10 new highlights of the Labor Code 2019

  • 05/03/2020
The Labor Code 2019 passed by the National Assembly shall formally take effect on January 01, 2021. Many new legal regulations of this Labor Code have direct effects on the rights and obligations of the employers and employees

1. Increase the retirement age of the employees

From 2021, the retirement age shall be increased to the age of 60 years and 3 months old for male employees and 55 years and 04 months for female employees. And then the retirement age shall be increased by 03 months for male employees and 04 months for female employees in the next one year.

To 2028, the retirement age shall be 62 years old for male employees and 60 years old for female employees.

Within that, the male employees shall be allowed to get retirement at the age of 60 and the female employees shall get retirement at the age of 55 in accordance with the Labor Code 2012.

2. Have 02 days off on the Independence Day

From the Independence Day 2021, employees shall have 02 days-off (instead of 01 day-off in current legal regulations). The Independence Day of Vietnam is observed on 2 September and employees can have one more day-off on 1 September or 3 September.

Therefore, employees shall have 11 holidays and Tet holiday every year in accordance with the new regulations in the Labor Code 2019.

10 new highlights of the Labor Code 2019

3. Employees can terminate a labor contract without reasons

Labor Code 2019 allows the employees unilaterally terminating a labor contract without reasons, except for notifying the employer in advance: at least 45 days for indefinite-term labor contracts and at least 30 days for definite-term labor contracts.

In the Labor Code 2012, the employees can unilaterally terminate labor contracts when he/she is not assigned to the job or workplace; he/she is not paid in full or on time as agreed in the labor contract or he/she is maltreated, sexually harassed or is subject to forced labor; but they must comply with the regulations on the time of notice before contract termination. 

4. No more regulations on seasonal jobs

Labor Code 2019 prescribes only 02 types of contract: indefinite-term contract and definite-term contract. For a seasonal or specific job that has a duration of under 12 months shall be included in the definite-term contract.

5. Authorized person can receive salary for the employee

Legal authorized person can receive salary instead in the case that employees cannot receive salary directly. This is one new highlight that hasn’t prescribed in the Labor Code 2012. This new regulation is considered to be humane and reasonable, especially in the case that employees get sick or accident that cannot take the salary directly.

6. Detailed statistical tables of employee’s salary are needed

A detailed statistical table (include: salary, overtime pay; overtime pay at night; deduction if any…) is needed for the employees in accordance with the Labor Code 2019.

7. Employer charges the bank fee for salary payment via bank account

If the Labor Code 2012 prescribes that the employer shall negotiate with the employee on any fees related to the opening and maintenance of the account in the case that wage is paid into the bank account (clause 2, Article 94).

However, employers shall have responsibilities to take all the fees relating to the opening and maintenance of the account.

8. Bonus is not defined only as “Money”

In the Labor Code 2019, the definition of bonus is wider including money, assets or any other forms instead of only “money” as in the current Labor Code. Bonus is a sum of money paid by an employer to his/her employees on the basis of annual business results and the level of work performance of employees.

9. Prohibit acts: Forcing employees to buy company’s goods and services by his/her wages

Employer cannot intervene his/her employer’s wage expenditure, especially employer is not allowed to force his/her employees to buy company’s goods and services by his/her wages. This is the important highlight of the new Labor Code.

10. One more case for fully paid leave

An employee may take fully paid leave for the death of foster-father or foster-mother. This is the new regulations beside the current conditions: employee receive fully paid leave for marriage: 3 days; marriage of his/her child: 1 day; death of a blood parent or a parent of his/her spouse, his/her spouse or child: 3 days. 

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