Who is not allowed to participate in the multilevel marketing network in Vietnam? What are the contents of a multilevel marketing contract in Vietnam?
What are the basic contents of a multilevel marketing contract in Vietnam?
Pursuant to the provisions of Clause 2, Article 29 of Decree No. 40/2018/ND-CP as follows:
Multilevel marketing contract
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2. A multilevel marketing contract must include the following contents:
a) Name, legal representative and contract information of the multilevel marketing company;
b) Full name, date of birth, permanent residence (or registered residence of a foreigner), current residence (either permanent or temporary), telephone number, bank account number, number of ID card/ citizen’s identity card/ passport of the participant; number of work permit if the participant is a foreigner;
c) Full name and identity number of the introducer (or sponsor);
d) Information concerning the products sold through the multilevel marketing;
dd) Information concerning the compensation plan and business rule;
e) Rights and obligations of the parties, which must conform to regulations herein and relevant laws;
g) The provision on payment of commissions and bonuses by bank transfer;
h) The provision on repurchase of products;
i) Cases where a multilevel marketing contract is terminated and obligations arising from such termination;
k) The policy for settlement of contract disputes.
According to the above provisions, the multilevel marketing company must enter into multilevel marketing contract with every participant.
At the same time, the multilevel marketing contract must ensure the basic contents as prescribed above.
Who is not allowed to participate in the multilevel marketing network in Vietnam? What are the contents of a multilevel marketing contract in Vietnam? (Image from the Internet)
Who is not allowed to participate in the multilevel marketing network in Vietnam?
Pursuant to the provisions of Clause 2, Article 28 of Decree No. 40/2018/ND-CP (amended and supplemented by Clause 23, Article 1 of Decree No. 18/2023/ND-CP) as follows:
Eligibility requirements to be satisfied by a participant
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2. The following persons are not allowed to participate in the multilevel marketing network:
a) A person who is serving a prison sentence or has previous convictions for manufacturing and trading of counterfeit or banned products, false advertising, deceiving consumers, obtaining property by fraud, abuse of trust to appropriate property, illegal impoundment of property or any violations against regulations on multilevel marketing;
b) A foreigner who fails to possess a valid work permit granted by a competent authority associated with the enterprise in which he or she participates in the multilevel marketing, unless otherwise exempted as prescribed by law.
c) A person who has participated in the multilevel marketing and is faced with administrative penalties for committing violations against regulations in Clause 2, Clause 3 and Clause 4 Article 5 herein but the sanctioning duration has not ended;
d) The persons prescribed in Point c Clause 1 Article 7 herein;
dd) Officials and public employees as regulated in the law on officials and public employees;
According to the above regulations, people in the above 5 cases are not allowed to participate in the multilevel marketing network.
When terminating the multilevel marketing contract, how long in advance must be notified?
Pursuant to Article 30 of Decree No. 40/2018/ND-CP stipulating as follows:
Terminating a multilevel marketing contract
1. A participant is entitled to terminate the multilevel marketing contract by sending a written notification to the multilevel marketing company at least 10 working days before the estimated date of termination.
2. The multilevel marketing company is entitled to terminate the multilevel marketing contract signed with a participant who commits any violations against regulations in Article 41 herein.
3. The multilevel marketing company must terminate the multilevel marketing contract signed with a participant who commits violation against regulation in Clause 2 Article 5 herein.
4. Within 30 days from the date on which the multilevel marketing contract is terminated, the multilevel marketing company shall make full payments of commissions, bonuses and other economic benefits which the participant is entitled to receive during his/her participation in the company's multilevel marketing network.
According to the above provisions, a participant is entitled to terminate the multilevel marketing contract.
A participant is entitled to terminate the multilevel marketing contract by sending a written notification to the multilevel marketing company at least 10 working days before the estimated date of termination.
Note: The multilevel marketing company shall make full payments of commissions, bonuses and other economic benefits which the participant is entitled to receive during his/her participation in the company's multilevel marketing network within 30 days from the date on which the multilevel marketing contract is terminated.
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