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Labor Code

On June 18th, 2012, the XIIIth National Assembly passed the Labor Code No. 10/2012/QH13. Accordingly, some issues shall be worth noticing as follows:


Some amended issues shall include:


- Salary for probation period shall be at least 85% of the salary of such position, instead of 70%.


- Overtime pay for working at night shall be 20% of the day pay, instead of 30%. Night hours shall consistently be from 22:00 to 06:00 of the following day, not dividing by climate region.


- Working hours shall be maintained to be 08 hours/day and 48 hours/week. However, the State encourages employers to apply 40 hours of work per week. Overtime hours shall be limited to 300 hours instead of 200 hours.


- Total holiday and new year days shall be 10 days, instead of 09 days. In which, traditional New Year shall be 05 days instead of 04 days.


- Disciplinary action as transferring to another job with lower pay shall be amended as extension of pay rise period or degradation.

  Dismissal shall be applied to employees who accumulatively leave the job 05 days/month without reasons, instead of 07 days/month.


- Female employees shall take maternity leave of 06 months before and after giving birth, instead of 04 months. Maximum period of leave before giving birth shall not exceed 02 months. Those who take maternity leave before the effective date of this Labor Code, and the leave continues after May 1st, 2013, shall be entitled to 06-month leave policy.


Some new issues shall include:


- Regulation on communication at workplace, collective negotiation. Accordingly, communication at workplace shall be periodically carried out once every 03 months or upon request of a party in order to share information, improve understanding between the employer and the employees to build up a workplace relationship.

Collective negotiation shall be carried out periodically or unscheduledly at the place as agreed upon by the representatives of the collective and the employer. Contents and procedures for collective negotiation shall be detailed.


- Enterprise and sector collective labor agreements shall be detailed.


- Regulation on holidays and new year days of employees being foreigners in Vietnam. Accordingly, in addition to number of holidays as regulated for Vietnamese employees, foreign employees shall be entitled to 01 traditional New Year day and 01 Independence day of their countries.


- Employers must apply standards, national technical regulations, and local technical regulations on work safety and hygiene in compiling internal regulations and work procedures to ensure work safety and hygiene in accordance with each machine, equipment, and workplace.


- Labor contract signed with employees from enough 15 years old to under 18 years old must be put under supervision of the lawful representative of such employee.


- Working hours of employees under 15 years old. In which, working hours shall not exceed 04 hours/day and 20 hours/week and no overtime or night shift allowed. Employees from enough 13 years old to under 15 years old shall be assigned to positions under the list promulgated by the Ministry of Labor, War Invalids and Social Affairs.


- Term of a work permit of a foreigner working in Vietnam shall be 02 years maximum.


- Employees working as a charperson such as: cook, house keeper, baby sitter, sick carer, elderly carer, driver, gardener, and other work for households that are not relating to business activities. Accordingly, the employer must sign labor contract in writing with a term as agreed upon by the parties.


- Subjects working for enterprises with pay shall include apprentice.


- The employer must enter into a labor contract with the employee when the employee starts working and the labor contract in writing must be signed within one month since the date when the employee starts working.


Some annuled issues shall include:


- Regulation on individual being the employer must be from enough 18 years old.


- Regulation of labor with high professional and technical skills.


Labor contracts, collective labor agreements, and other lawful agreements entered before the effective date of this Labor Code and agreements which are more beneficial to the employees than those regulated under this Labor Code shall continue to be implemented; Those agreements which are not in compliance with provisions of this Labor Code must be amended and supplemented accordingly.


This Labor Code shall be effective from May 1st, 2012. The Labor Code dated June 23rd, 1994, Law No. 35/2002/QH10, Law No. 74/2006/QH11 and Law No. 84/2007/QH11 amending, supplementing a number of articles of the Labor Code shall be invalid from the effective date of this Labor Code.