Global Compliance Desk – Vietnam

New Draft Version of Vietnamese Labor Code Released

A new draft of the proposed Labor Code has recently been released by the Ministry of Labor, War Invalids and Social Affairs (MOLISA). Some of the key amendments and clarifications in the proposed Labor Code are:

Definition of Labor Contract

The definition of a labor contract is expanded to cover any agreement having contents of the scope of work, salary, management, administration, and supervision from one side to the other.

Expanded Overtime Hours and Payment under the Draft Labor Code

• The overtime payment to be increased, i.e. up to 180%, up to 240%, and up to 360% for a regular day, weekly days off and public holidays respectively.
• The maximum overtime to be increased to 400 hours in one year for special cases regulated by the Government,

Female Workers

Following the provisions of the Code 2012, the Draft now adds the right of the female employees to choose the appropriate time off during the day when she is in the period of menstruation. A female employee shall be entitled to a 30-minute break on every working day during that period.

Annual Leave

Annual leave shall be prorated for the first year for employees who have been working for less than 12 months.

Increase in Public Holidays

The number of public holidays per year has been increased to 11 by the inclusion of one public holiday for the Vietnam War.

The updates to the draft Labor Code are anticipated in November 2019.