90.06% OF DELEGATES AGREED TO APPROVE THE 2019 LABOR CODE (AMENDED)

In the morning of November 20, 2019, with 90.06% of deputies approved by the National Assembly, the National Assembly passed the 2019 Labor Code (amended) with many contents closely related to employees. Specifically:

1. In terms of normal working hours (Article 105): the normal working hours do not exceed 08 hours in a day and not more than 48 hours in a week.

The employer has the right to set working hours in days or weeks but must notify the employee; In case of weekly, the normal working time must not exceed 10 hours in a day and not more than 48 hours in a week.

The State encourages employers to implement a 40-hour workweek for workers.

Employers are responsible for ensuring the working time limit of exposure to dangerous and harmful factors in accordance with relevant technical regulations.

2. In terms of overtime work (Article 107): Overtime is a period of time working outside normal working hours as prescribed by law, collective labor agreement or internal working regulations.

Employers may employ employees to work overtime when fully meeting the following requirements:

Must be agreed by the employee; Ensure the overtime of employees does not exceed 50% of normal working hours in 01 day; in case of applying the regulation of normal working hours per week, the total number of normal working hours and overtime hours shall not exceed 12 hours in a day; no more than 40 hours in 1 month;

Ensuring the number of overtime hours of employees does not exceed 200 hours in a year, except for the case specified in Clause 3 of this Article.

An employer may employ an employee to work overtime for no more than 300 hours in a year in the following industries, jobs, or in the following cases:

  • Producing, processing and exporting textile, garment, leather, shoes, electric and electronic products, processing agricultural, forestry, salt-producing and aquatic products;
  • Producing, supplying electricity, telecommunications, oil refining; water supply and drainage;
  • In case of handling jobs requiring highly professional and technical laborers, the labor market does not adequately and promptly supply the labor market;
  • In case of handling urgent work which cannot be delayed, due to the seasonality and timing of raw materials or products or to solve jobs arising due to unforeseen objective factors due to consequences about weather, natural disasters, enemy sabotage, fire, lack of electricity, lack of raw materials and technical problems of production lines;
  • Other cases prescribed by the Government.

3. In terms of retirement age (Article 169): An employee who satisfies the conditions for the period of paying social insurance premiums under the law on social insurance is entitled to a pension when he/ she reaches the retirement age.

The retirement age for workers in normal working conditions is adjusted according to the roadmap until they reach 62 years old for male workers by 2028 and 60 years for female employees by 2035.

From 2021, the retirement age of employees in ordinary working condition is enough 60 years and 3 months for male workers and enough 55 years and 4 months for female workers; Thereafter, each year, increase 3 months for male employees and 4 months for female employees.

Workers suffer from reduced working capacity; doing extremely heavy, toxic and dangerous jobs and jobs; doing heavy, hazardous and dangerous jobs and jobs; Working in regions with exceptionally difficult socio-economic conditions, may retire at a younger age but not exceeding 05 years old as prescribed in Clause 2 of this Article at the time of retirement, unless otherwise prescribed by law.

Employees with high professional and technical qualifications and in some special cases may retire at a higher age but not older than 5 years at the time of retirement, unless otherwise provided for by law.