Law No. 10/2012/QH13 on Labor code.
Pursuing the trend forward to favor employee benefits in the current Labor Code, the new one is designed to offer further favor to employees. Most changes brought by the new Labor Code provide the improvement in working conditions of employees including but not limited to salary in probation period, minimum wage, the maternity leave, additional working hours. Following is brief of significant amendments in the new code. read more
Increase of salary rates in some certain circumstances
According to the new code an employee working in probation period shall be paid at least 85% of the official wage of the relevant work instead of 70% as per the current provision. An employee who is temporarily transferred to another job due to unexpected difficulty in a company shall receive at least 85% of his current wage.
Longer maternity leave and public holiday
The new code gives a female employee the right to take maternity leave of 6 months with 2 months longer than current period. Maternity leave could be taken before or after giving birth but maximum leave days prior to giving birth shall not exceed 2 months. Also, from the effective date of the new code, all employees shall have right to take 5 days for the leave in Lunar New Year
Clarity of overtime
The additional working hours is stipulated in the new Labor Code clearer than the prevailing one. Accordingly, the additional working hours of employee, if required, shall not (i) exceed 50% of his normal working hours per day, and if a company regulates working hours on a weekly basis, total working hours (including overtime) shall not exceed 12 hours per day; or (ii) exceed 30 hours per month; or exceed 200 hours per year. However, employees may be required to work overtime up to 300 hours per year in some special conditions that will be stipulated in details by the Government.
Diversification of retirement ages
Basically, the standard age for retirement shall be remain unchained as 60 years old for male employees and 50 years old for female employees. However, the new code classifies retirement ages into 3 groups including standard age; lower age applicable to employees who work in heavy or toxic jobs; and higher age but not exceeding 5 years than the standard age applicable to employees who have high technical expertise or play management roles.
Once promulgated by the President, this new Labor Code will come into effective on the 1st day of May, 2013 and entirely supersedes Labor Code 1994 and its amendments. All current agreements and policy in business entities, including internal labor rules, collective agreements, labor contracts in which terms and conditions are inconsistent with the new Labor Code, must be amended or supplemented respectively
This Code shall take effect from 01 May 2013.
The Labour Code dated 23 June 1994, the Law amending and supplementing a number of articles of the Labor Code No. 35/2002/QH10 , the Law amending and supplementing a number of the Labour Code No. 74/2006 / QH11 and the Law amending and supplementing a number of articles of the Labor Code No.84/2007/QH11 that shall be expired from the date this Code takes effect
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