It is expected that the new Labor Code which will replace the Labor Code 2012 will be submitted to the National Assembly for approval and come into effect in 2019.
The Labor Code has a great impact on every employee, so any change in it will more or less affect their rights and obligations. Here are 11 major changes in the latest Labor Code.
1. Provisions on the authorization to enter into a labor contracts for enterprises with multiple owners
This is a group of policies that will help to improve the feasibility in applying provisions on labor contracts, labor discipline – material responsibility, foreign workers in Vietnam, working time – rest time; settlement of labor disputes and other working standards and conditions.
Details:
- Regarding labor contracts:
+ Adding provisions on the authorization to enter into labor contracts: To settle the unsound fact that it is impossible to determine who is competent to sign labor contracts in enterprises which have more than one owner;
+ Specifying the duration of an Appendix.
+ To permit the signing of defined term labor contracts with older workers and foreign workers in compliance with the practice.
+ To define more clearly the responsibility of the employer in giving the employee who pass the probation an officially position.
+ Specifying for cases of termination of labor contracts with employees of pensionable ages: To solve problems faced by enterprises in reality of using elderly labors.
- Labor discipline, material responsibility:
To amend and supplement the provisions on the competence, order and procedures for handling labor disciplines and internal rules on labor … to ensure that labor discipline is handled swiftly and conveniently as well as to resolve the inadequacies of the person who in charge of implementing the labor disciplines in practice.
- Foreign laborers working in Vietnam: To amend and supplement the provisions on the type of job a foreigner is allowed to work, conditions for foreigners to be allowed to work… in order to solve practical problems, inadequacies in limiting the work and conditions for foreigners to work in Vietnam, ensure the transparency and flexibility in foreign workers employing while protecting the employment of domestic workers.
- – Working time, rest time: Clearly set aside time for breaks during working day, annual leave, standard working hours … to ensure the logic and practicality consistent with reality.
- – Other labor standards and condition: amending the regulations on forced labor; discrimination; child labor; elder labor; female labor; other specific labor … to ensure practical feasibility.
2. Prohibition of gender discrimination
This is a group of policies that protect the fundamental rights and obligations of citizens in the fields of labor, labor relations and labor market by institutionalizing the provisions of the 2013 Constitution into the content of the modified Labor Code.
Specifically, modify the following chapters:
– General Provisions Chapter, Female Labor Chapter and Other Labor Chapter: to guarantee that there is no discrimination in employment choice, ensuring conditions and promotions in employment and occupation.
– General Provisions Chapter, Labor Contract Chapter, Female Labor Chapter, Salaries and Wages Chapter and other chapters: to ensure the prohibition of gender discrimination.
– General Provisions Chapter, Labor Discipline and Material Liability Chapter and State Administration of Labor Chapter: to ensure labor complaints and denunciations.
– General Provisions Chapter and other Chapters: to ensure that “Citizens have the right to work, to choose a profession, job and workplace”; “Employees are guaranteed of fair and secure working conditions, salaries and rest regimes”; “Strictly prohibit discrimination, forced labor, the use of workers below the minimum age of employment”.
– General Provisions Chapter and Other Labor Chapter: to institutionalize the provision of Constitution “Violence, abuse, mistreatment, neglect, imposition, labor exploitation and other acts that violating children’s rights are strictly prohibited.”
3. Abolishing the regulations related to employment, occupational safety and health etc.
This is a group of policies which ensure the consistency of the legal system by abolishing and amending the provisions of the Labor Code in accordance with the other relevant laws.
Specifically:
– To abolish Articles 12, 13; to amend Article 14 of the Labor Code 2012 in accordance with the Law on Employment 2013.
– To amend Articles 60, 61 and 62 of the Labor Code 2012 in accordance with the Law on Vocational Education.
– To repeal Articles 134, 136, 138, 140, 141, 142, 143, 144, 145, 146, 147, 148, 149, 150, 152; to amend Articles 137 and 109 of the Labor Code 2012 in accordance with the Law on Occupational Safety and Health.
– To abolish Articles 223, 224, 225, 226, 227, 228, 229, 230, 231, 232 and 234, Section 4, Chapter XIV; to amend Article 51 of the Labor Code 2012 to comply with the Civil Procedure Code.
– To amend Articles 16 and 45 of the Labor Code 2012 in accordance with the Law on Enterprises and the Civil Code.
4. Unilateral termination of the labor contract is subject to the notice period compliance only not the reason
This is in order to ensure the right to choose a better employment of employee and prevention of forced labor: whenever workers feel dissatisfied with current employment or found a better employment, they will exercise the right to unilaterally terminate the labor contract without giving any reason. Employees only need to notice ahead a certain period of time for the enterprise to actively seek for alternative labor.
5. More overtime is allowed
Specifically, raise the limit for overtime to a maximum of 12 hours per day and 400 hours per year.
6. Promulgating a set of criteria for determining minimum wages
Include the following criteria:
– Minimum living standard for workers and their families.
– Common wages in the labor market.
– Cost of living.
– Affordability of employers
– Social and economic conditions; labor productivity, production and business situation of enterprises, employment and unemployment situation of employees.
7. Abolishing the principle of building wage scales and payrolls
Each employing institution shall, based on their practical conditions of production and business activities, take the initiative in negotiating and collective bargaining to formulate wage scales, payrolls and labor norms which will be applied and publicized at the enterprise for employees to know and monitor the implementation without compliance with certain principles.
The goal is to limit of state intervention in the relationship of parties in labor market; to facilitate enterprises to take the initiative in corporate governance regarding the formulation of wage scales, payrolls and labor norms in production and business and the reduction of compliance expenses for enterprises and State management agencies.
8. Increase the retirement age according to the roadmap
From 2021, each year, six months of age will be added to the retirement age until the age of 62 for man and 60 for woman.
9. Undertake labor inspection without notice
This regulation was amended accordingly with ILO’s Convention 81.
Specifically, it is to restore Article 187 of the Labor Code 1994: “Inspection, investigation of which belong to the subjects and scope of inspection is assigned at any time without notice.”
10. Extending the jurisdiction of the Labor Arbitration Council
This expansion aims to help the arbitrator become an important mean of resolving labor disputes as the experience and practice of many market economy countries.
11. Compulsory mediation is not required when resolving collective labor disputes
Details:
– When a collective labor dispute on rights arises, the parties have the right to decide for it to be resolved through conciliation or arbitration or trial.
– When a collective interest dispute on benefits arises, the parties to the dispute shall have the right to decide whether to settle the dispute through conciliation or arbitration. The representative organization of the worker may conduct the consultation procedure and inform the strikers in advance.
Amendments in this way do not undermine the role of mediation in resolving labor disputes, as parties still have the right to request for mediation if they wish for; at the same time, contributing to overcome the limitations of the process of solving labor disputes under a “monopoly” of the current law that the parties could not do over the past 20 years.
It is expected that the Labor Code 2019 will be passed by the National Assembly in October 2019.
If you are looking for legal advice, please feel free to contact Kim Huc for more information!
KIM HUC CONSULT AND TRADING COMPANY LIMITED
Add: C36-TT8, Van Quan, Dist Ha Dong, Ha Noi, Viet Nam
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