key changes in vietnam's new labor code 2013

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Key Changes in Vietnam’s Labor

Code 2013

Presented by: Alice Nguyên

Contents

3.Work hours and rest breaks

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1. Labor Contract

2. Labor outsourcing

5. Tightened management of

foreigner

4. Salary reform

6. Other matters

1. Labor Contract

Sign labor contract with employees from 15 ~ 18 years old (Art.18)

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Not allowed to keep employees’ original

identification cards and qualifications;

money or any assets for guarantee (Art.20)

Additional contents: payment method, grade

increase of salary, work conditions,…

(Art.23)

Labor contract annex (Art.24)

<= 60 days for works that demand

college education and further

<= 30 days for works that demand

vocational intermediate education

<= 6 days for other works

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- Employee dies, is declared dead,

missing, incapable of civil by the

Court

- Employee satisfies the requirement

of SI duration & pension age

- Employee is disciplinarily dismissed

More details in

probation

duration:

(Art.27)

Add more

contents in

cases of labor

contract

termination

(Art.36)

1. Labor Contract (Cont.)

Additional section of Invalid Labor Contract (Art.50 ~52) in

cases:

LC contents are illegal, prohibited by laws

Is concluded by incompetent person

Restrict Union activities of employees

Two types of Invalid LC:

Part and entire invalid labor contract

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1. Labor Contract (Cont.)

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Outsour

cing

contract

Outsourcing

contract

Rights &

Obligations

of parties

Outsourcing (from Art.53 ~ 58)

Purpose:

. Increase labor force in a peak

period

. Temporary replacement of

employees taking maternity leave,

accident,..

Maximum term is 12 months

Labor outsourcing license

(Decree No.55, Circular No.1)

First time recognized by law

2. Labor Outsourcing

The normal work hours shall not exceed 10 hours

per day, but not exceed 48 hours per week

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Night-shift is calculated from 22pm to 6am of the

following day across Vietnam

Overtime shall not exceed 12h/day, 30h/month, 200h/year

(300h/year in special cases)

3. Work hours and rest breaks

Maternity leave increases to 6

months (Art.157)

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Increase of Lunar New year holiday from 4 to 5

days

Foreigners have 2 paid days for traditional

public holiday and national day of their

country

3. Work hours and rest breaks (cont.)

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Probation salary is up to at least 85% of

official salary (Art.28)

70%

85%

Overtime during night shift: additional 20% of

salary for day shift

Regional minimum salary increases to 2.7m –

2.4m – 2.1m- 1.9m (Decree No.182)

4. Salary reform

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Maximum term of Work Permit

is 02 years

Employer may recruit foreigner when Vietnamese

employee has not met business demand (have to

enclose approved explanation & plan for the

recruitment)

(Art.170)

5. Tightened management of foreign employees

First time recognized by law

Dialogue at workplace & Collective negotiation (Art.63~ 72)

Job list is prohibited to apply for employees under 18 years

old (Art.165)

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6. Other Matters

Social Insurance increases by 1% for both employee’s

contribution and employer’s contribution: (From Jan 1st, 2014)

Employee: SI : 8%, HI: 1.5%, UI: 1% (Total: 10.5%)

Employer: SI: 18%, HI: 3%, UI: 1% (Total: 22%)

PIT: (From July 1st, 2013)

Personal allowance:

vnd 9 million/month

Dependent allowance:

vnd 3.6 million/month

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