You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

April 23, 2020

COVID-19: Laos Releases Requirements for Companies Seeking to Resume Normal Operations

On April 21, 2020, following the Prime Minister’s extension of the lockdown measures in Laos to May 3, the National Taskforce Committee for COVID-19 Prevention and Control (the Taskforce) issued guidance on what companies must do to be allowed to operate during the lockdown, entitled Instructions on the Conditions and Measures for Eligible Private Companies to Operate during the COVID-19 Outbreak. 

The instructions, which are effective from April 21, provide a set of requirements that private sector businesses, projects (e.g., concession activities), legal entities, and factories (collectively called Operators) must comply with to resume operations. Operators must be inspected by a specific unit mandated by the Taskforce before resuming any operations, and an agreement or memorandum between the Operators and the Taskforce unit must be signed to confirm that the Operators are compliant. Although not expressly indicated in the instruction, we understand that all companies may need authorization from the Taskforce to resume operations after the lockdown ends. Further information is expected on this in the coming weeks.

Conditions for Operation

  1. Operators must have a designated working area, and staff dormitories must be of a good standard. Those with a large workforce, or a high enough risk factor, must have an isolated quarantine area and an emergency transportation vehicle on standby. The original text does not clarify what is meant by “large workforce”, as it does not provide a threshold thereof, or “high risk,” but we understand that these recommendations must be implemented as practically possible, and that the authorities will not expect, for example, small enterprises to have a staff dormitory.
  2. The working environment must be spacious enough to guarantee social distancing of at least one meter.
  3. Dormitories must be sufficiently spacious and beds must be at least one meter apart.
  4. The canteen must be sufficiently spacious, and Operators must guarantee good hygiene, prohibit the common use of utensils, and ensure one-meter social distancing.
  5. If dormitories are not situated on site, employee transportation must provide sufficient space to enable one-meter social distancing.
  6. Sufficient 24-hour clean water, handwashing stations, alcohol gel, and masks must be available for all employees.
  7. 24-hour security must be provided, authorization to leave must be required the workplace, and outsiders must be prohibited.
  8. Cleaners must properly dispose of waste that may cause COVID-19 infections, such as by providing covered trashcans.
  9. Operators must facilitate inspections and visits from medical teams from the relevant authority. We understand that expenses linked to inspections must be borne by the Operators.

Measures that Operators Must Implement 

  1. Body temperature must be checked, and alcohol gel must be provided to all employees, prior to entering or leaving the working area, dormitory, and canteen, from morning to evening every day. Operators must also keep a written record the symptoms of each person. If any employee exhibits a fever (above 37.5 degrees), cough, or difficulties in breathing, they must be separated from the working area and put in isolated quarantine. Operators should immediately alert the authorities by using emergency numbers 165 and 166, and arrange to have the person examined by a doctor.
  2. Masks must be provided to all employees during working times, and other times when people must be in the same location as others. Handwashing stations must be situated at convenient locations for the employees.
  3. Social distancing of one meter must be guaranteed for employees. Activities where this social distancing requirement cannot be guaranteed are prohibited. The regulation provides a non-exhaustive list of examples, such as sports and celebrations. However, this requirement may be broadly interpreted—we understand that social drinking after work with colleagues is not permitted, for example.
  4. Specific prevention measures for suppliers from outside the company must be put in place, similar to those required for employees.
  5. Working areas, canteens, toilets, dormitories, warehouses, and storage rooms must be cleaned every day after working hours.
  6. Hiring new employees, consultants, and specialists, from abroad or from Laos, must be postponed until the outbreak is contained.

There are no details on when inspections will take place, and further guidance is expected in due course. Tilleke & Gibbins will continue to keep you informed as the situation develops.

