08 New regulations with significant Impact on enterprises and employees in Vietnam in 2018

The Ministry of Labor, Invalids and Social Affairs (Hanoi, Vietnam) is collecting opinions on the Draft on amendments to Decree 05/2015/ND-CP detailing regulations on the Labor Code 2012. The Draft is expected to be approved within the year 2018 and amends regulations related to employment contracts, wages, and disciplinary actions against employees in Vietnam.

download Full text of the Draft amending Decree 05/2015/ND-CP

For everyone's convenience, Lawnet would like to provide the summary of new points in the Draft compared to the current regulations in Vietnam in the table below.

No. Current regulations in Decree 05/2015/ND-CP Draft amending Decree 05/2015/ND-CP
1 Some contents in labor contracts are implemented according to the following regulations:
 
  • Promotion, grade advancement regime; working hours, rest hours are agreed upon based on the will of both parties;
  • Personal protective equipment for employees is implemented according to the employer's regulations
  • Promotion, grade advancement regime is agreed upon according to the will of both parties or according to the collective labor agreement, employer's regulations;
  • Working hours, rest hours are implemented according to the agreement of both parties or according to the employer's labor regulations;
  • Personal protective equipment is implemented according to the agreement of both parties or the labor regulations, collective labor agreement, employer's regulations.
2 Working time for severance allowance, job loss allowance includes:
 
  • Time the employee has worked for the employer;
  • Probationary period, vocational training, internship to work for the employer;
  • Time the employer sent the employee for training;
  • Time off enjoying policies as per the Social Insurance Law;
  • Weekly holidays according to Article 110, paid leave according to Articles 111, 112, 115, and Clause 1 Article 116 of the 2012 Labor Code;
  • Time off for union activities as stipulated by the Union Law;
  • Time for work stoppage, unpaid leave not due to the employee's fault;
  • Time off due to suspension of work and time held in temporary custody but allowed to return to work because the competent state authority concluded no crime was committed.
Working time for severance allowance, job loss allowance includes:
 
  • Time the employee has worked for the employer;
  • Time the employer sent the employee for training with full salary;
  • Weekly holidays according to Article 110, paid leave according to Articles 111, 112, 115, and Clause 1 Article 116 of the Labor Code; leave for union activities as stipulated by the Union Law;
  • Time for work stoppage, unpaid leave not due to the employee's fault;
  • Time off due to suspension of work and time held in temporary custody but allowed to return to work because the competent state authority concluded no crime was committed.
3 The salary basis for paying employees on annual leave according to Article 111; increased annual leave due to seniority according to Article 112; public holidays and Tet according to Article 115 and personal leave with full salary according to Clause 1 Article 116 of the 2012 Labor Code is the salary recorded in the labor contract of the preceding month The salary basis for paying employees on annual leave, public holidays, Tet, personal leave with full salary is the salary recorded in the labor contract at the time the employer calculates the payment for the employee
4 Not specified The salary basis for calculating compensation for the employer and employee in case of unilateral illegal termination of the labor contract is the salary recorded in the labor contract at the time the employer and employee unilaterally terminate the labor contract illegally.
5 Not specified The salary basis for the employer to compensate, provide allowances, and pay wages for employees who take leave due to occupational accidents or occupational diseases is the salary recorded in the labor contract at the time the employee takes leave due to occupational accidents or occupational diseases
6 If an employee is dismissed for taking leave for 5 days in a month or 20 days in a year, after 03 written notices and if one of the participants is absent, the employer conducts the disciplinary hearing according to the regulation Only need to notify once, if one of the participants is absent, the employer conducts the disciplinary hearing
7 The authorized person to sign labor contracts has the authority to issue disciplinary decisions only for reprimands The authorized person to sign labor contracts has the authority to issue labor disciplinary decisions for employees
8 Applied the disciplinary form of dismissal if the employee voluntarily takes leave for 05 working days within 30 days from the first day of voluntary leave or 20 working days within 365 days from the first day of voluntary leave without a valid reason. The disciplinary handling for employees who voluntarily take leave does not have to wait until the end of the month or the year.

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