Vietnamese Labor Law

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.

TERMINATION OF LABOR CONTRACTS

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

• 10 days/ year
• Public holidays fall on weekly days off: taking time off in lieu

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.

You have 12 annual leave days for one full year working at Officience. At the 15th of the month, you will be added 1 day of that month. If you join Officience before 15th of the month, you will have 1 leave of that month. The number of days’ leave of year N must be used up until 31 Aug of year N+1

References

• Labor Law Training Presentation (by Ngoc Han NGUYEN 2016)