Employment of elderly people in Vietnam: 03 things you should note

What is an elderly employee? What are the things you should note about employment of elderly people in Vietnam? - Hoa My (Vinh Phuc, Vietnam)

Sử dụng người lao động cao tuổi: 03 điều cần lưu ý
Employment of elderly people in Vietnam: 03 things you should note (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is an elderly employee?

According to Clause 1, Article 148 of the Labor Code 2019, an elderly employee is a person who continues working after the age stipulated in Clause 2 Article 169 of Labor Code 2019, specifically:

- 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.

Note:

- 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.

- 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.

2. Regulations on employment of elderly people in Vietnam

According to Article 149 of the Labor Code 2019, the regulations on employment of elderly people in Vietnam as follows:

- When an elderly person is employed, both parties may agree on conclusion of multiple fixed-term employment contracts.

- 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.

- 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.

- Employers are responsible for taking care of the health of elderly employees at the workplace.

3. Penalties for violations against regulations on elderly employees in Vietnam

Pursuant to Clause 2, Article 31 of Decree 12/2022/ND-CP, a fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed upon an employer for hiring elderly employees to perform arduous, hazardous and dangerous works or jobs, or extremely arduous, hazardous and dangerous works or jobs, which are harmful to their health, unless safe working conditions are ensured.

Regulations on the participation in social insurance, health insurance and unemployment insurance, especially elderly employees:

Article 168 of the Labor Code 2019 stipulates the participation in social insurance, health insurance and unemployment insurance in Vietnam as follows:

- 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.

- 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.

- 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.

Nhu Mai

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