Vietnam: Issues businesses need to pay attention to when employing elderly workers from 2021

According to the labor law of Vietnam, elderly employees are those who continue working after retirement age. So when employing elderly workers, what issues should businesses pay attention to?

In accordance with the Labor Code 2019 of Vietnam and the Law on Social Insurance 2014 of Vietnam, when employing elderly workers, businesses should pay attention to the following issues:

Firstly, enterprises must pay compulsory social insurance for elderly employees if they are not yet eligible for pension.

According to Clause 1 Article 2 of the, employees working under labor contracts with a term from 1 month shall be covered by compulsory social insurance.

On the other hand, according to Clause 9 Article 123 of the Law on Social Insurance 2014 of Vietnam, persons on pension, social insurance allowance or monthly allowance who are working under signed labor contracts shall not be covered by compulsory social insurance.

Concurrently, according to Clause 2 Article 149 of the Labor Code 2019 of Vietnam, 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.

Thus, according to the above provisions, in case an elderly employee is eligible for a monthly pension, the enterprise will not be required to pay compulsory social insurance for such employee. And vice versa, if an elderly employee is not yet eligible for pension, the enterprise must pay compulsory social insurance for that employee.

Secondly, elderly employees are entitled to negotiate with their employer on reduction of their daily working hours.

Pursuant to Clause 2 Article 148 of the Labor Code 2019 of Vietnam, elderly employees are entitled to negotiate with their employer on reduction of their daily working hours or to work on a part-time basis.

Concurrently, enterprises 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. In case of violation, enterprises shall face a fine ranging from VND 10,000,000 to VND 15,000,000 shall be imposed upon any employer that commits any act of hiring older workers to do arduous, hazardous or dangerous work likely to adversely affect their health in accordance with regulations in force (Article 30 of the Decree No. 28/2020/NĐ-CP of the Government of Vietnam).

Thirdly, enterprise and elderly employee may agree on the conclusion of multiple fixed-term employment contracts. 

Pursuant to Clause 1 Article 149 of the Labor Code 2019 of Vietnam, when an elderly person is employed, both parties may agree on the conclusion of multiple fixed-term employment contracts.

Besides, employers are responsible for taking care of the health of elderly employees at the workplace.

The above are 03 issues that businesses need to pay attention to when employing elderly workers. Hopefully this information will help customers and members (especially businesses) understand the provisions of the law on the employment of elderly workers in Vietnam.

 

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