Welcome to the latest edition of our regular legal update from the A&P Vietnam office.
This week, we highlight a series of upcoming changes to labour regulations following the imminent implementation of the 2019 Labour Code.
To learn more about one of these changes, just contact our office for more information.
Important New Changes to the Labour Law
With the Labour Code 2019 set to come into force on 1 January 2020, the government continues to issue new regulations to guide the implementation of this important legislation. We featured the latest of these in our update on 7 December, when we highlighted how Decree 135 would change the age of retirement.
Now, the government has published a new regulation – Decree No. 145/2020/ND-CP (“Decree 145”) – which will guide the implementation of working conditions and labour relations aspects of the Labour Code.
Taking effect from 1 February 2021, Decree 145 covers important labour matters including the content and termination of labour contracts; outsourcing; working and rest times; wage calculation; dialogue and democracy in the workplace; dispute settlement; labour discipline; and issues concerning female workers. In particular, three major changes stand out.
- First, employers will be required to provide bi-annual reports on the use of their staff either online or in-person to the Department of Labour, Invalids and Social Affairs (“DOLISA”) and the local social insurance agency. These reports – to be filed on 5 June and 5 December – must include information about the number of workers and personal information such as their salaries and social insurance.
- Second, Decree 145 also outlines how salaries should be calculated in cases of ‘untaken leave’. This will now be calculated based on the wage in the last month before the month in which a contract was terminated, rather than the previous 6-month average as before.
- Third, the new decree introduces some important workplace rights for women. These include the right to a 30-minute break each day for up to three days during their menstruation. Women with a child under 12-months-old are also entitled to a 60-minute break each day for breastfeeding and rest, with no loss of wage. Workers who choose not to take these breaks will see their salaries increase to match the time not taken.
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