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In November 2019, the Civic Assembly of Vietnam issued a new adaptation of the Labour Code, which serves as the arch legislation on application and labour relationships in Vietnam, accoutrement calm and adopted administration and employees. The changes in the new law are added incremental than sweeping, and about serve to abutting loopholes and analyze ambiguous accoutrement in the absolute Labour Cipher of 2012.



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The new Labour Cipher will booty aftereffect on January 1, 2021. In the meantime, administration in Vietnam should alpha free what adjustments will be necessary. This commodity lays out some of the key changes alien by the law.

The new Labour Cipher protects not alone advisers alive beneath labour affairs but additionally de facto advisers alive beneath agreements such as account contracts. It clarifies that any arrangement absolute advice on one party’s paid assignment and the added party’s administration will be advised a labour contract, and the parties will be accountable to the Labour Code. These changes aim to anticipate administration from attempting to avoid requirements such as contributions to approved allowance and limitations on alive hours.



In a nod to avant-garde abode realities, the new Labour Cipher recognises labour affairs active electronically, as continued as they accede with cyberbanking transaction laws. Oral affairs with acceding of beneath than one ages are additionally permitted, but accounting affairs are still appropriate for groups of workers, amateur beneath 15 years of age, and calm workers.



Seasonal or job-specific labour affairs for beneath than 12 months are no best mentioned in the new Labour Code, abrogation alone two types of labour contracts—those with broad acceding and those with audible (fixed) acceding of no added than 36 months.

One cogent development apropos adopted employees, aged employees, and admiral of agent adumbrative organisations (such as barter unions) is that their definite-term affairs can be renewed added than once. Added types of advisers will still be bound to two afterwards definite-term contracts, afterwards which the third arrangement charge be an indefinite-term contract. Annexes alteration the appellation of a labour arrangement are not allowed.

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The new Labour Cipher gives both advisers and administration the appropriate to unilaterally abolish a labour arrangement back the added affair is begin to accept provided incorrect advice back the arrangement was signed.

Employees will accept one added anniversary anniversary year, either afore or afterwards the absolute Civic Day anniversary on September 2. The new anniversary will be the 11th accessible anniversary on the Vietnamese calendar.

The retirement age for advisers in accustomed alive altitude (currently 55 for women and 60 for men) will access to 60 for women and 62 for men. This change will be phased in gradually, with the retirement age accretion by four months anniversary year for women and three months anniversary year for men until the new banned are reached—2035 for women and 2028 for men. In assertive cases, depending on the alive altitude or the accomplishment of the worker, the retirement age can be up to bristles years beforehand or later.

An employee’s accomplishment of the retirement age has been added as a accurate acumen for unilateral abortion of the application arrangement for both the agent and the employer. Previously, it was cryptic whether the acknowledged retirement age was beheld as a minimum age for backward with abounding allowances or as a best age for application a artisan on an “indefinite” contract—as it turns out, it is both.

The new Labour Cipher clarifies animal harassment, which is banned but not acutely authentic by the accepted Labour Code. The new code’s official analogue is “any act of a animal attributes of one being adjoin accession being in the abode adjoin the latter’s will,” with “workplace” added authentic as any abode an agent is absolutely alive for, beneath acceding with, or as assigned by the employer. Animal aggravation has additionally been added to the account of offenses accountable to the amends of dismissal.

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Prohibited forms of labour bigotry are additionally authentic in added detail. Advisers will be adequate from bigotry or exclusion, in a address that affects according application opportunity, on the base of race, bark colour, civic or amusing origin, ethnicity, gender, age, pregnancy, conjugal status, religion, beliefs, political views, disability, ancestors responsibilities, HIV infection, or accord in a barter abutment or centralized agent organisation.

In addition, changeable advisers are no best banned from accomplishing assertive jobs, such as underground mining work. The new Labour Cipher additionally provides bigger aegis adjoin affected labour and debt chains as able-bodied as clearer rules on the application of minors.

The new Labour Cipher gives advisers the appropriate to accompany or anatomy a adumbrative organisation absolute of the barter union. This is advised to addition the capability of agent representation and assure their rights and interests in labour relations.

The new cipher encourages chat and aggregate acceding amid the employer on one ancillary and the advisers and their adumbrative organisations on the other. Abode dialogues charge be captivated at atomic already a year, whenever requested by the employer or the employees, and in added specific cases (for example, in the accident of restructuring or back authoritative the bacon scale). The ambit of issues accountable to aggregate acceding will accommodate altitude and operations of agent adumbrative organisations, labour altercation blockage and resolution, gender equality, blockage of abode abandon and animal harassment, and others.

Many changes in the new Labour Cipher account employees, but there are additionally accoutrement to account employers. They will accept greater rights to freedom in ambience their own allowance scales and bacon structures, and altercation adjustment will additionally become added flexible, emphasising abatement procedures over accompaniment action and authoritative settlement.

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Also, back assignment charge be abeyant for affidavit of force majeure, the employer will alone be appropriate to pay advisers the approved minimum allowance for the aboriginal 14 alive canicule of the suspension, instead of the absolute continuance as currently required. Afterwards 14 days, bacon can be paid at a lower amount, accountable to agreement amid the parties.

As the new Labour Cipher will not booty aftereffect until 2021, administration in Vietnam still accept about a year to analysis and acclimatize their labour arrangement templates, centralized labour regulations, and HR behavior for acquiescence with the new law. A proactive access and bright advice with advisers now can advice anticipate abashing and difficulties later.

Authors: Kien Trung Trinh, partner, and Nam Ngoc Trinh, attorney-at-law, both in Tilleke & Gibbins’ Hanoi office. Please accelerate any comments or questions about the agreeable of this commodity to Andrew Stoutley at [email protected]

Series Editor: Christopher F. Bruton, Executive Director, Dataconsult Ltd, [email protected] Dataconsult’s Thailand Regional Forum provides seminars and all-encompassing affidavit to amend business on approaching trends in Thailand and in the Mekong Region.

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Last Updated: March 16th, 2020 by europ
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