Jul 13, 2012

Vietnam - The new amended Labor Law 2012

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On 18/06/2012, Vietnam National Assembly has approved and published the new amended Labor Law 2012. There are seven (07) amended clauses shall pay attention as below:

1.     The salary in the probation period shall be at least equal 85% of the official monthly salary, pursuant to Article 28 of the new Labor Law; instead of rate of 70% in the current law.

2.     The amendment on dialogue at the workplace is mentioned and specified from the Article 63 to Article 65 of the new Labor Law.

3.     An extra pay of at least 20% for overtime working in the nighttime will be paid to employee beside the regular unchanged terms on overtime payment, that is salary of working overtime is at least equal 150% in the working days, 200% in the weekend days, and 300% in the holidays, and the salary of the nightshift is at least equal 130%.

4.     Working hour at night is counted from 22:00 to 6:00 mentioned at the Article 105 in the new Labor Law; instead of from 22:00 to 6:00 or 21:00 to 5:00 depending on its geography as per current regulation.

5.     There are 5 days off for the Lunar New Year instead of 4 days as current. According to this change, the total days off for the holiday are 10 days instead of 9 days as current. Moreover, there is a new regulation for the expat in the Article 115: “Foreign workers in Vietnam, in addition to the public holidays stipulated in clause 1 of this Article, is entitled to one (01) traditional public holiday and one (01) National Day of his/her country, both fully paid based on employment contract. Where a holiday referred to in clause 1 of this Article coincides with a weekly day off, employee is entitled to take the following day off as compensation.”

6.     At the Article 157 of the new Law, maternity leaves are increased from four (04) months to six (06) months for a female employee who works in a normal work condition. In case of female employee gives birth to twin upwards, judging from the second child upwards, for each child the mother shall gain 1 more month off. Prenatal leaves should not be longer than two (02) months.

7.     Pursuant the Article 173 of the amended Labor Law, Validity of work permit for foreign labors working in Vietnam shall not be greater than 24 months instead of 36 months as current.

This Law shall be of full force and effect from 01/05/2013. The Labor Code dated 23 June 1994, the Law amending and supplementing a number of articles of the Labor Code No. 35/2002/QH10, the Law amending and supplementing a number of the Labor Code No. 74/2006 / QH11 and the Law amending and supplementing a number of articles of the Labor Code No.84/2007/QH11 that shall be expired from the date this Code takes effect.



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