Labor Code 2019: Notes on employment of employees for overtime work in Vietnam

Labor Code 2019: Notes on employment of employees for overtime work in Vietnam​ (Illustrative Image)

According to the provisions of the Labor Code 2019, from 2021 onwards, when using overtime labor, enterprises need to pay attention to the following issues:

1. Ensure the overtime hours comply with legal provisions

Employers are allowed to use employees for overtime work but must obtain the employees' consent. And ensure the overtime hours as follows:

- Overtime must not exceed 50% of the normal working hours per day;

- In cases where weekly normal working hours are applied, overtime must not exceed 12 hours in one day;

- Must not exceed 40 hours in one month;

- Overtime must not exceed 200 hours in one year.

However, in some cases, employers are allowed to use employees for overtime up to 300 hours in one year, as follows:

- Production, processing, and export of textiles, garments, leather, footwear, electricity, electronics, agricultural, forestry, fishing, and salt products;

- Electricity production and supply, telecommunications, oil refining; water supply and drainage;

- Jobs that require highly specialized and technical skills that the labor market cannot supply adequately and promptly;

- Urgent tasks that cannot be postponed due to the seasonal, timing nature of materials, products, or to address problems arising from unforeseen objective factors due to weather, natural disasters, fires, enemy sabotage, power shortages, material shortages, technical issues of production lines;

- Other cases as prescribed by the Government of Vietnam.

When organizing overtime in these cases, employers must notify the provincial People's Committee's labor authority in writing.

2. Employees eligible for overtime work in Vietnam

Employers must take note not to use overtime labor in the following cases:

- Employees under 15 years old;

- Employees aged 15 but under 18 can only work overtime in certain jobs as prescribed by law.

- Pregnant employees from the 7th month or from the 6th month if working in mountainous, remote, border, or island areas;

- Employees nursing children under 12 months old, unless agreed by the employee.

3. Overtime in special cases in Vietnam

Principally, employers must obtain the consent of employees to use them for overtime work. However, in some special cases, enterprises have the right to require employees to work overtime on any day without restricted overtime hours. To be specific:

- Executing orders of mobilization, duty, ensuring national defense and security tasks as prescribed by law;

- Performing work to protect human lives, property of agencies, organizations, individuals in prevention, remedy consequences of natural disasters, fires, epidemics, and disasters, except when there is a risk to the life, health of employees according to the provisions of the law on occupational safety and health.

Labor Code 2019 adds an exception for employees not required to work overtime, even in these special circumstances, if they see a risk to life, health according to the law on occupational safety and health.

4. Overtime wages in Vietnam

Overtime wages are calculated based on the wage unit price or the actual wage paid for the job as follows:

- On normal days, at least 150%;

- On weekly rest days, at least 200%;

- On public holidays, Tet holidays, paid days off, at least 300% excluding the salary of public holidays, Tet holidays, paid days off for employees paid on a daily basis.

Employees working overtime at night are also paid an additional 20% of the wage calculated based on the wage unit price or the daytime wage of normal working days, weekly rest days, or public holidays, Tet holidays.

The legal provisions on overtime not only facilitate the production and business activities of enterprises but also ensure the health, life, and legal rights and benefits of employees.

Thuy Tram

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE