The full article can be accessed at http://www.legalbusinessonline.com/news/ao-cc-feature-916-mln-laos-hydropower-project/66875

Arion Legal Laos Launch Party

Arion Legal Laos launched its new identity on 12 February 2015 by hosting a garden party at its new premises.

Directors Mike McDonald and Mark Stewart, Australian Ambassador John Williams, and Country Manager Kate Baillie addressed international and local clients and associates, commemorating the new structure and thanking them for their support.

Australian operated business Sticky Fingers catered the event, and guests enjoyed a fine selection of South Australian wine.

This event marks the expansion and strengthening of Arion Legal’s market position in Lao PDR and internationally, opening the door to new and exciting opportunities.

Arion Legal Laos would like to thank all who attended and look forward to working with you in the future!

The Basic Rules of Employment in Laos: Updates to the Lao Labour Law

[:en]In January 2014, the new Labour Law (2013) was formally approved, replacing the Labour Law (2006). The new law is the result of extensive discussions between the various Lao authorities, private sector entities and development organisations, and introduces a number of changes to the basic rules of employment in Laos, including the employment of foreign workers.

We have summarised the key components of the new law below. Because the area of employment law is quite vast, this is only a brief discussion of the main topics under the new Labour Law.

General principles and employer obligations	The employer is obliged to: provide training to develop employees’ skills and knowledge; ensure working conditions are safe, and ensure there is appropriate lighting, supply of drinking water and washing water, showers, toilets etc., a storage room for the storage of toxic substances and other measures against electric shocks and fire.; facilitate medical examinations of employees once a year and provide a first aid kit on site.
Internal employment conditions (Work Rules)	The workplace must have its own Internal Regulations, and they must not conflict with the Labour Law. They must be approved by the Labour Administration Authority. The Labour Administration Authority has a template of the Internal Regulations that companies are encouraged to use.
Hours of work	Normal hours of work are 6 days a week, no longer than 8 hours a day or 48 hours a week.
Overtime	The employer may request the employee to work overtime. When overtime is necessary for more than 45 hours per month or 3 hours per day, the employer must request a particular authorization from the Labour Administration Agency and either the trade union, worker’s representative or the majority of employees in the labour unit. Overtime cannot be worked for more than 4 consecutive days (except in the case of natural disaster).
*Weekly rest and public holidays	Workers have the right to at least one day’s rest a week. Lao employees must be given 6 public holiday days as listed in the Labour Law, with foreign workers additionally entitled to the national day of their country.
Sick leave	Workers paid on a monthly basis have the right to sick leave with full pay for 30 days a year, on presentation of a medical certificate.
Annual leave	Workers employed under an employment contract made for an indefinite period or for a definite period of one year or more, who have already worked for one full year shall be entitled to 15 days of annual leave, at full pay. If the employee is unable to take their annual leave days by fault of the employer, the employee shall receive full pay for such day/s.
*Personal leave	In additional to Annual Leave, employees have the right to request (from the employer) paid Personal Leave of not less than 3 days in the event: any members of the employee’s immediate family are injured and hospitalized and nobody else can care for them; the employee’s immediate family pass away; the employee gets married; the employee’s wife gives birth or miscarries; the employee is affected by a natural disaster.
*Employment of foreign workers	Employers have a duty to give priority to Lao nationals, -approval must be obtained from the Ministry of Labour and Social Welfare to employ foreign workers. Foreigners undertaking manual labour can make up no more than 15% of the total number of Lao employees, and no more than 25% of the Lao workforce for professionals with specialised skills. Foreign workers must hold a valid business visa and work permit. Foreign workers can enter into employment agreements for a period of 12 months, renewable for another 12 months. The total working period for foreigner workers in Laos cannot exceed 5 years. Employers can however submit a request to the Labour Administration Authority for a foreign employee to continue working in Laos for an additional period (up to 5 years) based on the expertise of the employee and the requirements of the business/organisation of the employer.
*Employment of women	An employer cannot require a pregnant woman or woman with a child under 1 year of age to carry heavy loads, stand for long periods, undertake dangerous work or work at night, work overtime or on a day of rest. If necessary, the employer shall temporarily assign the employee to more suitable work during this period, but pay her the normal salary.
*Employment of children	Children of the ages of 14-17 years may be employed provided they do not work overtime. Children of ages 12 and 13 may be employed for “light work” provided they shall not be required to undertake work that is unsafe, interferes with their schooling or vocational training or is dangerous to their body, psychology or mind.
Employment contracts	An employment contract must be in writing between the employer and employee. The contract can either be for a fixed term or an indefinite period. If a fixed term contract, including any extensions, is longer than 3 years, the contract will be deemed to be an indefinite employment contract. If the parties wish to extend the term of a fixed term employment contract they must notify each other 15 days before its expiry, with the extension commencing within 60 days of the date of expiration of the contract. The contract must stipulate the place of work, the work to be performed, the level of wages, the duration of the contract, commencement date, expiry date and any probationary period, workings days, rest days and holidays, any welfare entitlements of the worker, the benefits the employee will receive at the expiration of the employment contract and any other matters agreed between the parties.
