Vietnam Labor Law | Amendment of work permit (working visa) for foreigners
- The Labor Law will be revised from January 2021.
- The revised labor law provides stronger protection for employees and complies with international standards.
- Companies must review their labor practices and comply with the revised labor law.
The Vietnamese Parliament has approved a revised Labor Code that will come into effect in January 2021. In accordance with the guidance of the International Labor Organization (ILO), we will comply with international standards even in Vietnam by amending labor regulations. This time, I will explain important changes in the revised Labor Law.
Main items of the revised labor law
working time
The working hours limit is the same as 48 hours a week, but the revised labor law does not allow normal working hours to exceed 8 hours a day or 48 hours a week. However, if the employer and the employee agree to the overtime contract, the maximum overtime hours can be 12 hours a day, 40 hours a month, and 200 hours a year. For a particular industry, this can be up to 300 hours per year.
▼Industry with an upper limit of 300 hours
Sewing/textiles, leather/footwear, electrical equipment/electronic products, agriculture, forestry and fisheries, salt, power generation/distribution, communications, oil production, water supply/sewerage, etc.
Labor contract (fixed-term employment contract)
Under the conventional labor law, when a fixed-term employment contract (1 to 3 years) is signed twice, it is obligatory to sign an unlimited employment contract. This amendment to the Labor Law eliminates the obligation of permanent employment only if the employer and the employee agree on a fixed-term employment contract.
Dismissal:To protect our employees, we can immediately terminate your employment contract in the event of employee abuse, pregnancy, or the employer's unpaid salary. Under traditional labor law, employees had minimum notification requirements (30 days for indefinite, 45 days for indefinite).
Union
Under old labor law, Vietnam's trade unions were under the supervision of the state-run Vietnamese General Union of Labor (VGCL). The amended labor law will allow activities as an independent trade union.
Retirement age
From 2021, the retirement age of employees who work under normal working conditions will be increased by 3 years for men and +4 months for women step by step. Will increase the age of women from 60 to 62 and by 2035 will increase the current age of women from 55 to 60. Increasing the retirement age is to avoid a labor shortage from 2040 and prevent social insurance from running into the red.
discrimination
The revised labor law provides for protection of employees from discrimination against them in the workplace. This includes skin color, race, nationality, ethnicity, gender, pregnancy, political views, disability, HIV, sexual harassment and more. The revised Labor Law also strengthens the protection of young employees.
Add holidays
The National Holiday (September 2nd) will be closed for two consecutive holidays with one additional day. In addition to the current September 2nd, September 1st or September 3rd will be a national holiday depending on the year.
Amendments to the work permit (work visa) of the Labor Law
Foreign employees have been required to renew their work permit (working visa) every two years, but now they can renew it every four years. Please note that the revised Labor Law requires you to apply for an extension for two years after the first two years have passed. It was necessary to arrange a criminal record certificate (police station) and a university graduation certificate each time the renewal was made, but this is due to the ease of procedures for foreign employees and the attraction of foreign investment.
Other changes in the revised labor law
The government does not regulate the salary policies of individual companies negotiated between employers and employees, but they must comply with the rules on minimum wages. Employees can have holidays around September 2nd, Vietnam National Day.
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