5 Important New Points in the Draft Revised Labor Code That Workers Should Know

Currently, the Ministry of Labor, Invalids and Social Affairs is soliciting public comments on the Draft Amendment of the Labor Code with several notable provisions, prominently featuring the following contents.

1. Workers are entitled to leave without prior notice

Workers are entitled to leave without notice in the following cases:

- Workers are not assigned the right job, workplace, or are not ensured working conditions as agreed upon;

- Workers are not paid the full salary or are not paid on time as agreed by both parties;

- Workers are mistreated, sexually harassed, or forced into labor;

- Female workers who are pregnant leave work as instructed by the competent medical facility.

2. Increasing the retirement age

The Draft clearly states that the retirement age can be implemented according to one of the two following options:

- Option 1: From January 1, 2021, the retirement age for workers in normal working conditions is 60 years and 3 months for men and 55 years and 4 months for women; thereafter, each year, it increases by 3 months for men and 4 months for women until men reach 62 years old and women reach 60 years old.

- Option 2: From January 1, 2021, the retirement age for workers in normal working conditions is 60 years and 4 months for men and 55 years and 6 months for women; thereafter, each year, it increases by 4 months for men and 6 months for women until men reach 62 years old and women reach 60 years old.

3. Labor contracts under one month can be concluded verbally

According to the current regulations in the Labor Code 2012, the parties can conclude verbally for temporary work with a duration of less than 3 months.

However, the Draft of the amended Labor Code stipulates that employers and employees can conclude verbally for labor contracts under 1 month, except for the cases specified in Point a Clause 3 Article 146, Clause 1 Article 163 of the Labor Code 2012.

4. Proposal for an additional holiday on War Invalids and Martyrs Day July 27

Many opinions have suggested choosing the anniversary of War Invalids and Martyrs (July 27 of the solar calendar) as one of Vietnam's public holidays. Workers are entitled to a day off on this day with full pay.

5. No compensation leave for holidays coinciding with weekends

The Labor Code 2012 stipulates that if public holidays coincide with weekends, workers are entitled to compensatory leave on the following day, but this Draft proposes two options for the Tet holiday as follows:

- Option 1: Maintain the current regulation, workers are entitled to compensatory leave;

- Option 2: Workers are entitled to 5 days off for the Lunar New Year, if the Lunar New Year holidays coincide with weekends, no compensatory leave is given.

Duy Thinh

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