light-check 2019 Labor Code

Law No. 45/2019/QH14 dated November 20th, 2019 of the National Assembly on Labor code
Posted: 12/12/2019 7:10:29 AM | Latest updated: 12/5/2020 9:17:15 AM (GMT+7) | LuatVietnam: 4860 | Vietlaw: 439


In comparison with the current Labor Code No. 10/2012/QH13status3 , the new Labor Code contains some notable points as follows:

One of such notable points is that “employees shall not pay expenses of employee recruitment” (Clause 2 Article 11). This regulation means that the new Labor Code bans companies, enterprises from collecting recruitment charges.

Apart from the title of “labor contract”, enterprises and employees may agree to signs agreements with title other than “labor contract” provided that such agreements fully have contents of scope of work, salary, management, administration and supervision from one side towards the other (Clause 1 Article 13).

Regarding form of a labor contract, it may be signed in the form of electronic contract or paper-based contract. With regard to a verbal labor contract, now it is only applicable to labor contracts with term under 1 month instead of under 3 months under the earlier regulations (Clause 1, Clause 2 Article 14).

Regarding probation term, the new Labor Code allows increasing a probation term of up to 180 days (instead of 60 days under the earlier regulations) with regard to enterprise managers (Article 25).

The new Labor Code also allows employees to unilaterally terminate the labor contract without any reason but only required to notify in advance within the prescribed time limit (Article 35).

The number of days-off on the occasion of the National Day (September 2nd) shall be increased by 01 day, including the National Day and 01 day before or after the National Day (September 1st or September 3rd).

In addition, retirement age shall be increased according to the following roadmap: the retirement age of an employee is 60 years old and 03 months in full for male and 55 years old and 04 months in full for female, applicable from 1st January, 2021; after that, the age of retirement will be annually increased by 03 months for male and 04 months for female. By 2028, the age of retirement will be 62 years old in full for male and by 2035 the age of retirement will be 60 years old in full for female (Article 169).

This Labor Code shall come into force from January 1st, 2021 and replaces the Labor Code No. 10/2012/QH13status3 dated June 18t, 2012.

The new Labor Code also amends, supplements some regulations of the Law on social insurance No. 58/2014/QH13status2 dated November 20th, 2014 (which has been amended, supplemented according to Law No. 84/2015/QH13 dated June 25th, 2015 and Law No. 35/2018/QH14 dated November 20th, 2018); Code of civil procedure No. 92/2015/QH13status2 dated November 25th, 2015.

Xem Văn bản hợp nhất số 20/VBHN-VPQH ngày 16/12/2019.
EffectiveDate1/1/2021 (d/m/yyyy)
PublishedVietlaw's Newsletter No. 439
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