NEW POINTS IN THE 2019 LABOR CODE (PART 1)

The 2019 Labor Code was passed by the National Assembly with a total of 17 chapters and 220 amended and supplemented articles. The Code officially takes effect from 01/01/2021 with many new points in the content such as the types of contracts, electronic contract, employees have the right to unilaterally terminate the contract without reason, supplement the case of paid leave, longer holiday time, so on. The promulgation of the 2019 Labor Code has contributed to repair the limitation in the implementation of the previous code, balancing the rights and obligations of employees and employers. In this short article, KAV Lawyers will take a note of some new points of the 2019 Labor Code.

NO MORE REGULATIONS ON SEASONAL OR WORK – SPECIFIC CONTRACTS

Accordingly, the types of contracts specified in Clause 1, Article 20 of the 2019 Labor Code 2019 are as follows: A labor contract must be entered into in one of the two types: a) indefinite-term labor contract and b) The definite – term labor contract, with the term of termination of the contract is not exceed 36 months from the effective date of the contract.

This means that the 2019 Labor Code has abolished the form of signing seasonal contracts or work – specific contract, having only 02 main types of labor contracts remain as above.

ADDING FORMATION OF SIGNING THE LABOR CONTRACTS

If the labor contract must be signed in writing in the past, or two parties can sign a verbal labor contract for a contract with a term of less than 03 months (the old law), less than 01 month (the new law). The 2019 Labor Code further stipulates that labor contracts can be signed electrically in the form of data messages in accordance with the provisions of law (Clause 1, Article 14, the 2019 Labor Code). Labor contracts concluded through electronic means are as valid as written labor contracts.

INCREASING THE PROBATION TIME

The 2012 labor code stipulating that: The probation period does not exceed 60 days for jobs which require professional and technical qualification of collegial or higher level (clause 1, Article 27, the 2012 labor code).

However, the 2019 Labor Code has additional provisions for the work of the enterprise manager in accordance with the Law on Enterprises, the Law on management of the use of state capital invested in production and business in enterprises at this time has been increased to 180 days (Clause 1, Article 25 of the Labor Code 2019).

SUSPENSION OF A LABOR CONTRACT

The 2019 Labor Code 2019 supplies 03 cases of permission to suspend labor contracts stipulating in Article 30 of the 2019 Labor Code are:

  • The employee is appointed as the enterprise manager of a one-member limited liability company with 100% state-owned charter capital;
  • The employee is authorized to perform the rights and responsibilities of the state owner’s representative for the state capital portion in the enterprise;
  • The employee is authorized to perform the rights and responsibilities of the enterprise for the capital portion of the investment enterprise in another enterprise.

THE RIGHT OF EMPLOYEES TO UNILATERALLY TERMINATE LABOR CONTRACTS

Accordingly, the 2019 labor contract allows employees to unilaterally terminate the contract without reason but the condition is to notify employers in advance for a certain period of time, depending on the type of contract. Article 35 of the 2019 Labor Code provides for the notification time as follows:

  • At least 45 days if working under an indefinite-term labor contract;
  • At least 30 days if working under a definite labor contract with a term from 12 months to 36 months;
  • At least 03 working days if working under a definite labor contract with a term of less than 12 months.

In addition, employees also have the right to unilaterally terminate the labor contract without notice in advance in the following cases:

  • Not arranged in accordance with the work or working place or not guaranteed working conditions as agreed, unless the employee has to move to a different workplace for suitable reason;
  • Not to be paid in full or on time, except for cases of force mature;
  • Being abused, beaten or having insulting words, acts affecting health, dignity and honor; forced labor;
  • Being sexually harassed at the workplace;
  • Pregnant female employees must quit their jobs;
  • Full retirement age as prescribed, unless otherwise agreed upon by the parties;
  • The employer provides unwise information affecting the implementation of the labor contract.

ADJUSTMENT OF RETIREMENT AGE

According to the provisions of the 2019 Labor Code, the retirement age of employees in normal working conditions is adjusted, 62 years for male employees in 2028 and 60 years for female employees by 2035. Meanwhile, according to the 2012 labor code, this age is 60 years for men, 55 years for women.

EMPLOYEES ARE ALLOWED TO TAKE MORE TIME OFF FOR THE NATIONAL DAY

Previously, National Day 02/09 employees only had 1 day off. However, from 01/01/2021, the 2019 Labor Code will be given a total of 02 days off on the National Day holiday (September 2nd of the calendar year and 01 day immediately before or after).

In general, the 2019 Labor Code has changed and repair previous implementation practices, meeting the innovation requirements of the changing labor market, developing rapidly, ensuring the labor interests of workers and employers is balance.

Above is an article about the new point of the 2019 Labor Code, if you have any questions or any other legal advice, please contact KAV Lawyers by the contacts below:

Email: [email protected] or [email protected]

Phone: (+84) 28 6270 7075 or (+84) 949 761 861

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