Difference between revisions of "Vietnamese Labor Law"

Latest revision as of 03:06, 14 September 2018

Here are essential elements to know regarding Labor Law in Vietnam.
(Shared by Ngoc Hân NGUYEN THI)

LABOUR CONTRACT

TYPE OF CONTRACT

1. CONTRACTS OF INDEFINITE DURATION
2. CONTRACTS OF DEFINITE DURATION (12-36 months)
3. SEASONAL CONTRACTS OF UNDER 3 MONTHS

Note: After signature of two labor contracts of definite duration, the third labor contract will be the one of indefinite duration

PROBATION TIME

Duration

Maximum of 2 months with jobs requiring technical expertise from Associate degree or higher. Maximum of 1 month with jobs requiring expertise from Intermediate degree, technical worker, professional employee.

Completion of probation time

Direct superiors of probation positions are responsible for:

• Evaluation of probation results
• If unsatisfactory: proposal of labor contract termination.

Note: The latest proposal is the last day of probation time.

WORKING TIME IN LABOR CONTRACTS

TERMINATION OF LABOR CONTRACTS

Contract expiration

Agreement of contract termination:

• The employee writes a resignation letter
• Or a minutes of contract termination agreement is made.
  

Period of notice must be respected:

• The contract of definite duration: 30 working days
• The contract of indefinite duration: 45 working days
• The contract with definite duration of less than 12 months: 3 working days

Note: If violating the period of notice→ The violating party must compensate for the other party an amount of money corresponding to the employee’s salary in the days without prior notice.

• Unilateral termination of labor contracts
• Unilateral termination of labor contracts

Procedure of contract termination

1. Decision on resignation resolution
2. Resignation payment: Payment of all relevant incomes
+ Salary
+ Insurance
+ Outstanding annual leave
+ Severance allowance (if any)
+ Advances, deductions (if any)
+ PIT finalization
3. Withdrawal of all equipments issued for staffs
4. Closing of social insurance book with insurance agency

WORKING TIME

WORKING TIME

8 hours/day, from Monday to Friday every week, total is 40 hours per week.
Normal office hours are from 8:00 am to 12:00 am, and 1:30 pm to 5:30 pm

Note: Female staffs with small children under 12 months are granted to take 1 hour off / day calculated to working hours

BREAK BETWEEN SHIFTS

Administrative staff: 60 → 90 minutes of shift break.

Staff working for 8 or 6 consecutive hours: 30 minutes of break calculated to working hours.

OVERTIME HOURS

Overtime

The total number of overtime hours does not exceed 4 h/ day, 200h/ year.

Overtime hours will only be paid if:

• being registered in advance
• being approved by Director

Do not arrange overtime work, night work with:

• Female staff in the 7th month of pregnancy and over
• Female staff having children under 12 months of age

Overtime Calculation

• 30%: night shift from 22pm- 6am
• 150% : overtime exceeding contract hours in a normal working day
• 200% : On weekly days-off
• 300% : On holidays and days-off with pay

HOLIDAYS

WEEKLY LEAVE

Administrative staff: 2 days (Saturday, Sunday)

PUBLIC HOLIDAYS

In accordance with General Law, employees will be entitled to have full paid days off on 10 public holidays, as follows:

• New Year’s Day: 1 day (January 1st)
• Vietnamese Lunar Year: 5 days (the last day of the old Lunar Year and the first 4 days of the new Lunar Year)
• Hung King Anniversary: 01 day (March 10th lunar calendar)
• Liberty Day: 1 day (April 30th)
• Labor Day: 1 day (May 1st)
• National Day: 1 day (September 2nd)
• NOTE:
• When public holidays (as mentioned above) coincide with weekly rest days, employees will have another day off in compensation in next week.
• Employees who are foreign citizens working in Vietnam receive an additional day off for their own country's National Day.

ANNUAL LEAVE

• Staffs (including apprentice + reinforcing): 12 days/ year
• Note: After each 5 working years → plus 1 day’s leave/ year
• The right to take annual leave starts since the date of signing

contracts but is only used since the 3rd month.

