key changes in vietnam's new labor code 2013
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TRANSCRIPT
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4/8/2014 1
Key Changes in Vietnam’s Labor
Code 2013
Presented by: Alice Nguyên
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Contents
3.Work hours and rest breaks
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1. Labor Contract
2. Labor outsourcing
5. Tightened management of
foreigner
4. Salary reform
6. Other matters
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1. Labor Contract
Sign labor contract with employees from 15 ~ 18 years old (Art.18)
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Not allowed to keep employees’ original
identification cards and qualifications;
money or any assets for guarantee (Art.20)
Additional contents: payment method, grade
increase of salary, work conditions,…
(Art.23)
Labor contract annex (Art.24)
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<= 60 days for works that demand
college education and further
<= 30 days for works that demand
vocational intermediate education
<= 6 days for other works
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- Employee dies, is declared dead,
missing, incapable of civil by the
Court
- Employee satisfies the requirement
of SI duration & pension age
- Employee is disciplinarily dismissed
More details in
probation
duration:
(Art.27)
Add more
contents in
cases of labor
contract
termination
(Art.36)
1. Labor Contract (Cont.)
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Additional section of Invalid Labor Contract (Art.50 ~52) in
cases:
LC contents are illegal, prohibited by laws
Is concluded by incompetent person
Restrict Union activities of employees
Two types of Invalid LC:
Part and entire invalid labor contract
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1. Labor Contract (Cont.)
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Outsour
cing
contract
Outsourcing
contract
Rights &
Obligations
of parties
Outsourcing (from Art.53 ~ 58)
Purpose:
. Increase labor force in a peak
period
. Temporary replacement of
employees taking maternity leave,
accident,..
Maximum term is 12 months
Labor outsourcing license
(Decree No.55, Circular No.1)
First time recognized by law
2. Labor Outsourcing
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The normal work hours shall not exceed 10 hours
per day, but not exceed 48 hours per week
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Night-shift is calculated from 22pm to 6am of the
following day across Vietnam
Overtime shall not exceed 12h/day, 30h/month, 200h/year
(300h/year in special cases)
3. Work hours and rest breaks
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Maternity leave increases to 6
months (Art.157)
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Increase of Lunar New year holiday from 4 to 5
days
Foreigners have 2 paid days for traditional
public holiday and national day of their
country
3. Work hours and rest breaks (cont.)
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4/8/2014 9
Probation salary is up to at least 85% of
official salary (Art.28)
70%
85%
Overtime during night shift: additional 20% of
salary for day shift
Regional minimum salary increases to 2.7m –
2.4m – 2.1m- 1.9m (Decree No.182)
4. Salary reform
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4/8/2014 10
Maximum term of Work Permit
is 02 years
Employer may recruit foreigner when Vietnamese
employee has not met business demand (have to
enclose approved explanation & plan for the
recruitment)
(Art.170)
5. Tightened management of foreign employees
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First time recognized by law
Dialogue at workplace & Collective negotiation (Art.63~ 72)
Job list is prohibited to apply for employees under 18 years
old (Art.165)
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6. Other Matters
Social Insurance increases by 1% for both employee’s
contribution and employer’s contribution: (From Jan 1st, 2014)
Employee: SI : 8%, HI: 1.5%, UI: 1% (Total: 10.5%)
Employer: SI: 18%, HI: 3%, UI: 1% (Total: 22%)
PIT: (From July 1st, 2013)
Personal allowance:
vnd 9 million/month
Dependent allowance:
vnd 3.6 million/month
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4/8/2014 12