Updated Labor Law 2021.
Changes to the Employment Contract
1. Increase awareness of labor relations.
– Any contract that meets all three of the following criteria is considered an employment contract (According to Clause 1, Article 3)
Working on the basis of agreement.
+ Pay salaries
+ There is management, operation, and supervision by one party.
2. Entering into an employment contract via electronic means (this contract has the same validity as a written employment contract) – According to Clause 1, Article 4
3. No longer have seasonal contracts of less than one month or contracts for a specific job (Clause 1, Article 20)
– Only 02 types of employment contracts remain.
+ Indefinite-term employment contract
+ Fixed-term employment contracts not exceeding 36 months
4. The parties have flexibility in choosing the probationary period.
– The terms of the probationary period may be stipulated in the employment contract or a separate probationary contract. During the probationary period, each party has the right to terminate the probationary contract or the concluded employment contract without prior notice and without compensation.
– Supplementing the regulations to stipulate a probationary period of no more than 180 days for the work of enterprise managers according to the Enterprise Law and the Law on Management and Use of State Capital Invested in Production and Business at Enterprises.
5. Employers have the right to sign multiple fixed-term employment contracts with elderly workers and foreign workers in Vietnam (Article 36).
6. Employees have the full right to unilaterally terminate the employment contract without needing a reason, but must give prior notice to the employer within the prescribed time limit (Clause 1, Article 35).
– Contracts with no fixed term: ≥ 45 days.
– Fixed-term contracts with a term of 12 to 36 months: ≥ 30 days.
– For fixed-term contracts with a term of less than 12 months: ≥ 03 working days.
– For certain specific occupations and jobs: The government will provide specific regulations.
7. Clearly stipulates 07 cases in which employees have the right to terminate their employment contract without prior notice, except in cases where the parties have agreed otherwise (Article 35).
8. Reasonable regulations regarding the timeframe for resolution and the responsibilities of both parties upon termination of the employment contract.
– Increase the time from 7 to 14 working days for both the employee and the employer to fully settle all payments related to each party's rights; in exceptional cases, the maximum period remains at 30 days.
– The regulations add the responsibility of the employer to complete the procedures for confirming the employee's social insurance contribution period, provide copies of documents related to the employee's work history if requested by the employee, and pay all costs for copying and sending the documents.
Changes in Salary
1. Salary scale and labor standards:
– No need to register salary scales and tables with government agencies.
– Enterprises have autonomy in developing wage scales, salary tables, and labor norms based on discussions with the employee representative organization at the enterprise and publicly disclosing them at the workplace before implementation (Article 93).
2. The employer must provide the employee with a payslip clearly stating overtime pay, night work pay, and the details and amounts deducted (if any).
3. When paying salaries through a bank, the employer must pay the account opening fee (Clause 2, Article 94).
4. It is prohibited to force employees to use their wages to purchase goods or services from the company.
5. Employees may be rewarded not only with money (it could also be with assets, goods, or other forms of compensation).
6. Employees may authorize another person to receive their salary if deemed reasonable, especially in cases where the employee is ill or injured and unable to receive their salary in person…
Changes to Social Insurance
1. Changes to pension eligibility conditions
– For individuals participating in mandatory social insurance under normal working conditions.
Detailed regulations are provided in Article 169.
2. Changes in health insurance policy
Specifically, from January 1, 2021, in cases where individuals with health insurance cards seek medical treatment outside their designated network, the health insurance fund will reimburse them according to the benefit level stipulated in Clause 1, Article 22 of the Health Insurance Law (the benefit level for treatment within the designated network) at the following rates:
- At central hospitals: 40% of inpatient treatment costs;
– At provincial-level hospitals, 100% of inpatient treatment costs will be covered nationwide from January 1, 2021 (Currently, only 60% of inpatient treatment costs are reimbursed according to the health insurance card's benefit level).
– At district-level hospitals, 100% of the medical examination and treatment costs are covered.
View full text Labor Code 2019 No. 45/2019/QH14