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NOTEWORTHY NEW POINTS OF LABOR CODE 2019

The amended Labor Code 2019 takes effect on January 1, 2021 and will replace the current Labor Code 2012. T2H Lawyers summarizes the most noteworthy points of this Code below.

  1. Increase the retirement age to 62 for men and 60 for women

Article 169 of Labor Code 2019 provides:

Retirement ages of employees in normal working conditions shall be gradually increased to 62 for males by 2028 and 60 for females in 2035.

From 2021, the retirement ages of employees in normal working conditions shall be 60 yeas 03 months for males and 55 years 04 months for females, and shall increase by 03 months for males and 04 months for females after every year.

The retirement ages of employees who suffer from work capacity reduction; doing laborious, toxic or dangerous works; working in highly disadvantaged areas may be younger by up to 05 years than the retirement ages specified in Clause 2 of this Article, unless otherwise prescribed by law.”

Compared to the current Labor Code 2012, the retirement age of employees has increased significantly. At the same time, for specific jobs, the younger retirement age is also provided more clearly.

  1. National Day is 2-day off

Nearby increasing the retirement age, Article 112 of Labor Code 2019 also adds one more day off on the adjacent day of the National Day, which may be on September 2 or September 3 of the Gregorian Celendar, depending on the year.

Thus the total number of annual public holidays will increase to 11 days, including: Calendar New Year Holiday: 01 day; Lunar New Year: 05 days; Hung Kings Commemorations Day: 01 day; Victory Day: 01 day; International Labor Day: 01 day; National Day: 02 days.

During these days, employees shall be entitled to fully paid days off.

  1. No more seasonal labor contracts

Article 20 of the amended Labor Code removes the content of seasonal contracts or jobs with a term of less than 12 months, instead of only two types of contracts: an indefinite-term labor contract and a definite-term labor contract.

This provision is considered to be a great progress of the Labor Law to protect employees, limit employers’ circumvention of the law, do not pay social insurance for employees by using seasonal contract, service contract…

  1. Being signed a definite-term labor contract with elderly many times

Elderly usually have many years of experience, especially the jobs that require high qualifications. Therefore, Article 149 of the Labor Code 2019 allows employers to sign definite-term labor contracts many times with the elderly to promote the value of them. They replace extending the term of the labor contract or signing a new one as before.

  1. The employee can unilaterally terminate the labor contract without reason

In order to overcome the inadequacy and shortcomings from application the cases of unilaterally terminating the labor contract of the employee, Article 35 of Labor Code 2019 gives employee the right to this without reason. He/She only needs inform at least 30 days for the definite-term labor contracts and 45 days for the indefinite-term labor contract.

In some cases, employee can unilaterally terminate the labor contract without prior notice if he/she:

  • Is not assigned to the work or workplace or not provided with the working conditions as agreed in the labor contract;
  • Is not paid adequately or on schedule;
  • Is maltreated, assaulted, physically or verbally insulted by the employer in a manner that affects the employee’s health, dignity or honor; is forced to work against his/her will;
  • Is sexually harassed in the workplace;
  • Is pregnant and has to stop working;
  • Reaches the retirement age specified in Article 169 of this Labor Code, unless otherwise agreed by the parties;
  • Finds that the employer fails to provide truthful information in a manner that affects the performance of the employment contract.

At the same time, the employee is also entitled to request the employer to provide copies of the documents relevant to the employee’s work, the employer shall pay the cost of copying and sending the documents.

  1. Amending and supplementing cases of contract termination, including:

  • Cancel the probationary agreement, the result of probationary is not satisfactory if there is a term about probationary in the contract;
  • The foreign employee working in Vietnam is expelled by an effective verdict or judgment of the court;
  • The work permit of foreign employee expires;
  • The employee is entitled to unilaterally terminate the labor contract and just gives the prior notice in accordance without reason;
  • If the employee quits his/her fails to go to work without acceptable excuses for at least 05 consecutive working days, the employer has the right to unilaterally terminate the labor contract without using disciplinary measures;
  • Reaching the retirement age (not required to meet the full year of paying insurance premiums) is also the basis for unilaterally termination of the employee or the employer. Previously the reaching retirement age and the year of paying insurance premiums is the basis of automatic termination.
  • The employer/ The employee fails to provide truthful information in a manner that affects the performance of the employment contract/ recruitment.
  1. Employers are not allowed to force their employees to spend their salaries on goods or services of the employers

The new Labor Code provides that the employers are not allowed to restrict or interfere their employees’ spending of their salaries. In particular, the employers must not force their employees to spend their salaries on goods or services of them or any particular providers decided by the employers.

  1. The employees can be rewarded not only with money

According to the Labor Code 2012, a bonus is a sum of money paid by an employer to his/her employees but with the Labor Code 2019, a bonus means an amount of money, a piece of property or item that is provided by an employer for his/her employees on the basis of the business performance or the employees’ performance.

  1. When paying salaries, Enterprises must send a note specifying the salary to employees

This Code requires that every time salary is paid, the employer shall provide the employee with a note specifying the salary, overtime pay, nightshift pay and deductions (if any).

Please contact us for detailed advice.

T2H Law Liability limited company

Head office: G4-4A, Dormitory 708, Lien Ninh, Thanh Tri, Hanoi

Branch office: 20N7A Nguyen Thi Thap, Nhan Chinh Ward, Thanh Xuan District, Hanoi.

Phone: 0242 242 9900 – 0989 656 682

Website: https://t2h.vn

Email: contact.t2h@t2h.vn – huong.le@t2h.vn

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