New contents of Labor Code 2019


On November 20, 2019, the National Assembly issued the Labor Code No. 45/2019/QH14 effective from January 1, 2021. The Labor Code No. 10/2012 / QH13 will expire from the effective date of this Labor Code. From the effective date of this Code, the labor contract, collective labor agreement, legal agreements entered into contain contents that are not contrary to or guarantee the employees the right and more favorable than the provisions of this Code shall be continued to perform, unless the parties have agreed on amendments and supplements to suit and apply the provisions of this Code.

According to the Labor Code No. 45/2019 / QH14, there are some noticeable points for employer and employee as follows:

 1. Employment contract: The provisions of Article 13 supplement cases where it is considered a labor contract:

  • In case two parties have agreement with different names, but owning the contents relating to job, wages, and the management and supervision of one party, such agreement shall be considered as employment contract.

 2. Forms of employment contracts: the provisions of Article 14 supplementing labor contracts concluded electronically and modifying the conclusion of verbal labor contracts:

  • The employment contract concluded through digital instruments under the format of data message in line with law of electronic transactions is considered as written employment contract.
  • The two parties may conclude a verbal employment contract in respect of employment for a duration of less than 01 month, except for the case prescribed in Clause 2 Article 18, Point a Clause 1 Article 145 and Clause 1 Article 162 of this Code.

 3. Prohibited acts of employers when signing and implementing employment contracts: the provisions of Article 17 supplementing prohibited acts:

  • To force employee to perform an employment contract for payment of employer’s loans.

 4. Types of employment contract: the provisions of Article 20 remove the provisions on seasonal labor contracts or a specific job with a term of less than 12 months.

 5. Duration of probation: Article 24 and 25 supplements the probationary period for the enterprise manager:

  • The probationary period shall not exceed 180 days in respect of work of management of enterprise as stipulated in Law on Enterprise
  • Employees entering into an employment contract with duration less than 01 month shall not be subjected to probation.

 6. Assigning employees to perform a work which is not prescribed in the employment contracts: Article 29 supplements a number of contents:

  • The employer shall specify in the labor regulations cases where, due to production and business needs, the employer may temporarily transfer the employee to do other jobs in comparison with the labor contract.
  • An employee who disagrees with a temporary job different from the employment contract for more than 60 working days in a cumulative period of one year, but must stop working, the employer must pay a termination salary in accordance with Article 99 of this Code.

 7. Temporary suspension of employment contracts: Article 30 supplemented a number of cases:

  • Laborers who perform the obligation to join the militia and self-defense force;
  • The employee is appointed to be the manager of the enterprise of a one-member limited liability company in which the State holds 100% of the charter capital;
  • The employee is authorized to exercise the rights and responsibilities of the state owner representative for the state capital portion at the enterprise;
  • The employee is authorized to exercise the rights and responsibilities of the enterprise with respect to the capital of the enterprise invested in another enterprise.
  • In the duration of temporary suspension of employment contract, employee shall not be paid and have no rights and interests which are concluded in employment contract, except the case where two parties have other agreement.

 8. Employee’s unilateral termination of the employment contract: The provisions of Article 35 amends the case where the employee has the right to unilaterally terminate the labor contract  without reason just by meeting the notice time. In addition, the provisions on cases where the employee has the right to unilaterally terminate the labor contract without prior notice in one of the following cases:

  • The employee is not assigned to the work or workplace or not provided with the working conditions as agreed in the employment contract; except for the case specified in Article 29 of this Code;
  • The employee is not paid in full or on time as agreed in the employment contract; except for the case specified in Clause 4, Article 97 of this Code;
  • Being abused, beaten, or abused by the employer, abusive acts, acts affecting health, dignity and honor; forced labor;
  • Sexual harassment at work;
  • The female employee who is pregnant must take leave as prescribed in Clause 1, Article 138 of this Code;
  • Retirement age as prescribed in Article 169 of this Code, unless otherwise agreed by the parties;
  • The employer provides dishonest information as prescribed in Clause 1, Article 16 of this Code, affecting the performance of labor contracts.

 9. The employer’s unilateral termination the employment contract: Article 36 supplements the following:

  • The employee does not frequently complete the job under a labor contract is determined by the criteria to evaluate the level of job performance in the employer regulations. The Regulation on assessment of job performance is issued by the employer but must consult the representative organization of the employees at the grassroots level with the place where the labor representative organization is located at the grassroots level;
  • The employee quit his / her job without plausible reasons for 05 consecutive working days or more.

 10. Issues for dialogue at the workplace: Article 63 supplements the provision that employers must organize dialogues at the workplace at least once a year.

 11. Salary payment principles: Provisions in Article 94 additional cases:

  • If an employee cannot receive salary directly, the employer may pay the salary to the employee who is legally authorized.
  • Employers must not restrict or interfere with workers' right to self-determination in salary payment; It is forbidden to force employees to spend wages on the purchase of goods or services by the employer or other units designated by the employer.

 12. Wage payment: Article 95 supplements the following:

  • Wages stated in labor contracts and wages paid to laborers in Vietnamese Dong, in case foreign laborers in Vietnam may be in foreign currencies;
  • Each time of payment, the employer must notify the employee's payroll, clearly stating the salary, overtime pay, night work salary, content and amount deduction (if any).

 13. Methods of wage payment: The provisions of Article 96 adjusts the case that the employee's personal account is opened at the bank, the employer must pay fees related to the account  opening and remittance.

 14. Bonuses: Article 104 supplementing the form of reward with properties or other forms.

 15. Overtime work: The provisions of Article 107 adjusts to increase the number of overtime hours in a month to not more than 40 hours.

 16. Public and New Year holidays: The provisions of Article 112 increase the national holiday time to 2 days (September 2 of the calendar year and one day immediately preceding or after).

 17. Employing elderly workers: The provisions of Article 149 allow the two parties to agree to enter into several definite-term labor contracts.

 18. Age of retirement: The provisions of Article 169 govern the retirement age as follows:

  • The retirement age of employees in normal working conditions is adjusted according to the roadmap until they reach full 62 years for male employees in 2028 and 60 years for female employees by 2035.
  • From 2021, the retirement age for ordinary employees is 60 years and 03 months for male workers and 55 years and 04 months for female workers; After that, each year will increase by 03 months for male employees and 04 months for female workers.