DO COMPANIES NEED TO INFORM STATE AUTHORITIES WHEN ORGANIZING OVERTIME WORK?
Overtime work is one of the critical and sensitive issues in labor management in Vietnam. With increasing work demands, many businesses require the support of employees through overtime work. However, this practice must comply with the applicable legal regulations.
According to Vietnam’s labor laws, organizing overtime work is subject to certain specific conditions. Whether businesses are required to notify government authorities when organizing overtime depends on the nature and duration of the overtime.
I. Legal Basis
- Labor Code 2019 (Law No. 45/2019/QH14)
- Decree No. 12/2022/ND-CP
II. General Regulations on Overtime Work
When organizing overtime work, businesses must ensure the following:
(i) Definition of Overtime
Overtime refers to working hours beyond the regular working schedule.
(ii) Conditions for Overtime Work
- Must obtain the consent of employees.
- Overtime hours must not exceed 50% of the normal working hours in a day, with total working hours (regular and overtime) not exceeding 12 hours/day and 40 hours/month.
- Total overtime must not exceed 200 hours/year, except for certain special cases where the maximum is 300 hours/year, such as for export production, electricity supply, telecommunications, and other emergency circumstances.
(iii) Special Cases for Overtime Work
- Industries such as textile production, electronics, agricultural processing, electricity supply, telecommunications, etc.
- Work requiring highly skilled labor that cannot be promptly supplied by the labor market.
- Urgent tasks due to seasonal work, natural disasters, fires, power shortages, material shortages, technical issues, etc.
(iv) Notification Requirement in Special Cases
For overtime exceeding 200 hours/year or in special cases, businesses must notify the labor department of the Provincial People’s Committee in writing.
Therefore, if overtime ranges between 200 and 300 hours per year or falls under special cases as defined by law, businesses must submit a written notice to the Department of Labor, Invalids, and Social Affairs.
III. When Must Businesses Notify Government Authorities?
The Department of Labor, Invalids, and Social Affairs at the location of the business’s headquarters is the agency responsible for receiving notifications of overtime exceeding 200 hours per year.
Notification Contents:
- Reasons for overtime work
- Number of employees involved
- Expected duration of overtime
- Measures to ensure employee health
1. Cases Requiring Notification
For businesses organizing overtime exceeding 200 hours but not more than 300 hours per year, notification to the competent authorities is mandatory. Specifically:
- Notification Receiver: Department of Labor, Invalids, and Social Affairs where the business is headquartered.
- Notification Details: Include reasons for overtime, number of employees, expected overtime duration, and health protection measures.
2. Notification Procedure
- Prepare Documentation: The notification dossier should include information on business operations, reasons for overtime, number of employees, expected overtime hours, and measures to ensure employee health.
- Submit Notification: The business must send the notification to the Department of Labor, Invalids, and Social Affairs before organizing overtime exceeding 200 hours/year.
- Monitor and Update: Businesses must regularly monitor and update overtime work to ensure compliance with legal limits.
3. Cases Not Requiring Notification
If businesses organize overtime work that does not exceed 200 hours/year, they are not required to notify government authorities. However, they must still comply with regulations on labor safety and employee health.
IV. Penalties for Non-compliance in Overtime Notification
Businesses will face fines ranging from VND 4,000,000 to VND 10,000,000 if they fail to notify the relevant labor authorities under the People’s Committee about organizing overtime exceeding 200 hours and up to 300 hours per year, as stipulated in Clause 11, Article 1 of Decree No. 88/2015/ND-CP.
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