On 20 November 2019, Vietnam National Assembly XIV passed the new Labor Code on Session 8 which shall become effective from 1st January 2021.

SBLAW would like to present you main amendments of Vietnam Labor Code 2019 in comparison with current Vietnam Labor Code 2012 as follow:

Over working time

– Overworking time under Vietnam Labor Code 2019 must not exceed 40 hours per month. Meanwhile, under Vietnam Labor Code 2012, overworking time must not exceed 30 hours per month.

– An employer may request an employee to work overtime no more than 300 hours per year in several sectors, occupation, works or the following circumstances:

+ Production and processing of textiles, garments, leather, shoes, agricultural, silvicultural, and aquaculture products;

+ Electricity supply, telecommunication services, oil refinery, water supply and drainage;

+ In case of handling jobs requiring employees with high professional and technical qualifications which labor market can not provide sufficient and timely;

+ In case of urgent work that cannot be delayed, due to the seasonality and timing of raw materials, products or to solve jobs arising due to unpredictable objective factors result from weather consequences, natural disasters, enemy sabotage, fire, lack of electricity, lack of raw materials and technical problems of production lines;

+ Other circumstances prescribed by the GovernmentAge of retirement

– The retirement age of employees in normal working condition is adjusted under schedule until reaching full 62 year of ages for males in 2028, or reaching full 60 year of ages for females in 2035.

From 2021, the retirement age of an employee working in normal conditions is 60 years old and 03 months in full for male and 55 years old and 04 months in full for female; after that, the age of retirement will be annually increased by 03 months for male and 04 months for female.

Employee whose working ability has been declined; who performs a specially heavy, hazardous or dangerous job or a heavy, hazardous or dangerous job, working in regions with exceptionally difficult socio-economic conditions, may retire at a younger age but not more than 05 years above.

Employee who has high professional and technical qualifications and some other special circumstances may retire at a higher age but not older than 5 years from the time of retirement, unless otherwise provided for by law.

The employee is entitled to unilaterally terminate the employment contract without cause/Người lao động được quyền đơn phương chấm dứt hợp đồng lao động không cần có lý do

According to applicable law, employee working under a definite-term labor contract, a seasonal labor contract or performing a certain job under 12 months are entitled to unilaterally terminate the labor contract prior to its expiry pursuant to Clause 1 Article 37 of Labor Code 2012. However, according to the Labor Code 2019, employees are entitled to unilaterally terminate the labor contract prior to its expiry without any reason, only required to notify employer in advance under the deadline specified corresponding to type of contract

Increase of public holiday

Pursuant to Labor Code 2019, the National Day shall be added more 01 day-off, which means on the National Day (on September 2), employees are entitled to take 2 days-off, before or after September 2 calendar year.

Types of employment contract

Under Vietnam Labor Code 2019, there are only two types of employment contract: Employment contract with definite term up to 36 months and Employment contract with indefinite term. Seasonal employment contract with validity term under 12 months shall be removed from 2021.

If you have any further inquiry, please feel free to contact us.

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