What should be noted for employees who have retired but still continue to work afterward in Vietnam?

What should be noted for employees who have retired but still continue to work afterward in Vietnam? (Illustrative image)

What does the Labor Code 2019 stipulate about retired employees in Vietnam?

According to Clause 1, Article 148 of the Labor Code 2019, an elderly worker is someone who continues to work after reaching retirement age. In other words, a retired employee who continues to work is called an elderly worker.

What should be noted for employees who have retired but still continue to work afterward in Vietnam?

According to the Labor Code 2019, employees who have retired but still continue to work afterward should take note of the following issues:

1. Multiple fixed-term labor contracts can be concluded

According to Clause 1, Article 149 of the Labor Code 2019, when employing elderly workers, both parties can agree to conclude multiple fixed-term labor contracts.

Based on this regulation, retired employees can still continue to work for their employer and are allowed to conclude multiple fixed-term labor contracts. On this matter, the 2012 Labor Code stipulates as follows:

When needed, the employer can agree with the elderly worker, who is still healthy, to extend the duration of the labor contract or to conclude a new labor contract according to Chapter III of this Code.

However, under the provisions of Chapter III of the 2012 Labor Code, elderly workers and employers can only conclude a maximum of 2 fixed-term labor contracts.

Thus, allowing elderly workers and employers to agree to conclude multiple fixed-term labor contracts is an important new point of the Labor Code 2019. Additionally, this is one of the special cases where a fixed-term labor contract can be concluded more than twice.

2. While receiving a pension, elderly workers still enjoy benefits as agreed upon in the labor contract

According to Clause 2, Article 149 of the Labor Code 2019:

When an elderly worker is receiving a pension according to the provisions of the Social Insurance Law and continues to work under a new labor contract, apart from the pension benefits, the elderly worker is entitled to salary and other benefits as per the laws and the labor contract.

This is not a new regulation but has been acknowledged in the 2012 Labor Code at Article 167 as follows:

Upon retirement, if working under a new labor contract, apart from pension benefits, the elderly worker still enjoys the benefits as agreed upon in the labor contract.

Thus, employees who have retired but still continue to work afterward basically enjoy the following: pension; salary according to the agreed job title; allowances; and other additional amounts...

3. Employers are not allowed to employ elderly workers in heavy, hazardous, or dangerous jobs that negatively affect their health

This is one of the important requirements when employing elderly workers, specifically stipulated in Clause 3, Article 149 of the Labor Code 2019:

Elderly workers must not be employed to perform heavy, hazardous, dangerous jobs or particularly heavy, hazardous, dangerous jobs that negatively affect their health, unless under conditions ensuring safety at work.

Regarding the exceptional cases where elderly workers can perform heavy, hazardous, dangerous jobs or particularly heavy, hazardous, dangerous jobs that negatively affect their health, while the 2012 Labor Code stipulates it is permissible for special cases detailed by the Government of Vietnam, the Labor Code 2019 changes this, requiring conditions for ensuring safe working conditions.

Furthermore, employers are responsible for taking care of the health of elderly workers at the workplace.

The above are the reminders for retired employees who continue working for employers. However, these consultations are based on the provisions of the Labor Code 2019, which will officially take effect in Vietnam from January 1, 2021, so customers and members should note the effective date of application.

Thuy Tram

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