Probationary period	The employer has the right to impose a probationary period on the employee. In the case of manual labour, the period will not exceed 30 days. In the case of specialized skills, the period will not exceed 60 days. The probationary period cannot be extended. During the period of probation, each party has the right to terminate the employment. 3 days’ notice is required for manual labour and 5 days’ notice is required for specialized fields. If the employment is terminated during probation, the employee is entitled to receive salary or wages and other entitlements under the law, calculated from when he began work to when he stopped. 7 days before the end of the probationary period, the employer shall inform the worker in writing whether or not his or her employment will be confirmed.
Termination of an employment contract	An employment contract for a fixed term will terminate upon expiration or may be terminated by mutual agreement or for reasons of breach by one of the parties. An employment contract made for an indefinite period may be terminated any time by either party, with 30 days’ notice for manual work and 45 days’ notice for specialized skills.
Termination of an employment contract by the employer	An employer can dismiss an employee where the employee lacks specialized skills, where the worker is not in good health and cannot continue work, or the business needs of the company require a reduction in staff. The employer must notify the Labour Administration Authority in writing when an employee is dismissed for reasons of redundancy. Where an employment contract is terminated by the employer, the employer shall pay a termination allowance according to their period of work.
Limits on employer’s right to terminate an employment contract	An employer cannot, without prior approval from the Labour Administration Authority, terminate the employment of an employee if the employee is sick, suffering a disaster such as fire or flooding, is a female employee who is pregnant or within a year of giving birth, on annual leave or leave approved by the employer, still performing work at another workplace on assignment from the employer, filing a complaint or claim against the employer in relation to the Labour Law, or carrying out activities as a worker’s representative.
*Termination due to acts of the employee	The employer may terminate an employee’s employment in the following circumstances with no payment of a termination allowance or notification to the Labour Administration Authority: Deliberately causing damage to the employer (where there is evidence of same); Violating Internal Regulations in spite of previous warnings from the employer; Abandoning work for 4 consecutive days without a valid reason; Being sentenced to prison by a court; Violating the rights of other employees having already been warned by the employer.
Unlawful termination of employment contract	Termination of an employment contract by the employer is unjustified if the employer: Terminates the employment contract without a valid reason; Abuses their power (i.e. directly or indirectly forces the employee to terminate the employment contract); Violates the fundamental rights of the employee; or Acts in breach of its contractual obligations. In such cases, the employee then has the right to request reinstatement. If the employer does not reinstate the employee, the employer is required to pay a termination allowance.
Severance pay	If employment contracts are terminated unilaterally, either by the employee or by the employer (for justified reasons) the employee will be entitled to a severance payment of 10% of the monthly salary before termination for each month of work. Where an employment contract is terminated by the employer for unjustified reasons, the employee is entitled to compensation of 15% of the employee’s monthly salary for the whole period of working.
Salary and payment of wages	The employer must pay at least the minimum wage set by the government. The minimum wage is currently 626,000 kip / month. Wages are to be paid at the beginning or end of the month. Deductions from an employee’s salary are permissible to compensate for damage to the property of the employer to the value of the item damaged. If the employee is not able to repay the amount owing, the compensation must be deducted from his salary or wage but not exceeding 20% of his salary or wage. The employer has the duty to declare the income which is paid to the employee to the Tax Department in order to deduct personal income tax.
*Compulsory social security	Every workplace shall make payments to the National Social Security System with respect to their employees in accordance with the new Social Security Law governs social security payments.
*Maternity leave and maternity allowance	A woman is entitled to at least 105 calendar days of fully paid maternity leave, at least 45 days of which must be after the birth. During the year after birth, the woman is entitled to have one hour a day of rest in order to feed and take care of the child. If a woman suffers a miscarriage, she is entitled to leave on full pay for a period as determined by a doctor. On the birth of a baby, a woman is entitled to an allowance as specified in the Social Security Law.
*Calculation of overtime	Overtime is calculated as follows: On a regular working day, 150% of the regular hourly rate for each hour; Overtime at night on a regular working day, 200% of the regular hourly rate for each hour; Overtime worked on a weekly rest day or holiday, 250% of the regular hourly rate for each hour; Overtime worked from 4:00pm to 8:00pm on a weekly rest day or holiday, 300% of the hourly wage of a regular working day for each hour; Overtime worked from 10:00pm to 6:00am on a weekly rest day or holiday, 350% of the hourly wage of a regular working day for each hour worked. Specific payments for night work or shift work shall be paid at no less than 15% of the hourly wage of a regular working day for each hour worked.

