Currently, all issues relating to HR and Payroll in Vietnam is regulated by Labor Codes 2019 came into effect on 1st Jan2021. Under the law, there is also a system of implementation guidance including resolutions, decrees, circulars, official letters…etc. In this article, we summarize Key Provivisons of Labor Code in Vietnam: Working Hous, Employment Agreement, Termination…etc.
Working hours
Normal working hours cannot exceed 8 hours per day or 48hours per week. In case, employer and employee agree on overtime deal, the overtime cannot exceed 12 hours per day, 40 hours per month and 200 hours per year. For specific industries such as textile, footwear and electrics…etc. that have seasonal orders and require extensive workload at certain times, the overtime cap per year is permitted to 300hours. Employee is paid overtime salary with rates 150%, 200% and 300% compared to normal salary.
Employment Agreement
Labor Contract is divided into 2 types: definite and indefinite contract meanwhile the definite one has term no longer than 3 year and can renew only one time. Beside the traditional form in writing, the e-contract is officially recognized and has the same validity as those in written form. Foreign labors who have work permit valid no more than 2 years are also able to renew only one.
Termination
For unilateral termination, employer and employee must give prior notice:
- At least 45 days for indefinite contract
- At least 30 days for definite contract with term from 1year to 3 years
- At least 3 days for definite contract with term less than 1 year
For typical jobs and positions such as Enterprise Managers, Aircrew Members, sailors working abroad…etc., the notice period in advance is longer. Employer has the right to terminate unilaterally in some specific cases such as: employee often not accomplishes tasks assigned, pandemic or natural disaster or fire…etc., employee with unreasonable absence from workplace at least five consecutive days…etc.
In next Part, We will summarize Provisions: Discrimination, Severance Allowance, Retirement Age…etc.
VIETNAM MANUAL TEAM