The 2019 Labor Code, effective from January 1, 2021, replaces the 2012 Labor Code. Below are 15 new points regarding labor contracts, wages, and bonuses that businesses need to pay attention to.
1. Increase the retirement age to 62 for men and 60 for women.
According to Clause 2, Article 169 of the 2019 Labor Code:
"The retirement age for workers under normal working conditions will be adjusted gradually until it reaches 62 years old for male workers in 2028 and 60 years old for female workers in 2035."
Since 2021, the retirement age for workers under normal working conditions is 60 years and 03 months for men and 55 years and 04 months for women; thereafter, it increases by 03 months each year for men and 04 months each year for women.
For specific jobs and certain special cases, early retirement is also more clearly regulated compared to the 2012 Labor Code.
2. The National Day holiday will be extended to two days.
Thus, the total number of annual public holidays under the 2019 Labor Code will increase to 11 days, specifically as stipulated in Article 112:
“1. Employees are entitled to time off with full pay on the following holidays:
a) New Year's Day is one day (January 1st);
b) Lunar New Year lasts 05 days;
c) Victory Day: 1 day (April 30th);
d) International Labor Day: 1 day (May 1st);
d) National Day: 2 days (September 2nd and one day immediately before or after);
e) Hung Kings Commemoration Day: 01 day (10th day of the 3rd lunar month)
3. Seasonal employment contracts are no longer available.
Article 20 of the 2019 Labor Code, effective from January 1, 2021, stipulates that there are only two types of labor contracts:
- Fixed-term employment contracts shall not exceed 36 months.
- Indefinite term contract
4. Extend the probationary period to 180 days for certain job positions.
The probationary period is agreed upon by both parties based on the nature and complexity of the job, but only one probationary period is allowed for a single job, and it must be ensured that: "it does not exceed 180 days for the work of a business manager as stipulated in the Enterprise Law and the Law on Management and Use of State Capital Invested in Production and Business at Enterprises" – According to Clause 1, Article 25, Labor Code 2019.
Thus, the probationary period differs from the current law. Currently, the maximum probationary period is 60 days.
5. Acknowledging the form of labor contract conclusion through electronic transactions.
Specifically, Article 13 of the 2019 Labor Code adds the following:
– Employment contracts concluded through electronic means have the same validity as written employment contracts.
Before hiring employees, employers must enter into employment contracts with them.
6. Increase overtime hours to 40 hours/month.
Specifically, Article 107 of the 2019 Labor Code stipulates that the number of overtime hours per month shall not exceed 40 hours/month (currently not exceeding 30 hours/month), and more specifically, cases where overtime can reach up to 300 hours/year include: manufacturing and processing for export of textiles, footwear, electronics, electrical components, processing of agricultural, forestry and aquatic products, telecommunications, water supply, electricity supply, etc.
7. Add more cases of paid leave for personal reasons.
In addition to the previous cases of paid leave for personal reasons, Article 115 of the 2019 Labor Code has added the case of the death of a foster father or foster mother. In this case, employees will be entitled to paid leave for personal reasons in the following circumstances:
- Marriage: 03 days off;
- Natural and adopted children get married: take 01 day off;
- Birth father, natural mother, adoptive father, adoptive mother; natural father, natural mother, adoptive father, adoptive mother of the husband or wife; wife or husband; natural children, adopted children die: 03 days off.
Labor Code 2019 (Effective from January 1, 2021)
NATIONAL ASSEMBLY OF THE SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness Ministry