*These provisions represent new or revised articles appearing in the Labour Law (2013).

If you have any questions on the specifics detailed below, or would like your employment contracts and Internal Regulations reviewed to ensure they are in compliance with the new Labour Law, please don’t hesitate to contact the Arion Legal team at enquiries@arionlegal.com.

This article also appeared on the J&C Expat website and can be accessed here.[:zh]In January 2014, the new Labour Law (2013) was formally approved, replacing the Labour Law (2006). The new law is the result of extensive discussions between the various Lao authorities, private sector entities and development organisations, and introduces a number of changes to the basic rules of employment in Laos, including the employment of foreign workers.

We have summarised the key components of the new law below. Because the area of employment law is quite vast, this is only a brief discussion of the main topics under the new Labour Law.

General principles and employer obligations	The employer is obliged to: provide training to develop employees’ skills and knowledge; ensure working conditions are safe, and ensure there is appropriate lighting, supply of drinking water and washing water, showers, toilets etc., a storage room for the storage of toxic substances and other measures against electric shocks and fire.; facilitate medical examinations of employees once a year and provide a first aid kit on site.
Internal employment conditions (Work Rules)	The workplace must have its own Internal Regulations, and they must not conflict with the Labour Law. They must be approved by the Labour Administration Authority. The Labour Administration Authority has a template of the Internal Regulations that companies are encouraged to use.
Hours of work	Normal hours of work are 6 days a week, no longer than 8 hours a day or 48 hours a week.
Overtime	The employer may request the employee to work overtime. When overtime is necessary for more than 45 hours per month or 3 hours per day, the employer must request a particular authorization from the Labour Administration Agency and either the trade union, worker’s representative or the majority of employees in the labour unit. Overtime cannot be worked for more than 4 consecutive days (except in the case of natural disaster).
*Weekly rest and public holidays	Workers have the right to at least one day’s rest a week. Lao employees must be given 6 public holiday days as listed in the Labour Law, with foreign workers additionally entitled to the national day of their country.
Sick leave	Workers paid on a monthly basis have the right to sick leave with full pay for 30 days a year, on presentation of a medical certificate.
Annual leave	Workers employed under an employment contract made for an indefinite period or for a definite period of one year or more, who have already worked for one full year shall be entitled to 15 days of annual leave, at full pay. If the employee is unable to take their annual leave days by fault of the employer, the employee shall receive full pay for such day/s.
*Personal leave	In additional to Annual Leave, employees have the right to request (from the employer) paid Personal Leave of not less than 3 days in the event: any members of the employee’s immediate family are injured and hospitalized and nobody else can care for them; the employee’s immediate family pass away; the employee gets married; the employee’s wife gives birth or miscarries; the employee is affected by a natural disaster.
*Employment of foreign workers	Employers have a duty to give priority to Lao nationals, -approval must be obtained from the Ministry of Labour and Social Welfare to employ foreign workers. Foreigners undertaking manual labour can make up no more than 15% of the total number of Lao employees, and no more than 25% of the Lao workforce for professionals with specialised skills. Foreign workers must hold a valid business visa and work permit. Foreign workers can enter into employment agreements for a period of 12 months, renewable for another 12 months. The total working period for foreigner workers in Laos cannot exceed 5 years. Employers can however submit a request to the Labour Administration Authority for a foreign employee to continue working in Laos for an additional period (up to 5 years) based on the expertise of the employee and the requirements of the business/organisation of the employer.
*Employment of women	An employer cannot require a pregnant woman or woman with a child under 1 year of age to carry heavy loads, stand for long periods, undertake dangerous work or work at night, work overtime or on a day of rest. If necessary, the employer shall temporarily assign the employee to more suitable work during this period, but pay her the normal salary.
*Employment of children	Children of the ages of 14-17 years may be employed provided they do not work overtime. Children of ages 12 and 13 may be employed for “light work” provided they shall not be required to undertake work that is unsafe, interferes with their schooling or vocational training or is dangerous to their body, psychology or mind.
Employment contracts	An employment contract must be in writing between the employer and employee. The contract can either be for a fixed term or an indefinite period. If a fixed term contract, including any extensions, is longer than 3 years, the contract will be deemed to be an indefinite employment contract. If the parties wish to extend the term of a fixed term employment contract they must notify each other 15 days before its expiry, with the extension commencing within 60 days of the date of expiration of the contract. The contract must stipulate the place of work, the work to be performed, the level of wages, the duration of the contract, commencement date, expiry date and any probationary period, workings days, rest days and holidays, any welfare entitlements of the worker, the benefits the employee will receive at the expiration of the employment contract and any other matters agreed between the parties.
Probationary period	The employer has the right to impose a probationary period on the employee. In the case of manual labour, the period will not exceed 30 days. In the case of specialized skills, the period will not exceed 60 days. The probationary period cannot be extended. During the period of probation, each party has the right to terminate the employment. 3 days’ notice is required for manual labour and 5 days’ notice is required for specialized fields. If the employment is terminated during probation, the employee is entitled to receive salary or wages and other entitlements under the law, calculated from when he began work to when he stopped. 7 days before the end of the probationary period, the employer shall inform the worker in writing whether or not his or her employment will be confirmed.
Termination of an employment contract	An employment contract for a fixed term will terminate upon expiration or may be terminated by mutual agreement or for reasons of breach by one of the parties. An employment contract made for an indefinite period may be terminated any time by either party, with 30 days’ notice for manual work and 45 days’ notice for specialized skills.
Termination of an employment contract by the employer	An employer can dismiss an employee where the employee lacks specialized skills, where the worker is not in good health and cannot continue work, or the business needs of the company require a reduction in staff. The employer must notify the Labour Administration Authority in writing when an employee is dismissed for reasons of redundancy. Where an employment contract is terminated by the employer, the employer shall pay a termination allowance according to their period of work.
Limits on employer’s right to terminate an employment contract	An employer cannot, without prior approval from the Labour Administration Authority, terminate the employment of an employee if the employee is sick, suffering a disaster such as fire or flooding, is a female employee who is pregnant or within a year of giving birth, on annual leave or leave approved by the employer, still performing work at another workplace on assignment from the employer, filing a complaint or claim against the employer in relation to the Labour Law, or carrying out activities as a worker’s representative.
*Termination due to acts of the employee	The employer may terminate an employee’s employment in the following circumstances with no payment of a termination allowance or notification to the Labour Administration Authority: Deliberately causing damage to the employer (where there is evidence of same); Violating Internal Regulations in spite of previous warnings from the employer; Abandoning work for 4 consecutive days without a valid reason; Being sentenced to prison by a court; Violating the rights of other employees having already been warned by the employer.
Unlawful termination of employment contract	Termination of an employment contract by the employer is unjustified if the employer: Terminates the employment contract without a valid reason; Abuses their power (i.e. directly or indirectly forces the employee to terminate the employment contract); Violates the fundamental rights of the employee; or Acts in breach of its contractual obligations. In such cases, the employee then has the right to request reinstatement. If the employer does not reinstate the employee, the employer is required to pay a termination allowance.
Severance pay	If employment contracts are terminated unilaterally, either by the employee or by the employer (for justified reasons) the employee will be entitled to a severance payment of 10% of the monthly salary before termination for each month of work. Where an employment contract is terminated by the employer for unjustified reasons, the employee is entitled to compensation of 15% of the employee’s monthly salary for the whole period of working.
Salary and payment of wages	The employer must pay at least the minimum wage set by the government. The minimum wage is currently 626,000 kip / month. Wages are to be paid at the beginning or end of the month. Deductions from an employee’s salary are permissible to compensate for damage to the property of the employer to the value of the item damaged. If the employee is not able to repay the amount owing, the compensation must be deducted from his salary or wage but not exceeding 20% of his salary or wage. The employer has the duty to declare the income which is paid to the employee to the Tax Department in order to deduct personal income tax.
*Compulsory social security	Every workplace shall make payments to the National Social Security System with respect to their employees in accordance with the new Social Security Law governs social security payments.
*Maternity leave and maternity allowance	A woman is entitled to at least 105 calendar days of fully paid maternity leave, at least 45 days of which must be after the birth. During the year after birth, the woman is entitled to have one hour a day of rest in order to feed and take care of the child. If a woman suffers a miscarriage, she is entitled to leave on full pay for a period as determined by a doctor. On the birth of a baby, a woman is entitled to an allowance as specified in the Social Security Law.
*Calculation of overtime	Overtime is calculated as follows: On a regular working day, 150% of the regular hourly rate for each hour; Overtime at night on a regular working day, 200% of the regular hourly rate for each hour; Overtime worked on a weekly rest day or holiday, 250% of the regular hourly rate for each hour; Overtime worked from 4:00pm to 8:00pm on a weekly rest day or holiday, 300% of the hourly wage of a regular working day for each hour; Overtime worked from 10:00pm to 6:00am on a weekly rest day or holiday, 350% of the hourly wage of a regular working day for each hour worked. Specific payments for night work or shift work shall be paid at no less than 15% of the hourly wage of a regular working day for each hour worked.

