Labor Laws of Vietnam Essay

I. OverviewVietnam is known for being a disciplined, hard- over on the job(p), and fast-learning population. Traditions emphasizing learning and respect for chest of drawers as well as low wages and a spicy adult literacy rate be often cited by investors as among single of the most attractive aspects of the countrys investment environment (Treutler &Kien, 2010). The advertize mark of Vietnam serves as the main sanctioned base for all the wear matters. It applies to both employees and employers including foreign organizations employing topical anaesthetic and foreign staff functional on regular basis in Vietnam (Chee &Le, 2008). On the opposite hand, there argon in each case a number of implementing regulations such as Decrees, Decisions, and Circulars, which provide precise guidelines for implementation the tag. These regulations play useful and signifi flockt fictitious characters in the Vietnamese legal system, as the government authorities would often refer to t hem in practice. In this recruit, trading in all business entities, including foreign-invested attainprises, should be based on a written employment gravel, which contains sections relating to* The scope of meet* Working hours* ride out/breaks* Recreation time* Wages* Place of mould* Terms of digest* Occupational safety and hygiene,* Social and medical amendsII. Preamble motor is the most important activity of man. It creates the material wealth and spiritual set of society. High-productivity, high-quality and high-efficiency ride is the determinant factor of discipline development. confinement legislation defines the rights and obligations of the employee and the employer, the fag standards and the principles for projection movement use and management, thereof alter to the promotion of production. thitherfore, it plays an important role in tender life and in the legal system of the country. acquire and developing the wear out legislation of our country since 1 945, the Labor Code institutionalizes the change line of the Communist Party of Vietnam and concretizes the provisions of the 1992 Constitution of the Socialist body politic of Vietnam on bray and on the use and management of proletariat. The Labor Code fosters the right to head for the hills, the inte informalitys and other rights of the employee.At the same time it protects the legitimate rights and interests of the employer, thus creating conditions for the establishment of harmonious and stable labor relations, helping to develop the creativeness and talent of the intellectual and manual workers as well as of the labor managers, in order to achieve high productivity, quality and social bring forward in labor, production and service, efficient use and management of labor, thus contributing to the industrialization and modernization of the country in the cause of bringing successfulness to the people and strength to the nation and building a just and school society.III. M ain Sources of Labor Law* The Labor Code * The Law on Sending Vietnamese Laborers to Work Overseas * Government decrees, ministerial circulars and decisions, eclogue decisions and guidelines * Collective labor gybements, comp each rules, individual boil downs * The Supreme Courts annual practice summaries and guidelines IV. Special Hiring ConsiderationsA. Hiring Non-Citizens* Generally, if an expatriate wants to work in Vietnam for common chord months or longer, he/she moldiness obtain a work permit. Vietnamese employers ar inevitable to provide support and submit application documents for the work permit.B. Hiring Specified Categories of Individuals* Employers be prohibited from employing effeminate employees, with electric razor(predicate) employees, child employees, and gaga employees for hazardous and hard work that may cause health problems. * Normally, the stripped works age is 15. there is no restriction on the level best on the job(p) age. The daily working ho urs of senior workers (over 60 for men or over 55 for women), however, should be reduced.C. Outsourcing and/or Sub bring downing* The Labor Code contains an fossilized provision stating that a labor contract essential be like a shot landed into by an employer and an employee. In addition, the tasks stipulated in the labor contract must be carried out by the employee under his/her labor contract the transfer of such tasks to a nonher person must be ap conjure upd by the employer. In practice, if an employer wishes to use a labor outsourcing service, he/she will not enter into a direct labor contract with workers, but will enter into a labor outsourcing service agreement with the service provider. Therefore, there is no clear definition of outsourcing or subcontracting under the Vietnamese Labor Code.V. canonical Employment Terms* A labor contract must be written in Vietnamese or in both Vietnamese and the foreign language that is applicable to the employer and employee. Contract s for temporary jobs lasting less than one-third months or for domestic helper work do not ask to be in writing and can be oral.A. Working Hours and counterbalance Hours* The maximum working hours ar eight hours per day or 48 hours per week for normal working conditions. Daily working hours must be reduced by one or ii hours for employees keep down to extremely heavy, dangerous, or toxic working conditions. Employees must labour out a rest period of a minimum of 24 consecutive hours per week. There atomic number 18 as well various compulsory daily and weekly rest periods and breaks that must be observed.B. Wages* Employees may not earn an amount at a lower steer the minimum salary level, which is reviewed from time to time. Different minimum levels exist and think on the location of the workplace.C. Working Place/Location* An employees place of work must be stated in the labor contract. Mobility clauses can be included in employees labor contracts, if necessary. Where a job requires become to other temporary locations, it is normal for employers to reimburse all reasonable tour expenses. D. Duration of the Contract* Under the Labor Code of Vietnam there argon three types of labor contracts* An indefinite-term labor contract * A fixed-term labor contract with duration of 12 to 36 months * A labor contract for a specific or seasonal job of less than 12 months E. Conditions on Occupational Safety and Hygiene * Employers are take to provide employees with capable protective equipment to ensure occupational safety and hygiene and to improve working conditions in the workplace. Employees must comply with occupational safety and hygiene regulations and the congenital labor rules of employers.VI. Social amends and Leave* Compulsory Social Insurance applies to enterprises, entities, and organizations that employ employees under indefinite-term labor contracts or under definite-term labor contracts with a duration of three months or more. Both emplo yees and employers are need to stick out to the social restitution inventory at statutory rates. The social insurance fund pays adaptations for sick leave, gestation period leave, work-related accidents, occupational disease, and pensions.A. Sick Leave* Employees who catch from illness and/or disability or take leave in accordance with a doctors order buzz off an allowance paid by the social insurance fund, provided that they submit the required support evidencing their leave. The sick leave allowance is based on the employees salary used to calculate the social insurance premium. The maximum entitlement is * 30 age per year (if the employee contributes to the social insurance fund for less than 15 years) * 40 days per year (if the employee contributes to the social insurance fund for between 15 and 30 years) * 60 days per year (if the employee contributes to the social insurance fund for more than 30 years).B. Maternity Leave* Employers must allow pregnant workers to hav e their health checked regularly. A female employee (who works in normal working conditions) is normally entitled to take four months maternity leave. If the female employee works in heavy and/or harmful working conditions or works in a remote location, she is entitled to take up to six months maternity leave. Where an employee gives birth to more than one child at one time, she is entitled to take an additional 30days leave for both additional child calculated from the second child onwards. The employee will receive a maternity allowance from the social insurance fund during maternity leave.C. Accidents at Work* Work-related accidents are defined as accidents that injure any bodily parts or functions of an employee or cause the employees finis during the process of working and closely relate to work performance or labor activity. An employee who is injured in a work-related accident must be immediately treated and be fully attended to.The employer must take full responsibility f or the occurrence of the work-related accident. During the period in which an employee is absent from work for medical treatment related to a work-related accident or occupational disease, the employer must pay the employee his/her full salary and expenses for the treatment. After the treatment, the employee will be examined and assigned a category of injury, which depends on the reduction of his/her ability to work due to the work-related accident or disease. The employee will be entitled to a social insurance benefit paid as a collocate sum or in monthly installments by the social insurance fund.D. Pension Plans* There is no scheme for pension plans under Vietnamese Labor Law. Both employers and employees are required to contribute to the compulsory social insurance fund that payspensions to employees when they retire.E. Absence for Military or Public servicing Duties* Employees are entitled to suspend performing their duties under labor contracts if they are required to carry o ut military service or other public civic obligations. Employers are required to reemploy the employees at the end of the severance period.VII. Rights of the EmployeesA. Harassment/Discrimination/Equal Pay* Employees have the right to work without being discriminated against on the basis of their gender, nationality, social class, beliefs, or religion. Moreover, employers are purely prohibited from discriminatory behavior toward female employees or take in that degrades female employees dignity and honor. Employers must implement the principle of gender equality in regard to recruitment, utilization, wage, and wage increase.B. Work Councils or Trade Unions* Employers are required to facilitate the establishment of a trade league organization in spite of appearance their corporation. A companys trade fusion should be realized within a company within six months after the company is set up and put into operation. The obligation for establishing a trade union organization within a company falls on the local trade union or industry trade union, not the employer. The main function of a trade union organization is to represent and protect employees legal rights and interests. Therefore, most decisions relating to employee benefits should involve the trade union representative, such as execution of a collective labor agreement, decisions regarding labor discipline, and termination of labor contracts. Any act that obstructs the establishment and activities of an enterprises trade union is strictly prohibited.C. Employees Right to Strike* Employees may voluntarily go on strike. However, strikes must be organized and led by the executive charge of the companys trade union or representatives of employees. Employees must also adhere to statutory procedures and steps for the organization of strikes. Strikes are prohibited at businesses that supply certain types of products and services and at enterprises that are essential for the national economy or for national d efense and security.D. Employees on Strike* Employers are not required to pay salary or other benefits to employees who figure in a strike. Employers are prohibited, however, from terminating labor contracts or applying labor disciplinal penalties to employees or to organizers of strikes or transferring employees or strike organizers to do other jobs or to work at other locations because of their preparation for or participation in a strike. VIII. Terminating the Employment ContractA. Procedures for Terminating the Agreement* Proper legal grand must exist in order for an employer to terminate a labor contract with an employee, such as performance issues, prolonged illness, a rend majeure event, or winding up of the company. Employers are required to constitute a number of statutory steps such as sending a warning letter to employees and/or sending advance written annotate regarding the termination of employment to employees within a statutory time limit. If an employer fails t o prove that there are legal grounds for the termination or fails to follow the proper statutory procedure, a termination may be stated wrongful. In the event of a wrongful termination, employers may be required to reinstate the employee, pay their salary for the period that they were not allowed to work, and pay two months of the employees salary as a penalty for the wrongful termination.B. Types of edgei. Employees Resignation* An employee may resign from his/her job without giving any legitimate reason, so long as the employee gives advance notice to the employer (30 working days for termination of a fixed term labor contract or 45 working days for an indefinite labor contract).ii. jiffy Dismissal* Dismissal is the severest labor disciplinary measure. Employees may be fired when they commit an act of gross misconduct such as theft, embezzlement, manifestation of business or technology secrets, or repeatedly commit acts in violation of the employers work rules or policies. A d isciplinary hearing run across must be held and a number of statutory procedures must be followed.iii. determination on Notice* An employer may terminate a labor contract by serving advance notice of 30 working days for termination of a fixed term labor contract or 45 working days for an indefinite labor contract. mark off that employers must have proper legal grounds for termination (see the preceding(prenominal) section onprocedures for terminating the agreement).iv. Termination by Reason of the Employees Age* There are no specific provisions governing the termination of labor contracts based on an employees age. The normal retirement age is 60 for men and 55 for women. A retired person will receive his/her pension and/or allowance from the social insurance fund. The Vietnamese Labor Code allows employers to extend labor contracts or enter into a new labor contract with a retired employee.v. Automatic Termination in Cases of stick Majeure* Force majeure is one of the legal gr ounds for employers to terminate labor contracts with employees. Employers are required to send advance notice to employees and a number of procedures should be followed. Employers are also required to pay severance to their employees due to the termination of employment.vi. Termination by Parties Mutual Agreement* The parties are entirely free to agree to terminate an employment contract on any grounds they desire. Where the parties agree, they are not required to give advance notice of termination. The parties may also waive certain procedures. All the necessary terms, such as employment termination, severance payments, personal income tax, and social insurance, should be finalized and addressed in a document and should be signed by both parties.C. respite Payments* Employers must pay severance to employees who have continually worked for the employer for 12 months or more. There are certain cases in which employers are exempted from paying severance, such as venting or retireme nt. If employees have made contributions to the unemployment insurance fund, employers are not required to pay severance for the duration of time that the employees paid their unemployment insurance premium.i. Special Tax Provisions and Severance Payments* Any income earned by an employee in the form of salary, wage, allowance, and bonus is subject to personal income tax (PIT). Severance payments at the minimum statutory level are not subject to PIT, whereas any extra payments are subject to PIT. Employers are required to fulfil and pay PIT to taxation authorities.ii. Allowances Payable to Employees after Termination* Employers are not required to contribute to any allowances after termination, unless otherwise agree by the parties in the labor contract and so long as all required severance payments are paid in full.iii. condemnation Limits for Claims Following Termination* The statute of limitations runs one year from the date of the conduct that any party claims breached its rig hts or benefits, where the claim arises from* Disciplinary measures resulting in dismissal* Unilateral termination of a labor contract* Compensation for divergence and damage or payment of allowancesReference/sDuc Manh, N. (n.d.). The Labor Code of the Socialist Republic of Vietnam. Retrieved on February 24, 2013 from http//www.dncustoms.gov.vn/web_ english/english/luat_pl/LABOR-CODE.htm Chee, P & Le, D. (2008). Overview of wear Law in Vietnam. KhattarWong. Retrieved on February 24, 2013 from http//www.khattarwong.com/index.php/knowledgemanagement/articles/41-vietnam/205-overview-of-labour-law-in-vietnam.html Treutler, T. J. & Kien, T. T. (2010). An overview of Vietnam Labor Law. Tilleke & Gibbins. Retrieved on February 24, 2013 from http//www.tilleke.com/sites/default/files/Overview%20of%20Vietnam%20Labor%20Law.pdf (2008). Labor in Vietnam. Vietnam Trade Office in the USA. Retrieved on February 24, 2013 from http//www.vietnamustrade.org/index.php?f= discussion&do= detail&id=35&la ng=English