RELATED INSIGHTS​ 

March 22, 2024
Laos has returned its value-added tax rate to 10% from the 7% rate that had been observed for the last two years. The new rate was specified in Ordinance No. 003/PDT, dated March 19, 2024, and announced on the website of the Ministry of Trade and Commerce. Prior to this, the last announcement of an adjustment in the VAT rate came in the last week of December 2021, when the Ministry of Justice published the Law Amending Certain Provisions of the Laws on Tax No. 01/NA, dated August 7, 2021, in the Government Gazette. This law, which entered into force in January 2022, amended the VAT rate from 10% to 7%. Under Lao law, the ordinance is effective from its date of signing by the president of Laos (i.e., March 19, 2024). However, the tax authorities have indicated that the new rate will not be enforced immediately but will be implemented in the near future, such as when it is published in the Lao Official Gazette. This change of the VAT rate to 10% does not come as a surprise. Some international experts and organizations had been recommending that Laos adopt a 10% VAT rate given its current economic challenges, arguing that Laos should prioritize collecting tax and replenishing the state budget. This was, for instance, recommended by the World Bank in the November 2023 Lao PDR Economic Monitor. Tilleke & Gibbins will continue to monitor the situation to determine when the 10% VAT rate will be enforced. For more details on the rate changes, or on any aspect of tax law in Laos, please contact Tilleke & Gibbins at [email protected].
March 18, 2024
Lawyers from Tilleke & Gibbins’ labor and employment team have contributed a new Vietnam chapter to Thomson Reuters Practical Law’s Employment and Employee Benefits Global Guide. The guide provides a high-level comparative overview of employment laws and regulations across various jurisdictions around the world. Tilleke & Gibbins also contributed the Myanmar chapter of the guide. The Vietnam chapter covers a wide range of typical employment matters, such as limitations on working hours, paid leave requirements, minimum wage, and health and safety obligations. In addition, the guide provides insight on a number of topics of special interest to foreign investors doing business in Vietnam, including the following: Mandatory contents of a labor contract; Visas and permits required for expatriate employees; Employers’ obligations for protecting employees’ privacy and personal data; Procedural requirements for the dismissal of an employee; Employer and parent company liability. To view the latest version of Employment and Employee Benefits, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.
March 11, 2024
Tilleke & Gibbins is pleased to announce the release of Company Directors in Thailand: Guidelines and Q&A on Duties and Liability. This publication is a go-to resource for prospective and existing company directors who need to understand the duties and liabilities that come with assuming this important corporate role. Authored by Kobkit Thienpreecha, partner and director of the firm’s corporate and commercial department, Company Directors in Thailand provides key information topics essential for companies and their directors to know as they engage in the Thailand market. In the guide, Kobkit, who regularly leads training sessions on directors’ liability for directors at many of the top companies in Thailand, gives an overview of directors’ role and responsibilities as well as the civil and criminal liabilities they could potentially face. This is followed by a Q&A section that directors frequently ask regarding their liability and the legal actions that could be brought against them. The full guide can be downloaded as a PDF through the button below.
February 28, 2024
The Myanmar Investment Commission (MIC) has announced the opening of the trial period for MIC-permitted or MIC-endorsed companies to reenter investment data for using the Myanmar Investment Online (MyInO) system. The trial period is open until June 30, 2024. The MyInO system allows for the submission and recordal of applications for investment under the Myanmar Investment Law. With the implementation of phase 2 from September 1, 2023, applications for the appointment or resignation of foreign experts and employees within MIC-permitted or MIC-endorsed companies can now be submitted manually or through the Investment Monitoring System available on MyInO. To initiate the application process in MyInO, applicants are required to create an account on the platform. Subsequently, companies holding an MIC permit or endorsement must reenter all investment-related data since the obtaining of the relevant permits/endorsements, in compliance with the announcement. Following this data update, applications can be filed through MyInO. After this trial period, the submission of applications for appointments will be available online. The benefit of using MyInO to submit a foreign expert or employee appointment or resignation application is that the application can be submitted within 30 days of the foreign expert’s arrival in Myanmar. In contrast, hard copy applications must be submitted within seven working days of arrival. According to the Myanmar Investment Law, a foreign expert is one who qualifies as a senior manager, technical or operational expert, or advisor in permitted or endorsed companies within Myanmar. For assistance with completing the investment data reentry process or filing applications for appointment or resignation of foreign experts or employees, or for further details on any aspect of the Investment Monitoring System under MyInO, please contact Tilleke & Gibbins at [email protected].