*These provisions represent new or revised articles appearing in the Labour Law (2013).

This article also appeared on the J&C Expat website and can be accessed here.[:]

Introducing Arion Legal

We are pleased to advise that McDonald Steed McGrath Lawyers Co Ltd (“the Firm”) is merging with Australian law firm Arion Legal, (www.arionlegal.com) creating a strong and improved presence and capability in the Lao PDR. With effect from today the Firm will change its name to Arion Legal (incorporating McDonald Steed McGrath Lawyers Co Ltd).

Under the new structure, Arion Legal will provide a much greater focus on the Lao PDR, building on the Firm’s excellent track record and standing in the Lao PDR where it has operated since 2008.

The merger will allow Arion Legal to leverage the strong market position of the Firm in the Lao PDR while providing the expanded resources and expertise that Arion Legal has to offer. The combination of the firms will offer greater scale, depth and reach in the Lao PDR and will provide significant opportunities and competitive advantages, building on the Firms’ established position in Laos in the energy & resources, hydro power, infrastructure and financial services sectors.

As you are no doubt aware, I was the original founding partner of McDonald Steed McGrath in Adelaide and established the Firm in Laos and as such I have spent a great deal of time working in Laos and I have a good understanding of the Firm’s established position in the market. Now, as a founding member of Arion Legal, I am very pleased to be able to continue with the development of the Firm’s business in Laos, and look forward to working with the expanded team of lawyers that the merger with Arion Legal provides.

In addition, Arion Legal is associated with the Arion Consulting Group, (www.arioncg.com), an independent professional advisory firm specialising in corporate advisory and related business strategy advice, as well as investment opportunities both in Australia and internationally. The merger with Arion Legal and the association with the Arion Consulting Group will provide clients with access to a far broader range of legal and business advisory services both in Australia and in the Asian region.

The office in Laos will continue to be managed by the current Country Manager, Ms Kate Baillie. For a profile of the full Arion Legal team please visit our website. Please also note our new office address, PO Box and telephone number.

We look forward to being of service to you and thank you for your support to date.

Kind Regards

Mike McDonald

Managing Director

Read more about our merger in the article posted on J&C Expat.