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 continue to summarize Key Provivisons of Labor Code in Vietnam.
Discrimination
Employee is protected at the workplace from sexual harassment, discrimination based on skin color, race, disability…etc.
Severance Allowance in Vietnam
Under Vietnam Labor Codes, severance allowance is paid when labor contract is terminated and this payment shall amount to a half of a month’s salary for every year the employee has working for. For example, an employee had worked with a company for 3 years, he is eligible for 1.5 month’s pay. However, the working period used for the calculation of severance allowance is the total period during which the employee actually works for the employer minus the period the labor contributes unemployment insurance.
Retirement age
In order to avoid labor shortage in the future, Vietnam will increase retirement age for men to 62 from the current 60 and for women to 60 from the current 55. However, the increase will be done gradually for men and women to 2028 and 2035 respectively.