Vietnam: How to "reclaim" benefits from an illegal multi-level company

In principle, multi-level marketing participants at Thien Ngoc Minh Uy Co., Ltd. in particular and multi-level companies in general are protected as follows:

- If it is a contract dispute participating in multi-level marketing, the Department of Industry and Trade and the Competition Management Department will directly handle and support sales participants according to the provisions of Decree No. 42/2014/ND-CP of Vietnam’s Government;

- If it is another civil dispute outside the scope of Decree No. 42/2014/ND-CP, the Department of Industry and Trade and the Competition Management Department will guide participants to sue in civil court to consider protecting their rights;

- If a sales participant has reason to believe that he or she is a victim of fraud, the Department of Industry and Trade and the Competition Management Department will guide the participant to file a criminal complaint and send it to the Police.

According to Decree No. 42/2014/ND-CP, from the time of termination of operations, the multi-level marketing company must have the obligation to ensure the rights of multi-level marketing participants according to the provisions of law on management of multi-level marketing activities, including the liquidation of the multi-level marketing contract, which means terminating the multi-level marketing participation contract for multi-level marketing participants. According to this regulation, multi-level companies are responsible for paying multi-level marketing participants commissions, bonuses and other economic benefits that multi-level marketing participants are entitled to receive during the process of participating in the multi-level marketing network.

The process of liquidating the multi-level marketing contract for Thien Ngoc Minh Uy's sales specialists is guided as follows:

- The multi-level company receives dossiers requesting liquidation of multi-level sales contracts from sales specialists at the Company's headquarters and operating branches.

The dossiers include:

+ Application for contract liquidation (according to form);

+ Multi-level sales contract;

+ Orders, delivery notes, goods, etc.;

+ Selling documents related to the status and identity of business specialists.

- The Document Receiving Department transfers all documents to the Operations Department at:

+ Company’s Headquarter: For areas from Quang Binh outward or;

+ Ho Chi Minh City Branch: For the area from Quang Tri onwards.

- The Operations Department is responsible for checking and ensuring the completeness of the documents:

+ If the dossier is incomplete, notify the sales specialist to supplement the dossier at the place where the dossier was first received;

+ If the dossier is complete, it will be forwarded to the Accounting Department.

- The Accounting Department is responsible for:

+ Checking historical revenue data, remuneration amounts and other economic benefits that Sales Specialists have received;

+ Comparing the data with the liquidation request file of the business specialist and calculating the remaining benefits to ensure legal rights for the business specialist according to regulations;

+ Reporting to the Company's Board of Directors on the liquidation of the Sales Specialist Contract.

- The Company's Board of Directors approved the application and assigned the Legal Department to check the Sales Specialist's request to liquidate the contract.

- The Legal Department reviews the validity and legality of the file, prepares a contract liquidation record and transfers the file to the Operations Department.

- The Operations Department notifies and invites the Sales Specialist to the Company Headquarters or Ho Chi Minh City Branch to agree on the content of the Liquidation Minutes and sign the Liquidation Minutes. After the Minutes are signed, the Operations department transfers the documents to the Finance Department.

- The Finance Department prepares payment slips and assigns the Treasurer to pay benefits to Business Specialists in accordance with regulations.

Source: Ministry of Industry and Trade

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE