According to Expat Insider 2024 report – one of the world’s largest expat surveys conducted by InterNations, Vietnam is the most affordable country in the world for foreigners, ranking first in No. 53 destination when it comes to personal finances.

This is also the 4th consecutive year that Vietnam has ranked first in this criterion. In addition to the first ranking in terms of personal finance, out of 53 destinations, Vietnam ranks 14th in terms of working conditions for foreigners (such as career prospects, salaries and job security), 29th in essential services for foreigners such as digital life, etc housing and language and ranked 40th for quality of life.

The Expat Insider 2024 report, with the participation of more than 12,000 foreigners in 174 countries and territories around the world, assesses criteria including the best and worst places to live with foreigners, quality of life, working conditions abroad and personal finances. Particularly for the Personal Finance index, InterNations asked survey participants to rank their satisfaction in 3 areas: general cost of living, satisfaction with financial status and whether the disposable income of households is enough to have a comfortable life. After Vietnam’s No. 1 position, the next names in the group of 10 best countries in descending order are Cambodia, Indonesia, Panama, the Philippines, India, Mexico, Thailand, Brazil and China.

Not only does it have a low cost of living, foreigners living in Vietnam are also paid higher than the average of foreigners living in other countries. Up to 19% of foreigners living in Vietnam surveyed said that they receive an annual income of 150,000 USD or more, while this rate in other countries is only about 10%. In addition, the overall job satisfaction level of foreigners in Vietnam is also very high. Ms. Kathrin Chudoba, Marketing Director of InterNations, said that Vietnam has miraculously improved from 24th place in 2023 to 3rd place in 2024 for the “Work culture and satisfaction” group. According to the report, in general, “work-life balance is more important than career advancement” in Vietnam, notably less than half (46%) of expats in the country work full-time, compared to the global average of 57%. About 1 in 5 foreigners in Vietnam (21%) work part-time and about 18% of foreigners have retired.

Regarding the best destination for expats globally, the Expat Insider 2024 report explores how expats feel about other aspects of life abroad, based on 5 indicators: general happiness, quality of life, ease of applying for immigration, etc work abroad and the “Essentials for Foreigners” index based on administrative, housing, digital life and language conditions. Of the 53 destinations globally, there are 4 Asian countries in the top 10 this year: along with Indonesia in 3rd place, Thailand in 6th place, Vietnam is in 8th place, right above the Philippines in 9th place.

1. Working for the same employer but different job position

Pursuant to Point b, Clause 9, Article 9 of Decree 152/2020/ND-CP, a foreign worker who has been issued a work permit that remains valid and whose job assignment, job title or working form is changed compared to that stated in current his/her work permit but who still works for the previous employer, must apply for a new work permit with the requirements below:

• Application form to apply for a work permit;
• Proof as a manager, executive, expert, technical worker or other position;
• A document on approval of the demand for employment of foreign workers, unless it is not required to determine the demand for employment of foreign workers
• 02 photos (size 4 cm x 6 cm, white background, straight face, bare head, not wearing colored glasses), photos taken within 06 months from the date of application.
• Certified copy of passport or copy of passport certified by the employer
• Documents relevant to the foreign worker in Clause 8, Article 9 of Decree 152/2020/ND-CP

2. Same job postion but different employer

Pursuant to Point a, Clause 9, Article 9 of Decree 152/2020/ND-CP, a foreign worker who has been issued a work permit that remains valid and who wishes to work for another employer in the same job assignment and with the same job title as stated in his/her work permit, a dossier of application for a new work permit must comprise:

• The previous employer’s certification that the foreign worker is currently working;
• Application form to apply for a work permit;
• A document on approval of the demand for employment of foreign workers, unless it is not required to determine the demand for employment of foreign workers
• 02 photos (size 4 cm x 6 cm, white background, straight face, bare head, not wearing colored glasses), photos taken within 06 months from the date of application.
• Certified copy of passport or copy of passport certified by the employer
• Documents relevant to the foreign worker in Clause 8, Article 9 of Decree 152/2020/ND-CP

According to the above regulations, when foreign workers change their job position or move to another company, they must apply for a new work permit.

1. Experts are foreign laborers falling into one of the following cases:

– Graduated from university or higher or its equivalent.

– Have at least 3 years of relevant work experience for the position they intend to work in Vietnam.

(Decree No. 152/2020/NĐ–CP, prior to the amendment, required “at least 3 years of work experience in the relevant field of study.“)

Now, Decree No. 70/2023/NĐ-CP has been amended to only require foreign workers to have work experience relevant to the position they intend to undertake, without the need for it to be related to their trained field of study.

2. Chief Executive Officer is a person falling into one of the following cases:

a) The head of a branch, representative office, or business location of an

b) The head of and directly responsible for managing at least one sector of an agency, organization, or enterprise, and subject to the direct direction and management of the head of the agency, organization, or enterprise.

Decree No. 152/2020/NĐ-CP prior to the amendment: “The Chief Executive Officer (CEO) is the person at the top who directly manages the subordinate unit of an agency, organization, or enterprise.”

Now,   Decree   No.   70/2023/NĐ-CP   has   been amended to include additional cases where the Chief Executive Officer may belong to, as listed in points a) and b)

3. Technical employee are foreign laborers falling into one of the following cases:

They have been trained for at least 1 year and have a minimum of 3 years of relevant experience for the position they intend to work in Vietnam.

(Decree No. 152/2020/NĐ–CP, prior to the amendment: “They have been trained in technical or other fields for at least 01 year and have worked for at least 03 years in the trained field.)

Now,   Decree   No.   70/2023/NĐ-CP   has   been amended to remove the requirement for technical workers to have specialized training. Instead, technical workers need to have the necessary experience, allowing them to work in various technical fields.

4. Determination of the need for foreign labor usage:

a) At least 15 days before the intended use of foreign laborers, employers (excluding contractors) are responsible for determining the need for foreign laborers for each position that Vietnamese laborers cannot fulfill and reporting the rationale to the Ministry of Labor, War Invalids, and Social Affairs or the Department of Labor, War Invalids, and Social Affairs in the location where foreign  laborers are intended to work, using Form No. 01/PLI in Appendix I issued with this Decree.

During the implementation, if there are changes in the need for foreign laborers regarding position, job title, work format, quantity, or location, employers must report to the Ministry of Labor, War Invalids, and Social Affairs or the Department of Labor, War Invalids, and Social Affairs,  using  Form  No.  02/PLI  in  Appendix  I issued with this Decree, at least 15 days before the intended use of foreign laborers.

(Decree No. 152/2020/NĐ–CP (prior to the amendment): Required employers to determine the need for foreign laborers or report changes in the need for foreign laborers regarding position, job title, work format, quantity, or location at least 30 days before the intended use of foreign laborers.)

Now,  Decree  No.  70/2023/NĐ-CP  has   been amended to reduce this notification period to 15 days.

5. Announcement of Vietnamese Labor Recruitment:

Starting from January 1, 2024, the announcement of the recruitment of Vietnamese workers for positions intended for foreign laborers is to be carried out on the electronic information portal of the Ministry of Labor, War Invalids, and Social Affairs (Job Center) or the electronic information portal of the Job Service Center established by the Chairperson of the People’s Committee of a centrally-affiliated province or city, at least 15 days from the date of the intended report to the Ministry of  Labor, War Invalids, and Social Affairs or the Department of Labor, War Invalids, and Social Affairs in the location where foreign laborers are intended to work. The announcement should include information about the position and job title, job description, quantity, educational and experience requirements, salary level, working hours, and location.

After being unable to recruit Vietnamese laborers for positions intended for foreign laborers, employers are responsible for determining the need for foreign laborers as specified in point a) Clause 1 of this Article (determining the need for foreign laborers).

(Decree No. 152/2020/NĐ–CP, prior to the amendment: Not specified)

Thus,   Decree   No.   70/2023/NĐ-CP   has   been supplemented and amended to reduce the notification period for the need for foreign laborers from 30 days to 15 days and to introduce provisions for the announcement  of the recruitment of Vietnamese workers on the electronic information portal starting from January 1, 2024.

6. Additional Cases exempt from explaining the need for Foreign Labor usage:

1. Foreign lawyers who have been granted a practicing certificate in Vietnam in accordance with the Law on

2. Foreigners married to Vietnamese citizens and residing within Vietnamese

3. Those entering Vietnam to provide specialized and technical consulting services or perform other tasks serving research, construction, assessment, monitoring, and evaluation, management, and implementation of programs and projects using official development assistance (ODA) funds as regulated or agreed upon in international agreements on ODA signed between Vietnam’s competent authorities and foreign

4. Those granted a permit by the Ministry of Foreign Affairs to operate information and press activities in Vietnam in  accordance with the law.

5. Volunteer workers as defined in Clause 2, Article 3 of this Decree.

(Decree No. 152/2020/NĐ–CP, prior to the amendment: Did not list cases exempt from explaining the need for foreign labor usage)

Thus,     Decree    No.    70/2023/NĐ-CP    has expanded the scope of exemptions from explaining the need for foreign labor usage.

7. Listing of All Work Locations using Form No. 11/PLI in Appendix I issued with Decree 70/2023/NĐ-CP: 

In cases where foreign workers work for one employer at multiple locations, the request for a labor permit must list all work locations in full.

(Decree No. 152/2020/NĐ–CP, prior to the amendment: Not required)

Decree  No.  70/2023/NĐ-CP  has  expanded  the requirement, stating that if a foreign worker works for one employer at multiple different locations, the request for a labor permit using Form No. 11/PLI must list all work locations in full.

8. Documents Proving to be Managers or Chief Executive Officers include 3 types of documents:

1. Company charter or regulations of the agency, organization, or

2. Business registration certificate or establishment certificate or equivalent legal

3. Resolutions or decisions on appointment by the agency, organization, or enterprise.

(Decree No. 152/2020/NĐ–CP, prior to the amendment: Did not specify these 3 types of documents)

Decree     No.     70/2023/NĐ-CP     has     now extended the requirement to specify these 3 types of documents as proof of being managers or chief executive officers.

9. Application for a New Work Permit for Foreign Workers who are Experts or Technical Workers and have  been Granted a Work Permit and its Extension Once:

For foreign workers who are experts or technical workers and have been granted a work permit and its extension once, but have a need to continue working in the same job position and job title as indicated in the work permit, the application for a new work permit must include the following documents:

1. Work Permit Application Form (Form 11PLI)

2. Health examination certificate

3. Two photos

4. Position approval

5. Certified true copy of passport

6. Relevant documents related to the foreign worker

7. Certified true copy of the previously issued work

(Decree No. 152/2020/NĐ-CP, prior to the amendment: Not specified)

Decree   No.   70/2023/NĐ-CP   has   added provisions regarding the application for a new work permit, including the listed documents, for foreign workers who are experts or technical workers and have been granted a work permit and its extension once, but wish to continue working in the same job position and job title.

10. Cases of Reissuing Work Permits:

In cases where there is a change in one of the following details: name, nationality, passport number, workplace, or a change in the enterprise’s name without changing the enterprise’s identification number as recorded in the  work  permit, the work permit can be reissued if it is still valid.

(Decree No. 152/2020/NĐ–CP, prior to the amendment: Only mentioned changes in name, nationality, passport number, or workplace recorded in the work permit if it is still valid)

Decree No. 70/2023/NĐ–CP has added a new provision, which is “changing the enterprise’s name without changing the enterprise’s identification number as recorded in the work permit if it is still valid,” as a condition for reissuing a work permit.

Source: imglobalvienam.com

 GOVERNMENT

^________

No. 70/2023/ND-CP

SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness

^{_______________________}

Hanoi, September 18, 2023

DECREE

Amending and supplementing a number of articles of the Government’s Decree No. 152/2020/ND-CP dated December 30, 2020 regulating foreign workers working in Vietnam and recruiting and managing Vietnamese workers working for foreign organizations and individuals in Vietnam

^____________

Pursuant to the Law on Government Organization dated June 19, 2015; Law amending and supplementing a number of articles of the Law on Government Organization and the Law on Organization of Local Government dated November 22, 2019;

Pursuant to the Labor Code dated November 20, 2019;

Pursuant to the Law on Investment dated June 17, 2020;

Pursuant to the Enterprise Law dated June 17, 2020;

At the proposal of the Minister of Labor, War Invalids and Social Affairs;

The Government promulgates a Decree amending and supplementing a number of articles of the Government’s Decree No. 152/2020/ND-CP dated December 30, 2020 regulating foreign workers working in Vietnam and recruiting and managing Vietnamese workers working for organizations,  foreign individuals in Vietnam.

Article 1. Amending and supplementing a number of articles of the Government’s Decree No. 152/2020/ND-CP dated December 30, 2020 regulating foreign workers working in Vietnam and recruiting and managing Vietnamese workers working for foreign organizations and individuals in Vietnam

1. To amend and supplement a number of points and clauses of Article 3 as follows:

a/ To amend and supplement Point a, Clause 3, Article 3 as follows:

“a) University degree or higher or equivalent and at least 3 years of work experience suitable to the job position that the foreign worker intends to work in Vietnam.”.

b/ To amend and supplement Clause 5, Article 3 as follows:

“5. An executive director is a person who falls into one of the following cases:

a) The head of the branch, representative office or business location of the enterprise.

b) The head and directly administers at least one field of the agency, organization or enterprise and is under the direct direction and administration of the head of the agency, organization or enterprise.”.

c/ To amend and supplement Point a, Clause 6, Article 3 as follows:

“a) Be trained for at least 1 year and have at least 3 years of experience suitable to the job position that the foreign worker intends to work in Vietnam.”.

2. Article 4 is amended and supplemented as follows:

“Article 4. Employing foreign workers

1. Determine the need to employ foreign workers

a) At least 15 days before the expected date of employment of foreign workers, the employer (except the contractor) shall determine the demand for foreign workers for each job position that the Vietnamese employee has not yet met and report to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor. War Invalids and Social Affairs where the foreign worker plans to work according to Form No. 01/PLI Annex I promulgated together with this Decree.

In the course of implementation, if the demand for employing foreign workers changes in terms of position, job title, working form, number and location, the employer must report to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs according to Form No. 02/PLI Annex I promulgated together with this Decree in advance at least 15 days from the expected date of employment of foreign workers.

b) In the case of foreign workers specified in Clauses 3, 4, 5, 6 and 8, Article 154 of the Labor Code and Clauses 1, 2, 4, 5, 7, 8, 9, 10, 11, 12, 13 and 14, Article 7 of this Decree, the employer is not required to determine the need to employ foreign workers.

c) From January 1, 2024, the announcement of recruitment of Vietnamese workers to positions expected to recruit foreign workers shall be made on the Portal of the Ministry of Labor, War Invalids and Social Affairs (Employment Department) or the Portal of the Employment Service Center by the Chairman of the provincial People’s Committee, centrally-run cities shall decide to establish themselves within at least 15 days from the expected date of reporting to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs where the foreign worker is expected to work. The content of the recruitment announcement includes: position and job title, job description, number, qualification requirements, experience, salary, time and location of work. After failing to recruit Vietnamese workers to positions recruiting foreign workers, the employer shall determine the need to employ foreign workers as prescribed at Point a, Clause 1 of this Article.

2. The Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs shall approve or disapprove the employment of foreign workers for each job position according to Form No. 03/PLI Appendix I promulgated together with this Decree within 10 working days from the date of receipt of the explanatory report; or report explaining changes in demand for foreign workers.”.

3. Clause 3 of Article 6 is supplemented as follows:

“3. In case a foreign worker works for an employer in many provinces or centrally-run cities, within 3 working days from the date the foreign worker starts working, the employer must report electronically to the Ministry of Labor, War Invalids and Social Affairs and the Department of Labor, War Invalids and Social Affairs the association where the foreign worker comes to work according to Form No. 17/PLI Annex I promulgated together with this Decree.”.

4. To amend and supplement a number of clauses of Article 7 as follows:

a/ To amend and supplement Clause 6 of Article 7 as follows:

“6. Being sent to Vietnam by a competent foreign agency or organization to teach or act as a manager or executive director at an educational institution proposed by a foreign diplomatic mission or intergovernmental organization to establish in Vietnam; establishments and organizations established under international treaties to which Vietnam has signed and acceded.”

b/ To amend and supplement Clause 14, Article 7 as follows:

“14. To be certified by the Ministry of Education and Training of foreign workers to enter Vietnam to perform the following jobs:

a/ Teaching and research;

b/ To act as managers, managing directors, principals and vice principals of educational institutions proposed to be established in Vietnam by foreign diplomatic missions or intergovernmental organizations.”.

5. To amend and supplement a number of points and clauses of Article 9 as follows:

a/ To amend and supplement Clause 1, Article 9 as follows:

“1. A written application for a work permit by the employer according to Form No. 11/PLI Appendix I promulgated together with this Decree. In case a foreign worker works for one employer at more than one location, the written application for a work permit must list all working locations.”

b/ To amend and supplement Points a and b, Clause 4, Article 9 as follows:

“a) Documents proving that the manager or executive director as prescribed in Clauses 4 and 5, Article 3 of this Decree include the following 3 types of papers:

– The company’s charter or operation regulations of agencies, organizations or enterprises;

– Certificate of enterprise registration or certificate of establishment or establishment decision or other document of equivalent legal validity;

– Resolutions or decisions on appointment of agencies, organizations or enterprises.

b) Papers proving technical experts and laborers as prescribed in Clauses 3 and 6, Article 3 of this Decree include the following 2 types of papers:

– Diplomas or certificates or certificates;

– Written certification of the overseas agency, organization or enterprise on the number of years of experience of experts, technical workers or work permits that have been granted or confirmed not to be eligible for the granted work permit.”.

c/ To amend and supplement the name of Clause 8, Article 9 as follows:

“8. Documents related to foreign workers, except for the case of foreign workers specified at Point a, Clause 1, Article 2 of this Decree.”.

d/ To amend and supplement Point e, Clause 8, Article 9 as follows:

“e) For foreign workers working as prescribed at Point i, Clause 1, Article 2 of this Decree, there must be a document from the foreign agency, organization or enterprise sending the foreign worker to work in Vietnam and suitable to the expected job position or documents proving that they are managers as prescribed in Clause 4 Article 3 of this Decree.”.

đ) Point c, Clause 9, Article 9 is supplemented as follows:

“c) For foreign workers who are experts or technical workers who have been granted a work permit and have been extended once but wish to continue working with the same job position and job title stated in the work permit, the dossier of application for a new work permit shall include the documents specified in Clause 1,  2, 5, 6, 7, 8 of this Article and a copy of the work permit issued.”.

6. Clause 2 of Article 11 is amended and supplemented as follows:

“2. Within 05 working days after receiving a complete application for a work permit, the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs where the foreign worker intends to work shall issue a work permit to the foreign worker according to Form No. 12/PLI Appendix I promulgated together with the Decree this determination. In case of refusal to issue a work permit, a written reply clearly stating the reason shall be given.

The work permit is A4 size (21 cm x 29.7 cm), consisting of 2 pages: page 1 is blue; Page 2 has a white background, blue pattern, in the middle in the shape of a star. Work permits are coded as follows: codes of provinces and centrally-run cities and codes of the Ministry of Labor, War Invalids and Social Affairs according to Form No. 16/PLI Appendix I promulgated together with this Decree; last 2 digits of the year of issuance of the license; type of license (new symbol 1; renewal of symbol 2; re-issuance of symbol 3); sequence number (from 000.001).

In case the work permit is electronic, it must comply with relevant laws and meet the contents according to Form No. 12/PLI Annex I promulgated together with this Decree.”.

7. Clause 3 of Article 12 is amended and supplemented as follows:

“3. Change one of the following contents: full name, nationality, passport number, working location, change of enterprise name without changing the enterprise code stated in the valid work permit.”.

8. Clause 7 of Article 17 is amended and supplemented as follows:

“One of the documents specified in Clause 8, Article 9 of this Decree proves that the foreign worker continues to work for the employer according to the content of the granted work permit, unless the foreign worker works as prescribed at Point a, Clause 1, Article 2 of this Decree.”.

9. Point b, Clause 1, Article 22 is amended and supplemented as follows:

“b) Organizations that are decentralized, delegated, assigned, ordered or tendered by provincial-level People’s Committees.”.

10. Point b, Clause 4, Article 27 is amended and supplemented as follows:

“b) Organizations that are decentralized, authorized, assigned, ordered or bid by provincial-level People’s Committees to recruit and manage Vietnamese laborers working for foreign organizations and individuals shall report to the Department of Labor, War Invalids and Social Affairs.”.

11. To amend and supplement a number of points and clauses of Article 30 as follows:

a/ To amend and supplement Point a, Clause 1, Article 30 as follows:

“a) Implement the approval of the demand for employing foreign workers; confirmation of not being eligible for a work permit; issuance, re-issuance, extension and revocation of work permits for foreign workers in one of the following cases:

Working for the employer specified at Point g, Clause 2, Article 2 and the employer specified at Points c, d, e, Clause 2, Article 2 of this Decree are permitted by the Government, the Prime Minister, ministries, ministerial-level agencies and agencies attached to the Government;

Working for an employer in many provinces and centrally-run cities.”.

b/ To amend and supplement Point c, Clause 1, Article 30 as follows:

“c) Perform the unified state management of recruitment and management of foreign workers working in Vietnam from central to local levels and manage Vietnamese working for foreign organizations and individuals in Vietnam.”.

c/ To amend and supplement Clause 3, Article 30 as follows:

“3. Responsibilities of the Ministry of Defence:

a/ To coordinate with competent agencies in charge of foreign workers and Vietnamese laborers working for foreign organizations and individuals in Vietnam in complying with the provisions of law on ensuring security and order in strategic areas,  key and weak areas for national defense.

b/ To direct the Border Guards to coordinate with functional forces in managing and inspecting Vietnamese laborers working for foreign organizations and individuals in Vietnam and foreign workers working in border areas, border gates, islands and maritime areas in order to firmly protect territorial sovereignty,  security, national borders of the Fatherland.”

d/ To amend and supplement Point a, Clause 4, Article 30 as follows:

“a) Monthly provide information on foreign workers granted visas with symbols including: DN1, DN2, LV1, LV2, LĐ1, LĐ2, DT1, DT2, DT3, DT4 to work for agencies, organizations and enterprises to the Ministry of Labor, War Invalids and Social Affairs;”.

dd) To amend and supplement Point a, Clause 6, Article 30 as follows:

“a) Implement the approval of the demand for employing foreign workers; confirmation of not being eligible for a work permit; issuance, re-issuance, extension and revocation of work permits for foreign workers in one of the following cases:

Working for the employer specified at Points a, b, h, i, k, l, Clause 2, Article 2 and the agencies and organizations specified at Points c, d, e, Clause 2, Article 2 of this Decree by provincial-level People’s Committees, specialized agencies affiliated to provincial-level People’s Committees,  District-level People’s Committees shall be established;

Working for employers at multiple locations in the same province or centrally-run city.”.

12. To amend and supplement a number of templates as follows:

a) Amending Form No. 01/PLI; Form No. 02/PLI; Form No. 07/PLI; Form No. 08/PLI Annex I promulgated together with Decree No. 152/2020/ND-CP into Form No. 01/PLI; Form No. 02/PLI; Form No. 07/PLI; Form No. 08/PLI Appendix promulgated together with this Decree;

b) Add Form No. 16/PLI and Form No. 17/PL1 to Appendix I promulgated together with Decree No. 152/2020/ND-CP.

13. Substituting or supplementing a number of words and phrases at the following points, clauses, articles and appendices:

a) To replace the phrase “Chairman of the provincial-level People’s Committee” in Clause 1, Article 5 with the phrase “Department of Labor, War Invalids and Social Affairs”; Replace the phrase “The Chairman of the People’s Committee of the province shall direct” with the phrase “proposed by the Department of Labor, War Invalids and Social Affairs” in Clause 2, Article 5;

b) To replace the phrase “Clauses 4, 6 and 8 of Article 154″ with the phrase “Clauses 4 and 6 of Article 154″ and the phrase “3 days” with the phrase “3 working days” in Clause 2, Article 8;

c) Replace the phrase “translated into Vietnamese and certified” with the phrase “translated into Vietnamese and notarized or authenticated” at Point e, Clause 3, Article 8;

d) Replace the phrase “translated into Vietnamese and authenticated” with the phrase “translated into Vietnamese and notarized or authenticated” in Clause 10, Article 9 and Clause 4, Article 23;

dd) Replace the phrase “Papers specified in Clauses 3 and 4 of this Article” with the phrase “Papers specified in Clause 3 of this Article” in Clause 5, Article 13;

e) Replace the phrase “translated into Vietnamese” with the phrase “translated into Vietnamese and notarized or authenticated” in Clause 5, Article 13 and Clause 8, Article 17;

g) Replace the phrase “Certified copy of passport” with the phrase “Certified copy of passport or copy of passport certified by the employer” at Point d, Clause 3, Article 8; Clause 7 of Article 9 and Clause 5 of Article 17;

h) Replace the phrase “20. Salary:….VND” with the phrase “20. Average salary / month: …. million VND” in Form No. 11/PLI Appendix I promulgated together with Decree No. 152/2020/ND-CP;

i) Replace the phrase “People’s Committee of the province/city….” with the phrase “Department of Labor, War Invalids and Social Affairs…” in Form No. 03/PLI Appendix I promulgated together with Decree No. 152/2020/ND-CP;

k) Replace the phrase “Director/Chairman of the provincial People’s Committee” with the phrase “Director/Director”, the phrase “At the request in the digital document” to the phrase “At the request and the contents of information provided in the digital document” in Form No. 03/PLI Appendix I promulgated together with Decree No. 152/2020/ND-CP;

l) Replace the phrase “Chairman of the People’s Committee of the province/city…” with the phrase “Department of Labor, War Invalids and Social Affairs….” in Form No. 04/PLI, Form No. 05/PLI, Form No. 06/PLI Annex I promulgated together with Decree No. 152/2020/ND-CP;

m) Replace the phrase “TM. People’s Committee of the province, city …/Chairman” with the phrase “Director” in Form No. 06/PLI Appendix I promulgated together with Decree No. 152/2020/ND-CP.

n) Add the phrase “(Enterprise/organization) please assure that the above information is true. If wrong, (enterprise/organization) please take full responsibility before the law” after Section 24 of Form No. 09/PLI Annex I issued together with Decree No. 152/2020/ND-CP.

o) Add the phrase “Immigration Department (Ministry of Public Security)” in the section “Recipient” Form No. 13/PLI Appendix I promulgated together with Decree No. 152/2020/ND-CP.

14. The following points and clauses are repealed:

a/ To annul Clause 4, Article 13;

b/ To annul Points c, d and dd, Clause 5 and g, Clause 6, Article 30;

c/ Abolition of Point a, Clause 6a, Article 30 of the Government’s amended Decree No. 152/2020/ND-CP dated December 30, 2020 regulating foreign workers working in Vietnam and recruiting and managing Vietnamese workers working for foreign organizations and individuals in Vietnam, supplemented in the Government’s Decree No. 35/2022/ND-CP dated May 28, 5, 2022 regulating the management of industrial parks and economic zones.

Article 2. Abolition of a number of provisions of the Government’s Decree No. 35/2022/ND-CP dated May 28, 5, 2022 regulating the management of industrial parks and economic zones

1. To annul the opening paragraph “Issuance, re-issuance, extension and revocation of work permits and certification of foreign workers not eligible for work permits for foreigners working in industrial parks or economic zones” and the phrase “receipt of reports on the employment of foreign workers” at Point dd, Clause 2, Article 68.

2. To abolish the paragraph “receiving explanatory reports of enterprises in industrial parks or economic zones on the demand for employing foreigners for each job position that Vietnamese have not yet met” at Point c, Clause 3, Article 68.

Article 3. Enforcement Terms

1. This Decree takes effect from September 18, 2023.

2. Transitional Terms:

For the report explaining the need to employ foreign workers, the dossier of request for confirmation is not eligible for work permit issuance; granting, re-issuing and extending work permits submitted by foreign employers to the Ministry of Labor, War Invalids and Social Affairs, provincial-level People’s Committees, Departments of Labor, War Invalids and Social Affairs, Management Boards of industrial parks, economic zones and hi-tech parks before the effective date of this Decree, shall apply according to the provisions of Decree No. 152/2020/ND-CP dated December 30, 12 of the Government regulating foreign workers working in Vietnam and recruiting and managing Vietnamese workers working for foreign organizations and individuals in Vietnam and Decree No. 35/2022/ND-CP dated May 28, 5 of the Government regulating the management of industrial parks and economic zones.

Foreign workers currently working in Vietnam come from 110 countries and territories. The majority of foreign workers are from China, South Korea and Japan,… and concentrate in big cities or large industrial zones such as Hanoi, Ho Chi Minh City, Bac Giang, Long An, Binh Duong,… According to the survey of the MOLISA, many foreign workers need to return Vietnam to work in the situation of the complicated Covid-19 pandemic, and many enterprises in Vietnam are lacking a lot of positions such as managers, experts, etc.

On 9 September 2021, the Vietnamese Government issued Resolution No. 105/NQ-CP (“Resolution 105”) on supporting enterprises, co-operatives and business households in the context of the Covid-19 pandemic.

As part of the Resolution 105, some notable solutions are proposed relating to labour and foreign experts, specifically Easing regulations on the issuance, extension and certification of work permits for foreign labour in Vietnam

The MOLISA are asked, within September 2021, to instruct provincial competent authorities to implement flexibly and relax some conditions on the issuance, extension and certification of work permits for foreign labour in Vietnam, namely:

1. The provisions within Point a, Clause 3, Article 3 of Decree 152/2020/ND-CP shall be implemented as follows: Having a university degree or above or an equivalent and having at least 3 years of work experience relevant to the position that the foreign worker is expected to undertake in Vietnam.

==> In this regard, to loosen the conditions for a foreign expert, the degree is not connected to the job position that the foreign labour will undertake in Vietnam

2. The provisions within Point a, Clause 6, Article 3 of Decree 152/2020/ND-CP shall be implemented as follows: Having been trained in a technical or other specialized discipline for at least 1 year and having at least 3 years of work experience relevant to the position that the foreign worker is expected to undertake in Vietnam.

==> As such, the training field does not have to relate to the role or relevant experience.

3. The provisions within Point b, Clause 4, Article 9 of Decree 152/2020/ND-CP shall be implemented as follows: Documents affirming experts and technical workers as prescribed in Clauses 3 and 6, Article 3 of this Decree are: Diploma, certificate, confirmation letter; a written certification from an agency, organization or enterprise in a foreign country about the number of years of experience of the expert, technical worker, or a previously issued work permit to prove the experience.

==> Therefore, previous issued work permits are now accepted as documentation affirming the experience of an expert or technical worker.

4. The provisions within Point d, Clause 3, Article 8; Clause 7, Article 9; Clause 5, Article 17 of Decree 152/2020/ND-CP shall be implemented as follows: a pure copy of the valid passport

==> It replaces the requirement of submitting the certified copy by a pure copy of the passport when lodging the Work Permit application.

5. Also Resolution 105 allows foreign workers who have been granted work permits that are still valid to be sent, dispatched or seconded to work in another province or city for a period not exceeding six months without having to re-apply for a work permit. The employer must report to the labor management agency where the foreign workers have come to work.

Resolution 105 is effective from 9 September 2021.

To get more specific support and guidance in issuance, re-issuance and renewal of Work Permit or Certificate of work permit exemption, please feel free to contact Vietnam-legal.com.

Source: KPMG & Laodong.vn

This Decree regulates foreign employees working in Vietnam as well as the recruitment and management of Vietnamese working for foreign organisations and individuals in Vietnam following the provisions of the revised Labour Code. It specifically deals with the conditions and procedures for issuance, re-issuance and extension, withdrawal of work permit and confirmation letter in cases where foreign employees are exempted from having a work permit under Article 157 of the Labour Code and under Clauses 1, 2 and 9 of Article 154 of the Labour Code. It also covers the recruitment and management of Vietnamese employees working for foreign organisations and individuals under Clause 3, Article 150 of the Labour Code.

Vietnam-legal.com would like to give some of the key highlights of Decree 152.

I. Conditions to determine internal transfer, expert and technical worker

Work permits are issued to foreign individuals meeting the requirements for expert, manager, executive or technical worker. Article 3 of Decree 152 includes additional criterion to qualify as an internal transfer, expert and technical worker.

1. Internal transfer: Amongst other conditions, a foreign employee must be employed by the foreign enterprise at least 12 consecutive months prior to the transfer date (the employment period required previously is only 12 months).

2. Expert:

Under Decree 152, a foreign employee can no longer be certified as an expert by a foreign agency or organisation for the purpose of working in Vietnam. Experts will now be determined solely by years of working experience and qualifications. The following must be satisfied for certification as an expert:

a. An individual holding a bachelor’s degree or equivalent and has at least 3 years’ experience in their field corresponding with the job position/job assignment that they will be appointed in Vietnam; or

b. Has at least 5 years’ experience and a practicing certificate in corresponding with the job position that they will be appointed in Vietnam; or

c. Falls under a special case subject to the decision of the Prime Minister according to a request from the Ministry of Labour, War Invalids and Social Affairs (MoLISA).

This is different from Decree 11 where a document from a foreign organisation, enterprise or agency stating that the person was an expert would be sufficient. Moreover, the required corresponding experience has increased from 3 to 5 years and a practicing certificate is required.

3. Technical worker:

Decree 152 introduces an additional opportunity for certification as a technical worker. Prior to Decree 152, a person could be considered a technical worker only by demonstrating at least 1 year of relevant training and three years working in the field. Decree 152 now adds an additional consideration as follows:

a. An individual that has been trained in a technical field or another major for at least 1 year and has worked for at least 3 years in their trained field; or

b. Has at least 5 years’ experience corresponding with the job position that they will be appointed in Vietnam.

Note that the criterion under b did not exist in Decree 11.

II. Adjusting and supplementing the cases where approvals of demand for recruiting foreign employees are not required

1. The head of the representative office, project or a person otherwise taking main responsibility for the operation of international organization or foreign no-governmental organization in Vietnam

2. The foreign employee is the owner or capital contributor of a limited liability company with a capital contribution value of at least 3 billion Vietnam Dong

3. The foreign employee is the Chairperson or a member of the Board of Directors of a joint-stock company with a capital contribution value of at least 3 billion Vietnam Dong

4. Entering Vietnam to work at the position of a manager, executive director, expert or technical employee for a working time of less than 30 days and not more than 3 times a year

5. Entering Vietnam to implement international agreements signed by agencies or organizations at the central or provincial level in accordance with the law

6. Relatives of members of a foreign representative agency in  Vietnam who are permitted to work according to an international treaty of which Vietnam is a member

7. A person having a service/ official passport working for a State agency, political organization or a socio-political organization

8. A person in charge of setting up the commercial presence of an organization in Vietnam;

III. Adjusting and supplementing some cases which will be exempted from requiring a work permit

1. Foreigners married to Vietnamese citizens and living in Vietnam;

2. Owners or shareholding members of limited liability companies with a capital contribution of VND 3 billion or more;

3. Chairpersons or members of the Board of Directors of joint-stock companies with a capital contribution of VND 3 billion or more;

 4. Foreign experts, managers, CEOs, and skilled workers going to work in Vietnam for less than 30 days per trip and no more than three trips per year;

5. Foreigners coming to Vietnam to set up a commercial presence of a foreign entity in Vietnam.

6. He/she is certified by the Ministry of Education and Training as a foreign worker entering Vietnam for teaching and research purpose.

In which, 4 cases at number 1, 2, 3, 4 are not required to obtain either Work Permit or Certificate of Work Permit Exemption, but their employers must inform competent authorities of foreign employees at least 03 days prior to such employees’ starting date.

IV. Reduction in special cases of issuance work permit

Decree 152 mentions about 2 special cases of issuance work permit instead of 4 cases according to Decree 11/2016/NĐ-CP:

1. A foreign worker who has been issued with a work permit which remains valid wishes to work for another employer at the same job position and job title in the work permit

2. A foreign worker who has been issued with a work permit which remains valid wishes to work for the same employer but at another job position or job title or working form in the work permit

V. Duration of Work Permit or Certificate of Work Permit Exemption

Decree 152 confirms that work permit and Certificate of Work Permit Exemption are still valid for 2 years in maximum and allowed to be renewed once time with a maximum term of 2 years. After that, the employer shall have to apply for a new WP for the foreign employee.

VI. Changing the application for the issuance, re-issuance, and renewal of work permits / certification of Work Permit Exemption

Changing in the application forms:

1. Application form using for new issuance, re-issuance and renewal of work permits now is form No. 11/PLI instead of Form No. 7 according to Circular 40/2016/TT-BLĐTBXH

2. Application form for explanation/ change in foreign labor demand is form No. 01/ PLI or form No.2/PLI instead of form 1 and form 2 according to Circular 18/2018/TT-BLĐTBXH

3. Application form for Certificate of Work Permit Exemption is form No. 9/PLI instead of form 5 according to Circular 18/2018/TT-BLĐTBXH

To get more specific support and guidance in issuance, re-issuance and renewal of Work Permit or Certificate of work permit exemption, please feel free to contact Vietnam-legal.com.

THE GOVERNMENT
——–

THE SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
——————–

No. 152/2020/ND-CP

Hanoi, December 30, 2020

DECREE

ON FOREIGN WORKERS WORKING IN VIETNAM AND RECRUITMENT AND MANAGEMENT OF VIETNAMESE WORKERS WORKING FOR FOREIGN EMPLOYERS IN VIETNAM

Pursuant to the Law on Organization of Government dated June 19, 2015; the Law on amendments to the Law on Organization of Government and the Law on Organization of Local Governments dated November 22, 2019;

Pursuant to the Law on Investment dated June 17, 2020;

Pursuant to the Law on Enterprises dated June 17, 2020;

At the request of the Minister of Labor, War Invalids and Social Affairs;

The Government promulgates a Decree on foreign workers working in Vietnam and recruitment and management of Vietnamese workers working for foreign employers in Vietnam.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree set forth foreign workers working in Vietnam and recruitment, management of Vietnamese workers working for foreign organizations and individuals in Vietnam as required by the articles and clauses below of the Labor Code:

1. Requirements and procedures for issuance, re-issuance, renewal (ex-issuance in form No. 12/PLI), and revocation of work permits and certifications of exemption from work permit obtained by foreign workers in Vietnam as prescribed in Article 157 of the Labor Code and foreign workers in Vietnam exempt from work permits as prescribed in clauses 1, 2 and 9 Article 154 of the Labor Code.

2. Recruitment, recommendation, management of Vietnamese workers working for foreign organizations and individuals in Vietnam (hereinafter referred to as foreign employers) as prescribed in clause 3 Article 150 of the Labor Code.

Article 2. Regulated entities

1. Workers who are foreign nationals moving to Vietnam for employment (hereinafter referred to as foreign workers) for the purposes of:

a) performing employment contracts;

b) performing intra-company transfer program;

c) performing contracts or agreements on business, trade, finance, banking, insurance, science and technology, culture, sports, education, vocational training and health;

d) providing services under contracts;

dd) offering services;

e) working for foreign non-governmental organizations or international organizations in Vietnam that have been granted with operating licenses in accordance with the Vietnam law;

g) working as volunteers;

h) taking charge of establishing the commercial presence;

i) working as managers, executives, experts, technical workers;

k) performing packages or projects in Vietnam; or

l) accompanying members of foreign representative bodies in Vietnam who are authorized to work in Vietnam under an international treaty to which the Socialist Republic of Vietnam is a signatory as their relatives.

2. Employers of foreign workers include:

a) Enterprises operating in accordance with the Law on Enterprises, the Law on Investment or international treaties to which the Socialist Republic of Vietnam is a signatory;

b) Bidders making bids or performing contracts;

c) Representative offices, branches of enterprises, agencies or organizations licensed by the competent authorities;

d) Regulatory agencies, political organizations, sociopolitical organizations, sociopolitical professional organizations, social organizations or socio-professional organizations;

dd) Foreign non-governmental organizations licensed by competent authorities of Vietnam in accordance with the Vietnam’s laws;

e) Public sector entities, educational institutions established as per the law;

g) International organizations, offices of foreign projects in Vietnam; agencies and organizations licensed by the Government, the Prime Minister, ministries or central authorities as per the law;

h) Executive offices of foreign investors in business cooperation contracts or those of foreign contractors awarded operating licenses by the law;

i) Law-practicing organizations in Vietnam as per the law;

k) Cooperatives and cooperative unions established and operated in accordance with the Law on cooperatives; and

m) Household businesses and individuals licensed to do business in accordance with the law.

3. Foreign organizations in Vietnam are foreign agencies and organizations authorized by competent authorities of Vietnam to operate in Vietnam’s territory, including:

a) Diplomatic missions, consular offices, representative bodies of international organizations of the United Nations, regional organizations, sub-regional organizations;

b) Resident offices of foreign news agencies, press agencies, radio and television agencies;

c) International organizations, intergovernmental organizations, foreign governmental organizations;

d) Foreign non-governmental organizations licensed by competent authorities of Vietnam as per the law;

dd) Representative offices in Vietnam of foreign organizations operating in: business, trade, finance, banking, insurance, science and technology, culture, education, health, foreign legal counseling.

4. Foreign individuals in Vietnam are foreigners who work for the organizations specified in clause 3 hereof or persons who are authorized by competent authorities in Vietnam to reside in Vietnam.

5. Vietnamese workers who work for foreign employers in Vietnam.

6. Employment service providers and professional employer organizations which provide for foreign employers services related to recruitment, recommendation and management of Vietnamese workers working for foreign employers in Vietnam.

Article 3. Definition

1. “intra-company transferee” means a manager, executive, expert or technical worker of a foreign company which has established a commercial presence in Vietnam’s territory who is temporarily transferred within the company to the commercial presence in Vietnam’s territory and has been recruited by the foreign company at least 12 consecutive months prior to the transfer date.

2. “volunteer” means an unpaid foreign worker who voluntarily works in Vietnam to implement an international treaty to which the Socialist Republic of Vietnam is a signatory with certification of a foreign diplomatic mission or international organization in Vietnam.

3. “expert” means a foreign worker who:

a) obtains at least a bachelor’s degree or equivalent and at least 03 years’ experience in his/her training field in corresponding with the job position/job assignment that he/she will be appointed in Vietnam;

b) obtains at least 5 years’ experience and a practicing certificate in corresponding with the job position that he/she will be appointed in Vietnam; or

c) falls under a special case subject to decision of the Prime Minister according to a request of the Ministry of Labor, War Invalids and Social Affairs.

4. “manager” means a person in charge of management of an enterprise as prescribed in clause 24 Article 4 of the Law on Enterprises or the head or deputy head of an agency or organization.

5. “executive” means the head or a person who directly administers affiliated entities of an agency, organization or enterprise.

6. “technical worker” means a foreign worker who:

a) has been trained in technical field or another major for at least 01 year and have worked for at least 03 years in his/her training field; or

b) obtains at least 5 years’ experience in corresponding with the job position that he/she will be appointed in Vietnam.

7. “commercial presence” means a foreign-invested business entity; representative office, branch of foreign trader in Vietnam; or executive office of a foreign investor in a business cooperation contract.

8. “service provider under contract” means a foreign worker who has worked at least 2 years (24 months) for a foreign company that has no commercial presence in Vietnam and has met the requirements of an expert in clause 3 hereof.

9. “service offeror” means a foreign worker who neither lives in Vietnam nor receives any pay in Vietnam, and he/she engages in activities related to representation for a service provider to negotiate the consumption of service of that provider, provided neither personally selling that service to the general public nor personally providing that service.

Chapter II

ACCEPTANCE OF DEMAND FOR FOREIGN WORKERS; FOREIGN WORKERS EXEMPT FROM WORK PERMITS; ISSUANCE, RE-ISSUANCE, RENEWAL AND REVOCATION OF WORK PERMITS

Section 1. ACCEPTANCE OF DEMAND FOR FOREIGN WORKERS

Article 4. Employment of foreign workers

1. Determination of demand for foreign workers

a) At least 30 days before the date on which foreign workers are expected to be employed, the employer (except contractor) shall determine the demand for foreign workers for every job position for which Vietnamese workers are underqualified and send a corresponding report to the Ministry of Labor, War Invalids and Social Affairs or the People’s Committee of province or central-affiliated city (hereinafter referred to as province) where the foreign workers are expected to work, using Form No. 01/PLI Appendix I hereto appended.

During the process, in case of any change to the demand for foreign workers, the employer shall send a report to the Ministry of Labor, War Invalids and Social Affairs or the People’s Committee of province, using Form No. 02/PLI Appendix I hereto appended at least 30 days before the date on which the foreign worker are expected to be employed.

b) If the foreign worker falls under any case of clause 3, 4 and 5 Article 154 of the Labor Code and clauses 1, 2, 8, 9, 10, 11, 12 and 13 Article 7 of this Decree, the employer is not required to determine the demand for foreign workers.

2. The Ministry of Labor, War Invalids and Social Affairs or the People’s Committee of province shall issue a document specifying accepted job positions and non-accepted job positions, using Form No. 03/PLI Appendix I hereto appended within 10 working days after receiving the foregoing report on demand for foreign workers or report on change thereof.

Article 5. Employment of foreign workers by contractors

1. Before recruiting foreign workers, the contractor shall specify the quantity, qualifications, professional competence and experience of foreign workers that are needed for performance of the package in Vietnam and send a written request for the recruitment of Vietnamese workers to the job positions expected for foreign workers to the President of the People’s Committee of province where the package is performed, using Form No. 04/PLI Appendix I hereto appended.

If the contractor wishes to change or increase the declared number of workers, the plan for changing or increasing demand for workers of such foreign contractor must be certified by the investor, using Form No. 05/PLI Appendix I hereto appended.

2. The President of the People’s Committee of province shall direct local agencies and organizations to recommend and supply Vietnamese workers to the contractor and cooperate with other local agencies and organizations in recommending and supplying Vietnamese workers to the contractor. If Vietnamese workers are not recommended or supplied to the contractor within 02 months from the day on which a request for recruitment of 500 Vietnamese workers or more is received, or within 01 month from the day on which a request for recruitment of 100 to fewer than 500 Vietnamese workers is received, or within 15 days from the day on which a request for recruitment of fewer than 100 Vietnamese workers is received, the President of the People’s Committee of province shall consider allowing the contractor to recruit foreign workers to hold the job positions for which Vietnamese workers are underqualified, using Form No. 06/PLI Appendix I hereto appended.

3. The investor shall supervise and request the contractor to conform with the declaration of the employment of Vietnamese workers and foreign workers; provide guidance, urge and inspect the contractor’s compliance of the regulations on recruitment and employment of foreign workers in accordance with the Vietnam’s law; monitor and manage foreign workers’ compliance with the Vietnam’s law; prior to July 5 and January 5 of the next year, the investor shall send a first-half-year report and annual report, respectively, on employment of foreign workers, using Form No. 07/PLI Appendix I hereto appended.

The reporting period of the first 6 months is from December 15 of the previous reporting year to June 14 of the reporting year, the reporting period of the annual report is from December 15 of the previous reporting year to December 14 of the reporting year.

4. On annual or ad-hoc basis, the Department of Labor, War Invalids and Social Affairs shall cooperate with the police authority of province; High Command of the Border guard of province or relevant entities of the Ministry of National Defense at the border and checkpoint areas, islands, strategic, key, defense-critical regions and relevant agencies in inspecting the compliance with the Vietnam’s law by the foreign workers performing packages in the province and sending inspection reports to the People’s Committee of province, the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Public Security and the Ministry of National Defense.

Article 6. Report on employment of foreign workers

1. Prior to July 5 and January 5 of the following year, the employer of foreign workers shall send a first-half-year report and an annual report on employment of foreign workers, using Form No. 07/PLI Appendix I hereto appended. The reporting period of the first 6 months is from December 15 of the previous reporting year to June 14 of the reporting year, the reporting period of the annual report is from December 15 of the previous reporting year to December 14 of the reporting year.

2. Prior to July 15 and January 15 of the following year or on ad-hoc basis, Department of Labor, War Invalids and Social Affairs shall send a report on employment of foreign workers in the province to the Ministry of Labor, War Invalids and Social Affairs, using Form No. 08/PLI Appendix I hereto appended The reporting period of the first 6 months and the whole year complies with regulations of the Government on reporting regime of regulatory agencies.

Section 2. FOREIGN WORKERS EXEMPT FROM WORK PERMITS

Section 7. Foreign workers exempt from work permits

Without regard to the cases in clauses 3, 4, 5, 6, 7 and 8 Article 154 of the Labor Code, a foreign worker is exempt from a work permit if:

1. He/she is the owner or capital contributor of a limited liability company with a capital contribution value of at least 3 billion dong.

2. He/she is the Chairperson or a member of the Board of Directors of a joint-stock company with a capital contribution value of at least 3 billion dong. <0}

3. He/she is an intra-company transferee within 11 sectors in the schedule of commitments in services between Vietnam and WTO, including: business services, communication services, construction services, distribution services, educational services, environmental services, financial services, health services, tourism services, recreational and cultural services, and transport services.

4. He/she enters Vietnam to provide professional and engineering consulting services or perform other tasks intended for research, formulation, appraisal, supervision, evaluation, management and execution of programs and projects using official development assistance (ODA) in accordance with regulations or agreement in international treaties on ODA signed between the competent authorities of Vietnam and foreign countries.

5. He/she is granted a communication and journalism practicing certificate in Vietnam by the Ministry of Foreign Affairs as per the law.

6. He/she is sent by a foreign competent authority or organization to Vietnam to teach and study at an international school under management of a foreign diplomatic mission or the United Nations; or of a facility established under an agreement to which Vietnam is a signatory.

7. He/she is a volunteer as specified in clause 2 Article 3 of this Decree.

8. He/she enters Vietnam to hold the position of a manager, executive, expert or technical worker for a period of work of less than 30 days and up to 3 times a year.

9. He/she enters Vietnam to implement an international agreement to which a central or provincial authority is a signatory as per the law

10. He/she is a student studying at a foreign school or training institution which has a probation agreement with an agency, organization or enterprise in Vietnam; or a probationer or apprentice on a Vietnam sea-going ship.

11. He/she is a relative of a member of foreign representative body in Vietnam as specified in point l clause 1 Article 2 hereof.

12. He/she obtains an official passport to work for a regulatory agency, political organization, or socio-political organization.

13. He/she takes charge of establishing a commercial presence.

14. He/she is certified by the Ministry of Education and Training as a foreign worker entering Vietnam for teaching and research purpose.

Article 8. Certification of exemption from work permit

1. The Ministry of Labor, War Invalids and Social Affairs or Departments of Labor, War Invalids and Social Affairs are authorized to grant certification of exemption from work permit.

2. The employer shall request the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs of the province where the foreign worker is expected to work to certify that such foreign worker is eligible for exemption from a work permit at least 10 working days before he/she starts to work.

For any of the circumstances in clauses 4, 6 and 8 Article 154 of the Labor Code and clauses 1, 2, 8 and 11 Article 7 of this Decree, the employer is not required to apply for the certification of exemption but it must report the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs of province where the foreign worker is expected to work, at least 3 days before such foreign worker starts to work in Vietnam, on the following: full name, age, nationality, passport number, name of employer, starting date and completion date.

The validity period of a certification of exemption from work permit is up to 2 years and coincides with the validity period of any case as prescribed in Article 10 below. If a certification of exemption from work permit is re-issued, the corresponding validity period is up to 2 years.

3. Required documents in an application for exemption from work permit:

a) An application form for certification of exemption from work permit No. 09/PLI Appendix I hereto appended;

b) A fitness to work certificate in accordance with clause 2 Article 9 hereof.

c) An acceptance of demand for foreign workers, unless it is not required;

d) A valid certified true copy of passport as per the law;

dd) Documents justifying that the foreign worker is exempt from work permit;

e) Any document mentioned in points b, c and dd of this clause is 1 original or certified true copy; if a document is written in a foreign language, it must be consularly legalized, translated into Vietnamese and certified, unless it is exempt from consular legalization under an international treaty to which the Socialist Republic of Vietnam and the concerned foreign country are signatories or under the principle of reciprocity or as per the law.

4. Within 5 working days after receiving a duly completed application, the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs shall issue a certification of exemption from work permit, using Form No. 10/PLI Appendix I hereto appended. If the application is rejected, a written explanation is required.

Section 3. ISSUANCE OF WORK PERMITS

Article 9. Application for issuance of a work permit

1. An application form for certification of exemption from work permit No. 11/PLI Appendix I hereto appended.

2. A fitness to work certificate issued by a foreign or Vietnamese competent health facility issued within 12 months before the submission date of the application or the certificate as specified in regulations of the Minister of Health.

3. A police (clearance) certificate or a document certifying that the foreign worker is not serving a sentence, has a criminal record expunged or is not facing a criminal prosecution issued by a foreign or Vietnamese authority.

The foregoing police (clearance) certificate or document certifying that the foreign worker is not serving a sentence, has a criminal record expunged or is not facing a criminal prosecution issued within 6 months before the submission date of the application.

4. Proofs as a manager, executive, expert, technical and certain jobs, works as follows:

a) Proof as a manager, executive as prescribed in clauses 4, 5 Article 3 hereof;

b) Proof as an expert, technical worker as prescribed in clauses 3, 6 Article 3 hereof, including: diplomas, certificates, certification of foreign agency, organization, enterprise in respect of number of years’ experience of the expert or technical worker;

c) Proof of experience of foreign football player or an international transfer certificate (ITC) issued to the foreign football player or a document of the Vietnam Football Federation which certifies temporary or official registration of a player of club affiliated to Vietnam Football Federation.

d) A pilot license issued by a Vietnamese competent authority, or issued by a foreign competent authority and validated by the Vietnamese competent authority, in case of a foreign pilot; or a certificate of eligibility for working on aircraft issued by the Ministry of Transport, in case of a flight attendant;

dd) A certificate of competency in aviation maintenance issued by a Vietnamese competent authority, or issued by a foreign competent authority and validated by the Vietnamese competent authority, in case of a foreign worker who performs maintenance on aircraft;

e) A certificate of competency or validation of certificate of competence issued by a Vietnamese competent authority to a foreign seafarer;

g) A certificate of high achievement in sports which is certified by the Ministry of Culture, Sports and Tourism, in case of a sports coach or at least one of the following certificates: AFC (Asian Football Federation) football coaching level B certificate or AFC goalkeeping coaching level 1 certificate or AFC fitness coaching level 1 certificate or AFC futsal coaching level 1 certificate or any equivalent foreign certificate accredited by AFC;

h) A diploma issued by the competent authority in accordance with qualifications or standard qualifications in the Law on Education, the Law on Higher Education, the Law on Vocational Education and Regulation on organization and operation of foreign language and computer training centers issued by the Minister of Education and Training.

5. 02 color photos (4cm x 6cm size, white background, front view, bare head, no color glasses), taken within 6 months before the submission date of application.

6. An acceptance of demand for foreign workers, unless it is not required.

7. A valid certified true copy of passport as per the law.

8. Documents relevant to the foreign worker:

a) For a foreign worker specified in point b clause 1 Article 2 hereof, he/she must obtain a document issued by the foreign company to send him/her to work at a commercial presence of that company in Vietnam’s territory and a document justifying that he/she has been recruited by the foreign company at least 12 consecutive months prior to the transfer date;

b) For a foreign worker specified in point c clause 1 Article 2 hereof, an agreement or arrangement concluded between Vietnamese and foreign partners is required, which specifies the arrangement about sending foreign workers to Vietnam;

c) For a foreign worker specified in point d clause 1 Article 2 hereof, a service contract concluded between Vietnamese and foreign partner is required and a document justifying that he/she has worked for the foreign company that has no commercial presence in Vietnam at least 2 years;

d) For a foreign worker specified in point dd clause 1 Article 2 hereof, he/she must obtain a document issued by the service provider to send him/her to Vietnam to negotiate the service provision;

dd) For a foreign worker specified in point e clause 1 Article 2 hereof, he/she must obtain both a document which sends him/her to work for a foreign non-governmental organization or international organization in Vietnam, except for point a clause 1 Article 2 of this Decree, and the operation license of that foreign non-governmental organization or international organization in Vietnam as per the law;

e) For a foreign worker specified in point i clause 1 Article 2 hereof, he/she must obtain a document issued by the foreign enterprise, agency or organization to send him/her to work in Vietnam that is conformable with the expected job position.

9. Application for issuance of work permit in special cases:

a) If a foreign worker who has been issued with a work permit which remains valid wishes to work for another employer at the same job position and job title in the work permit, an application for a new work permit shall include: a document issued by the former employer certifying that he/she has been working there, documents mentioned in clauses 1, 5, 6, 7 and 8 of this Article and a certified true copy of the current work permit;

b) If a foreign worker who has been issued with a work permit which remains valid wishes to work for the same employer but at another job position or job title or working form in the work permit, an application for a new work permit shall include the documents mentioned in clauses 1, 4, 5, 6, 7 and 8 hereof and the current work permit or a certified true copy of the current work permit.

10. Consular legalization and certification of documents:

Any document mentioned in clauses 2, 3, 4, 6 and 8 hereof is 1 original or certified true copy; if a document is written in a foreign language, it must be consularly legalized, translated into Vietnamese and certified, unless it is exempt from consular legalization under an international treaty to which the Socialist Republic of Vietnam and the concerned foreign country are signatories or under the principle of reciprocity or as per the law.

Article 10. Validity period of a work permit

The validity period of a work permit shall coincide with any of the period/duration below but not exceeding 2 years:

1. Validity period of the employment contract to be signed.

2. Duration of the foreign worker’s assignment in Vietnam.

3. Duration of the contract or agreement concluded between Vietnamese and foreign partners.

4. Duration of the service contract or agreement concluded between Vietnamese and foreign partners.

5. Duration determined in the document issued by the service provider to send the foreign worker to Vietnam to negotiate the service provision.

6. Validity period in the operation license of the agency, organization or enterprise.

7. Duration determined in the document issued by the service provider to send the foreign worker to Vietnam to establish a commercial presence.

8. Duration stated in a document proving the foreign worker’s eligibility to participate in the operation of a foreign company that has established its commercial presence in Vietnam.

9. Duration stated in the acceptance of employment of foreign worker unless a report on demand for foreign workers as specified in point b clause 1 Article 4 hereof is not required.

Article 11. Procedures for issuance of a work permit

1. At least 15 working days before the day on which a foreign worker starts to work, the applicant shall submit an application for work permit to the Ministry of Labor, War Invalids and Social Affairs or the Department of Labor, War Invalids and Social Affairs of the province where he/she is expected to work. The applicant is:

a) the employer, if the foreign worker moves to Vietnam for employment for the purposes specified in points a, b, e, g, I and k clause 1 Article 2 hereof;

b) the Vietnamese agency, organization or enterprise, or foreign organization or enterprise operating in Vietnam for which the foreign worker is expected to work, if the foreign worker moves to Vietnam for employment for the purposes specified in points c and d clause 1 Article 2 hereof; or

c) the foreign service offeror in Vietnam, or the person in charge of establishing a commercial presence as prescribed in points dd and h clause 1 Article 2 hereof.

2. Within 5 working days after receiving a duly completed application, the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs of province where the foreign worker is expected to work shall issue a work permit to the foreign worker, using Form No. 12/PLI Appendix I hereto appended. The form of work permit shall be solely printed and issued by the Ministry of Labor, War Invalids and Social Affairs. If the application is rejected, a written explanation is required.

3. For a foreign worker specified in point a clause 1 Article 2 hereof, after the foreign worker is issued with a work permit, the employer and the foreign worker must sign a written employment contract as per Vietnam’s labor law before the date on which the foreign worker is expected to work.

The employer shall send that employment contract to the competent authority that issued that work permit. The employment contract is the original or a certified true copy.

Section 4. RE-ISSUANCE OF WORK PERMIT

Article 12. Cases of re-issuance of a work permit

1. The unexpired work permit is lost.

2. The unexpired work permit is damaged.

3. The unexpired work permit needs changes of full name, nationality, passport number, or working place thereon.

Article 13. Application for re-issuance of a work permit

1. An application form for re-issuance of work permit made by the employer No. 11/PLI Appendix I hereto appended.

2. 02 color photos (4cm x 6cm size, white background, front view, bare head, no color glasses), taken within 6 months before the submission date of application.

3. The unexpired work permit:

a) If the work permit is lost as specified in clause 1 Article 12 hereof, a certification issued by the police authority of commune where the foreign worker resides or by a foreign competent authority as per the law is required;

b) In case of changes of information in the work permit, supporting documents are required.

4. An acceptance of demand for foreign workers, unless it is not required.

5. Any document mentioned in clauses 3 and 4 hereof is 1 original or certified true copy except for the document in clause 1 Article 12 hereof; if a document is written in a foreign language, it must be consularly legalized, translated into Vietnamese and certified, unless it is exempt from consular legalization under an international treaty to which the Socialist Republic of Vietnam and the concerned foreign country are signatories or under the principle of reciprocity or as per the law.

Article 14. Procedures for re-issuance of a work permit

Within 3 working days after receiving a duly completed application, the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs shall re-issue a work permit. If the application is rejected, a written explanation is required.

Article 15. Validity period of re-issued work permit

The validity period of the re-issued work permit shall coincide with that of the former work permit less the duration that the foreign worker has worked up to the submission date of the re-issuance application.

Section 5. RENEWAL OF WORK PERMIT

Article 16. Eligibility requirements for renewal of a work permit

1. The remaining validity period of the work permit is at least 5 days but not exceeding 45 days.

2. The competent authority grants an acceptance of demand for foreign workers as prescribed in Article 4 or 5 hereof.

3. A document supporting that the foreign worker will continues in employment with the employer as specified in the concerned work permit is available.

Article 17. Application for renewal of a work permit

1. An application form for renewal of work permit made by the employer No. 11/PLI Appendix I hereto appended.

2. 02 color photos (4cm x 6cm size, white background, front view, bare head, no color glasses), taken within 6 months before the submission date of application.

3. The unexpired work permit.

4. An acceptance of demand for foreign workers, unless it is not required.

5. A valid certified true copy of passport as per the law.

6. A fitness to work certificate in accordance with clause 2 Article 9 hereof.

7. Any document specified in clause 8 Article 9 hereof to support that the foreign worker will continues in employment with the employer as specified in the concerned work permit.

8. Any document mentioned in clauses 3, 4, 6 and 7 hereof is 1 original or certified true copy; if a document is written in a foreign language, it must be consularly legalized, translated into Vietnamese and certified, unless it is exempt from consular legalization under an international treaty to which the Socialist Republic of Vietnam and the concerned foreign country are signatories or under the principle of reciprocity or as per the law.

Article 18. Procedures for renewal of a work permit

1. At least 5 days but not exceeding 45 days before the expiry date of the worker permit, the employer shall submit an application for renewal of a work permit to the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs which issued that work permit.

2. Within 5 working days after receiving a duly completed application, the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs shall renew the work permit. If the application is rejected, a written explanation is required.

3. For a foreign worker specified in point a clause 1 Article 2 hereof, after his/her work permit is renewed, the employer and the foreign worker must sign a written employment contract as per Vietnam’s labor law before the date on which the foreign worker is expected to work.

The employer shall send that employment contract to the competent authority that issued that work permit. The employment contract is the original or a certified true copy.

Article 19. Validity period of a renewed work permit

Validity period of a renewed work permit shall coincide with any of the period/duration prescribed in Article 10 but it is only renewed once for a period of up to 2 years.

Section 6. REVOCATION OF WORK PERMIT

Article 20. Cases of revocation of a work permit

1. The work permit ceases to be effective as prescribed in clauses 1, 2, 3, 4, 5, 6 and 7 Article 156 of the Labor Code.

2. The employer or the foreign worker fails to comply with this Decree.

3. The foreign worker, during his/her employment in Vietnam, fails to abide by Vietnam’s law which compromises security and social order.

Article 21. Procedures for revocation of a work permit

1. For the case in clause 1 Article 20 hereof, within 15 days after the work permit ceases to be effective, the employer shall revoke the work permit of the foreign worker and return it to the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs which issued that work permit and enclose a document specifying reasons for revocation and work permits subject to revocation but cannot be revoked.

2. For the cases in clauses 2, 3 Article 20 hereof, the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs which issued the work permit shall issue a decision on revocation of work permit, using Form No. 13/PLI Appendix I hereto appended and request the employer to revoke the work permit of the foreign worker and then return it to the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs.

3. Within 5 working days after receiving the said work permit, the Ministry of Labor, War Invalids and Social Affairs or Department of Labor, War Invalids and Social Affairs shall send an acknowledgement of receipt of the revoked work permit to the employer.

Chapter III

RECRUITMENT, MANAGEMENT OF VIETNAMESE WORKERS WORKING FOR FOREIGN EMPLOYERS IN VIETNAM

Article 22. Power to recruit and manage Vietnamese workers working for foreign employers

1. Organizations that are empowered to recruit and manage Vietnamese workers working for foreign employers (hereinafter referred to as recruitment and management organizations) include:

a) Organizations that are empowered by the Ministry of Foreign Affairs through delegation, authorization, assignment, commission or procurement;

b) Organizations that are empowered by the Department of Labor, War Invalids and Social Affairs through delegation, authorization, assignment, commission or procurement.

2. The organizations specified in point a clause 1 of this Article are entitled to recruit and manage Vietnamese workers working for foreign employers below:

a) Foreign organizations mentioned in points a, b, c and d clause 3 Article 2 hereof;

c) Foreign individuals who are working for foreign organizations mentioned in points a, b, c and d clause 3 Article 2 hereof.

3. The organizations specified in point b clause 1 of this Article are entitled to recruit and manage Vietnamese workers working for foreign employers below:

a) Foreign organizations mentioned in point dd clause 3 Article 2 hereof;

b) Foreign individuals who are working for the foreign organizations specified in point dd clause 3 hereof or persons who are authorized by competent authorities in Vietnam to reside in Vietnam.

Article 23. Application for job of a Vietnamese worker

1. An application form for job No. 01/PLII Appendix II hereto appended.

2. A certified true copy of any of the following: birth certificate or ID card or citizen identification card.

3. A fitness to work certificate issued by a competent health facility issued within 12 months before the submission date of the application.

4. A certified true copy of diploma or certificate of professional qualifications and foreign language relating to the job for which the foreign worker applies. If the document is written in a foreign language, it must be consularly legalized, translated into Vietnamese and certified, unless it is exempt from consular legalization under an international treaty to which the Socialist Republic of Vietnam and the concerned foreign country are signatories or under the principle of reciprocity or as per the law.

Article 24. Procedures for recruitment of Vietnamese workers working for foreign employers

1. If foreign employers wish to employ Vietnamese workers, they may recruit by themselves or authorize employment service providers, professional employer organizations, or recruitment and management organizations to do so.

2. If the foreign employer chooses a recruitment and management organization, a request for recruitment of Vietnamese workers shall be sent to that recruitment and management organization. The request shall specify requirements for job positions, quantity, professional qualifications, proficiency of foreign language, recruitment duration, rights and obligations of Vietnamese workers and the foreign employer during the employment time and upon severance for every job vacancy.

Within 15 working days after receiving such a request, the recruitment and management organization shall initiate the recruitment and management of Vietnamese workers as requested. If the recruitment and management organization fails to recruit or recommend Vietnamese workers upon the request when the time required has elapsed, it shall provide explanation in writing.

3. Within 7 working days after entering into an employment contract with a Vietnamese worker, the foreign employer shall send a notice enclosed with a certified true copy of the employment contract and the documents specified in clause 2, 4 Article 3 of this Decree to the recruitment and management organization. If the employment contract is made in a foreign language, a Vietnamese translation is required.

Article 25. Responsibilities of a Vietnamese worker working for a foreign employer

1. Comply with Vietnam’s labor law.

2. Abide by the terms and conditions of the employment contract concluded with the foreign employer.

3. Comply with regulations of the recruitment and management organization.

Article 26. Responsibilities of a foreign employer in Vietnam upon employment of Vietnamese workers

1. Comply with the Labor Code and applicable regulations.

2. Abide by the employment contract concluded with Vietnamese workers.

3. Before December 15 or on an ad-hoc basis, the foreign employer shall send an annual report on recruitment and employment of Vietnamese workers, using Form No. 02/PLII Appendix II hereto appended. The reporting period is from December 15 of the previous year to December 12 of the reporting year and the report shall be sent as follows:

a) The foreign employers provided for in points a, b, c and d clause 3 Article 2 hereof shall send reports to recruitment and management organizations as provided in point a clause 1 Article 22 hereof;

b) The foreign employers provided for in points dd clause 3 Article 2 hereof shall send reports to recruitment and management organizations as provided in point b clause 1 Article 22 hereof.

Article 27. Responsibilities of recruitment and management organizations

1. Receive applications for job from Vietnamese workers and requests for recruitment of Vietnamese workers from foreign employers.

2. Initiate recruitment, management of Vietnamese workers working for foreign employers.

3. Provide training and advanced training programs for Vietnamese workers as per the law to meet requirements of foreign employers.

4. Before December 20 or on an ad-hoc basis, recruitment and management organizations shall send annual reports on recruitment and employment of Vietnamese workers working for foreign employers, using Form No. 03/PLII Appendix II hereto appended. The reporting period is from December 15 of the previous year to December 14 of the reporting year and the report shall be sent as follows:

a) The organizations that are empowered by the Ministry of Foreign Affairs to recruit and manage Vietnamese workers working for foreign employers through delegation, authorization, assignment, commission or procurement shall send reports to the Ministry of Foreign Affairs;

b) The organizations that are empowered by the Department of Labor, War Invalids and Social Affairs to recruit and manage Vietnamese workers working for foreign employers through delegation, authorization, assignment, commission or procurement shall send reports to the Department of Labor, War Invalids and Social Affairs.

5. Propose competent authorities to take actions against any violation of this Decree.

6. Perform other tasks as per the law.

Article 28. Responsibilities of employment service providers, professional employer organizations

Before December 15 or on an ad-hoc basis, employment service providers, professional employer organizations shall send reports on supply or outsourcing of Vietnamese workers, using Form No. 04/PLII Appendix II hereto appended to the recruitment and management organizations. The reporting period is from December 15 of the previous year to December 14 the reporting year.

Chapter IV

IMPLEMENTATION

Article 29. Entry in force

1. This Decree comes into force as of February 15, 2021.

2. Decree No. 11/2016/ND-CP dated February 3, 2016 on elaboration of certain articles of the Labor Code regarding foreign workers in Vietnam (hereinafter referred to as Decree No. 11/2016/ND-CP), amended by Decree No. 140/2018/ND-CP on amendments to Decrees related to business conditions and administrative procedures under the management of the Ministry of Labor, War Invalids and Social Affairs (hereinafter referred to as Decree No. 140/2018/ND-CP) and Decree No. 75/2014/ND-CP dated July 28, 2014 on elaboration of certain articles of the Labor Code on recruitment and management of Vietnamese workers working for foreign organizations and individuals shall cease to be effective since the date of entry into force of this Decree.

3. Grandfather clause:

a) Documents such as acceptance of employment of foreign workers, certification of exemption from work permit and work permits that were issued or re-issued as per Decree No. 11/2016/ND-CP , amended by Decree No. 140/2018/ND-CP will remain valid until their expiry;

b) Employment contracts of foreign workers in Vietnam that were signed and are still in force before the date of entry into force of this Decree will remain valid until the work permits that were issued as per Decree No. 11/2016/ND-CP , amended by Decree No. 140/2018/ND-CP expire.

Article 30. Implementation

1. Responsibilities of the Ministry of Labor, War Invalids and Social Affairs:

a) Consider accepting demand for foreign workers; certifying exemption from work permits; issuing, re-issuing, renewing and revoking work permits from foreign workers who work for the employers prescribed point g clause 2 Article 2 and agencies and organizations prescribed in points d, e clause 2 Article 2 hereof that the Government, the Prime Minister, ministry or central authority approves their establishment;

b) The employer provided for in point a clause 2 Article 2 whose representative office or branch is located in a province or city other than province or city where it is headquartered and the employer specified in point dd clause 2 Article 2 may seek the acceptance of demand for foreign workers; certification of exemption from work permit; issuance, re-issuance, renewal and revocation of work permits from the Ministry of Labor, War Invalids and Social Affairs.

c) Perform the state management of recruitment and management of foreign workers working in Vietnam and Vietnamese workers working for foreign employers in Vietnam;

d) Take charge and cooperate with ministries and central authorities in supervising, evaluating, and inspecting, on an annual or ad-hoc basis, agencies, organizations and enterprises relevant to implementation of regulations on foreign workers working in Vietnam and Vietnamese workers working for foreign employers in Vietnam;

dd) Take charge and cooperate with ministries, central authorities and local authorities in guiding, propagating, obtaining information, studying and evaluating the effectiveness of this Decree;

e) Send consolidated reports on foreign workers working in Vietnam and Vietnamese workers working for foreign employers in Vietnam to the Prime Minister upon requests;

g) Propose and take actions against violations of this Decree.

2. Responsibilities of the Ministry of Foreign Affairs:

a) Take charge and cooperate with central authorities and local authorities in guiding, propagating regulations on foreign workers working in Vietnam and Vietnamese workers working for foreign employers in Vietnam within the ambit of the Ministry of Foreign Affairs;

b) Manage the organizations that are empowered by the Ministry of Foreign Affairs to recruit and manage Vietnamese workers working for foreign employers through delegation, authorization, assignment, commission or procurement;

c) Provide guidelines for recruitment and management of Vietnamese workers working for foreign employers as prescribed in points a, b, c and d clause 3 Article 2 hereof;

d) Before December 20 or on an ad-hoc basis, the Ministry of Foreign Affairs shall send the Ministry of Labor, War Invalids and Social Affairs a report on recruitment and employment of Vietnamese workers working for foreign employers, using Form No. 03/PLII Appendix II hereto appended. The reporting period of an annual report complies with regulations of the Government on reporting regime of regulatory agencies.

3. Responsibilities of the Ministry of National Defense:

Cooperate with competent authorities in enforcing foreign workers, Vietnamese workers working for foreign employers and foreign employers employing Vietnamese workers to comply with regulations of law on security, social safety and order in border and checkpoint areas, islands, strategic, key, defense-critical regions.

4. Responsibilities of the Ministry of Public Security:

a) Send monthly reports on foreign workers issued with visas marked LD, LV, DN, DT to the Ministry of Labor, War Invalids and Social Affairs;

b) Cooperate with competent authorities in enforcing Vietnamese workers working for foreign employers and foreign employers employing Vietnamese workers to comply with regulations of law on security, social safety and order.

5. Responsibilities of the People’s Committees of provinces or central-affiliated cities:

a) Manage and guide local authorities to comply with regulations on foreign workers working in Vietnam and Vietnamese workers working for foreign employers in Vietnam;

b) Direct local specialized agencies in propagating, raising public awareness of law; inspecting and taking actions against violations of regulations on foreign workers working in Vietnam and Vietnamese workers working for foreign employers in Vietnam in the provinces;

c) Direct local agencies to recommend and supply Vietnam labor to contractors;

d) Permit contractors to recruit foreign workers to every job vacancy for which Vietnamese workers are underqualified in the provinces;

dd) Approve, or delegate authorized agencies to approve, job positions available for foreign workers in the provinces.

6. Responsibilities of the Department of Labor, War Invalids and Social Affairs:

a) Consider accepting demand for foreign workers; certifying exemption from work permits; issuing, re-issuing, renewing and revoking work permits from foreign workers who work for the employers prescribed points a, b, c, h, i, k, l clause 2 Article 2, and agencies and organizations specified in points d, e clause 2 Article 2 hereof which are established by the People’s Committee of province, specialized agency affiliated to the People’s Committee of province or the People’s Committee of district;

b) The employer provided for in point a clause 2 Article 2 whose representative office or branch is located in a province or city other than province or city where it is headquartered and the employer specified in point dd clause 2 Article 2 may seek the acceptance of demand for foreign workers; certification of exemption from work permit; issuance, re-issuance, renewal and revocation of work permits from the Department of Labor, War Invalids and Social Affairs;

c) Upon receipt of an application for issuance, re-issuance, or renewal of work permit, or exemption from work permit, the Department of Labor, War Invalids and Social Affairs shall document it in a logbook Form No. 14/PLI Appendix I hereto appended and give the employer an acknowledgement of receipt. The acknowledgement must specify the date of receipt; documents in the application and time limit for a response;

d) If the application for exemption from work permit; issuance, re-issuance, renewal of work permit is rejected, it shall give a response in writing using Form No. 15/PLI Appendix I hereto appended;

dd) Take charge and cooperate with local agencies in guiding and propagating this Decree;

e) Perform the state management of recruitment and management of foreign workers working in Vietnam and Vietnamese workers working for foreign employers within the ambit of the localities;

g) Manage the organizations that are empowered by the Department of Labor, War Invalids and Social Affairs to recruit and management Vietnamese workers working for foreign employers through delegation, authorization, assignment, commission or procurement;

h) Inspect and supervise the compliance with law of foreign workers in Vietnam and recruitment and management of foreign workers working in Vietnam and Vietnamese workers working for foreign employers within the ambit of the localities;

i) Before December 30 or on an ad-hoc basis, the Department of Labor, War Invalids and Social Affairs shall send the Ministry of Labor, War Invalids and Social Affairs a report on recruitment and employment of Vietnamese workers working for foreign employers, using Form No. 03/PLII Appendix II hereto appended. The reporting period of an annual report complies with regulations of the Government on reporting regime of regulatory agencies.

7. Ministries, Heads of ministerial-level agencies, Heads of Governmental agencies, the Presidents of People’s Committees of provinces or central-affiliated cities and relevant entities shall implement this Decree./.

ON BEHALF OF THE GOVERNMENT
THE PRIME MINISTER

Nguyen Xuan Phuc

THE NATIONAL ASSEMBLY
——-

Hanoi, November 20, 2019

LABOR CODE

Pursuant to the Constitution of Socialist Republic of Vietnam;

The National Assembly promulgates the Labor Code.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

The Labor Code sets forth labor standards; rights, obligations and responsibilities of employees, employers, internal representative organizations of employees, representative organizations of employers in labor relations and other relations directly related to labor relations; and state management of labor.

Article 2. Regulated entities

1. Employees, trainees, apprentices and other workers without labor relations.

2. Employers.

3. Foreign employees who work in Vietnam.

4. Other organizations and individuals directly related to labor relations.

Article 3. Definitions

For the purposes of this document, the terms below shall be construed as follows:

1. “employee” means a person who works for an employee under an agreement, is paid, managed and supervised by the employer.

The legal working age is 15, except for the cases specified in Section 1 Chapter XI of this Labor Code.

2. “employer” means an enterprise, agency, organization, cooperative, household or individual who employs other people under agreements. An employee that is an individual shall have full legal capacity.

3. “representative organization of employees” means an internal organization voluntarily established by employees of an employer which protects the employees’ legitimate rights and interests in labor relations through collective bargaining or other methods prescribed by labor laws. Representative organizations of employees include internal trade unions and internal employee organizations.

4. Representative organization of employers means a lawfully established organization which represents and protects the employers’ legitimate rights and interests in labor relations.

5. “labor relation” means a social relation which arises in respect of the employment and salary payment between an employee and an employer, their representative organizations and competent authorities. Labor relations include individual labor relation and collective labor relation.

6. “worker without labor relations” means a person who works without an employment contract.

7. “forced labor” means to the use force or threat to use force or a similar practice to force a person to work against his/her will.

8. “labor discrimination” means discrimination on the grounds of race, skin color, nationality, ethnicity, gender, age, pregnancy, marital status, religion, opinion, disability, family responsibility, HIV infection, establishment of or participation in trade union or internal employee organization in a manner that affects the equality of opportunity of employment.

Positive discrimination on the grounds of professional requirements, the sustainment and employment protection for vulnerable employees will not be considered discrimination.

9. “sexual harassment” in the workplace means any sexual act of a person against another person in the workplace against the latter’s will. “workplace” means the location when an employee works under agreement or as assigned by the employer.

Article 4. State policies on labor

1. Guarantee the legitimate rights and interests of employees and workers without labor relations; encourage agreements providing employees with conditions more favorable than those provided by the labor laws.

2. Guarantee the legitimate rights and interests of employers, to ensure lawful, democratic, fair and civilized labor management, and to promote corporate social responsibility.

3. Facilitate job creation, self-employment and occupational training and learning to improve employability; labor-intensive businesses; application of certain regulations in this Labor code to workers without labor relations.

4. Adopt policies on the development and distribution of human resources; improve productivity; provide basic and advanced occupational training, occupational skill development; assist in sustainment and change of jobs; offer incentives for skilled employees in order to meet the requirements of national industrialization and modernization.

5. Adopt policies on labor market development and diversify types of linkage between labor supply and demand.

6. Promote dialogues, collective bargaining and establishment of harmonious, stable and progressive labor relations between employees and employers.

7. Ensure gender equality; introduce labor and social policies aimed to protect female, disabled, elderly and minor employees.

Article 5. Rights and obligations of employees

1. An employee has the rights to:

a) work; freely choose an occupation, workplace or occupation; participate in basic and advanced occupational training; develop professional skills; suffer no discrimination, forced labor and sexual harassment in the workplace;

b) receive a salary commensurate with his/her occupational skills on the basis of an agreement with the employer; be provided with personal protective equipment and work in an occupationally safe and healthy environment; take statutory sick leaves, annual paid leaves and receive collective welfare benefits;

c) establish, join an representative organization of employees, occupational associations and other organizations in accordance with law; request and participate in dialogues with the employer, implementation of democracy regulations and collective bargaining with the employer; receive consultancy at the workplace to protect his/her legitimate rights and interests; participate in management activities according to the employer’s regulations;

d) refuse to work if he/she finds that the work directly threatens his/her life or health;

đ) unilaterally terminate the employment contract;

e) go on strike;

g) exercise other rights prescribed by law.

2. An employee has the obligations to:

a) implement the employment contract, collective bargaining agreement and other lawful agreements;

c) obey internal labor regulations, the lawful management, administration and supervision by the employer;

c) implement regulations of laws on labor, employments, vocational education, social insurance, health insurance, unemployment insurance, occupational safety and health.

Article 6. Rights and obligations of employers

1. An employer has the rights to:

a) recruit, arrange and manage and supervise employees; give commendation and take actions against violations of internal labor regulations;

b) establish, join and operate in employer representative organization, occupational associations and other organizations in accordance with law;

c) request the representative organization of employees to negotiate the conclusion of the collective bargaining agreement; participate in settlement of labor disputes and strikes; discuss with the representative organization of employees about issues related to labor relations and improvement of the material and spiritual lives of employees;

d) temporarily close the workplace;

đ) exercise other rights prescribed by law.

2. An employer has the obligations to:

a) implement the employment contracts, collective bargaining agreement and other lawful agreements with employees; respect the honor and dignity of employees;

b) establish a mechanism for and hold dialogue with the employees and the representative organization of employees; implement the regulations on grassroots-level democracy;

c) Provide basic training and advanced training in order to help employees improve their professional skills or change their occupations;

d) implement regulations of laws on labor, employments, vocational education, social insurance, health insurance, unemployment insurance, occupational safety and health; develop and implement solutions against sexual harassment in the workplace;

đ) Participate in development of the national occupational standards, assessment and recognition of employees’ professional skills.

Article 7. Development of labor relations

1. Labor relations are established through dialogue and negotiation on principles of voluntariness, good faith, equality, cooperation and mutual respect of each other’s the lawful rights and interests.

2. Employers, employer representative organizations, employees and representative organizations of employees shall develop progressive, harmonious and stable labor relations with the assistance of competent authorities.

3. The trade union shall cooperate with competent authorities in assisting the development of progressive, harmonious and stable labor relations; supervising implementation of labor laws; protecting the legitimate rights and interests of employees.

4. Vietnam Chamber of Commerce and Industry, Vietnam Cooperative Association and other employer representative organizations that are lawfully established shall represent, protect the lawful rights and interests of employers, and participate in development of progressive, harmonious and stable labor relations.

Article 8. Forbidden actions

1. Labor discrimination.

2. Maltreatment of employees, forced labor.

3. Sexual harassment in the workplace.

4. Taking advantage of occupational training or apprenticeships to exploit the trainees or apprentices, or persuade or force them to act against the law.

5. Employing untrained people or people without occupational training certificates to do the jobs or works that have to be done by trained workers or holders of occupational training certificates.

6. Persuading, inciting, promising advertising or otherwise tricking employees into human trafficking, exploitation of labor or forced labor; taking advantage of employment brokerage or guest worker program to commit violations against the law.

7. Illegal employment of minors.

Chapter II

EMPLOYMENTS, RECRUITMENT AND EMPLOYEE MANAGEMENT

Article 9. Employments and creation of employments

1. Employment is any income-generating laboring activity that is not prohibited by law.

2. The State, employers and the society have the responsibility to create employment and guarantee that every person, who has the work capacity, has access to employment opportunities.

Article 10. Right to work of employees

1. An employee shall have the right to choose his employment, employer in any location that is not prohibited by law.

2. An employee may directly contact an employer or through an employment service provider in order to find a job that meets his/her expectation, capacity, occupational qualifications and health.

Article 11. Employment plan

1. Employers have the right to recruit employees directly or through employment agencies or dispatching agencies.

2. Employees shall not pay any employment cost.

Article 12. Responsibility of an employer for employee management

1. Prepare, update, manage, use the physical or electronic employee book and present it to the competent authority whenever requested.

2. Declare the employment status within 30 days from the date of commencement of operation, and report periodically on changes of employees during operation to the local labor authority under the People’s Committee of the province (hereinafter referred to as “provincial labor authority”) and to the social security authority.

3. The Government shall elaborate this Article.

Chapter III

EMPLOYMENT CONTRACT

Section 1. CONCLUSINO OF AN EMPLOYMENT CONTRACT

Article 13. Employment contract

1. An employment contract is an agreement between an employee and an employer on a paid job, salary, working conditions, and the rights and obligations of each party in the labor relations.

A document with a different name is also considered an employment contract if it contains the agreement on the paid job, salary, management and supervision of a party.

2. Before recruiting an employee, the employer shall enter into an employment contract with such employee.

Article 14. Forms of employment contract

1. An employment contract shall be concluded in writing and made into two copies, one of which will be kept by the employee, the other by the employer, except for the case specified in Clause 2 of this Article.

An employment contract in the form of electronic data conformable with electronic transaction laws shall have the same value as that of a physical contract.

2. Both parties may conclude an oral contract with a term of less than 01 month, except for the cases specified in Clause 2 Article 18, Point a Clause 1 Article 145 and Clause 1 Article 162 of this Labor Code.

Article 15. Principles for conclusion of an employment contract

1. Voluntariness, equality, good faith, cooperation and honesty.

2. Freedom to enter into an employment contract which is not contrary to the law, the collective bargaining agreement and social ethics.

Article 16. Obligations to provide information before conclusion of an employment contract

1. The employer shall provide the employee with truthful information about the job, workplace,  working conditions, working hours, rest periods, occupational safety and health, wage, forms of wage payment, social insurance, health insurance, unemployment insurance, regulations on business secret, technological know-how, and other issues directly related to the conclusion of the employment contract if requested by the employee.

2. The employee shall provide the employer with truthful information about his/her full name, date of birth, gender, residence, educational level, occupational skills and qualifications, health conditions and other issues directly related to the conclusion of the employment contract which are requested by the employer.

Article 17. Prohibited acts by employers during conclusion and performance of employment contracts

1. Keeping the employee’s original identity documents, diplomas and certificates.

2. Requesting the employee to make a deposit in cash or property as security for his/her performance of the employment contract.

3. Forcing the employee to keep performing the employment contract to pay debt to the employer.

Article 18. Competence to conclude employment contracts

1. Employees may directly conclude their employment contracts, except for the cases specified in Clause 2 of this Article.

2. In respect of seasonal works or certain jobs which have a duration of less than 12 months, a group of employees aged 18 or older may authorized the representative of the group to conclude the employment contract, in which case such employment contract shall be effective as if it was separately concluded by each of the employees.

The employment contract concluded by the said representative must be enclosed with a list clearly stating the full names, ages, genders, residences and signatures of all employees concerned.

3. The person who concludes the employment contract on the employer’s side shall be:

a) The legal representative of the enterprise or an authorized person as prescribed by law;

b) The head of the organization that is a juridical person, or an authorized person as prescribed by law;

c) The representative of the household, artels or an organization that is not a juridical person, or an authorized person as prescribed by law;

d) The individual who directly hires the employee.

4. The person who concludes the employment contract on the employee’s side shall be:

a) The employee himself/herself if he/she is 18 or older;

b) The employee aged 15 to under 18 with a written consensus by his/her legal representative;

c) The employee aged under 15 and his/her legal representative;

d) The employee lawfully authorized by the group of employees to conclude the employment contract.

5. The person who is authorized to conclude the employment contract must not authorize another person to conclude the employment contract.

Article 19. Entering into multiple employment contracts

1. An employee may enter into employment contracts with more than one employer, provided that he/she fully performs all terms and conditions contained in the concluded contracts.

2. Where an employee enters into employment contracts with more than one employer, his/her participation in social insurance, health insurance and unemployment insurance schemes shall comply with regulations of law on social insurance, health insurance, unemployment insurance, occupational safety and health.

Article 20. Types of employment contracts

1. An employment contract shall be concluded in one of the following types:

a) An indefinite-term employment contract is a contract in which the two parties neither fix the term nor the time of termination of the contract;

b) A fixed-term employment contract is a contract in which the two parties fix the term of the contract for a duration of up to 36 months from the date of its conclusion.

2. If an employee keeps working when an employment contract mentioned in Point b Clause 1 of this Article expires:

a) Within 30 days from the expiration date of the employment contract, both parties shall conclude a new employment contract. Before such a new employment contract is concluded, the parties’ rights, obligations and interests specified in the old employment contract shall remain effective;

b) If a new employment contract is not concluded after the 30-day period, the existing employment contract mentioned in Point b Clause 1 of this Article shall become an employment contract of indefinite term;

c) The parties may enter into 01 more fixed-term employment contract. If the employee keeps working upon expiration of this second fixed-term employment contract, the third employment contract shall be of indefinite term, except for employment contracts with directors of state-invested enterprises and the cases specified in Clause 1 Article 149, Clause 2 Article 151 and Clause 4 Article 177 of this Labor Code.

Article 21. Contents of employment contracts

1. An employment contract shall have the following major contents:

a) The employer’s name, address; full name and position of the person who concludes the contract on the employer’s side;

b) Full name, date of birth, gender, residence, identity card number or passport number of the person who concludes the contract on the employee’s side;

c) The job and workplace;

d) Duration of the employment contract;

đ) Job- or position-based salary, form of salary payment, due date for payment of salary, allowances and other additional payments;

e) Regimes for promotion and pay rise;

g) Working hours, rest periods;

h) Personal protective equipment for the employee;

i) Social insurance, health insurance and unemployment insurance;

k) Basic training and advanced training, occupational skill development.

2. If the employees’ job is directly related to the business secret, technological know-how as prescribed by law, the employer has the rights to sign a written agreement with the employee on the content and duration of the protection of the business secret, technology know-how, and on the benefit and the compensation obligation in case of violation by the employee.

3. If the employee works in agriculture, forestry, fishery, or salt production, both parties may exclude some of the aforementioned contents and negotiate additional agreements on settlement in the case when the contract execution is affected by natural disaster, fire or weather.

4. The contents of the employment contract with an employee who is recruited to work as the director of a state-invested enterprise shall be stipulated by the Government.

5. The Minister of Labor, War Invalids and Social Affairs elaborate Clauses 1, 2 and 3 of this Article.

Article 22. Annexes to employment contract

1. An annex to an employment contract is an integral part of the employment contract and is as binding as the employment contract.

2. An annex to an employment contract may elaborate or amend certain contents of the employment contract and must not change the duration of the employment contract.

Where an annex to an employment contract elaborates the employment contract in a manner that leads to a different interpretation of the employment contract, the contents of the employment contract shall prevail.

Where an annex amends certain contents of the employment contract, it should clearly states the amendments or additions, and the date on which they take effect.

Article 23. Effect of employment contract

An employment contract takes effect as of the date on which the contract is concluded by the parties, unless otherwise agreed by both parties or prescribed by law.

Article 24. Probation

1. An employer and an employee may include the contents of the probation in the employment contract or enter into a separate probation contract.

2. The probation contract must include the probation period and the contents specified in Points a, b, c, dd, g and h Clause 1 Article 21 of this Code.

3. Probation is not allowed if the employee works under an employment contract with a duration of less than 01 month.

Article 25. Probationary period

The probationary period shall be negotiated by the parties on the basis of the nature and complexity of the job. Only one probationary period is allowed for a job and the probation shall not exceed:

1. 180 days for the position of enterprise executive prescribed by the Law on Enterprises, the Law on management and use of state investment in enterprises;

2. 60 days for positions that require a junior college degree or above;

3. 30 days for positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees;

4. 06 working days for other jobs.

Article 26. Probationary salary

The probationary salary shall be negotiated by both parties and shall not be lower than 85% of the offered salary.

Article 27. Termination of probationary period

1. Upon the expiry of the probationary period, the employer shall inform the employee of the probation result.

If the result is satisfactory, the employer shall keep implementing the concluded employment contract, if there is one, or conclude the employment contract.

If the result is not satisfactory, the employer may terminate the concluded employment contract or the probation contract.

2. During the probationary period, either party has the right to terminate the concluded probation contract or employment contract without prior notice and compensation obligation.

Section 2. PERFORMANCE OF EMPLOYMENT CONTRACT

Article 28. Performance of works under an employment contract

The works under an employment contract shall be performed by the employee who directly enters into the contract. The workplace shall be consistent with that indicated in the employment contract, unless otherwise agreed upon by both parties.

Article 29. Reassignment of an employee against the employment contract

1. In the event of sudden difficulties such as natural disasters, fire, major epidemics, implementation of preventive and remedial measures for occupational accidents or diseases, electricity and water supply failures, or for reasons of business and production demands, the employer may temporarily assign an employee to perform a work which is not prescribed in the employment contract for an accumulated period of up to 60 working days within 01 year, unless otherwise agreed in writing by the employee.

The employer shall specify in the internal labor regulations the cases in which the employer may temporary reassign employees against the employment contracts.

2. In case of temporarily reassignment of an employee specified in Clause 1 of this Article, the employer shall inform the employee at least 03 working days in advance, specify the reassignment period and only assign works that are suitable for the employee’s health and gender.

3. The reassigned employee will receive the salary of the new work. If the new salary is lower than the previous salary, the previous salary shall be maintained for 30 working days. The new salary shall be at least 85% of the previous salary and not smaller than the minimum wages.

4. In case the employee refuses to be reassigned for more than 60 working days in 01 year and has to suspend the employment, he/she shall receive the suspension pay from the employer in accordance with Article 99 of this Labor Code.

Article 30. Suspension of an employment contract

1. Cases of suspension of an employment contract:

a) The employee is conscripted into the army or militia;

b) The employee is held in custody or detention in accordance with the criminal procedure law;

c) The employee is sent to a reformatory school, drug rehabilitation center or correctional facility;

d) The female employee is pregnant as specified in Article 138 of this Code;

đ) The employee is designated as the executive of a wholly state-owned single-member limited liability company;

e) The employee is authorized to representative the state investment in another enterprise;

g) The employee is authorized to represent the enterprise’s investment in another enterprise;

h) Other circumstances as agreed by both parties.

2. During the suspension of the employment contract, the employee shall not receive the salary and benefits specified in the employment contract, unless otherwise agreed by both parties or prescribed by law.

Article 31. Reinstatement of employees upon expiry of the temporary suspension of the employment contract

Within 15 days from the expiry of the suspension period of the employment contract, the employee shall be present at the workplace and the employer shall reinstate the employee under the employment contract if it is still unexpired, unless otherwise agreed by both parties or prescribed by law.

Article 32. Part-time employments

1. A part-time employee is an employee who works for less than the usual daily, weekly or monthly working hours as prescribed by labor laws, the collective bargaining agreement internal labor regulations.

2. An employee may negotiate part-time employment with the employer when enter into an employment contract.

3. The part-time employee shall be entitled to receive salary, equal rights and obligations as a full-time employee; equal opportunity and treatment, and to a safe and hygienic working environment.

Article 33. Revisions to employment contracts

1. During the performance of an employment contract, any party who wishes to revise the employment contract shall notify the other party of the revisions at least 03 working days in advance.

2. In case where an agreement is reached between the parties, the revisions shall be made by signing an annex to the employment contract or signing a new employment contract.

3. In case the two parties fail to reach an agreement on the revisions, they shall continue to perform the existing employment contract.

Section 3. TERMINATION OF EMPLOYMENT CONTRACTS

Article 34. Cases of termination of an employment contract

1. The employment contract expires, except for the case specified in Clause 4 Article 177 of this Code.

2. The tasks stated in the employment contract have been completed.

3. Both parties agree to terminate the employment contract.

4. The employee is sentenced to imprisonment without being eligible for suspension or release as prescribed in Clause 5 Article 328 of the Criminal Procedure Code, capital punishment or is prohibited from performing the work stated in the employment contract by an effective verdict or judgment of the court.

5. The foreign employee working in Vietnam is expelled by an effective verdict or judgment of the court or a decision of a competent authority.

6. The employee dies; is declared by the court as a legally incapacitated person, missing or dead.

7. The employer that is a natural person dies; is declared by the court as a legally incapacitated person, missing or dead. The employer that is not a natural person ceases to operate, or a business registration authority affiliated to the People’s Committee of the province (hereinafter referred to as “provincial business registration authority”) issues a notice that the employer does not have a legal representative or a person authorized to exercise the legal representative’s rights and obligations.

8. The employee is dismissed for disciplinary reasons.

9. The employee unilaterally terminates the employment contract in accordance with Article 35 of this Code.

10. The employer unilaterally terminates the employment contract in accordance with Article 36 of this Code.

11. The employer allows the employee to resigns in accordance with Article 42 and Article 43 of this Code.

12. The work permit or a foreign employee expires according to Article 156 of this Labor Code.

13. The employee fails to perform his/her tasks during the probationary period under the employment contract or gives up the probation.

Article 35. The right of an employee to unilaterally terminates the employment contract

1. An employee shall have the right to unilaterally terminate the employment contract, provided he/she notices the employee in advance:

a) at least 45 days in case of an indefinite-term employment contract;

b) at least 30 days in case of an employment contract with a fixed term of 12 – 36 months;

c) at least 03 working days in case of an employment contract with a fixed term of under 12 months;

d) The notice period in certain fields and jobs shall be specified by the government.

2. An employee is shall have the right to unilaterally terminate the employment contract without prior notice if he/she:

a) is not assigned to the work or workplace or not provided with the working conditions as agreed in the employment contract, except for the cases specified in Article 29 of this Labor Code;

b) is not paid adequately or on schedule, except for the case specified in Clause 4 Article 97 of this Code.

c) is maltreated, assaulted, physically or verbally insulted by the employer in a manner that affects the employee’s health, dignity or honor; is forced to work against his/her will;

d) is sexually harassed in the workplace;

đ) is pregnant and has to stop working in accordance with Clause 1 Article 138 of this Labor Code.

e) reaches the retirement age specified in Article 169 of this Labor Code, unless otherwise agreed by the parties; or

g) finds that the employer fails to provide truthful information in accordance with Clause 1 Article 16 of this Labor Code in a manner that affects the performance of the employment contract.

Article 36. The right of an employer to unilaterally terminates the employment contract

1. An employer shall have the right to unilaterally terminate an employment contract in one of the following circumstances:

a) The employee repeatedly fails to perform his/her work according to the criteria for assessment of employees’ fulfillment of duties established by the employer. The criteria for assessment of employees’ fulfillment of duties shall be established by the employer with consideration taken of opinions offered by the representative organization of employees (if any);

b) The employee is sick or has an accident and remains unable to work after having received treatment for a period of 12 consecutive months in the case of an indefinite-term employment contract, for 06 consecutive months in the case of an employment contract with a fixed term of 12 – 36 months, or more than half the duration of the contract in case of an employment contract with a fixed term of less than 12 months.

Upon recovery, the employer may consider concluding another employment contract with the employee;

c) In the event of a natural disaster, fire, major epidemic, hostility, relocation or downsizing requested by a competent authority, the employer has to lay off employees after all possibilities have been exhausted;

d) The employee is not present at the workplace after the time limit specified in Article 31 of this Labor Code;

đ) The employee reaches the retirement age specified in Article 169 of this Labor Code, unless otherwise agreed by the parties;

e) The employee quits his/her fails to go to work without acceptable excuses for at least 05 consecutive working days;

g) The employee fails to provide truthful information during the conclusion of the employment contract in accordance with Clause 2 Article 16 of this Labor Code in a manner that affects the recruitment.

2. When unilaterally terminating the employment contract in any of the cases specified in Point a, b, c, dd and g Clause 1 of this Article, the employer shall inform the employer in advance:

a) at least 45 days in case of an indefinite-term employment contract;

b) at least 30 days in case of an employment contract with a fixed term of 12 – 36 months;

c) at least 03 working days in the case of an employment contract with a fixed term of less than 12 months and in the cases stipulated in Point b Clause 1 of this Article;

d) The notice period in certain fields and jobs shall be specified by the government.

3. When unilaterally terminating the employment contract in the cases mentioned in Point d and Point e Clause 1 of this Article, the employer is not required to inform the employee in advance.

Article 37. Cases in which an employer is prohibited from unilaterally terminating an employment contract

1. The employee is suffering from an illness or work accident, occupational disease and is being treated or nursed under the decision of a competent health institution, except for the cases stipulated in Point b Clause 1 Article 36 of this Labor Code.

2. The employee is on annual leave, personal leave, or any other types of leave permitted by the employer.

3. The employee is pregnant, on maternal leave or raising a child under 12 months of age.

Article 38. Withdrawal of unilateral termination of employment contracts

Either party may withdraw the unilateral termination of an employment contract at any time prior to the expiry of the notice period by a written notification, provided that the withdrawal is agreed by the other party.

Article 39. Illegal unilateral termination of employment contracts

The unilateral termination of an employment contract will be illegal if it does not comply with regulations of Article 35, 36 and 37 of this Labor Code.

Article 40. Illegal unilateral termination of the employment contract insurance the employee

The employee who illegally unilaterally terminates his/her employment contract shall:

1. Not receive the severance allowance.

2. Pay the employer a compensation that is worth his/her half a month’s salary plus (+) an amount equal to his/her salary for the remaining notice period from the termination date.

3. The employee shall reimburse the employer with the training costs in accordance with Article 62 of this Code.

Article 41. Illegal unilateral termination of the employment contract by the employer

1. The employer that illegally unilaterally terminates an employment contract with an employee shall reinstate the employee in accordance with the original employment contract, and pay the salary, social insurance, health insurance and unemployment insurance premiums for the period during which the employee was not allowed to work, plus at least 02 months’ salary specified in the employment contract.

After the reinstatement, the employee must return the severance allowance or redundancy allowance (if any) to the employer.

Where there is no longer a vacancy for the position or work as agreed in the employment contract and the employee still wishes to work, the employer shall negotiate revisions to the employment contract.

Where the employer fails to comply with the provisions on notice period in Clause 2 Article 36 of this Labor Code, the employer shall pay a compensation that is worth the employee’s salary for the remaining notice period from the termination date.

2. In case the employee does not wish to return to work, in addition to the compensation prescribed in Clause 1 of this Article, the employer shall pay a severance allowance in accordance with Article 46 of this Code in order to terminate the employment contract.

3. Where the employer does not wish to reinstate the employee and the employee agrees, in addition to the compensation mentioned in Clause 1 of this Article and the severance allowance mentioned in Article 46 of this Labor Code, both parties shall negotiate an additional compensation which shall be at least 2 months’ salary under the employment contract in order to terminate the employment contract.

Article 42. Obligations of the employer in case of changes in structure, technology or changes due to economic reasons

1. Changes in structure and technology include:

a) Changes in the organizational structure, personnel rearrangement;

b) Changes in processes, technology, equipment associated with the employer’s business lines;

c) Changes in products or product structure.

2. Changes due to economic reasons include:

a) Economic crisis or economic depression;

b) Changes in law and state policies upon restructuring of the economy or implementation of international commitments.

3. If the change affects the employment of a large number of employees, the employer shall develop and implement a labor utilization plan prescribed in Article 44 of this Labor Code. In case of new vacancies, priority shall be given to retraining of the existing employees for continued employment.

4. If a change due to economic reasons threatens to cause a large number of employees to lose their jobs, the employer shall develop and implement a labor utilization plan as prescribed in Article 44 of this Code.

5. In case the employer is unable to create provide employment and has to resort to dismissing employees, the employer shall pay them redundancy allowances in accordance with Article 47 of this Labor Code.

6. The dismissal of employees in the cases mentioned in this Article shall only be implemented after a discussion with the representative organization of employees (if any) and after giving prior notice of 30 days to the People’s Committee of the province and the employees.

Article 43. Obligations of the employer in case of full division, partial division, consolidation, merger of the enterprise; sale, lease, conversion of the enterprise; transfer of the right to ownership or right to enjoyment of assets of the enterprise or cooperative

1. In case the full division, partial division, consolidation, merger of the enterprise; sale, lease, conversion of the enterprise; transfer of the right to ownership or right to enjoyment of assets of the enterprise or cooperative affects the employment of a large number of employees, the employer shall develop a labor utilization plan as prescribed in Article 44 of this Labor Code.

2. The current employer and the next employer shall implement the adopted labour utilization plan.

3. The laid off employees will receive redundancy allowances in accordance with Article 47 of this Code.

Article 44. Labor utilization plan

1. A labor utilization plan shall have the following contents:

a) The names and number of employees to be retained, employees to be retrained for further employment, and employees to be working on part-time basis;

b) The names and number of employees to retire;

c) The names and number of employees whose employment contracts have to be terminated;

d) Rights and obligations of the employer, employee and relevant parties regarding implementation of the labor utilization plan;

đ) The measure and financial sources to implement the plan.

2. During development of the labor utilization plan, the employer shall discuss with the representative organization of employees (if any). The labor utilization plan shall be made available to the employees within 15 days from the day on which it is adopted.

Article 45. Noticing termination of employment contracts

1. The employer shall send a written notice to the employee of the termination of his/her employment contract, except for the cases specified in Clauses 4, 5, 6, 7, 8 Article 34 of this Labor Code.

2. In case an employer that is not a natural person shuts down business operation, the date of termination of the employment contract is the same date of the notice of business shutdown.

In case the provincial business registration authority issues a notice that the employer does not have a legal representative or a person authorized to exercise the legal representative’s rights and obligations according to Clause 7 Article 34 of this Labor Code, the date of termination of the employment contract is the same date of the notice.

Article 46. Severance allowance

1. In case an employment contract is terminated as prescribed in Clauses 1, 2, 3, 4, 6, 7, 9  and 10, Article 34 of this Code, the employer is responsible for paying severance allowance to the employee who has worked on a regular basis for a period of at least 12 months. Each year of work will be worth half a month’s salary, except for the cases in which the employee is entitled to receive retirement pension as prescribed by social insurance laws, and the cases specified in Point e Clause 1 Article 36 of this Labor Code.

2. The qualified period of work as the basis for calculation of severance allowance shall be the total period during which the employee actually worked for the employer minus the period over which the employee participated in the unemployment insurance in accordance with unemployment insurance laws and the period for which severance allowance or redundancy allowance has been paid by the employer.

3. The salary as the basis for calculation of severance allowance shall be the average salary of the last 06 months under the employment contract before the termination.

4. The Government shall elaborate this Article.

Article 47. Redundancy allowance

1. Where an employment contract is terminated according to Clause 11 Article 34 of this Labor Code and the employee has worked on a regular basis for the employer for at least 12 months, the employer shall pay a redundancy allowance to the employee. Each year of work will be worth 01 month’s salary and the total redundancy allowance shall not be smaller than 02 month’s salary.

2. The qualified period of work as the basis for calculation of redundancy allowance shall be the total period during which the employee actually worked for the employer minus the period over which the employee participated in the unemployment insurance in accordance with unemployment insurance laws and the period for which severance allowance or redundancy allowance has been paid by the employer.

3. The salary as the basis for the calculation of redundancy allowance shall be the average salary of the last 06 months under the employment contract before the termination.

4. The Government shall elaborate this Article.

Article 48. Responsibilities of the parties upon termination of an employment contract

1. Within 14 working days following the termination of an employment contract, both parties shall settle all payments in respect of the rights and interests of each party. In the following cases, such period may be extended, but shall not exceed 30 days:

a) Shutdown of business operation of the employer that is not a natural person;

b) Changes in the organizational structure, technology or changes due to economic reasons;

c) Full division, partial division, consolidation, merger of the enterprise; sale, lease, conversion of the enterprise; transfer of the right to ownership or right to enjoyment of assets of the enterprise or cooperative;

d) Natural disasters, fire, hostility or major epidemics.

2. Priority shall be given to payment of the employees’ salaries, social insurance, health insurance, unemployment insurance, severance allowance and other benefits under the collective bargaining agreement and employment contracts in case of shutdown, dissolution or bankruptcy of an enterprise or cooperative.

3. The employer has the responsibility to:

a) Complete the procedures for verification of duration of participation in social insurance and unemployment insurance, return them and original copies of the employee’s other documents (if any);

b) Provide copies of the documents relevant to the employee’s work if requested by the employee. The employer shall pay the cost of copying and sending the documents.

Section 4. INVALID EMPLOYMENT CONTRACT

Article 49. Invalid employment contracts

1. An employment contract shall be completely invalid in the following cases:

a) The entire contents of the employment contract are illegal;

b) A person concludes the employment contract ultra vires or against the rules for employment contract conclusion specified in Clause 1 Article 15 of this Labor Code;

c) The work described in the employment contract is prohibited by law;

2. An employment contract shall be partially invalid when part of its contents is illegal but does not affect its remaining contents.

Article 50. Competence to invalidate employment contracts

People’s Courts shall be entitled to invalidate employment contracts.

Article 51. Settlements upon invalidation of an employment contract

1. Where an employment contract is declared as partially invalid, it shall be dealt with as follows:

a) The rights, obligations and benefits of the parties shall be settled in accordance with the collective bargaining agreement (or provisions of the law if there is no collective bargaining agreement);

b) The parties shall revise the invalidated part of the employment contract in accordance with the collective bargaining agreement or labor laws.

2. In case an employment contract is completely invalidated, the rights, obligations and interests of the employee shall be settled in accordance with law. In case an employment contract is concluded ultra vires, another contract shall be concluded.

3. The Government shall elaborate this Article.

Section 5. LABOR DISPATCH

Article 52. Labor dispatch

1. Labor dispatch is an arrangement in which an employee enters into an employment contract with a dispatching agency, which subsequently dispatches the employee to work for another employer while maintaining labor relations with the dispatching agency with which the employment contract is concluded.

2. Labor dispatch is a conditional business, requires the labor dispatch license and applies only to certain types of work.

Article 53. Labor dispatch rules

1. The maximum duration of labor dispatch is 12 months.

2. The client enterprise may employ a dispatched employee in the following cases:

a) The employment is necessary for the sharp increase in labor demand over a limited period of time;

b) The dispatched employee is meant to replace another employee who is taking maternal leave, has an occupational accident or occupational disease or has to fulfill his/her citizen’s duties;

c) The work requires highly skilled workers.

3. The client enterprise may not employ a dispatched employee in the following cases:

a) The dispatched employee is meant to replace another employee  during a strike or settlement of labor disputes;

b) There is no agreement with the dispatching agency on responsibility for compensation for the dispatched employee’s occupational accidents and occupational diseases;

c) The dispatched employee is meant to replace another employee who is dismissed due to changes in organizational structure, technology, economic reasons, full division, partial division, consolidation or merger of the enterprise.

4. The client enterprise must not dispatch a dispatched employee to another employer; must not employ an employee dispatched by an enterprise that does not have the labor dispatch license.

Article 54. Dispatching agencies

1. A dispatching agency shall pay a deposit and obtain labor dispatch license.

2. The Government shall provide for the issuance of labor dispatch licenses, making deposit, the types of work that allow dispatched labor.

Article 55. Labor dispatch contracts

1. The dispatching agency and the client enterprise shall conclude a written labor dispatch contract, which is made into 02 copies, each of which shall be kept by a party.

2. A labor dispatch contract shall have the following major contents:

a) The work location, the vacancy which will be filled by the dispatched employee, detailed description of the work, and detailed requirements for the dispatched employee;

b) The labor dispatch duration; the starting date of the dispatch period;

c) Working hours, rest periods, occupational safety and health at the workplace;

d) Responsibility for compensation in case of occupational accidents and occupational diseases;

đ) Obligations of each party to the dispatched employee.

3. The labor dispatch contract shall not include any agreement on the rights and benefits of employee which are less favorable than those stipulated in the concluded employment contract between the employee and the dispatching agency.

Article 56. Rights and obligations of the dispatching agency

Apart from the rights and obligations specified in Article 6 of this Labor Code, the dispatching agency also has the following rights and obligations:

1. Provide a dispatched employee who meets the requirements of the client enterprise and the employment contract signed with the employee;

2. Inform the dispatched employee of the contents of the labor dispatch contract;

3. Provide the client enterprise with the curriculum vitae of the dispatched employee, and his/her requirements.

4. Pay the dispatched employee a salary that is not lower than that of a directly hired employee of the client enterprise who has equal qualifications and performs the same or equal work;

5. Keep records of the number of dispatched employees, the client enterprise, submit periodic reports to the provincial labor authority.

6. Take disciplinary measures against the dispatched employee in cases where the client enterprise returns the employee for violations against labor regulations.

Article 57. Rights and obligations of the client enterprise

1. Inform and guide the dispatched employee to understand its internal labor regulations and other regulations.

2. Do not discriminate between the dispatched employee and its directly hired employees in respect of the working conditions.

3. Reach an agreement with the dispatched employee on night work and overtime work in accordance with this Labor Code.

4. The client enterprise may negotiate with the dispatched employee and the dispatch enterprise on official employment of the dispatched employee while the employment contract between the dispatch employee and the dispatch enterprise is still unexpired.

5. Return the dispatched employee who does not meet the agreed conditions or violates the work regulations to the dispatch enterprise.

6. Provide evidence of violations against work regulations by the dispatched employee to the dispatching agency for disciplinary measures.

Article 58. Rights and obligations of the dispatched employee

Apart from the rights and obligations specified in Article 5 of this Labor Code, the dispatched employee also has the following rights and obligations:

1. Perform the work in accordance with the employment contract with the dispatching agency;

2. Obey internal labor regulations, lawful management, administration and supervision by the client enterprise;

3. Receive a salary which is not lower than that of a directly hired employee of the client enterprise who has equal qualifications and performs the same or equal work;

4. File a complaint with the dispatch enterprise in case the client enterprise violates agreements in the labor dispatch contract.

5. Negotiate termination of the employment contract with the dispatching agency in order to conclude an employment contract with the client enterprise.

Chapter IV

OCCUPATIONAL TRAINING

Article 59. Basic and advanced occupational training

1. Workers are entitled to have vocational training; participate in national assessment and recognition of occupational skills, develop occupational skills that are suitable for their desires and abilities.

2. The State encourages eligible employers to provide basic and advanced occupational training for their employees and other employees by:

a) Establishing occupational training centers or classes at the workplace in order to train, retrain and develop occupational skills of the employees; cooperating with vocational education institutions in providing occupational training at basic, intermediate and college level, and other occupational training programs as per regulations;

b) Carrying out vocational assessments; participating in the occupational training council; forecasting labor demand and develop the occupational standards; organizing the assessment and recognition of occupational skills; developing professional capacity of employees.

Article 60. Responsibilities of employers for provision of basic and advanced occupational training and occupational skill development

1. Employers shall develop annual basic and advanced occupation training and occupational skill development plans for their employees and allocate budget for implementation thereof; provide training for employees before reassigning them.

2. Employers shall submit annual reports on results of the basic and advanced occupational training and occupational skill development they provide to the provincial labor authority.

Article 61. Trainees and apprentices

1. Trainees are employees who are recruited and trained by the employer at the work place in order to work for the employer. The traineeship duration varies according to the level of training as prescribed by the Law on Vocational education.

2. Apprentices are employees who are recruited and instructed to practice doing their work by the employer in order to work for the employer. The maximum duration of apprenticeship is 03 months.

3. An employer who recruits trainees or apprentices in order to employ them is not required to register such training activity, shall not charge fees for such training, and shall sign traineeship or apprenticeship contracts in accordance with the Law on Vocational education.

4. Every trainee and apprentice shall be at least 14 years of age and healthy enough for the traineeship or apprenticeship. Trainees and apprentices of the occupations on the list of laborious, toxic and dangerous occupations or the list of highly laborious, toxic and dangerous occupations promulgated by the Minister of Labor, War Invalids and Social Affairs shall be at least 18 years of age, except for arts and sports.

5. During the traineeship or apprenticeship period, if an apprentice or trainee directly performs or participates in performance of the work, he/she shall be paid a salary at a rate agreed by both parties.

6. Upon the expiry of the apprenticeship or traineeship period, both parties must enter into an employment contract if the conditions stipulated in this Labor Code are satisfied.

Article 62. Occupational training contract between an employer and an employee, and occupational training costs

1. Both parties must enter into an occupational training contract in case the employee is provided with advanced training or retraining at home or abroad funded by the employer or sponsorship from the employer’s partner.

The occupational training contract shall be made into 02 copies, each of which shall be kept by a party.

2. A vocational training contract shall have the following major contents:

a) The occupation in which training is provided;

b) Location, time of training and salary for the training period;

c) The work commitment period after training;

d) The training costs and responsibility for reimbursement thereof;

dd) Responsibilities of the employer;

e) Responsibilities of the employee.

3. Training costs include those specified in valid documents on payments for trainers, training materials, training locations, equipment, practice materials, other supportive expenses for the learner, the salary, social insurance, health insurance and unemployment insurance premiums paid for the learner during the training period.  In case the employee receives the training overseas, the training costs also include the travelling and living expenses during the training period.

Chapter V

DIALOGUE AT WORKPLACE, COLLECTIVE BARGAINING, COLLECTIVE BARGAINING AGREEMENTS

Section 1. DIALOGUE AT WORKPLACE

Article 63. Organization of dialogue at the workplace

1. Dialogue at the workplace means the sharing of information, discussion between the employer and employees or representative organization of employees regarding the issues relevant to the rights and interests of the parties at the work place in order to strengthen the understanding, cooperation and work out mutually beneficial solutions.

2. Dialogue at the workplace shall be held by the employer:

a) at least once a year;

b) whenever requested by one or both party;

c) in any of the events specified in Point a Clause 1 Article 36, Articles 42, 44, 93, 104, 118 and Clause 1 Article 128 of this Labor Code.

3. Employers, employees and representative organizations of employees are encouraged to hold dialogues in occasions other than those specified in Clause 2 of this Article.

4. The Government shall provide for organization of dialogue and implementation of democracy regulations at the workplace.

Article 64. Contents of dialogue at the workplace

1. Mandatory contents are specified in Point c Clause 2 Article 63 of this Labor Code.

2. Apart from the mandatory contents mentioned in Clause 1 of this Article, the parties may include one or some of the following issues in the dialogue:

a) Business performance of the employer;

b) Performance of the employment contracts, collective bargaining agreement, internal labor regulations, other commitments and agreements at the workplace;

c) Working conditions;

d) Requests of employees and representative organization of employees to the employer;

đ) Requests of employer to the employees and the representative organization of employees;

e) Other issues of concern to either or both parties.

Section 2. COLLECTIVE BARGAINING

Article 65. Collective bargaining

Collective bargaining is a process of negotiation between a party that consists of one or several representative organization of employees and another party that consists of one or several employers or employer representative in order to regulate working conditions, relationship between the parties and develop progressive, harmonious and stable labor relations.

Article 66. Principles of collective bargaining

Collective bargaining shall be carried out on the principles of voluntariness, good faith, equality, cooperativeness, openness to the public and transparency.

Article 67. Issues for collective bargaining

The parties may include one or some of the following issues in the collective bargaining:

1. Salary, bonus, allowances, pay rise, means and other benefits;

2. Labor rates, working hours, rest periods, overtime work, rest breaks at work;

3. Employment security for the workers;

4. Occupational safety and health; implementation of the internal labor regulations;

5. Conditions and equipment of the representative organization of employees; the relationship between the employer and the representative organization of employees;

6. Mechanism and methods for prevention and settlement of labor disputes;

7. Assurance of gender equality, maternity protection, annual leaves; actions against violence and sexual harassment in the workplace;

8. Other issues of concern to either or both parties.

Article 68. The right to request collective bargaining of the internal representative organization of employees

1. The representative organization of employees has the right to request collective bargaining whenever it reaches the minimum number of members as prescribed by the Government.

2. In case an enterprise has more than one internal representative organization of employees that satisfies the requirements in Clause 1 of this Article, the one that has the most members will have the right to request the  collective bargaining. Other representative organizations of employees may participate in the collective bargaining if agreed by the requesting organization.

3. If none of the employees‘ representative organizations of an enterprise satisfies the requirements in Clause 1 of this Article, they may request collective bargaining if their total number of members reaches the minimum number specified in Clause 1 of this Article.

4. The Government shall provide for settlement of disputes among the parties over the right to request collective bargaining.

Article 69. Representatives of the parties to the collective bargaining

1. The number of representatives of each party participating in the collective bargaining shall be agreed by the two parties.

2. The participants of each party in the collective bargaining shall be decided by the party.

In case more than one representative organization of employees participate in the collective bargaining as prescribed in Clause 2 Article 68 of this Labor Code, they may negotiate the number of representatives of each organization.

In the case specified in Clause 3 Article 68 of this Labor Code, the number of representatives of each organization shall be negotiated by the organizations. If an agreement cannot be reached, each organization shall decide the number of its representative based on the ratio of its members to the total number of members.

3. Each party to the collective bargaining may invite representatives from its superior organization and this has to be accepted by the other parties. The representatives of each party to the collective bargaining must not exceed the agreed quantity mentioned in Clause 1 of this Article, unless otherwise agreed by the other parties.

Article 70. Collective bargaining procedures

1. Whenever collective bargaining is requested by a representative organization of employees in accordance with Article 68 of this Labor Code, the requested party must not refuse to hold the collective bargaining.

Within 07 working days from the day on which the request and the agenda are received, the parties shall agree upon the location and starting time for the bargaining.

The employer shall prepare time, location and other conditions for holding collective bargaining meetings?.

The collective bargaining must be held within 30 days from the day on which the request is received.

2. The duration of a collective bargaining must not exceed 90 days from its starting day, unless otherwise agreed by the parties.

The employees’ representatives shall be fully paid for the time spent participating in the collective bargaining meetings. The time a member of the representative organization of employees spends participating in the collective bargaining meetings shall not be included in the time specified in Clause 2 Article 176 of this Labor Code.

3. During the course of collective bargaining, if the employee’s party requests the employer’s party to provide information on the business performance and other information relevant to the collective bargaining issues, with the exception of business secrets, technological know-how of the employer, such information must be provided within 10 days from the day on which such request is received.

4. Other representative organizations of employees may discuss with the employees about the contents, methods and results of the collective bargaining.

The representative organization of employees may decide the time, location and method of discussion or survey as long as it does not affect the enterprise’s normal business operation.

The employer must not obstruct or interfere with the discussion or survey held by the representative organization of employees.

5. Minutes of the bargaining meeting must be taken and it must specify the issues which have been agreed upon by the parties and issues that remain controversial. The minutes shall bear the signatures of the parties and the record maker. The representative organization of employees shall make the minutes of the collective bargaining available to all employees.

Article 71. Failed collective bargaining

1. A collective bargaining is considered failed in any of the following circumstances:

a) A party refuses to participate in the collective bargaining or the collective bargaining is not held within the time limit specified in Clause 1 Article 70 of this Labor Code;

b) An agreement cannot be reached within the time limit specified in Clause 2 Article 70 of this Labor Code;

c) The parties declare that the collective bargaining has failed before expiration of the time limit specified in Clause 2 Article 70 of this Labor Code.

2. In case the bargaining fails, the parties may initiate labor dispute settlement procedures as prescribed in this Labor Code. During the labor dispute settlement, the representative organization of employees must not call a strike.

Article 72. Sectoral collective bargaining, multi-enterprise collective bargaining

1. The principles and contents of sectoral collective bargaining and multi-enterprise collective bargaining shall comply with Article 66 and Article 67 of this Labor Code.

2. The procedures for holding sectoral collective bargaining and multi-enterprise collective bargaining shall be negotiated by the parties, including collective bargaining via a collective bargaining council specified in Article 73 of this Labor Code.

3. In case of a sectoral collective bargaining, the representatives shall be the sectoral trade union and sectoral employer representative organizations.

In case of a multi-enterprise collective bargaining, the representatives shall be decided by the parties.

Article 73. Multi-enterprise collective bargaining via a collective bargaining council

1. By consensus, the parties to a multi-enterprise collective bargaining may request the People’s Committee of the province where they are headquartered (or a province they choose if they are headquartered in different provinces) to establish a collective bargaining council.

2. Upon receipt of the said request, the People’s Committee of the province shall issue a decision to establish a collective bargaining council. A collective bargaining council consists of:

a) A chairperson who is chosen by the parties and has the responsibility to operate the council and assist in the process of collective bargaining.

b) Representatives appointed by each party. The number of representatives of each party who participate in the council shall be agreed upon by the parties;

c) Representatives of the People’s Committee of the province.

3. The collective bargaining council shall hold the collective bargaining at the request of the parties and shall be dismissed when a multi-enterprise collective bargaining agreement is concluded or when the dismissal is agreed upon by the parties.

4. The Minister of Labor, War Invalids and Social Affairs shall provide for the functions, duties and operation of collective bargaining councils.

Article 74. Responsibilities of the People’s Committees of provinces in collective bargaining

1. Provide training in collective bargaining skills for the parties to the collective bargaining.

2. Provide information and data about the economy, society, labor market and labor relation in order to facilitate the process of collective bargaining.

3. Assist the parties in reaching an agreement during the collective bargaining on its own initiative or when requested by the parties. If no request is made by the parties, the assistance shall only be provided if it is accepted by the parties.

4. Establish a collective bargaining council when requested by parties to the multi-enterprise collective bargaining in accordance with Article 73 of this Labor Code.

Section 3. COLLECTIVE BARGAINING AGREEMENTS

Article 75. Collective bargaining agreements

1. A collective bargaining agreement means an agreement that is reached through a collective bargaining and concluded in writing by the parties.

Collective bargaining agreements include enterprise-level collective bargaining agreements, sectoral collective bargaining agreements, multi-enterprise collective bargaining agreements and other types of collective bargaining agreements.

2. The contents of a collective bargaining agreement must be contrary to the law, and should provide for the terms and conditions that are more favorable to the employees than those provided by law.

Article 76. Survey and conclusion of collective bargaining agreements

1. Before an enterprise-level collective bargaining agreement is concluded, its draft must be made available for comment by all employees of the enterprise. An enterprise-level collective bargaining agreement shall only be concluded if it is voted for by more than 50% of the enterprise’s employees.

2. A sectoral collective bargaining agreement shall be available for comment by all members of the management boards of the representative organizations of employees of the enterprises participating in the bargaining. A sectoral collective bargaining agreement shall only be concluded if it is voted for by more than 50% of the voters.

A multi-enterprise collective bargaining agreement shall be available for comment by all employees of the enterprises participating in the bargaining or members of management boards of the representative organizations of employees thereof. Only an enterprise more than 50% of employees of which vote for the multi-enterprise collective bargaining agreement may participate in its conclusion.

3. The time and location for casting votes on a draft collective bargaining agreement shall be decided by the representative organization of employees as long as it does not affect the participating enterprises’ normal business operation. The employers must not obstruct or interfere with process of voting on the draft agreement by the representative organizations of employees.

4. A collective bargaining agreement shall be concluded by legal representatives of the parties.

In case a multi-enterprise collective bargaining agreement is negotiated via a collective bargaining council, it shall be concluded by the chairperson of the council and legal representatives of the parties.

5. A copy of the collective bargaining agreement shall be sent to every party and the provincial labor authority in accordance with Article 77 of this Labor Code.

In case of a sectoral or multi-enterprise collective bargaining agreement, each employer and representative organization of employees of the participating enterprises shall receive 01 copy.

6. After a collective bargaining agreement is concluded, the employer must make publicly available to their employees.

7. The Government shall elaborate this Article.

Article 77. Sending the collective bargaining agreement

Within 10 days from the day on which a collective bargaining agreement is concluded, the employer shall send 01 copy to the provincial labor authority in the same province where the enterprise is headquartered.

Article 78. Effective date and effective period of collective bargaining agreements

1. The effective date of a collective bargaining agreement shall be agreed upon by the parties and specified in the agreement itself. In case the parties do not agree upon an effective date, the collective bargaining agreement shall be effective on its conclusion date.

An effective collective bargaining agreement shall be upheld by the parties.

2. An enterprise-level effective collective bargaining agreement shall be binding on the employer and all employees of the enterprise. An effective sectoral or multi-level collective bargaining agreement shall be binding on all employers and employees of the participating enterprises.

3. The effective period of a collective bargaining agreement shall 01 – 03 years. The specific effective period shall be agreed upon by the parties and specified in the collective bargaining agreement. The parties may agree upon various effective periods for different parts of a collective bargaining agreement.

Article 79. Implementation of enterprise-level collective bargaining agreements

1. The employer and the employees, including new employees who are employed after the collective bargaining agreement has come into effect, shall be responsible for the full implementation of the effective collective bargaining agreement.

2. Where the rights, responsibilities and interests of the parties stipulated in the employment contract which were concluded before the effective date of the collective bargaining agreement are less favorable than those of respective provisions provided in the collective bargaining agreement, the provisions of the collective bargaining agreement shall prevail. Internal labor regulations of the employer which are not conformable with the collective bargaining agreement shall be revised accordingly. Provisions of the collective bargaining agreement shall apply until such revisions are made.

3. Where a party considers that the other party does not perform fully or violates the provisions of the collective bargaining agreement, the former has the right to request the latter to fully comply with the agreement, and both parties must jointly settle the issue. In case of failure to settle the issue, either party has the right to request settlement of the collective labor dispute in accordance with the law.

Article 80. Implementation of an enterprise-level collective bargaining agreement upon full division, partial division, consolidation, merger of the enterprise; sale, lease, conversion of the enterprise; transfer of the right to ownership or right to enjoyment of assets of the enterprise

1. Upon full division, partial division, consolidation, merger of the enterprise; sale, lease, conversion of the enterprise; transfer of the right to ownership or right to enjoyment of assets of an enterprise, the succeeding employer and representative organization of employees mentioned in Article 68 of this Labor Code shall consider revising the existing enterprise-level collective bargaining agreement or concluding a new one, In consideration of the labor utilization plan.

2. In case a collective bargaining agreement expires because the employer ceases its operation, the rights and interests of the employees shall be settled in accordance with the law.

Article 81. Relationship between enterprise-level collective bargaining agreements, sectoral collective bargaining agreements and multi-enterprise collective bargaining agreements

1. In case an enterprise-level collective bargaining agreement, multi-enterprise collective bargaining agreement and sectoral collective bargaining agreement provide for employees’ rights, obligations and interests differently, the most favorable provisions shall apply.

2. An enterprise which is subject to the governance of a sectoral collective bargaining agreement or multi-enterprise collective bargaining agreement but have not established enterprise-level collective bargaining agreements may establish an enterprise-level collective bargaining agreement with more favorable terms and conditions for employees than those stipulated in the sectoral collective bargaining agreement or multi-enterprise collective bargaining agreement.

3. Enterprises that have not participated in any sectoral collective bargaining agreement or multi-enterprise collective bargaining agreement are encouraged to adopt more favorable provisions of a sectoral collective bargaining agreement or multi-enterprise collective bargaining agreement.

Article 82. Revisions of collective bargaining agreements

1. A collective bargaining agreement may only  be by the parties through collective bargaining on a voluntary basis.

The process of revising a collective bargaining agreement shall be the same as that of the negotiation and conclusion of a collective bargaining agreement.

2. In case a change in law results in the collective bargaining agreement being unsuitable with the new law, the parties must revise the collective bargaining agreement accordingly within 15 days from the date on which the new legal provisions come into effect. During the process of revising the collective bargaining agreement, the rights and interests of the employees will be ensured in accordance with the law.

Article 83. Expiry of collective bargaining agreements

Within 90 days prior to the expiry date of a collective bargaining agreement, the parties may negotiate extension of the collective bargaining agreement or conclusion of a new collective bargaining agreement. In case the parties agree on an extension, a survey shall be carried out in accordance with Article 76 of this Labor Code.

Where the collective bargaining agreement expires while the negotiation process is still on-going, it shall continue to be effective for a maximum duration of 90 days from the expiry date, unless otherwise agreed by the parties.

Article 84. Extension of scope of sectoral collective bargaining agreements or multi-enterprise collective bargaining agreements

1. When a sectoral collective bargaining agreement or multi-enterprise collective bargaining agreement applies to more than 75% of employees or more than 75% of enterprises in the same field or sector in an industrial park, economic zone, export-processing zone or hi-tech zone, the employers or representative organizations of employees therein shall request a competent authority to issue a decision to extend the scope of part or all of the collective bargaining agreement to other enterprises in the same field or sector in that industrial park, economic zone, export-processing zone or hi-tech zone.

2. The Government shall elaborate Clause 1 of this Article; the procedures and competence to decide the scope of collective bargaining agreements mentioned in Clause 1 of this Article.

Article 85. Joining and withdrawing from a sectoral collective bargaining agreements or multi-enterprise collective bargaining agreement

1. An enterprise may join a sectoral or multi-level collective bargaining agreement when it is agreed by all employers and representative organizations of employees of the participating enterprises, except for the cases specified in Clause 1 Article 84 of this Labor Code.

2. An enterprise that is a member of a sectoral or multi-level collective bargaining agreement may withdraw from it when the withdrawal is agreed by all employers and representative organizations of employees of the participating enterprises, unless it is facing business difficulties.

3. The Government shall elaborate this Article.

Article 86. Invalid collective bargaining agreements

1. A collective bargaining agreement shall be partially invalid if one or some of its contents are contrary to the law.

2. A collective bargaining agreement shall be entirely invalid in any of the following circumstances:

a) The entire contents of the collective bargaining agreement are illegal;

b) The collective bargaining agreement was concluded by a person without due competence;

c) The procedures for negotiation and conclusion of the collective bargaining agreement were not followed.

Article 87. Competence to declare a collective bargaining agreement invalid

People’s Courts shall be entitled to declare a collective bargaining agreement as invalid.

Article 88. Handling of invalid collective bargaining agreements

When a collective bargaining agreement is declared invalid, the rights, obligations and interests of parties specified in the invalid parts shall be handled in accordance with the provisions of the law and other lawful agreements as provided in the employment contract.

Article 89. Costs for negotiation and conclusion of collective bargaining agreements

The costs of negotiation, conclusion revision, sending and announcement of the collective bargaining agreement shall be paid by the employer.

Chapter VI

SALARIES

Article 90. Salaries

1. A salary is an amount the employer pays the employee under an agreement for a work performed by the latter. Salary equals (=) base salary plus (+) allowances and other additional amounts.

2. The base salary must not fall below the statutory minimum wages.

3. Employers shall pay salaries fairly without discrimination against genders of employees who perform equal works.

Article 91. Statutory minimum wages

1. Statutory minimum wages are minimum wages of workers who do the simplest jobs in normal working conditions that are sufficient to support themselves and their families, and appropriate for socio-economic development.

2. Statutory minimum wages per month or per hour vary according to regions.

3. Statutory minimum wages shall be adjusted according to minimum living standards of workers and their families; the relation between statutory minimum wages and usual salaries; consumer price index, economy growth rate; labor supply and demand, productivity and financial capacity of enterprises.

4. The Government shall elaborate this Article; decide and announce the statutory minimum wages on the basis of proposals of National Salary Council.

Article 92. National Salary Council

1. National Salary Council is an agency that provides counseling for the Government regarding statutory minimum wages and salary-related issues.

2. The Prime Minister shall establish the National Salary Council, whose members are representatives of the Ministry of Labor, War Invalids and Social Affairs, Vietnam General Confederation of Labor, some central employer representative organizations and independent experts.

3. The Government shall provide for functions, tasks and organizational structure of National Salary Council.

Article 93. Establishment of pay scales, payrolls and labor productivity norms

1. Every employer shall establish their worn pay scale, payroll and labor productivity norms as the basis for recruitment and use of labor, negotiation and payment of salaries.

2. The labor rate shall be an average value that is achievable to most employees without having to extend their normal working hours, and must be experimented before officially introduced.

3. The employer shall consult with the representative organization of employees (if any) during establishment of the pay scale, payroll and labor productivity norms.

The pay scale, payroll and labor productivity norms shall be publicly posted at the workplace before they are implemented.

Article 94. Salary payment rules

1. Employers shall directly, fully and punctually pay salaries to their employees. In the cases where an employee is not able to directly receive his/her salary, the employer may pay it through a person legally authorized by the employee.

2. Employers must not restrict or interfere their employees’ spending of their salaries; must not force their employees to spend their salaries on goods or services of the employers or any particular providers decided by the employers.

Article 95. Salary payment

1. The employer shall pay the employee on the basis of the agreed salary, productivity and work quality.

2. The salary written in the employment contract and the salary paid in reality shall be VND, unless the employee is a foreigner working in Vietnam.

3. Every time salary is paid, the employer shall provide the employee with a note specifying the salary, overtime pay, nightshift pay and deductions (if any).

Article 96. Salary payment forms

1. The employer and employee shall reach an agreement on whether the salary is time-based, product-based (piece rate) or a fixed amount.

2. Salary shall be paid in cash or transferred to the employee’s personal bank account.

In case of bank transfer, the employer shall pay the costs of account opening and transfer.

3. The Government shall elaborate this Article.

Article 97. Salary payment time

1. An employer who receives an hourly, daily or weekly salary shall be paid after every working hour, day or week respectively, or shall receive a sum within not more than 15 days as agreed by both parties.

2. An employee who receives a monthly or bi-weekly salary shall be paid after every month or every two weeks respectively. The payment time shall be periodic and agreed upon by both parties.

3. An employee who receives a piece rate or a fixed amount shall be paid as agreed by both parties. In case a task cannot be completed within one month, the employee shall receive a monthly advance payment based on the amount of work done in the month.

4. In case of a force majeure event in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented, the salary shall be paid within 30 days. In case a salary is paid at least 15 days behind schedule, the employer shall pay the employee a compensation that is worth at least the interest on the amount paid behind schedule at the latest 1-month interest rate quoted by the bank at which the employee’s salary account is opened.

Article 98. Overtime pay, night work pay

1. An employee who works overtime will be paid an amount based on the piece rate or actual salary as follows:

a) On normal days: at least 150%;

b) On weekly days off: at least 200%;

c) During public holidays, paid leave, at least 300%, not including the daily salary during the public holidays or paid leave for employees receiving daily salaries.

2. An employee who works at night will be paid an additional amount of at least 30% of the normal salary.

3. An employee who works overtime at night will be paid, in addition to the salary specified in Clause 1 and Clause 2 of this Article, an amount of at least 20% of the day work salary of a normal day, weekend or public holiday.

4. The Government shall elaborate this Article.

Article 99. Suspension pay

In case of a suspension of work, the employee shall receive a suspension pay as follows:

1. If the suspension is at the employer’s fault, the employee shall be paid the full salary under the employment contract;

2. If the suspension is at the employee’s fault, the employee shall not receive the salary. If this leads to suspension of work of other employees in the same unit, they shall be paid an amount not smaller than the statutory minimum wages;

3. In case the suspension is caused by an electricity or water supply issue that is not at the employer’s fault, or by a natural disaster, fire, major epidemic, hostility, relocation requested by a competent authority, or for economic reasons, both parties shall negotiate the salary as follows:

a) If the suspension does not exceed 14 working days, the salary shall not fall below the statutory minimum wages;

b) If the suspension is longer than 14 working days, the salary shall be negotiated by both parties and the salary for the first 14 days must not fall below the statutory minimum wages.

Article 100. Salary payment through the contractor’s foreman

1. Where a contractor’s foreman or equivalent intermediary is employed, the employer who is the principal owner must maintain a list of the names and addresses of such persons accompanied by a list of their employees, and must ensure that their activities comply with the law on salary payment and occupational safety and health.

2. In case the contractor’s foreman or equivalent intermediary fails to pay or pays insufficient wages to the employees and does not ensure other rights and interests of the employees, the employer who is the principal owner shall be responsible for salary payment and for ensuring the rights and interests of the employees.

In this case, the employer who is the principal owner has the rights to request compensation from the contractor’s foreman or equivalent intermediary, or to request the competent authority to resolve the dispute in accordance with the provisions of the law.

Article 101. Salary advances

1. An employee may receive an interest-free salary advance in accordance with conditions agreed on by the two parties.

2. The employer must make the advance payment to the employee for the number of days the employee temporarily leaves his/her work in order to perform duties of citizens for a period of 01 week or longer, but the advance shall not exceed 01 month’s salary. The employee must reimburse the advance.

An employee who is conscripted in accordance with the Law on Conscription may not receive salary advance.

3. When taking annual leave, an employee shall receive an advance payment of at least salary for the entitled days of leave.

Article 102. Salary deductions

1. An employer shall have the right to deduct from an employee’s salary only for the compensation for the damage to the employer’s equipment and assets in accordance with Article 129 of this Labor Code.

2. The employee has the right to be aware of the reasons for the deduction.

3. Any monthly deduction shall not exceed 30% of the net monthly salary of the employee, after the payment of compulsory social insurance, health insurance, unemployment insurance premiums and personal income tax.

Article 103. Pay rise

Pay rises including increases in salary, pay grades, allowance, benefits and other types of incentives for an employee shall be agreed on in the employment contract or the collective bargaining agreement, or stipulated in the regulations of the employer.

Article 104. Bonuses

1. A bonus means an amount of money, a piece of property or item that is provided by an employer for his/her employees on the basis of the business performance or the employees’ performance.

2. A bonus regulation shall be decided and publicly announced at the workplace by the employer after consultation with the representative organization of employees (if any).

Chapter VII

WORKING HOURS, REST PERIODS

Section 1. WORKING HOURS

Article 105. Normal working hours

1. Normal working hours shall not exceed 08 hours per day or 48 hours per week.

2. An employer has the right to determine the daily or weekly working hours and inform the employees accordingly. The daily working hours shall not exceed 10 hours per day and not exceed 48 hours per week where a weekly basis is applied.

The State encourages employers to apply 40-hour workweeks.

3. Employers shall limit the time of exposure to harmful elements in accordance with relevant National Technical Regulations and laws.

Article 106. Working hours at night

Working hours at night is the period from 22 pm to 06 am.

Article 107. Overtime work

1. Overtime work is the duration of work performed at any other time than during normal working hours, as indicated in the law, collective bargaining agreement or internal labor regulations of an employer.

2. An employer has the right to request an employee to work overtime when all of the following conditions are met:

a) The employee agrees to work overtime;

b) The number of overtime working hours of the employee does not exceed 50% of the normal working hours in 01 day; in case of weekly work, the total normal working hours plus overtime working hours shall not exceed 12 hours in 01 day, and 40 hours in 01 month;

c) The total overtime working hours do not exceed 200 hours in 01 year, except for the cases specified in Clause 3 of this Article.

3. An employer must not request an employee to work overtime exceeding 300 hours in 01 year in the following fields, works, jobs and cases:

a) Manufacture, processing of textile, garment, footwear, electric, electronic products, processing of agricultural, forestry, aquaculture products, salt production;

b) Generation and supply of electricity, telecommunications, refinery operation; water supply and drainage;

c) Works that require highly skilled workers that are not available on the labor market at the time;

d) Urgent works that cannot be delayed due to seasonal reasons or availability of materials or products, or due to unexpected causes, bad weather, natural disasters, fire, hostility, shortage of power or raw materials, or technical issue of the production line;

đ) Other cases prescribed by the Government.

4. When organizing overtime work as prescribed in Clause 3 of this Article, the employer shall send a written notification to the provincial labor authority.

5. The Government shall elaborate this Article.

Article 108. Overtime working in special cases

In the following cases, an employer has the right to request any employee to work overtime on any day without limits on the overtime hours as prescribed in Article 107 of this Labor Code and the employee must not decline:

1. Execution of a conscription order for the purpose of national security or national defense as prescribed by law;

2. Performance of tasks necessary to protect human life or property of certain organizations or individuals in the prevention and recovery of natural disasters, fires, epidemics and disasters, unless those tasks threaten the employees’ health or life as prescribed by occupational safety and health laws.

Section 2. REST PERIODS

Article 109. Rest breaks during working hours

1. An employee who works for at least 06 hours per day under Article 105 of this Code shall be given a rest break of at least 30 consecutive minutes. In case of night work, the rest break shall be at least 45 consecutive minutes.

If a shift lasts at least 06 consecutive hours, the rest break will be included in the working hour.

2. In addition to the rest break prescribed in Clause 1 of this Article, the employer shall determine other short breaks and specify that in the internal labor regulations.

Article 110. Breaks between shifts

An employee who performs shift work is entitled to a break of at least 12 hours before beginning another shift.

Article 111. Weekly breaks

1. Each week an employee is entitled to a break of at least 24 consecutive hours.  Where it is impossible for the employee to have a weekly day off due to the work cycle, the employer has the responsibility to ensure that on average the employee has at least 04 days off per month.

2. The employer has the right to determine and schedule the weekly breaks either on Sunday or for another fixed day in a week, which must be recorded in the internal labor regulations.

3. In case a public holiday falls on an employee’s weekly break coincide with a public holiday as prescribed in Clause 1 Article 112 of this Labor Code, he/she will have compensatory time-off on the next working days.

Article 112. Public holidays

1. Employees shall be entitled to fully paid days off on the following public holidays:

a) Gregorian Calendar New Year Holiday: 01 day (the 1st of January of the Gregorian calendar);

b) Lunar New Year Holidays: 05 days;

c) Victory Day: 01 day (the 30th of April of the Gregorian calendar);

d) International Labor Day: 01 day (the 1st of May of the Gregorian calendar);

đ) National Day: 02 days (the 2nd of September of the Gregorian calendar and the previous or next day);

e) Hung Kings Commemoration Day: 01 day (the 10th of the third month of the Lunar calendar).

2. Foreign employees in Vietnam are entitled to 01 traditional public holiday and 01 National Day of their country, in addition to the public holidays stipulated in Clause 1 of this Article.

3. The Prime Minister shall decide the specific public holidays mentioned in Point b and Point dd Clause 1 of this Article on an annual basis.

Article 113. Annual leave

1. Any employee who has been working for an employer for 12 months is entitled to fully-paid annual leave, which is stipulated in his/her employment contract as follows:

a) 12 working days for employees who work in normal working conditions;

b) 14 working days for employees that are minors, the disabled, employees who do laborious, toxic or dangerous works;

c) 16 working days for employees who do highly laborious, toxic or dangerous works.

2. An employee who has been working for an employer for less than 12 months will have a number of paid leave days proportional to the number of working months.

3. An employee who, due to employment termination or job loss or other reasons, has not taken or not entirely taken up his/her annual leave shall be paid in compensation for the untaken leave days.

4. The employer has the responsibility to regulate the timetable for annual leaves after consultation with the employees and must give prior notice to the employees. An employee may reach an agreement with the employer on taking annual leave in instalments or combining annual leave over a maximum period of up to 03 years.

5. When an employee takes his/her annual leave before salary payment is due, he/she may receive an advance in accordance with Clause 3 Article 101 of this Labor Code.

6. When taking annual leave, should the employee travel by road, rail, water and the travel days, the traveling time in excess to 02 days will be added to the annual leave days, and this policy shall only be granted once for an annual leave in a year.

7. The Government shall elaborate this Article.

Article 114. Increased annual leave by work seniority

The annual leave of an employee as prescribed in Clause 1 Article 113 of this Code shall increase by 01 day for every 05 years of employment with the same employer.

Article 115. Personal leave, unpaid leave

1. An employee is entitled to take a fully paid personal leave in the following circumstances, at long at is notified to the employer in advance:

a) Marriage: 03 days;

b) Marriage of his/her biological child or adopted child: 01 day;

c) Death of his/her biological or adoptive parent; death of his/her spouse’s biological or adoptive parent; death of spouse, biological or adopted child: 03 days.

2. An employee is entitled to take 01 day of unpaid leave and must inform the employer in the case of the death of his/her grandparent or biological sibling; marriage of his/her parent or natural sibling.

3. The employee may negotiate with his/her employer on taking unpaid leave other than the leave stipulated in Clause 1 and Clause 2 of this Article.

Section 3. WORKING HOURS AND REST PERIODS FOR EMPLOYEES WHO PERFORM WORK OF SPECIAL NATURE

Article 116. Working hours and rest periods for employees who perform work of special nature

In accordance with Article 109 of this Labor Code, relevant ministries and the Ministry of Labor, Invalids and Social Affairs shall discuss and agree upon working hours and rest periods  special work in the areas of road, rail, water or air transportation; oil and gas exploration and extraction at sea; offshore work; in the fields of arts; use of radiation and nuclear engineering; application of high-frequency waves; information technology; research and application of technology; industrial design; diver’s work, work in mines; seasonal production work and processing of goods by order; and work that requires for 24/24 hours on duty, other works of special nature defined by the Government.

Chapter VIII

LABOR DISCIPLINE AND MATERIAL RESPONSIBILITY

Section 1. LABOR DISCIPLINE

Article 117. Labor discipline

Labor discipline comprises provisions in the internal labor regulations on the compliance in respect of time, technology, production and business management that are imposed by the employer and prescribed by law.

Article 118. Internal labor regulations

1. Every employer shall issue their own internal labor regulations. An employer that has at least 10 employees shall have written internal labor regulations.

2. The contents of the internal labor regulations shall not be contrary to labor laws or to relevant legal provisions.  The internal labor regulations shall include the following key contents:

a) Working hours and rest periods;

b) Order at the workplace;

c) Occupational safety and health;

d) Actions against sexual harassment in the workplace;

đ) Protection of the assets and technological and business secrets and intellectual property of the employer;

e) Cases in which reassignment of employees are permitted;

g) Violations against labor regulations and disciplinary measures;

h) Material responsibility;

i) The person having the competence to take disciplinary measures.

3. Before issuing or revising the internal labor regulations, the employer shall consult the employee representative organization (if any).

4. Employees must be notified of the internal labor regulations, and the major contents must be displayed at the workplace where they are necessary.

5. The Government shall elaborate this Article.

Article 119. Registration of internal labor regulations

1. An employer that has at least 10 employees shall register the internal labor regulations at the labor authority of the province where business registration is applied for.

2 .Within 10 days from the date of issuance of the internal labor regulations, the employer must submit the application for registration of the internal labor regulations.

3. If any of the contents of the internal labor regulations is found contrary to the law, within 07 working days from the date of receipt of the application, the provincial labor authority shall notify and instruct the employer to revise it and re-submit the application.

4. An employer whose branches, units or business locations in different provinces shall send the registered internal labor regulations to the labor authority of those provinces.

5. The provincial labor authority may authorize a district-level labor authority to process an application for registration of internal labor regulations in accordance with this Article.

Article 120. Application for registration of internal labor regulations

An application for registration of internal labor regulations shall consist of:

1. The application form;

2. A copy of the internal labor regulations;

3. Comments of the representative organization of employees (if any);

4. Documents of the employer that are relevant to labor discipline and material responsibility (if any).

Article 121. Effect of internal labor regulations

The internal labor regulations shall start to have effect after 15 days from the day on which the satisfactory application is received by a competent authority as prescribed in Article 119 of this Labor Code.

The effect of the written internal labor regulations issued by an employee that has fewer than 10 employees shall be decided by the employer.

Article 122. Principles and procedures for taking disciplinary measures at work

1. Disciplinary measures against an employee shall be taken in accordance with the following regulations:

a) The employer is able to prove the employee’s fault;

b) The process is participated in by the representative organization of employees to which the employee is a member;

c) The employee is physically present and has the right to defend him/herself, request a lawyer or the representative organization of employees to defend him/her; if the employee is under 15 years of age, his/her parent or a legal representative must be present;

d) The disciplinary process is recorded in writing.

2. It is prohibited to impose more than one disciplinary measure for one violation of internal labor regulations.

3. Where an employee commits multiple violations of internal labor regulations, he/she shall be subjected to the heaviest disciplinary measure for the most serious violation.

4. No disciplinary measure shall be taken against an employee during the period when:

a) The employee is taking leave on account of illness or convalescence; or on other types of leave with the employer’s consent;

b) The employee is being held under temporary custody or detention;

c) The employee is waiting for verification and conclusion of the competent agency for acts of violations, stipulated in Clause 1 and Clause 2 Article 125 of this Labor Code;

d) The employee is pregnant, on maternal leave or raising a child under 12 months of age.

5. No disciplinary measure shall be taken against an employee who commits a violation of internal labor regulations while suffering from the mental illness or another disease which causes the loss of consciousness ability or the loss of his/her behavior control.

6. The Government shall provide for the principles and procedures for taking disciplinary measures at work.

Article 123. Time limit for taking disciplinary measures at work

1. The time limit for taking disciplinary measures against a violation is 06 months from the date of the occurrence of the violation. The time limit for dealing with violations directly relating to finance, assets and disclosure of technological or business secrets shall be 12 months.

2. In case the time limit stipulated in this Article has expired or is shorter than 60 days when the period stipulated in Clause 4 Article 122 of this Labor Code expires, the former may be extended for up to 60 more days.

3. The employer shall issue a disciplinary decision within the period specified in Clause 1 and Clause 2 of this Article.

Article 124. Disciplinary measures

1. Reprimand.

2. Deferment of pay rise for up to 6 months.

3. Demotion.

4. Dismissal.

Article 125. Dismissal for disciplinary reasons

An employer may dismiss an employee for disciplinary reasons in the following circumstances:

1. The employee commits an act of theft, embezzlement, gambling, deliberate infliction of injuries or uses drug at the workplace;

2. The employee discloses technological or business secrets or infringing the intellectual property rights of the employer, or commits acts which are seriously detrimental or posing seriously detrimental threat to the assets or interests of the employer, or commits sexual harassment in the workplace against the internal labor regulations;

3. The employee repeats a violation which was disciplined by deferment of pay rise or demotion and has not been absolved. A repeated violation means a violation which was disciplined and is repeated before it is absolved in accordance with Article 126 of this Code.

4. The employee fails to go to work for a total period of 05 days in 30 days, or for a total period of 20 days in 365 days from the first day he/she fails to go to work without acceptable excuses.

Justified reasons include natural disasters, fires; the employee or his/her family member suffers from illness with a certification by a competent health facility; and other reasons as stipulated in the internal labor regulations.

Article 126. Absolution of violations, reduction in the duration of disciplinary measures

1. An employee who commits a violation that is disciplined by reprimand, deferment of pay rise or demotion will have the previous violation absolved after 03 months, 06 months or 03 years respectively from the day on which the disciplinary measure is imposed if he/she does not commits any violation against internal labor regulations.

2. Where an employee who is disciplined by deferment of wage increase has completed half of the duration of the disciplinary measure and has demonstrated improvement, the employer may consider a remission.

Article 127. Forbidden actions when imposing disciplinary measures in the workplace

1. Harming the employee’s health, life, honor or dignity.

2. Applying monetary fines or deducting the employee’s salary wage.

3. Imposing a disciplinary measure against an employee for a violation which is not stipulated in the internal labor regulations or employment contract or labor laws.

Article 128. Work suspension

1. An employer has the right to suspend an employee from work if the violation is of a complicated nature and where the continued presence of the employee at the workplace is deemed to cause difficulties for the investigation.  An employee shall only be suspended from work after consultation with the representative organization of employees to which the employee is a member.

2. The work suspension shall not exceed 15 days, or 90 days in special circumstances.  During the suspension, the employee shall receive an advance of 50% of his/her salary entitled prior to the suspension.

Upon the expiry of the work suspension period, the employer shall reinstate the employee.

3. Where the employee is disciplined, he/she shall not be required to return the advanced salary.

4. Where the employee is not disciplined, the employer shall pay the full salary for the work suspension period.

Section 2. MATERIAL RESPONSIBILITY

Article 129. Compensation for damage

1. An employee who causes damage to equipment or otherwise damages the employer’s assets shall have to pay compensation in accordance with labor laws or the employer’s internal labor regulations.

In case the damage caused by an employee is not serious, not deliberate and is worth less than 10 months’ region-based minimum wage announced by the Government, the employee shall have to pay a compensation of not more than his/her 03 months’ salary, which shall be monthly deducted from his/her salary in accordance with Clause 3 Article 102 of this Code.

2. An employee who loses the employer’s equipment or assets, or consumes the materials beyond the set limits shall pay a compensation for damage in full or in part at the market price or as stipulated in the internal labor regulations or the responsibility contract (if any). In case this is caused by a natural disaster, fire, war, major epidemic, calamity, or another force majeure event which is unforeseeable and insurmountable, and all necessary measures and possibilities for avoidance have been taken, the compensation shall not required.

Article 130. Determination of compensation

1. Consideration and decision on the level of compensation for damage shall be based on the nature of the offence, the actual extent of damage, the situation of the offender or the offender’s family, and financial capacity of the employee.

2. The Government shall provide for procedures and time limits for claiming damages.

Article 131. Complaints on labor disciplinary regulations and material responsibility

If the employee who is disciplined, suspended from work, or required to pay compensation is not satisfied with the decision, he/she has the right to file a complaint to the employer or a competent authority as prescribed by law, or request settlement of the labor dispute in accordance with the procedures stipulated by law.

The Government shall elaborate this Article.

Chapter IX

OCCUPATIONAL SAFETY AND HEALTH

Article 132. Compliance with the law on occupational safety and health

Employers, employees, organizations and individuals involved in labor and business operation shall comply with the regulations of the law on occupational safety and health.

Article 133. Occupational safety and health program

1. The Government shall decide on development of the National Programme on Occupational Safety and Health.

2. The People’s Committee of every province shall submit a provincial occupational safety and health program to the People’s Council of the same province for inclusion to the socio-economic development plan.

Article 134. Ensuring occupational safety and health at the workplace

1. Employers shall fully implement the measures for ensuring occupational safety and health at the workplace.

2. Employees shall comply with rules and procedures for occupational safety and health, regulations of law, obtain knowledge and skills on assurance of occupational safety and health at the work place.

Chapter X

PROVISIONS APPLICABLE TO FEMALE EMPLOYEES AND ASSURANCE OF GENDER EQUALITY

Article 135. State policies

1. Equality between male and female employees shall be ensured; necessary measures for ensuring gender equality and prevention of sexual harassment in the workplace shall be implemented.

2. Employers are encouraged to enable both male and female employees to work regularly, and to widely apply the systems of flexible working hours, part-time work, or outwork.

3. Necessary measures shall be implemented to create employment opportunities, improve working conditions, develop occupational skills, provide healthcare, and strengthen the material and spiritual welfare of female employees in order to assist them in developing effectively their vocational capacities and harmoniously combine their working lives with their family lives.

4. Tax reductions shall be granted to employers who employ a large numbers of female employees in accordance with the tax laws.

5. The State shall develop plans and measures to open day care facilities and kindergartens in areas where a large number of female employees are employed;  develop various forms of training to enable female employees to acquire additional occupational skills that are suitable to their physical and physiological characteristics and their motherhood roles.

6. The Government shall elaborate this Article.

Article 136. Responsibilities of the employer

1. Ensure gender equality and implementation of measures to promote gender equality in recruitment, job assignment, training, working hours and rest periods, salaries and other policies.

2. Consult with female employees or their representatives when taking decisions which affect their rights and interests.

3. Provide appropriate bathrooms and toilets at the workplace for female employees.

4. Assist in building day care facilities and kindergartens, or cover a part of the childcare expenses incurred by employees.

Article 137. Maternity protection

1. An employer must not require a female employee to work at night, work overtime or go on a long distance working trip in the following circumstances:

a) The employee reaches her seventh month of pregnancy; or her sixth month of pregnancy when working in upland, remote, border and island areas;

b) The employee is raising a child under 12 months of age, unless otherwise agreed by her.

2. Whenever an employer is informed of the pregnancy of an female employee who is doing a laborious, toxic or dangerous work, a highly laborious, toxic or dangerous work or any work that might negatively affect her maternity, the employer shall assign her to a less laborious or safer work, or reduce the working hours by 01 hour per day without reducing her salary, rights or benefits until her child reaches 12 months of age.

3. The employer must not dismiss an employee or unilaterally terminate the employment contract with an employee due to his/her marriage, pregnancy, maternity leave, or nursing a child under 12 months of age, except for cases where the employer that is a natural person dies or is declared incapacitated, missing or dead by the court, or the employer that is not a natural person ceases its business operation, declared by a provincial business registration authority that it does not have a legal representative or a person authorized to perform the legal representative’s rights and obligations.

Upon expiration of the employment contract with female employee who is pregnant or nursing a child under 12 months of age, conclusion of a new employment contract shall be given priority.

4. During her menstruation period, a female employee shall be entitled to a 30 minute break in every working day; a female employee nursing a child under 12 months of age shall be entitled to 60 minutes breaks in every working day with full salary as stipulated in the employment contract.

Article 138. The right of pregnant female employees to unilaterally terminate or suspend their employment contracts

1. Where a female employee is pregnant and obtains a confirmation from a competent health facility which states that if she continues to work, it may adversely affect her pregnancy, she shall have the right to unilaterally terminate or suspend the employment contract.

In case of unilateral termination or suspension of the employment contract, a notification enclosed with the aforementioned confirmation from the health facility shall be submitted to the employer.

2. In case of suspension of the employment contract, the suspension period shall be agreed by the employer and the employee and must not be shorter than the period specified by the health facility. If the rest period is not specified by the health facility, both parties shall negotiate the suspension period.

Article 139. Maternity leave

1. A female employee is entitled to 06 months of prenatal and postnatal leave; the prenatal leave period shall not exceed 02 months.

In case of a multiple birth, the leave shall be extended by 01 month for each child, counting from the second child.

2. During maternity leave, the female employee is entitled to maternity benefits as prescribed by social insurance laws.

3. After the maternity leave stipulated in Clause 1 of this Article expires, if so demanded, the female employee may be granted an additional unpaid leave under terms agreed upon with the employer.

4. The female employee may return to work before the expiry of her statutory maternity leave stipulated in Clause 1 of this Article after she has taken at least 04 months of leave, provided she has obtained a confirmation from a competent health facility that the early resumption of work does not adversely affect her health, the employer receives a prior notice of the early resumption and agrees to the early resumption. In this case, besides the salary of the working days, which is paid by the employer, the female employee shall continue to receive the maternity allowance in accordance with social insurance laws.

5. A male employee whose wife gives birth, an employee who adopts a child under 06 months of age, a female employee who becomes a surrogate mother shall be entitled to maternity leave in accordance with social insurance laws.

Article 140. Employment security for employees after maternity

An employee shall be reinstated to his/her previous work when he/she returns to work after the maternity leave prescribed in Clauses 1, 3 and 5 Article 139 of this Labor Code without any reduction in his/her salary, rights and benefits before the leave. In case the previous work is no longer available, the employer must assign another work to the employee with a salary not lower than the salary he/she received prior to the maternity leave.

Article 141. Allowances for during period of care for sick children, pregnancy and implementation of contraceptive methods

When an employee takes leave to take care of a sick child aged under 07, have prenatal care check-up, due to miscarriage, abortion, stillbirth, therapeutic abortion, implementation of contraceptive methods or sterilization, the employee shall receive allowance for the leave period in accordance with social insurance laws.

Article 142. Jobs and works that are harmful to child-bearing and parenting functions

1. The Minister of Labor, War Invalids and Social Affairs shall promulgate the list of jobs and works that are harmful to child-bearing and parenting functions.

2. Employers must provide adequate information to their employees on the hazards and requirements of the works to before the employees make their decisions; ensure occupational safety and health of the employees when assign them any of the works on the list mentioned in Clause 1 of this Article.

Chapter XI

EXCLUSIVE PROVISIONS CONCERNING MINOR EMPLOYEES AND CERTAIN TYPES OF EMPLOYEES

Section 1. MINOR EMPLOYEES

Article 143. Minor employees

1. A minor employee is an employee under 18 years of age.

2. A person aged 15 to under 18 must not be assigned any of the works or to any of the workplaces mentioned in Article 147 of this Labor Code.

3. A person aged 13 to under 15 may only do the light works on the list promulgated by the Minister of Labor, War Invalids and Social Affairs.

4. A person under 13 may only do the works specified in Clause 3 Article 145 of this Labor Code.

Article 144. Rules for employment of minors

1. Minor employees may only do works that are suitable for their health in order to ensure their physical health, mental health and personality development.

2. The employer who has minor employees has the responsibility to take care of their work, health and education in the course of their employment.

3. When an employer hires a minor employee, the employer must have the consent of his/her parent or guardian; prepare a separate record which writes in full of his/her name, date of birth, the work assigned, results of periodical health check-ups, and shall be presented at the request of the competent authority.

4. Employers shall enable minor employees to have educational and vocational training.

Article 167. Employment of employees under 15

1. When employing a person under 15, the employer shall:

a) Conclude a written contract with the employee and his/her legal representative;

b) Arrange the working hours so as not to affect the employee’s study hours;

c) Obtain the health certificate from a competent health facility which certifies that the employee’s health is suitable for the work assigned, and provide periodic health check-up for the employee at least once every 06 months;

d) Ensure that the working conditions, occupational safety and health are suitable for the employee’s age;

2. An employer is only entitled to assign employees aged 13 to under 15 to do the light works specified in Clause 3 Article 143 of this Labor Code.

3. Employers must not hire people under 13 to do works other than sports and arts, provided they do not affect their development of their physical health, mental health and personality, and the employment is accepted by the provincial labor authority.

4. The Minister of Labor, War Invalids and Social Affairs shall elaborate this Article.

Article 146. Working hours of minors employees

1. The working hours of minor employees under 15 shall not exceed 04 hours per day and 20 hours per week. Employers must not request minor employees to work overtime or at night.

2. The working hours of employees aged 15 to under 18 shall not exceed 08 hours per day and 40 hours per week. Employees aged 15 to under 18 may work overtime or at night in certain works and jobs listed by the Minister of Labor, War Invalids and Social Affairs.

Article 147. Prohibited works and workplaces for employees aged 15 to under 18

1. A person aged 15 to under 18 must not be assigned to the following works:

a) Carrying and lifting of heavy things which are beyond his/her the physical capacity;

b) Production, sale of alcohol, tobacco and neuro-stimulants and other narcotic substances;

c) Production, use or transport of chemicals, gas or explosives;

d) Maintaining equipment or machinery;

đ) Demolition;

e) Melting, blowing, casting, rolling, pressing, welding metals;

g) Marine diving, offshore fishing;

h) Other works that are harmful to the development of his/her physical health, mental health or personality.

2. A person aged 15 to under 18 must not be assigned to the following locations:

a) Underwater, underground, in caves, in tunnels;

b) Construction sites;

c) Slaughter houses;

d) Casinos, bars, discotheques, karaoke rooms, hotels, hostels, saunas, massage rooms; lottery agents, gaming centers;

đ) Any other workplace that is harmful to the development of his/her physical health, mental health or personality.

3. The Ministry of Labor- Invalids and Social Affairs shall promulgate the lists mentioned in Point h Clause 1 and Point dd Clause 2 of this Article.

Section 2. ELDERLY EMPLOYEES

Article 148. Elderly employees

1. An elderly employee is a person who continues working after the age stipulated in Clause 2 Article 169 of this Labor Code.

2. Elderly employees are entitled to negotiate with their employer on reduction of reduce their daily working hours or to work on a part-time basis.

3. Employers are encouraged by the State to assign works that are suitable for elderly employees in order to uphold their right to work and ensure efficient utilization of human resources.

Article 149. Employment of elderly people

1. When an elderly person is employed, both parties may agree on conclusion of multiple fixed-term employment contracts.

2. In case a person who is receiving retirement pension under the Law on Social Insurance enters into a new employment contract, he/she shall receive salary and other benefits prescribed by law and the employment contract in addition to the benefits to which they are entitled under the pension scheme.

3. Employer must not assign elderly employees to do laborious, toxic or dangerous works, or highly laborious, toxic or dangerous works that are harmful to their health, unless safety is ensured.

4. Employers are responsible for taking care of the health of elderly employees at the workplace.

Section 3. VIETNAMESE EMPLOYEES WORKING OVERSEAS, EMPLOYEES OF FOREIGN ORGANIZATIONS AND INDIVIDUALS IN VIETNAM AND FOREIGN EMPLOYEES WORKING IN VIETNAM

Article 150. Vietnamese employees working overseas, employees of foreign organizations and individuals in Vietnam

1. The State shall encourage enterprises, agencies, organizations, and individuals to seek and expand the labor market for Vietnamese employees to work overseas.

Vietnamese employees working overseas must comply with the law of Vietnam and the law of the host country except where an international convention to which Socialist Republic of Vietnam is a signatory contains different provisions.

2. Vietnamese citizens working in foreign organizations in Vietnam, in industrial zones, economic zones, export-processing zones, hi-tech zones, or working for individuals who are foreign citizens in Vietnam shall comply with the law of Vietnam and shall be protected by law.

3. The Government shall provide for the recruitment and management of Vietnamese employees working for foreign entities in Vietnam.

Article 151. Requirements for foreigners to work in Vietnam.

1. A foreign employee means a person who has a foreign nationality and:

a) is at last 18 years of age and has full legal capacity;

b) has qualifications, occupational skills, practical experience and adequate health as prescribed by the Minister of Health;

c) is not serving a sentence; does not have an unspent conviction; is not undergoing criminal prosecution under his/her home country’s law or Vietnam’s law;

d) has a work permit granted by a competent authority of Vietnam, except in the cases stipulated in Article 154 of this Labor Code.

2. The duration of a foreign employee’s employment contract must not exceed that of the work permit. When a foreign employee in Vietnam is recruited, both parties may negotiate conclusion of multiple fixed-term labor contracts.

3. Foreign employees working in Vietnam shall comply with and shall be protected by the labor law of Vietnam, unless otherwise prescribed by treaties to which Vietnam is a signatory.

Article 152. Requirements for employment of foreigners in Vietnam.

1. Enterprises, organizations, individuals and contractors shall only employ foreigners to hold positions of managers, executive directors, specialists and technical workers the professional requirements for which cannot be met by Vietnamese workers.

2. Recruitment of foreign employees in Vietnam shall be explained and subject to written approval by competent authorities.

3. Before recruiting foreign employees in Vietnam, a contractor shall list the positions, necessary qualifications, skills, experience and employment period of the contract, and obtain a written approval from a competent authority.

Article 153. Responsibilities of employers and foreign employees

1. Foreign employees shall present their work permits whenever requested by competent authorities.

2. Any foreign employee working in Vietnam without a work permit shall be deported or forced to leave Vietnam in accordance with immigration laws.

3. An employer who hires a foreign employee without a work permit shall be liable to penalties as regulated by the law.

Article 154. Work permit exemption for foreign employees in Vietnam

A foreign employee is not required to have the work permit if he/she:

1. Is the owner or capital contributor of a limited liability company with a capital contribution value conformable with regulations of the Government.

2. Is the Chairperson or a member of the Board of Directors of a joint-stock company a capital contribution value conformable with regulations of the Government.

3. Is the manager of a representative office, project or the person in charge of the operation of an international organizations or a foreign non-governmental organization in Vietnam.

4. Enters Vietnam for a period of less than 03 months to do marketing of a service.

5. Enters Vietnam for a period of less than 03 months to a resolve complicated technical or technological issue which (i) affects or threatens to affect business operation and (ii) cannot be resolved by Vietnamese experts or any other foreign experts currently in Vietnam.

6. Is a foreign lawyer who has been granted a lawyer’s practising certificate in Vietnam in accordance with the Law on Lawyers.

7. In one of the cases specified in an international treaty to which the Socialist Republic of Vietnam is a signatory.

8. Gets married with a Vietnamese citizen and wishes to reside in Vietnam.

9. Other circumstances specified by the Government.

Article 155. Duration of work permit

The maximum duration of a work permit is 02 years. A work permit may be extended once for up to 02 more years.

Article 156. Cases in which a work permit is invalid

1. The work permit expires.

2. The employment contract is terminated.

3. The contents of the employment contract are inconsistent with the contents of the work permit granted.

4. The work performed is not conformable with the contents of the work permit granted.

5. The contract that is the basis for issuance of the work permit expires or is terminated.

6. The foreign party issues a written notice which terminates the dispatch of the foreign employee to Vietnam.

7. The Vietnamese party or foreign organization that hires the foreign employee ceases its operation.

8. The work permit is revoked.

Article 157. Issuance, re-issuance and revocation of work permits; notice of rejection of work permit issuance

The Government shall specify the conditions and procedures for issuing, re-issuing, revoking the work permit and issuance of the notice of rejection of work permit issuance.

Section 4. DISABLED EMPLOYEES

Article 158. State policies on disabled employees

The State shall protect the rights to work and to self-employment of disabled people; adopt policies to encourage and provide incentives for employers to create work for and to employ disabled people in accordance with regulations of law on People with Disabilities.

Article 159. Employment of disabled people

1. Employers shall provide reasonable accommodation with respect to working conditions, working tools, and occupational safety and health measures that are suitable for disabled employees and organize periodic health check-up for disabled employees.

2. Employers must consult with disabled employees before deciding on matters of relevance to the rights and interests of disabled employees.

Article 160. Prohibited acts regarding employment of disabled people

1. Assign employees with work capacity reduction of at least 51%, serious or very serious disabilities to work overtime or work at night, unless otherwise agreed by the employees/

2. Assign disabled employees to laborious, toxic or dangerous works on the list promulgated by the Minister of Labor, War Invalids and Social Affairs without their consent after they are properly informed of the works.

Section 5. DOMESTIC WORKERS

Article 161. Domestic workers

1. A domestic worker is a worker who regularly carries out domestic work for one or more than one households.

Domestic work includes cooking, housekeeping, babysitting, nursing, caring for elders, driving, gardening, and other work for a household which is not related to commercial activities.

2. The Government shall provide for employment of domestic workers.

Article 162. Employment contracts with domestic workers

1. The employer shall enter into a written employment contract with the domestic worker.

2. The duration of the employment contract for the domestic worker is negotiated by both parties.  Either party has the right to terminate the employment contract at any time provided that an advance notice of 15 days is given.

3. The employment contract shall specify the salary payment method, period, working hours, accommodation.

Article 163. Obligations of the employer

1. Fully implement the agreement as indicated in the employment contract.

2. Pay the domestic worker an amount of his/her social insurance and health insurance premiums in accordance with the law for the domestic worker to manage insurance by themselves.

3. Respect the domestic worker’s honor and dignity.

4. Provide clean and hygienic accommodation and dining place for the domestic worker, where there is such an agreement.

5. Create opportunities for the domestic worker to participate in educational and occupational training.

6. Cover the cost of the travel expenses for the domestic worker to return to their place of residence at the end of his/her service, except in cases where the domestic worker terminates the employment contract before its expiry date.

Article 164. Obligations of the domestic worker

1. Fully implement the agreement as indicated in the employment contract.

2. Pay compensation in accordance with the agreement or in accordance with the law in cases of loss of or damage to the employer’s assets and property.

3. Promptly notify the employer about risks of accident, dangers to health, life and property of the employer’s family and himself/herself.

4. Report to the competent authority if the employer commits acts of mistreating, sexual harassment, extracting forced labor or any other acts against the law.

Article 165. Prohibited acts by the employer

1. Mistreating, sexually harassing, extracting forced labor, and using force or violence against the domestic worker.

2. Assigning works to the domestic worker against the employment contract.

3. Keeping personal papers of the domestic worker.

Section 6. OTHER TYPES OF WORKERS

Article 166. Workers in the fields of arts, sports, maritime, air transport

Workers in the fields of arts, sports, maritime, air transport shall have appropriate basic and advanced training, occupational skill development training, employment contracts, salaries, bonuses; working hours, rest periods, occupational safety and health as prescribed by the Government.

Article 167. Working at home

An employee may negotiate with his/her employer to perform certain works at home.

Chapter XII

SOCIAL INSURANCE, HEALTH INSURANCE AND UNEMPLOYMENT INSURANCE

Article 168. Participation in social insurance, health insurance and unemployment insurance

1. Employers and employees shall participate in compulsory social insurance, compulsory health insurance and unemployment insurance and enjoy the benefits in accordance with provisions of the law on social insurance, health insurance and unemployment insurance.

Employers and employees are encouraged to obtain other kinds of insurance for employees.

2. The employer shall not be required to pay salary for an employee when the employee is on leave and receiving social insurance benefits, unless otherwise agreed by both parties.

3. Where an employee is not covered by compulsory social insurance, compulsory health insurance or unemployment insurance, the employer shall, in addition to and at the same time with salary payment, pay the employee an amount equal to the compulsory social insurance, compulsory health insurance, unemployment insurance premiums payable by the employer in accordance with regulations of law on social insurance, health insurance and unemployment insurance.

Article 169. Retirement ages

1. An employee who has paid social insurance for an adequate period of time as prescribed by social insurance laws shall receive retirement pension when he/she reaches the retirement age.

2. Retirement ages of employees in normal working conditions shall be gradually increased to 62 for males by 2028 and 60 for females in 2035.

From 2021, the retirement ages of employees in normal working conditions shall be 60 yeas 03 months for males and 55 years 04 months for females, and shall increase by 03 months for males and 04 months for females after every year.

3. The retirement ages of employees who suffer from work capacity reduction; doing laborious, toxic or dangerous works; working in highly disadvantaged areas may be younger by up to 05 years than the retirement ages specified in Clause 2 of this Article, unless otherwise prescribed by law.

4. Retirement ages of skilled employees and employees in certain special cases may be older by up to 05 years than the retirement ages specified in Clause 2 of this Article, unless otherwise prescribed by law.

5. The Government shall elaborate this Article.

Chapter XIII

REPRESENTATIVE ORGANIZATIONS OF EMPLOYEES

Article 170. The right to establish, join and participate in representative organizations of employees

1. Every employee has the right to establish, join and participate in activities of trade union in accordance with the Trade Union Law.

2. Employees of enterprises are entitled to establish, join and participate in activities of internal employee organizations in accordance with Articles 172, 173 and 174 of this Labor Code.

3. The representative organizations of employers mentioned in Clause 1 and Clause 2 of this Article shall have equal rights and obligations in protection of the legitimate rights and interests of employees in labor relations.

Article 171. Internal trade unions in Vietnam’s trade union system

1. Internal trade unions in Vietnam’s trade union system shall be established in organizations, units and enterprises.

2. The establishment, dissolution, organization and operation of internal trade unions shall comply with the Trade Union Law.

Article 172. Establishment, participation and operation of internal employee organizations

1. The internal employee organization in an enterprise shall be established after registration is granted by a competent authority. The organizational structure and operation of internal employee organizations shall comply with the Constitution, law and internal regulations, adhere to the principles of autonomy, democracy and transparency.

2. Registration of an internal employee organization shall be cancelled if it acts against its objectives and principles as prescribed in Point b Clause 1 Article 174 of this Labor Code, or the organization is undergoing division, amalgamation, merger, or the enterprise is undergoing dissolution or bankruptcy.

3. When an internal employee organization wishes to join the trade union, the Trade Union Law shall apply

4. The Government shall provide for documents and procedures for registration; the competence to grant and cancel registration, state management of finance and assets of internal employee organizations; division, amalgamation, merger, dissolution thereof; the right to association of employees in enterprises.

Article 173. Management board and members of internal employee organizations

1. When applying for registration, the number of members the internal employee organization that are employees of the enterprise shall reach the minimum number prescribed by the Government.

2. The management board shall be elected by members of the internal employee organization. Members of the management board shall be Vietnamese employees of the enterprise who are not serving a sentence, do not have an unspent conviction and are not undergoing criminal prosecution for breach of national security, violations against freedom and democracy, infringement of ownership defined in Criminal Code.

Article 174. Charter of internal employee organization

1. The charter of an internal employee organization shall contain:

a) Name, address and logo (if any) of the organization;

b) The objectives of protecting the lawful rights and interests of the members in labor relations in the enterprise; cooperating with the employer in resolving issues relevant to the rights, obligations and interest of the employer and employees; develop progressive, harmonious and stable labor relation;

c) Requirements and procedures for joining and leaving the organization.

The internal employee organization of an enterprise shall not simultaneously have members that are ordinary employees and members that participate in the process of making decisions relevant to working conditions, recruitment, labor discipline, employment contract termination or employee reassignment;

d) Organizational structure, tenure and representative of the organization;

đ) Rules for organization and operation;

e) Methods for ratifying decisions of the organization.

The following issues shall be voted by the members under the majority rule: ratification, revisions of the organization’s charter; election, dismissal of the chief and members of the management board of the organization; division, consolidation, merger, renaming, dissolution, association of the organization; joining the trade union.

g) Membership fees, sources of assets and finance, and the management thereof.

Revenues and expenses of the internal employee organization shall be monitored, archived and made available to its members.

h) Members’ proposals and responses thereto.

2. The Government shall elaborate this Article.

Article 175. Prohibited acts by the employer regarding the establishment, operation of and participation in representative organizations of employees

1. Any act of discrimination against employees or members of the management board of the representative organization of employees due to the establishment, operation or participation in the representative organization of employees, including:

a) Requesting a person to participate, not to participate or to leave the representative organization of employees in order to be recruited, have the employment contract signed or renewed;

b) Disciplining or unilaterally terminating an employment contract; refuses to conclude or renew an employment contract; reassigning an employee;

c) Discrimination by salary, working hours, other rights and obligations in the labor relation;

d) Obstructing, disrupting or otherwise impairing the operation of the representative organization of employees.

2. Interfering, influencing the establishment, election, planning and operation of the representative organization of employees, including financial support or other economic measures aimed to neutralize or weaken the functions of the representative organization of employees, or discriminate between the representative organizations of employees.

Article 176. Rights of members of the management board of a representative organization of employees

1. Members of the management board of a representative organization of employees have the rights to:

a) Approach employees at the workplace during the performance of the organization’s duties, provided it does not affect the employer’s normal operation.

b) Approach the employer to perform the duties of the employees’ representative organization;

c) Be fully paid by the employer for performance of the duties of the representative organization of employees during the working time in accordance with Clause 2 and Clause 3 of this Article;

d) Other guarantees in labor relation and performance of the representative’s duties as prescribed by law.

2. The Government shall specify the minimum period of time the employer has to allow all members of the management board of the representative organization of employees to perform its duties according to the number of its members.

3. The representative organization of employees and the employer may negotiate the extra time and how the management board uses the working time to perform their duties in a practical manner.

Article 177. Obligations of the employer to the representative organization of employees

1. Do not obstruct the employees from lawfully establishing, joining and participate in activities of the representative organization of employees.

2. Recognize and respect the rights of the lawfully established representative organization of employees.

3. Enter into a written agreement with the management board of the representative organization of employees when unilaterally terminating the employment contract with, reassigning or dismissing for disciplinary reasons an employee who is a member of the management board.  In case such an agreement cannot be reached, both parties shall send a notice to the provincial labor authority.  After 30 days from the day on which such a notice is sent to the labor authority in the locality, the employer shall have the right to make the decision. In case of disagreement with the employer’s decision, the employee and management board may request labor dispute settlement in accordance with the procedures prescribed by law.

4. In case the employment contract with a member of the management board expires before the end of his/her term of office, the contract shall be extended until the end of the term of office.

5. Other obligations prescribed by law.

Article 178. Rights and obligations of the representative organization of employees in labor relations

1. Enter into collective bargaining with the employer in accordance with this Labor Code.

2. Hold dialogues at work in accordance with this Labor Code.

3. Comment on the establishment; supervise the implementation of the pay scale, payroll, labor rates, regulations on salary payment, rewards, internal labor regulations, and other issue relevant to rights and interests of employees that are members of the organization.

4. Represent the employee during labor dispute settlement when authorized by the employee.

5. Organize and lead strikes in accordance with this Labor Code.

6. Provide technical assistance for legally registered organizations in Vietnam to improve their knowledge about labor laws, procedures for establishment of the representative organization of employees and performance of representative activities in labor relation after registration is granted.

7. Be provided a working location, information and other necessary facilities for operation of the representative organization of employees by the employer.

8. Other rights and obligations prescribed by law.

Chapter XIV

SETTLEMENT OF LABOR DISPUTES

Section 1. GENERAL PROVISIONS FOR SETTLEMENT OF LABOR DISPUTES

Article 179. Labor disputes

1. A labor dispute means a dispute over rights, obligations and interests among the parties during the establishment, execution or termination of labor relation; a dispute between the representative organizations of employees; a dispute over a relationship that is directly relevant to the labor relation. Types of labor disputes:

a) Labor disputes between the employee and the employer; between the employee and the organization that sends the employee to work overseas under a contract; between the dispatched employee and the client enterprise.

b) Right-based or interest-based collective labor disputes between one or several representative organizations of employees and the employer or one or several representative organizations of employees.

2. A right-based collective labor dispute of rights means a dispute between one or several representative organizations of employees and the employer or one or several representative organizations of employees in case of:

a) Discrepancies in interpretation and implementation of the collective bargaining agreement, internal labor regulations and other lawful agreements;

b) Discrepancies in interpretation and implementation of labor laws; or

c) The employer’s discrimination against the employees or members of the management board of the representative organization of employees for reasons of establishment, operation or participation in the organization; the employer’s interference or influencing the representative organization of employees; the employer’ violations against amicable negotiation.

3. Interest-based collective labor disputes include:

a) Labor disputes that arise during the process of collective bargaining;

b) A party refuses to participate in the collective bargaining or the collective bargaining is not held within the time limit prescribed by law.

Article 180. Labor dispute settlement principles

1. Respect the parties’ autonomy through negotiation throughout the process of labor dispute settlement.

2. Prioritize labor dispute settlement through mediation and arbitration on the basis of respect for the rights and interests of the two disputing parties, and respect for the public interest of the society and conformity with the law.

3. The labor dispute shall be settled publicly, transparently, objectively, promptly, and lawfully.

4. Ensure the participation of the representatives of each party in the labor dispute settlement process.

5. Labor dispute settlement shall be initiated by a competent authority or person after it is requested by a disputing party or by another competent authority or person and is agreed by the disputing parties.

Article 181. Responsibilities of organizations and individuals during labor dispute settlement

1. The labor authority shall cooperate with the representative organization of employees and representative organization of employees in giving instructions and assisting the parties during the process of labor dispute settlement.

2. The Ministry of Labor, Invalids and Social Affairs shall organize training to improve the professional capacity of labor mediators and arbitrators for labor dispute settlement.

3. The provincial labor authority, when requested, shall receive and classify the request for labor dispute settlement, provide instructions and assists the parties during the process of labor dispute settlement.

Within 05 working days, the receiving authority shall transfer the request to the labor mediators if mediation is mandatory; to the arbitral tribunal if the dispute has to be settled by arbitration, or instruct the parties to file the petition to the court.

Article 182. Rights and obligations of the two parties in labor dispute settlement

1. During the labor dispute settlement process, the two disputing parties have the rights to:

a) Participate directly or through a representative in the labor dispute settlement process;

b) Withdraw or change the contents of the request;

c) Request for a change of the person in charge of labor dispute settlement where there reasonable grounds for believing that the said person may not be impartial or objective.

2. During the labor dispute settlement process, the two parties have the responsibility to:

a) Promptly and adequately provide documents and evidence to support his/her request;

b) Abide by the agreement reached, decision of the arbitral tribunal, court judgment or decision which when it comes into effect.

Article 183. Rights of competent labor dispute settlement authorities and persons

Competent labor dispute settlement authorities and persons shall, within their mandates, have the rights to request the disputing parties, relevant organizations and individuals to provide documents and evidence; request verification; and invite witnesses and other relevant persons.

Article 184. Labor mediators

1. Labor mediators shall be assigned by the provincial labor authority to mediate labor disputes and disputes over vocational training contracts; assist in development of labor relation.

2. The Government shall provide for the standards, procedures for assignments, benefits, working conditions and management of labor mediators; power and procedures for dispatching labor mediators.

Article 185. Labor Arbitration Council

1. The President of the People’s Committee of the province shall issue the decision to establish the Labor Arbitration Council, designate its chairperson, secretary and labor arbitrators. The tenure of a Labor Arbitration Council is 05 years.

2. The President of the People’s Committee of the province shall decide the number of labor arbitrators which is at least 15. The number of labor arbitrators nominated by each party shall be equal. To be specific:

a) At least 05 labor arbitrators shall be nominated by the provincial labor authority. The chairperson and secretary shall be officials of the provincial labor authority;

b) At least 05 labor arbitrators shall be nominated by the provincial trade union;

c) At least 05 arbitrators shall be nominated the representative organizations of employees in the province.

3. Standards and working conditions of labor arbitrators:

a) A labor arbitrator shall conversant with law, experienced in labor relations, reputable and objective;

b) When nominating labor arbitrators as prescribed in Clause 2 of this Article, the provincial labor authority, provincial trade union and representative organizations of employees may nominate their people or other people that fully satisfy the standards for labor arbitrators.

c) The secretary of the Labor Arbitration Council shall perform its regular duties. Labor arbitrators may work on a full-time or part-time basis.

4. Whenever a request for labor dispute settlement is received as prescribed in Article 189, 193 and 197 of this Labor Code, the Labor Arbitration Council shall establish an arbitral tribunal as follows:

a) The representative of each disputing party shall choose 01 labor arbitrator from the list of labor arbitrators;

b) The labor arbitrators chosen by the parties as prescribed in Point a of this Clause shall choose 01 other labor arbitrator as the chief of the arbitral tribunal;

c) In case a labor arbitrator is selected by more than one disputing party, the arbitral tribunal shall appoint 01 of the chosen arbitrators.

5. The arbitral tribunal shall work on the principle of collectives and make decision under the majority rule, except for the cases specified in Point c Clause 4 of this Article.

6. The Government shall provide for the procedures, requirements, procedures for designation, dismissal, benefits and working conditions of labor arbitrators and Labor Arbitration Councils; organization and operation of Labor Arbitration Councils; establishment and operation of the arbitral tribunals mentioned in this Article.

Article 186. Prohibition of unilateral actions during the process of labor dispute settlement

None of the disputing parties shall take unilateral actions against the other party while the labor dispute is being settled by a competent authority or person within the time limit specified in this Labor Code.

Section 2. COMPETENCE AND PROCEDURES FOR SETTLEMENT OF INDIVIDUAL LABOR DISPUTES

Article 187. Competence to settle individual labor disputes

The following agencies, organizations and individuals have the competence to settle individual labor disputes:

1. Labor mediators;

2. Labor Arbitration Councils;

3. The People’s Court.

Article 188. Procedures for the settlement of individual labor disputes by labor mediators

1. Individual labor disputes shall be settled through mediation by labor mediators before being brought to the Labor Arbitration Council or the Court, except for the following labor disputes for which mediation is not mandatory:

a) Disputes over dismissal for disciplinary reasons; unilateral termination of employment contracts;

b) Disputes over damages and allowances upon termination of employment contracts;

c) Disputes between a domestic worker and his/her employer;

d) Disputes over social insurance in accordance with social insurance laws; disputes over health insurance in accordance with health insurance laws ; disputes over unemployment insurance in accordance with employment laws; disputes over insurance for occupational accidents and occupational disease in accordance with occupational safety and health laws;

đ) Disputes over damages between an employee and organization that dispatches the employee to work overseas under a contract;

e) Disputes between the dispatched employee and the client enterprise.

2. The Labor Arbitration Council shall complete the mediation process within 05 working days from the receipt of the request from the disputing parties or the authority mentioned in Clause 3 Article 181 of this Labor Code.

3. Both disputing parties must be present at the mediation meeting. The disputing parties may authorize another person to attend the mediation meeting.

4. The labor mediator shall instruct and assist the parties to negotiate with each other.

In case the two parties reach an agreement, the labor mediator shall prepare a written record of successful mediation which bears the signatures of the disputing parties and the labor mediator.

In case the two parties do not reach an agreement, the labor mediator shall recommend a mediation option for the disputing parties to consider.  In case the parties agree with the recommended mediation option, the labor mediator shall prepare a written record of successful mediation which bears the signatures of the disputing parties and the labor mediator.

Where the two parties do not agree with the recommended mediation option or where one of the disputing parties is absent for the second time without a valid reason after having been legitimately summoned, the labor mediator shall prepare a record of unsuccessful mediation which bears the signatures of the present disputing parties and the labor mediator.

5. Copies of the record of successful mediation or unsuccessful mediation shall be sent to the disputing parties within 01 working day from the date on which it is prepared.

6. In case a disputing party fails to adhere to the agreements specified in the record of successful mediation, the other party may request a Labor Arbitration Council or the Court to settle the case.

7. In case mediation is not mandatory as prescribed in Clause 1 of this Article, the labor mediator fails to initiate the mediation by the deadline specified in Clause 2 of this Article, or the mediation is unsuccessful as prescribed in Clause 4 of this Article, the disputing parties may:

a) request the Labor Arbitration Council to settle the dispute in accordance with Article 189 of this Labor Code; or

b) Request the Court to settle the dispute.

Article 189. Settlement of individual labor disputes by Labor Arbitration Council

1. The parties are entitled to, by consensus, request the Labor Arbitration Council to settle the dispute in any of the cases specified in Clause 7 Article 188 of this Labor Code. After the Labor Arbitration Council has been requested to settle a dispute, the parties must not simultaneously request the Court to settle the same dispute, except for the cases specified in Clause 4 of this Article.

2. Within 07 working days from the receipt of the request mentioned in Clause 1 of this Article, an arbitral tribunal shall be established.

3. Within 30 working days from the establishment of the arbitral tribunal, it shall issue a decision on the settlement of the labor dispute and send it to the disputing parties.

4. In case an arbitral tribunal is not established by the deadline specified in Clause 2 of this Article, or a decision on the settlement of the labor dispute is not issued by the arbitral tribunal by the deadline specified in Clause 3 of this Article, the parties are entitled to bring the case to Court.

5. In case a disputing party fails to comply with the decision of the arbitral tribunal, the parties are entitled to bring the case to court.

Article 190. Time limits for requesting settlement of individual labor disputes

1. The time limit to request a labor mediator to settle an individual labor dispute is 06 months from the date on which a party discovers the act of infringement of their lawful rights and interests.

2. The time limit to request a Labor Arbitration Council to settle an individual labor dispute is 09 months from the date on which a party discovers the act of infringement of their lawful rights and interests.

3. The time limit to bring an individual labor dispute to the Court is 01 year from the day on which a party discovers the act of infringement of their lawful rights and interests.

4. In case the requester is able to prove that the aforementioned time limits cannot be complied with due to a force majeure event or unfortunate event, the duration of such event shall not be included in the time limit for requesting settlement of individual labor dispute.

Section 3. COMPETENCE AND PROCEDURES FOR THE SETTLEMENT OF RIGHT-BASED COLLECTIVE LABOR DISPUTES

Article 191. Competence to settle right-based collective labor disputes

1. The following agencies, organizations and individuals have the competence to settle right-based collective labor disputes:

a) Labor mediators;

b) Labor Arbitration Councils;

c) The People’s Court.

2. Right-based labor disputes shall be settled through mediation by labor mediators before being brought to the Labor Arbitration Council or the Court.

Article 192. Procedures for settlement of right-based collective labor disputes

1. Procedures for the mediation of collective labor disputes are the same as the procedures specified in Clauses 2, 3, 4, 5 and 6 Article 188 of this Labor Code.

If violations of law is found during settlement of the disputes mentioned in Point b and Point c Clause 2 Article 179 of this Labor Code, the labor mediator shall prepare a record and transfer the documents to a competent authority for settlement as prescribed by law.

2. In case the mediation is unsuccessful or the labor mediator fails to initiate the mediation by the deadline specified in Clause 2 Article 188 of this Labor Code, the disputing parties may:

a) request the Labor Arbitration Council to settle the dispute in accordance with Article 193 of this Labor Code; or

b) Request the Court to settle the dispute.

Article 193. Settlement of right-based collective labor disputes by Labor Arbitration Council

1. In case the mediation is unsuccessful, the labor mediator fails to initiate the mediation by the deadline specified in Clause 2 Article 188 of this Labor Code, or a party fails to adhere to the agreements in the successful mediation record, the disputing parties are entitled to, by consensus, request the Labor Arbitration Council to settle the dispute.

2. Within 07 working days from the receipt of the request mentioned in Clause 1 of this Article, an arbitral tribunal shall be established.

3. Within 30 working days from the establishment of the arbitral tribunal, in accordance with labor laws, the registered internal labor regulations and collective bargaining agreement, other lawful agreement and regulations, the arbitral tribunal shall issue a decision on dispute settlement and send it to the disputing parties.

If violations of law is found during settlement of the disputes mentioned in Point b and Point c Clause 2 Article 179 of this Labor Code, the arbitral tribunal shall, instead of making a settlement decision, issue a record and transfer the documents to a competent authority for settlement as prescribed by law.

4. While the Labor Arbitration Council is settling a dispute at the request of the parties as prescribed in this Article, the parties must not bring the same dispute to Court.

5. In case an arbitral tribunal is not established by the deadline specified in Clause 2 of this Article, or a decision on the settlement of the labor dispute is not issued by the arbitral tribunal by the deadline specified in Clause 3 of this Article, the parties are entitled to bring the dispute to Court.

6. In case a disputing party fails to comply with the decision of the arbitral tribunal, the parties are entitled to bring the case to court.

Article 194. Time limits for requesting settlement of right-based collective labor disputes

1. The time limit to request a labor mediator to settle a right-based collective labor dispute is 06 months from the date on which a party discovers the act of infringement of their lawful rights.

2. The time limit to request a Labor Arbitration Council to settle a right-based collective labor dispute is 09 months from the date on which a party discovers the act of infringement of their lawful rights.

3. The time limit to bring a right-based collective labor dispute to the Court is 01 year from the day on which a party discovers the act of infringement of their lawful rights.

Section 4. COMPETENCE AND PROCEDURES FOR THE SETTLEMENT OF INTEREST-BASED COLLECTIVE LABOR DISPUTES

Article 195. Competence to settle interest-based collective labor disputes

1. Agencies, organizations and individuals who have the competence to settle interest-based collective labor disputes include:

a) Labor mediators;

b) Labor Arbitration Councils.

2. An interest-based collective labor dispute shall be settled through mediation by labor mediators before it is brought to the Labor Arbitration Council or a strike is organized.

Article 196. Procedures for settlement of interest-based collective labor disputes

1. Procedures for the mediation of interest-based collective labor disputes are the same as the procedures specified in Clauses 2, 3, 4 and 5 Article 188 of this Labor Code.

2. In case of successful mediation, the labor mediator shall prepare a written record of successful mediation which contains the agreements between the parties and bears the signatures of the disputing parties and the labor mediator. The record of successful mediation shall be as legally binding as the enterprise’s collective bargaining agreement.

3. In case the mediation is unsuccessful, the labor mediator fails to initiate the mediation by the deadline specified in Clause 2 Article 188 of this Labor Code, or a party fails to adhere to the agreements in the successful mediation record:

a)The disputing parties are entitled to, by consensus, request the Labor Arbitration Council to settle the dispute in accordance with Article 197 of this Labor Code; or

b) The representative organization of employees is entitled to organize a strike following the procedures specified in Articles 200, 201 and 202 of this Labor Code.

Article 197. Settlement of interest-based collective labor disputes by Labor Arbitration Council

1. In case the mediation is unsuccessful, the labor mediator fails to initiate the mediation by the deadline specified in Clause 2 Article 188 of this Labor Code, or a party fails to adhere to the agreements in the successful mediation record, the disputing parties are entitled to, by consensus, request the Labor Arbitration Council to settle the dispute.

2. Within 07 working days from the receipt of the request mentioned in Clause 1 of this Article, an arbitral tribunal shall be established.

3. Within 30 working days from the establishment of the arbitral tribunal, in accordance with labor laws, the registered internal labor regulations and collective bargaining agreement, other lawful agreement and regulations, the arbitral tribunal shall issue a decision on dispute settlement and send it to the disputing parties.

4. While the Labor Arbitration Council is settling a dispute at the request of the parties as prescribed in this Article, the representative organization of employees must not call a strike.

In case an arbitral tribunal is not established by the deadline specified in Clause 2 of this Article, or a decision on the settlement of the labor dispute is not issued by the arbitral tribunal by the deadline specified in Clause 3 of this Article, or the employer that is a disputing party fails to implement the settlement decision issued by the arbitral tribunal, the representative organization of employees that is a disputing party is entitled to call a strike following the procedures specified in Articles 200, 201 and 202 of this Labor Code.

Section 5. STRIKES

Article 198. Strikes

A strike is a temporary, voluntary and organized stoppage of work by the employees in order to press demands in the process of the labor dispute settlement. A strike shall be organized and lead by the representative organization of employees that has the right to request collective bargaining and is a disputing party.

Article 199. Cases in which employees are entitled to strike

The representative organization of employees that is a disputing party to an interest-based collective labor dispute is entitled to call a strike following the procedures specified in Articles 200, 201 and 202 in the following cases:

1. The mediation is unsuccessful or the labor mediator fails to initiate the mediation by the deadline specified in Clause 2 Article 188 of this Labor Code;

2. An arbitral tribunal is not established or fails to issue a decision on the settlement of the labor dispute; the employer that is a disputing party fails to implement the settlement decision issued by the arbitral tribunal.

Article 200. Procedures for going on strike

1. Conduct a survey on the strike in accordance with Article 201 of this Labor Code.

2. Issue a strike decision and strike notice in accordance with Article 202 of this Labor Code.

3. Go on strike.

Article 201. Survey on strike

1. Before going on strike, the representative organization of employees that has the right to call the strike as prescribed in Article 198 of this Labor Code shall survey all employees or members of the management board of the representative organization of employees.

2. The survey involves:

a) Whether the employee agrees or disagrees about the strike;

b) The plan of the representative organization of employees according to Point b, c and d Clause 2 Article 202 of this Labor Code.

3. The survey shall be carried out by collecting votes, signatures or in another manner.

4. The time and method of survey shall be decided by the representative organization of employees and notified to the employer at least 01 day in advance. The survey must not affect the employer’s normal business operation. The employers must not obstruct or interfere with the survey conducted by the representative organization of employees.

Article 202. Strike decision and notice of starting time of a strike

1. When over 50% of the surveyed people agree to carry out a strike as prescribed in Clause 2 Article 201 of this Labor Code, the representative organization of employees shall issue a written strike decision.

2. The strike decision shall contain:

a) The survey result;

b) The starting time and the venue for the strike;

c) The scope of the strike;

d) The demands of the employees;

đ) Full name and address of the representative of the representative organization of employees that organizes and leads the strike.

3. At least 05 working days prior to the starting date of the strike, the representative organization of employees shall send the strike decision to the employer, the People’s Committee of the district and the provincial labor authority.

4. At the starting time of the strike, if the employer does not accept the demands of the employees, the strike may take place.

Article 203. Rights of parties prior to and during a strike

1. The parties have the right to continue negotiating settlement of the collective labor dispute or to jointly request settlement of the dispute by mediation or Labor Arbitration Council.

2. The representative organization of employees that is entitled to organize a strike as prescribed in Article 198 of this Labor Code has the rights to:

a) Withdraw the strike decision before the strike; end the strike during the strike.

b) Request the Court to declare the strike as lawful.

3. The employer has the rights to:

a) Accept the entire or part of the demands, and send a written notice to the representative organization of employees which organizes and leads the strike;

b) Temporarily close the workplace during the strike due to the lack of necessary conditions to maintain the normal operations or to protect the employer’s assets.

c) Request the Court to declare the strike as illegal.

Article 204. Cases of illegal strike

A strike shall be considered illegal if:

1. It is not the case specified in Article 199 of this Labor Code.

2. The strike is not organized by a representative organization of employees that is entitled to organize a strike.

3. The strike is organized against the procedures in this Labor Code.

4. The collective labor dispute is being settled by a competent authority or person in accordance with this Labor Code.

5. The strike takes places in the cases in which it is not permitted according to Article 209 of this Labor Code.

6. The strike takes place after a competent authority issues a decision to postpone or cancel the strike according to Article 210 of this Labor Code.

Article 205. Notice of temporary closure the workplace

At least 03 working days before the date of temporary closure of the workplace, the employer shall publicly post the decision on temporary closure of the workplace at the workplace and notify the following organizations:

1. The representative organization of employees that organizes the strike;

2. The People’s Committee of the province where the workplace is located.

3. The People’s Committee of the district where the workplace is located.

Article 206. Temporary closure of the workplace is not prohibited:

1. 12 hours prior to the starting time of the strike as stated in the strike decision.

2. After the strike ends.

Article 207. Salaries and other lawful interest of employees during a strike

1. Employees who do not take part in the strike but have to temporarily stop working due to the strike are entitled to work suspension allowance in accordance with Clause 2, Article 99 of this Code as well as to other benefits as stipulated in the labor laws.

2. Employees who take part in the strike shall not receive salaries and other benefits as prescribed by law, unless agreed otherwise by both parties.

Article 208. Prohibited acts before, during and after a strike

1. Obstructing employees exercising their right to strike; inciting, inducing or forcing employees to go on strike; preventing employee who do not take part in the strike from working.

2. Use of violence; sabotaging equipment or assets of the employer.

3. Disrupting public order and security.

4. Terminating employment contracts, disciplining or reassigning employees or strike leaders to other work or location workplace due to their preparation for or involvement in the strike.

5. Retaliating, inflicting punishment against employees who take part in strike or against strike leaders.

6. Taking advantage of the strike to commit illegal acts.

Article 209. Workplaces where strike is prohibited

1. Strike is prohibited in workplaces where the strike may threaten national security, national defense, public health or public order.

2. The Government shall compile a list of workplaces where strike is prohibited as mentioned in Clause 1 of this Article, and settlements of labor disputes that arise therein.

Article 210. Decisions on postponing or cancelling a strike

1. When deemed that a strike threatens to cause serious damage to the national economy or public interest, threatens national security, national defense, public health or public order, the President of the People’s Committee of the province shall issue a decision to postpone or cancel the strike.

2. The Government shall provide for postponing and cancelling strikes and settlement of employees’ rights.

Article 211. Handling of unlawful strikes

Within 12 hours from the receipt of the notification that a strike is organized against the regulations of Articles 200, 201 and 202 of this Labor Code, the President of the People’s Committee of the district shall request the labor authority to cooperate with the trade union at the same level and relevant organizations in meeting the employer and the representative organization of employees, assisting the parties in finding a solution and returning the normal business operation.

Any violations of law shall be dealt with or reported to a competent authority as prescribed by law.

The parties shall be assisted in following proper procedures for settling the labor dispute.

Chapter XV

STATE MANAGEMENT OF LABOR

Article 212. Areas of State management of labor

1. Promulgate and organize implementation legislative documents on labor.

2. Monitor, make statistics and provide information on the labor supply and demand, and the fluctuation thereof; make decision on salary policies; policies plans on human resources, distribution and utilization of nationwide human resources, vocational training and development; develop of a national level framework for various levels of vocational training. Compile the list of occupations that require workers who have undertaken vocational training or have obtained the national certificate.

3. Organize and conduct scientific research on labor, statistics and information on labor and the labor market, and on the living standards and incomes of workers; manage the quantity, quality or workers and labor fluctuation.

4. Establish mechanisms for supporting development of progressive, harmonious and stable labor relation; promote application of this Labor Code to workers without labor relations; organize registration and management of internal employee organizations.

5. Carry out inspections; take actions against violations of law; handle labor-related complaints; settle labor disputes as prescribed by law.

6. Seek international cooperation in the area of labor.

Article 213. State management of labor

1. The Government shall uniformly carry out the State management of labor nationwide.

2. The Ministry of Labor, Invalids and Social Affairs shall be responsible to the Government for state management of labor.

3. Other Ministries and ministerial agencies, within their respective mandates, shall be responsible for implementing and cooperating with the Ministry of Labor, Invalids and Social Affairs in the state management of labor.

4. People’s Committees at all levels shall be responsible for the state management of labor within their administrative divisions.

Chapter XVI

LABOR INSPECTION AND ACTIONS AGAINST VIOLATIONS OF LABOR LAWS

Article 214. Contents of labor inspection

1. Inspect compliance with labor laws.

2. Investigate occupational accidents and violations against regulations on occupational safety and health.

3. Provide instructions on the application technical standards for working conditions, occupational safety and health.

4. Handle labor-related complaints and denunciation as prescribed by law.

5. Take actions and request competent authorities to take actions against violations of labor laws.

Article 215. Specialized labor inspection

1. The competence to carry out specialized labor inspection is specified in the Law on Inspection.

2. Occupational safety and health inspections shall be carried out in accordance with the Law on Occupational Safety and Health.

Article 216. Rights of labor inspectors

Labor inspectors have the right to inspect and investigate within the scope of inspection specified in the inspection decision.

A prior notice is not required for surprise inspection decided by a competent person in case of urgent threat to safety, life, health, honor, dignity of employees at the workplace.

Article 217. Actions against violations

1. Any person who violates of any provision of this Labor Code shall, depending on the nature and seriousness of the violation, be held liable to disciplinary actions, administrative penalties or criminal prosecution, and shall pay compensation for any damage caused as prescribed by law.

2. Where the Court has issued a decision which declares that a strike is illegal, any employee who fails to return to work shall be held liable to labor disciplinary measures in accordance with labor laws.

In case an illegal strike causes damage to the employer, the representative organization of employees that organizes the strike shall pay compensation as prescribed by law.

3. Any person who takes advantages of a strike to disrupt public order, sabotage the employer’s assets, obstruct the execution of the right to strike, or incite, induce or force employees to go on strike; retaliate or inflict punishment on strikers and strike leaders, depending on the seriousness of the violation, shall be held liable to administrative penalties or criminal prosecution, and shall pay compensation for any damage caused in accordance with the law.

Chapter XVII

IMPLEMENTATION CLAUSES

Article 218. Exemption and reduction of procedures for employers having fewer than 10 employees

Any employer who has fewer than 10 employees shall follow regulations of this Labor Code and shall be entitled to exemption and reduction of certain procedures specified by the Government.

Article 219. Amendments to some Articles of labor-related Laws

1. Amendments to the Law on Social insurance No. 58/2014/QH13, which has been amended by the Law No. 84/2015/QH13 and the Law No. 35/2018/QH14:

a) Amendments to Article 54:

“Article 54. Conditions for receiving retirement pension

1. An employee mentioned in Points a, b, c, d, g, h and i Clause 1 Article 2 of this Law, except for the cases specified in Clause 3 of this, will receive retirement pension if he/she has paid social insurance for at least 20 years and:

a) He/she has reached the retirement age specified in Clause 2 Article 169 of the Labor Code;

b) He/she has reached the retirement age specified in Clause 3 Article 169 of the Labor Code and has at least 15 years’ doing the laborious, toxic or dangerous works or highly laborious, toxic or dangerous works on the lists of the Ministry of Labor, War Invalids and Social Affairs; or has at least 15 years’ working in highly disadvantaged areas, including the period he/she works in areas with the region factor of at least 0,7 before January 01, 2021;

c) His/her age is younger than the retirement age specified in Clause 2 Article 169 of the Labor Code by up to 10 years and he/she has worked in coal mines for at least 15 years; or

d) He/she contracted HIV due to an occupation accident during performance of his/her assigned duty.

2. An employee mentioned in Points dd and e Clause 1 Article 2 of this Law will receive retirement pension if he/she has paid social insurance for at least 20 years and:

a) His/her age is younger than the retirement age specified in Clause 2 Article 169 of the Labor Code by up to 05 years, unless otherwise prescribed by the Law on Military Officer of Vietnam’s Army, the Law of People’s Police, the Law on Cipher and the Law on professional servicemen and women, national defense workers and officials;

b) His/her age is younger than the retirement age specified in Clause 3 Article 169 of the Labor Code by up to 05 years and he/she has at least 15 years’ doing the laborious, toxic or dangerous works or highly laborious, toxic or dangerous works on the lists of the Ministry of Labor, War Invalids and Social Affairs; or has at least 15 years’ working in highly disadvantaged areas, including the period he/she works in areas with the region factor of at least 0,7 before January 01, 2021; or

c) He/she contracted HIV due to an occupation accident during performance of his/her assigned duty.

3. A female employee that is a commune official or a part-time worker at the commune authority and has paid social insurance for 15 to under 20 years and reaches the retirement age specified in Clause 2 Article 169 of the Labor Code will receive the retirement pension.

4. The Government shall provide for special cases of retirement age.”;

b) Amendments to Article 55:

“Article 55. Conditions for receiving retirement pension in case of work capacity reduction

1. When an employee mentioned in Points a, b, c, d, g, h and i Clause 1 Article 2 of this Law resigns after having paid social insurance for at least 20 years will receive a lower retirement pension than the rate specified in Points a, b, c Clause 1 Article 54 of this Law if:

a) His/her age is younger than the retirement age specified in Clause 2 Article 169 of the Labor Code by up to 05 years and he/she suffers from 61% to under 81% work capacity reduction;

b) His/her age is younger than the retirement age specified in Clause 2 Article 169 of the Labor Code by up to 10 years and he/she suffers from at least 81% work capacity reduction; or

c) He/she has at least 15 years’ doing laborious, toxic and dangerous occupations or highly laborious, toxic and dangerous occupations on the lists of the Minister of Labor, War Invalids and Social Affairs and suffers from at least 61% work capacity reduction.

2. When an employee mentioned in Points dd and e Clause 1 Article 2 of this Law resigns after having paid social insurance for at least 20 years and suffers from at least 61% work capacity reduction will receive a lower retirement pension than the rate specified in Points a and b Clause 2 Article 54 of this Law if:

a) His/her age is younger than the retirement age specified in Clause 2 Article 169 of the Labor Code by up to 10 years;

b) He/she has at least 15 years’ doing highly laborious, toxic and dangerous occupations on the lists of the Minister of Labor, War Invalids and Social Affairs .”;

c) Amendments to Clause 1 of Article 73:

“1. A worker will receive retirement pension when he/she:

a) reaches the retirement age specified in Clause 2 Article 169 of the Labor Code; and

b) has paid social insurance for at least 20 years.”.

2. Amendments to Article 32 of the Civil Procedure Code No. 92/2015/QH13:

a) Revisions of the title and Clause 1 of Article 32; addition of Clauses 1a, 1b and 1c after Clause 1 of Article 32:

Article 32. Labor disputes and labor-related disputes within the jurisdiction of the court

1. Individual labor disputes between employees and their employers shall be settled through mediation by labor mediators, unless the mediation is unsuccessful, the parties do not adhere to the agreements specified in the successful mediation record, or the mediation is not initiated by the labor mediator by the deadline prescribed by labor laws, or the labor dispute is:

a) over a dismissal for disciplinary reasons or unilateral termination of an employment contract;

b) over compensation and allowances upon termination of an employment contract;

c) between a domestic worker and his/her employer;

d) over social insurance in accordance with social insurance laws; over health insurance in accordance with health insurance laws ; over unemployment insurance in accordance with employment laws; over insurance for occupational accidents and occupational disease in accordance with occupational safety and health laws;

đ) over damages between an employee and the organization that dispatches the employee to work overseas under a contract;

e) between the dispatched employee and the client enterprise.

1a. In case both parties agree to bring an individual labor dispute to a Labor Arbitration Council but an arbitral tribunal is not established by the deadline prescribed by labor laws, the arbitral tribunal does not issue a decision on dispute settlement or a party does not adhere to the decision issued by the arbitral tribunal, the dispute may be brought to Court.

1b. In case a right-based collective labor dispute has been undertaken by a labor mediator but the mediation is unsuccessful, a party does not adhere to the successful mediation record, or the mediation is not initiated by the labor mediator by the deadline prescribed by labor laws, the dispute may be brought to Court.

1c. In case both parties agree to bring a right-based collective labor dispute to a Labor Arbitration Council but an arbitral tribunal is not established by the deadline prescribed by labor laws, the arbitral tribunal does not issue a decision on dispute settlement or a party does not adhere to the decision issued by the arbitral tribunal, the dispute may be brought to Court.”;

b) Clause 2 of Article 32 is annulled.

Article 220. Entry in force

1. This Labor Code shall enter into force as of 1st of January 2021.

The Labor Code No. 10/2012/QH13 ceases to have effect from the effective date of this Labor Code

2. From the effective date of this Labor Code, the employment contracts, collective bargaining agreements, lawful agreements that are not contrary to this Labor Code or provide for more favorable rights and conditions of employees than may continue to have effect, unless the parties agree to revise them according to this Labor Code.

3. Labor policies for officials and public employees, and persons working in the People’s Army, People’s Police forces, social organizations, and members of cooperatives, workers without labor relations shall be regulated by other legislative documents though certain regulations of this Labor Code may still apply.

This Labor Code is ratified by the 14th National Assembly of Socialist Republic of Vietnam during its 8th session on November 20, 2019.

]]> https://www.vietnam-legal.com/en/work-in-vietnam/labor-code-no-452019qh14/feed/ 0 https://www.vietnam-legal.com/en/work-in-vietnam/different-requirement-to-apply-for-vietnam-work-permit-between-native-and-non-native-english-speaking-teachers/ https://www.vietnam-legal.com/en/work-in-vietnam/different-requirement-to-apply-for-vietnam-work-permit-between-native-and-non-native-english-speaking-teachers/#comments Thu, 21 May 2020 03:48:23 +0000 https://www.vietnam-legal.com/?p=17433
Read More]]> According to Circular No. 21/2018/TT-BGDDT on Regulation on organization and operation of foreign language and informatics centers, there is small difference on requirements for native and non-native English-speaking teachers.

***   If a teacher is a native speaker (for a specific foreign language), he/she must possess a degree of associate and appropriate certificate in teaching skills. (It means that native teachers must have degree at any fields and teaching certificate like TESOL, TEFL, etc).

***   A foreign teacher is qualified to teach foreign language if he/she achieves one of the following standards:

+   He/she has a degree of associate in foreign language teacher education or higher; or

+   He/she has a degree of associate in foreign language or higher and a certificate in teaching skills; or

+   He/she has a degree of associate or higher, a certificate of proficiency in a foreign language at level 5, or higher, according to Vietnam’s language proficiency framework, or equivalent, and a certificate in teaching skills.

Therefore, to apply for Vietnam Work Permit with the position of English Teacher, you should put you in right case and carefully prepare suitable documents as required.

If you need any guidance and assistance related to Vietnam Work Permit, please feel free to contact Vietnam-legal.com.