1. Only employment contract of which the term is less than 1 month may be concluded in oral form.
- In the 2012 Labor Code, for temporary jobs with duration of under 3 months, the parties may enter into a verbal employment contract.
- In the 2019 Labor Code, employment contract of which the term is less than 1 month may be verbally concluded, except in several cases where it is mandatory for employment contracts to be concluded in a written form as provided in clause 2 of Article 18, point a of clause 1 of Article 145 and clause 1 of Article 162 in this Labor Code.
2. More prohibited acts that employers are prevented from performing when concluding or executing employment contracts are regulated
That is the employer’s act of compelling the employee to execute his/her employment contract as a way to repaying debts owed to the employer.
3. Types of employment contract
The new Labor Code has eliminated seasonal contracts. For more details, please click HERE.
4. Employment contracts sent through electronic devices in data message form are accepted
Employment contracts concluded via electronic devices in data message form under laws on electronic transactions have the same value as those concluded in written form.
5. Probation requirement is not allowed to impose in any employment contract of which the term is less than 1 month
According to existing regulations, only employees signing seasonal contracts are not subject to probation requirements by default.
6. Probationary duration
Additional regulations prescribe that each probation lasts for the maximum duration of 180 days with regard to employees hired to hold corporate administration positions as provided in the Law on Enterprises, the Law on Management and Use of State Capital Investments in Enterprises.
7. Additional cases of temporary deferral of employment contracts
There are more 4 cases in which employees are entitled to deferral of employment contracts, including:
- The employee is called up for military or militia or self-defence service;
- The employee is appointed to a manager of a single-member limited liability company of which charter capital is wholly owned by the State.
- The employee is authorized to implement rights and responsibilities of representatives of owners of state capital invested in enterprises.
- The employee is authorized to implement rights and responsibilities on behalf of an enterprise to their share of capital invested in another enterprise.
8. Employees may unilaterally terminate employment contracts without cause
- In the 2012 Labor Code, if any employee entering into fixed-term employment contracts wishes to unilaterally terminate his/her contract, he/she must give causes as provided in clause 1 of Article 37 in the 2012 Labor Code and meet requirements concerning prior notice period.
- In the 2019 Labor Code, any employee may unilaterally terminate an employment contract without cause provided that he/she meet requirements concerning prior notice period as prescribed in clause 1 of Article 35 (except in cases where prior notice is not required).
9. Additional regulations on cases where employees have the right to unilaterally terminate employment contracts without prior notice
The 2019 Labor Code prescribes special cases where employees are not required to give prior notice, including:
- They have not held agreed-upon job positions or work at predetermined addresses; are not assured of agreed working conditions, unless otherwise prescribed in Article 29 in this Code;
- They have not been paid wages or salaries in full or have been paid late, unless otherwise prescribed in clause 4 of Article 97 in this Code;
- They are maltreated, hit, or are victims of insulting words or acts or other acts affecting their health, dignity and self-respect; are victims of labor coercion;
- They suffer from sexual harassment at workplace;
- Pregnant female employees are pregnant in accordance with Article 156 of this Code;
- They are at retirement age as provided in Article 169 in this Labor Code, unless otherwise agreed upon between contracting parties;
- Employers provide false information in breach of clause 1 of Article 16 in this Labor Code, affecting implementation of employment contracts.
10. 02 cases where employers have the right to unilaterally terminate employment contracts without prior notice
Employers have the right to unilaterally terminate employment contracts without prior notice in the following cases:
- Employees have not arrived at workplace within 15 days after the expiration date of deferral of employment contracts.
- Employees deliberately leave work without sound causes for at least 5 consecutive days.
11. From 2021, mandatory retirement age of employees officially increases
In existing regulations, retirement age of male and female employee is 60 years and 55 years, respectively. However, the new Labor Code prescribes that male employees hired in ordinary working condition will retire at 62 years of age by 2028 while female employees hired in ordinary working condition will retire at 60 years of age by 2035.
Please click HERE to read more details about the schedule of annual increase in retirement age of employees.
12. 2 days-off to celebrate the National Day
According to regulations laid down in the 2012 Labor Code, employees are entitled to 1 days-off on the National Day. However, from 2021, they will be entitled to 2 days-off (click HERE for more details).
13. The new Labor Code regulates additional cases where employees taking personal leave are paid in full (click HERE for more details).
14. Overtime hours per month are increased to 40 hours
Although total permissible overtime work timelength remains no greater than 200 hours/year, overtime hours per month are changed from "not more than 30 hours/month" to "not greater than 40 hours/month".
15. The new Labor Code regulates that employees may authorize others to receive their wages or salaries
If the employee is unable to receive wages or salaries in person, he/she may authorize others to act on their behalf to receive their wages or salaries.
However, below are two factors that may allow or disallow the authorized persons to receive wages or salaries on behalf of employees:
- Such authorization must be legitimate;
- Employers agree or disagree as the Law regulates that employers “may”, not “are obliged to”, pay wages or salaries via authorized persons.
16. Conversations at workplace may be held at least once a year
- In the 2012 Labor Code, conversations at workplace may be held periodically every three months or upon the request of either party.
- In the 2019 Labor Code, conversations at workplace must be held at least once a year upon the request of either party, or in the cases specified in point a of clause 1 of Article 36, Articles 42, 44, 93, 104, 118 and clause 1 of Article 128 in this Labor Code.
17. Employees are not required to pay fees for opening bank accounts used for receiving wage or salary transfers.
- In the 2012 Labor Code, in case of payment of wages or salaries via bank accounts, this Law allows enterprises to negotiate with employees on who will pay fees for opening and retaining bank accounts.
- The 2019 Labor Code regulates that enterprises hiring employees must pay these fees.
>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE
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