MATERNITY LEAVE

Leave for prenatal check-up: 5 times, 1 day/time(not including public holidays, Sunday)

Maternity leave: Period of leave: 6 months ( twin birth or more, each child: extra 30 days’ leave, including public holidays, Sunday) Regimes paid by Social Insurance: one-time allowance: 2 months’ common minimum salary (currently, VND 1.210. 000 x 2)
100% of average salary for paying insurance of 6 months before maternity leave

SICK LEAVE

Sick leave: Social Insurance pays 75% of salary for Insurance payment of the month before leave

• 30 days/ year: if paying Social insurance < 15 years
• 40 days/ year : if paying Social insurance from 15 → 30 years
• 60 days/ year : if paying Social insurance >=30 years

Maximum of 180 days if suffering a disease with long-term treatment according to List of diseases with long-term treatment ( TT 33/TT-LB dated 25 June, 1987 of Health Department & the Vietnam General Confederation of Labor)

SICK CHILD CARE LEAVE

• 20 days/ year : if children under 3 years old
• 15 days/ year : if children from enough 3 years old to under 7 years old.

Condition: having Paper for leave paid by Social Insurance from hospitals

Not including public holidays, Sunday.

OTHER LEAVE

Paid leave with family events

• The employee’s wedding: 3 days
• The wedding of the employee’s children: 01day
• The deaths of the employee’s parent, parent-in-law, wife (husband), children: 03 days

Unpaid leave:

• Agreement in advance with your influencers.
• Approval of your team and HR team.
• The period of leave does not exceed 10 days/ year.
• In this period, the employee is not entitled to have days’ leave.
• Special cases: : The employer considers & discusses with CEO. The longer period of unpaid leave can be accepted (maximum 90 days).

SALARY

MINIMUM SALARY

SALARY PAYMENT

• Staffs in probation time receive 85% of salary
• Salary calculation bases on 22 working days/ month
• Salary is transferred into bank account at the end of a month
• Salary is paid when staff quitting job returns to all equipments of Company.

PAY-SLIP

SALARY ADVANCE

Conditions:

• Particularly financial difficulties
• Working seniority of 12 months and more
• Amount of advance: maximum of 1 months’ gross salary
• Period of return: within 2 months
• Times of advance: once in 2 years

Procedures:

• Staff fills in form « Advance proposal »
• HR staff confirms seniority, salary level, times of advance
• Advance proposal is approved by CEO or the authorized Director

RAISE SALARY

Anniversary salary review:

• The fixed-date reviews that you should remember for your salary review is your Offy anniversary date (the date you start working for Officience). It should always be the same date.

Even if you have a salary raise in between due to promotion for example, the next salary review should remain your Offy anniversary date.

BONUSES AND ALLOWANCES

• 13th-month bonus
• Staff works until 31 December
• Bonus of 100% of a month’s gross salary if enough 12 months’ seniority
• According to the proportion of working months if seniority of 2 months, to less than 12 months. Paid into salary for December of year N

INSURANCES IN ACCORDANCE WITH THE LAW

Ceiling level to pay insurances: 20 times of common minimum salary (currently, 20 X 1.300.000= 26 000 000 VND )

Social insurance

Ceiling level : currently, 20 X 1.300.000= 26 000 000 VND

Health insurance

Ceiling level : currently, 20 X 1.300.000= 26 000 000 VND

The employer 3%, the employee 1.5%

Unemployment insurance

Ceiling level : currently, 20 X 3.950.000= 79 000 000 VND

Personal income tax (as defined)

INSURANCES FOR THE EMPLOYEE BOUGHT BY THE COMPANY

24/24 accident insurance Persons: all employees signing contracts (including: apprentice, reinforcement, expats) Interests: medical costs + salary for days off due to accident

TRANSFER

References

• Labor Law Training Presentation (by Ngoc Han NGUYEN 2016)
• Labor Law Training Presentation (by Ngoc Han NGUYEN updated 2018)
• Labor Law Training Presentation & Union Officience (by Ngoc Han Nguyen updated on Sep 2018)