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SURVEY

Legal Framework / Labour

Labour (5/6/2009)

 Recruitment

 

Enterprises with foreign capital are entitled to directly recruit Vietnamese workers or recruit through a human resource service. They are requested to send a list of recruited workers to the local government labor management agency. For any work requiring high technology or techniques which Vietnamese workers can not meet requirements, enterprises are allowed to recruit a proportion of foreign workers or staff for a definite term contract; however they need to develop a plan for training Vietnamese workers so Vietnamese workers can then take these kinds of work and replace foreign workers as regulated by the Government.

Foreigners working in Vietnam for individuals, enterprises or organizations in Vietnam for over 3 months must have work permit granted by the competent labor management agencies at provincial or national municipal levels; duration of the work permit is based on duration of the labor contract, however not exceeding 36 months and it can be extended as requested by employers. 

Except for contracts for less than 3 months or work applied to those who work as housemates who serve only housework without any obligation for keeping properties, other contracts must be written in papers and signed between employers and employees. The labor contracts must consist of the following contents of required job, working hours, vacations, salary, working location, contract duration, and conditions of working safety, hygiene and social insurance to employees. 

 

Working hours and vacation

 

According to Vietnam Labor Law, working hours is not exceeding 8 hours per day or 48 hours per week. Employers and employees can negotiate for overtime working, however not exceeding 04 hours/ a day or 200 hours/ a year. Pregnant women in 7th months or women having small children under 12 months and workers under 18 years old are exempted from overtime work. Employees working overtime are paid based on regular salary scale, at least 150% of regular salary if they work during week day and at least 200% if they work during weekend; and at least 300% if they work on holidays.

 

Employees benefit from holidays such as New Year day and other national holidays and are entitled to benefit from full salary. They also benefit from vacation as regulated by the government (12 days per year if they work for employers for 12 months and will be added 1 more day if they have 5 years of working within that organization or company.

 

Salary or remuneration

 

Salary of employees is negotiated by the two parties and stated in the labor contract. Salary level of employees must be not lower than the minimum level of salary regulated by the Government, specifically 55USD per month for manual workers in Hanoi and HoChiMinh city; 50USD per month for workers in Hai Phong, Danang, Vung Tau, Can Tho; and 45USD per month for workers working in other provinces.

 

Insurance

 

All businesses and enterprises signing labour contracts which last for more than 3 months or which are indefinite contracts must carry out social insurance procedures for their employees regardless of scale of operation of businesses or enterprises. Applied to these enterprises, employers must pay 15% of gross salary and employees pay 5% of their gross salary. Employers who work in the organization or businesses which have less than 10 employees or those who work for less than 3 months, work for a seasonal period or work temporarily will be paid for social insurance (including the social insurance amount paid by employers) adding to their salary, so employees can choose to participate in social insurance in types of self-payment for social insurance or can choose other services relating to their social insurances. Apart from social insurance, employers pay 2% and employees pay 1% of their gross salary for medical insurance per month.

 

Work safety and hygiene 

 

Employers must ensure to carry out work safety and work hygiene for employees. In cases employees loose their working capacity to 81% upwards or deaths of employees due to work accidents or occupational diseases, employers must compensate the employees or their relatives if the accidents or occupational diseases are not resulted from mistakes or errors of the employees. Employers also pay all medical expenses for workers who got work accidents or suffer from occupational diseases. 

 

Work regulations/principles

 

Companies or businesses must develop a working regulation or principle if they have more than 10 employees. Employers officially inform employees about this principle. A regular working principle usually include articles relating to working hours, vacation, organizational structure, hygiene, work safety etc. 

 

Trade Union

 

Within the first 6 months since the operation of companies, trade union of companies must be established to protect rights and benefits of employees and workers. Employers must recognized roles of trade union after it is legally established. Trade union must develop some strict rules or principles which protect the trade union and its members from oppression or discrimination from employers towards the operation of the trade union. 

 

Labor conflict

 

Individuals or organizations of employees can bring to courts for a legal action. Duration of the lawsuit between employers and representative group of employees can last for 1 year. Duration of individual lawsuit varies depending on the labor conflict. For conflicts relating to situation of one party terminates the labor contracts or dismiss or compensate for employees relating to their contract termination and payment for social insurances, duration of the lawsuit is 1 year; conflicts relating to labor export is 3 year and duration of lawsuit for other conflicts is 6 months.

 

 

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