Solutions to Prevent Labor Disputes in the Era of AI and Automation in Vietnam

In the age of AI and automation, the labor environment is undergoing drastic changes — along with emerging legal risks. This article provides practical, updated, and effective solutions to help businesses in Vietnam prevent labor disputes.

Why Does AI and Automation Trigger Labor Disputes More Easily?

• Rapid job role and task description changes: As AI integrates into workflows, job descriptions are no longer static. If labor contracts lack flexibility, employees may feel their rights are infringed. Contracts must reflect potential changes and allow timely adjustments according to actual job duties.

• Lack of clear legal framework for AI: Vietnam’s current labor laws are not yet comprehensive enough to regulate the rights and responsibilities among employees, employers, and AI systems. This leaves room for new forms of labor disputes.

• Risks in personal data handling: AI often relies on big data, including labor-related data. If a business fails to fulfill its obligations to notify, obtain consent, and protect employees' data, legal disputes may arise. Vietnamese law clearly stipulates these responsibilities under Decree 13/2023/NĐ-CP.

• Bias and lack of transparency from technology: AI may operate improperly or reinforce bias without adequate oversight. Disputes may arise if AI makes decisions regarding performance evaluations, promotions, etc., in a non-transparent way.

5 Legal and Practical Solutions to Prevent Labor Disputes in the AI Era

1. Review and Update Labor Contracts

• Flexible job descriptions: Contracts should include clauses that allow adjustments to roles and tasks in the future when AI is implemented or replaces certain functions, along with a procedure for prior consultation between both parties.

• Legal balance between employer and employee rights: Ensure that both the employer and employee are equally protected in the contract — clear, flexible, yet with no ambiguity in legal responsibilities.

2. Build Transparent Personal Data Management Processes

• Prior notification and consent for data processing: Businesses must inform employees of the purpose and scope of data use and obtain written or electronic consent in line with Decree 13/2023/NĐ‑CP.

• Access control and data security: Categorize data clearly, assign responsibilities to data management departments, and establish strict internal control to avoid leaks or misuse.

3. Establish Regular Internal Dialogue Mechanisms

• Two-way communication between employer and employee: Conduct regular meetings to discuss updates or feedback regarding AI and automation, building a transparent working environment that minimizes tension and potential disputes.

• Collaboration with labor unions: Develop collective labor agreements, define clear rights and obligations, and ensure mutual adjustments when AI affects workflows.

4. Training and Awareness of Legal and Digital Skills

• Empower management and employees with training: Offer knowledge on AI, employee rights, and data privacy to help all parties recognize potential conflict scenarios and how to handle them.

• Ensure fairness in algorithmic decisions: If AI is used in evaluations or recruitment, businesses must demonstrate transparency and lack of bias, along with a review process to ensure AI acts fairly.

5. Seek Expert Legal Advice to Update Internal Policies

• Need for oversight in AI-human-law interaction: Establish a mechanism to review AI decisions if they significantly affect employees, ensuring the law always acts as a safeguard against AI-driven injustice.

• Update internal policies in line with the law: Work with legal experts to continuously revise internal regulations, contracts, and handling processes for scenarios involving AI and labor issues.

FAQ – Common Questions

Q1. Should “Company A” include a clause on liability when AI affects employees?
– Yes. The contract should outline the verification process when AI makes unusual recommendations and require human confirmation before implementing decisions that affect personnel.

Q2. If AI processes productivity-related data, is employee consent necessary?
– Absolutely. AI uses personal data, and according to Vietnamese law, companies must notify and obtain consent from employees before doing so.

Q3. What should a company do if AI causes frequent changes in job descriptions?
– The employment contract should contain clauses on adjusting job descriptions, along with procedures for discussion and updates when necessary.

Conclusion

The AI and automation era offers opportunities for efficiency, cost savings, and workforce quality improvement. However, without clear legal frameworks, companies may face new labor disputes and sensitive legal issues. Therefore, flexible contracts, transparent data practices, regular dialogue, legal training, and structured oversight are key solutions that help businesses proactively prevent disputes and maintain a harmonious, sustainable labor environment in Vietnam.

Contact DEDICA Law Firm for expert legal consultation!

📞 Hotline: (+84) 39 969 0012 (Available on WhatsApp, WeChat, and Zalo)

🏢 Head Office: 144 Vo Van Tan Street, Xuan Hoa Ward, Ho Chi Minh City (144 Vo Van Tan Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City)

🕒 Business Hours: Monday – Friday (8:30 AM – 6:00 PM)

Reach out today for a free initial consultation with our team of professional lawyers!