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07 new regulations to note in the 2019 Labor Code of Vietnam

From January 1st, 2021, the new Labor Code, which is the 2019 Labor Code started to be in force. Therefore, there are a number of new points in the 2019 Labor Code compared to the 2012 Labor Code. In this article, Apolo Lawyers (Tel: +8428 66.701.709) would like to give information on some basic new regulations of the 2019 Labor Code.

1. Types of labor contracts

From January 1, 2021, a labor contract will be entered into in one of the following categories:

Labor contract with indefinite term.

Labor contract with definite term.

Thus, compared to the 2012 Labor Code, there will no longer be seasonal labor contracts or labor contracts according to a certain job.

This regulation aims to protect employees, reduce the status of not paying social insurance for employees by signing seasonal contracts.

2. Forms of labor contracts

The 2019 Labor Code now recognizes the form of entering into a labor contract through electronic means in the form of data message in accordance with the law on electronic transactions as valid as a written labor contract.

The 2019 Labor Code now recognizes the form of entering into a labor contract through electronic means in the form of data message in accordance with the law on electronic transactions as valid as a written labor contract.

3. Employees have the right to unilaterally terminate the contract without reason

Whereas in the 2012 Labor Code, an employee with a definite-term labor contract when unilaterally terminating a labor contract must have one of the reasons stated in Clause 1, Article 37 of the 2012 Labor Code, and at the same time satisfy the conditions of notice in advance.

In the 2019 Labor Code, on the other hand, employees have the right to unilaterally terminate labor contracts without reason as long as the conditions on the notice time are met (except for some cases without necessary prior notice).

4. Employees are entitled to 2 days off on National Day with full salary

The 2019 Labor Code also adds 01 day off on the day adjacent to the National Day, which can be September 1 or September 3 depending on each year.

5. Increasing monthly overtime to 40 hours

The 2019 Labor Code stipulates the number of overtime hours worked in the month is increased to 40 hours instead of 30 hours according to the Labor Code 2012

6. More cases of personal days off with full salary

In addition to cases of days off with full salary as before, the 2019 Labor Code has added the case if the adoptive father or adoptive mother of the spouse dies, the employee is entitled to 3 days off with full salary.

7. Increase the retirement age according to the timeline

Compared to the 2012 Labor Code, the retirement age of employees has increased significantly. More specifically, from January 1, 2021, the retirement age of employees under normal working conditions is 60 years and 03 months for male employees and 55 years and 04 months for female employees; after that, every year the retirement age increases by 03 months for male employees and 04 months for female employees.

>>> See more: Draft the internal labour regulations

>>> See more: Procedures for getting a work permit for foreigners

8. What can Apolo Lawyers do for clients?

In addition to the regulations analyzed above, there are still many other new regulations in the 2019 Labor Code. Therefore, to get answers for any unclear regulations or legal advice or to ensure a legal and effective human resources management, please contact Apolo Lawyers and provide the information that needs advisory, we will provide the most accurate, fast and effective consultation of legal issues. With many years of experience, our Lawyers have the confidence to give legal services relating not only to the labor field but also many other legal fields, from civil, administrative to criminal fields. Clients who are foreign employers are advised to get support from a high quality lawfirm in order to avoid legal risks. By choosing Apolo Lawyers, clients will be assisted in many activities, such as:

  • Advising businesses and employers on legal regulations related to the labor field;

  • Consulting on labor contracts, reviewing and proposing amendments;

  • Drafting labor contracts according to the requirements of clients;

  • Representing clients to carry out relevant procedures at competent State agencies.

  • Resolving issues related to labor disputes

  • Building documents and evidences for initiating labor lawsuits

  • Advising involved parties to exercise their rights and obligations in the execution of labor judgment

  • Advising foreign employers on firing or unilaterally terminating contracts with employees in Vietnam.

For further information, please contact us: Apolo Lawyers

Apolo Lawyers

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