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Law Code No. 45/2019/QH14 Labor Code

20/11/2019    173

Issuing date: 20/11/2019

Issuing authority: 14th National Assembly of the Socialist Republic of Vietnam

At its 8th session, the 14th National Assembly passed the Labor Code with 90.06% of the vote. With 17 chapters and 220 articles, the 2019 Labor Code has had many major and important amendments and supplements.

Many important amendments and additions

At the press conference to announce the President's Order announcing the Laws passed by the National Assembly at the 8th Session, the Minister of Labor, War Invalids and Social Affairs said that the Code has 3 amendments, big addition. Firstly, the Code has expanded the subject of regulation to both employees with labor relations and employees without labor relations. Accordingly, adjusting all employees with labor relations (about 20 million people). Expanding the application of a number of provisions of the Code to even employees without labor relations, some contents are applied to the entire social labor force of about 55 million people. In addition, the Code also contains provisions to expand coverage and improve the identification of employees working under labor contracts, based on signs of the nature of the individual labor relationship.

Second, the revised Labor Code is more in line with the principles of the market economy. Specifically, the Code promulgates minimum standards (eg minimum wages, maximum working hours...); create a legal framework for the parties to negotiate their specific interests higher than the minimum level set by the State; do not interfere administratively in deciding specific issues of the enterprise such as the issue of salary payment of the enterprise…The parties to the labor relationship have the right to negotiate and agree on their own wages and terms other working conditions; has the right to decide to join or not to enter into an employment relationship, to join or not to join a representative organization, to have the right to decide on its specific issues.

Third, the Labor Code has ensured conformity and approach to international labor standards, especially basic labor standards, including: freedom of association and collective bargaining of employees. Equality and non-discrimination in labor, especially non-discrimination on gender and disability status. Elimination of child labor, protection of juvenile workers in both the formal and informal sectors, with or without an employment relationship.

To implement the Code, there will be about 14 decrees, 01 decision of the Prime Minister and 7 circulars of the Ministry of Labor, War Invalids and Social Affairs detailing and guiding the implementation of the Code.

Adjusting to increase the general retirement age according to the roadmap

The Labor Code 2019 has institutionalized Central Resolution No. 28-NQ/TW on reforming social insurance policies, in which the general retirement age is adjusted according to a gradual schedule, specifically: The general retirement age in the article Under normal working conditions, men will retire at age 62 (in 2028) and women at age 60 (in 2035) according to the roadmap to increase 3 months per year for women and 4 months per year for men from 2021 .

The Code stipulates the right to retire no sooner than 5 years, unless otherwise provided for by law, applicable to employees with reduced working capacity; doing particularly heavy, hazardous or dangerous occupations or jobs; doing heavy, hazardous or dangerous occupations or jobs; working in areas with extremely difficult socio-economic conditions.

Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung said that the Ministry will issue a list of heavy, hazardous and dangerous occupations and jobs as a basis for identify cases where workers can retire at a lower age, about 1810 occupations, the number of workers doing these jobs is about 3 million people.

In addition to the right to early retirement, the Code stipulates the right to retire no later than 5 years, unless otherwise provided for by law, applicable to employees with high professional and technical qualifications and some special cases.

Representative organization of workers at the grassroots

In order to institutionalize Resolution No. 06-NQ/TW and Resolution No. 27-NQ/TW of the Central Government, meeting the requirements of Vietnam's industrial relations practice and the principles of the Labor Organization International Labor Organization (ILO) and the requirements of international commitments (CPTPP, EVFTA, ..), the Code stipulates on the organization of representing and protecting the interests of employees in labor relations for people whom are not part of the system of the Vietnam General Confederation of Labor.

Specifically, the Code provides principles for the three most core issues, including: (1) the right to establish and join representative organizations; (2) conditions for the management board and the head of the organization; and (3) conditions on the principles and operational purposes of the representative organization of employees.

The Code also assigns the Government to detail and guide the implementation of the above contents and the contents of the order and procedures, registration competence, registration grant, registration revocation, division, separation, etc. merger, dissolution and the most sensitive issue is the right of association of workers' organizations.

In addition, the Code also has many other important changes such as loosening the monthly ceiling on overtime from 30 hours/month to 40 hours/month and specifying cases in which overtime can be worked up to 300 hours/year. Adding 01 additional public holiday before or after the National Day September 2nd.

The Code also guarantees more freedom to enter into labor contracts: An employee has the right to unilaterally terminate a labor contract without reason, but only has to notify the employer in advance.

The state only promulgates the minimum wage, the employer decides on his own the wage policy (ladder, payroll) on the basis of consultation with the representative organization of the employee.

The Code also contains many provisions on ensuring gender equality and protecting workers such as creating conditions for female workers to exercise their rights; minimize the prohibition regulations; amending a number of regulations applicable to both male and female employees. Extend protection to juvenile workers in both formal and informal sectors, juvenile workers working without an employment relationship.

Regarding the changes of the Labor Code, ensuring the conditions for the implementation of the Code as well as the consistency of the legal system, the Minister of Labour, Invalids and Social Affairs also said that in the coming time, conduct amendments to Articles 54, 55, 73 of the Law on Social Insurance related to conditions for pension enjoyment since the Labor Code has adjusted to increase the retirement age and amend Article 32 of the Civil Procedure Code on Labor disputes and labor-related disputes fall under the jurisdiction of the Court.

The Code (in Vietnamese) is attached below:

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