SUMMARY OF THE 2019 LABOR CODE
Chapter I – General Provisions
This chapter includes:
- Defining the scope of regulation: labor standards; rights and obligations of employees and employers; representative organizations; state management of labor.
- Subjects of application: employees, employers, foreign workers, apprentices, trainees, and persons working without a labor relationship.
- Definitions of key terms: employee, employer, representative organizations, labor relations, forced labor, discrimination, sexual harassment, etc.
- State policies: protecting the rights of employees and employers; developing the labor market; improving productivity; vocational training; ensuring gender equality.
- Rights and obligations of employees and employers.
- Building progressive, harmonious, and stable labor relations.
- Prohibited acts: discrimination, forced labor, sexual harassment, exploitation of apprentices, fraudulent recruitment, illegal use of juvenile labor, etc.
Article 3. Interpretation of Terms
In this Code, the following terms are construed as follows:
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- Employee means a person who works for an employer under an agreement, is paid wages, and is subject to the management, administration, and supervision of the employer.
- The minimum working age of an employee is 15 years old, except for cases specified in Section 1, Chapter XI of this Code.
- Employer means an enterprise, agency, organization, cooperative, household, or individual that hires or employs an employee to work for them under an agreement; where the employer is an individual, that person must have full civil act capacity.
- Employee representative organization at the grassroots level means an organization voluntarily established by employees at a workplace for the purpose of protecting the lawful and legitimate rights and interests of employees in labor relations through collective bargaining or other forms as prescribed by labor law.
- Employee representative organizations at the grassroots level include grassroots trade unions and employee organizations within enterprises.
- Employer representative organization means a legally established organization that represents and protects the lawful rights and interests of employers in labor relations.
- Labor relations means social relations arising from the hiring, employment, and wage payment between employees, employers, their representative organizations, and competent state authorities.
- Labor relations include individual labor relations and collective labor relations.
- Person working without a labor relationship means a person who works not on the basis of employment under a labor contract.
- Forced labor means the use of violence, threat of violence, or other coercive measures to compel an employee to work against their will.
- Discrimination in labor means any act of distinction, exclusion, or preference based on race, color, national or social origin, ethnicity, gender, age, pregnancy status, marital status, religion, belief, political opinion, disability, family responsibilities, HIV status, or due to the establishment, joining, or activities of a trade union or employee organization at an enterprise, which affects equality in employment or occupation.
- Distinction, exclusion, or preference arising from the inherent requirements of a job or actions aimed at maintaining or protecting employment for vulnerable employees shall not be considered discrimination.
- Sexual harassment at the workplace means any sexual act or conduct by any person toward another person at the workplace that is unwanted or unaccepted by that person.
- The workplace is any place where the employee actually works according to the agreement or assignment of the employer.
Article 8. Prohibited Acts in the Field of Labor
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- Discrimination in labor.
- Maltreatment of employees and forced labor.
- Sexual harassment at the workplace.
- Taking advantage of vocational training or apprenticeship to seek profit, exploit labor, or entice, lure, or coerce apprentices or trainees into illegal activities.
- Employing workers who have not been trained or who do not possess a national occupational skills certificate for jobs or occupations that require trained workers or require a national occupational skills certificate.
- Enticing, luring, promising, fraudulent advertising, or using other deceptive methods to cheat employees or to recruit employees for the purpose of human trafficking, exploitation, forced labor, or abusing employment services or overseas labor programs to commit illegal acts.
- Illegally employing juvenile workers.
Chapter II – Employment, Recruitment, and Labor Management
This chapter includes:
- Definition of employment: income‑generating work not prohibited by law.
- Responsibilities of the State, employers, and society in job creation.
- Employees’ right to work: freedom to choose employment, direct contact or through employment services.
- Recruitment: employers may recruit directly or through employment service organizations; employees do not pay recruitment fees.
- Employers’ labor management duties: maintaining labor books, reporting labor usage, periodic updates.
Chapter III – Labor Contracts
Section 1 – Conclusion of Labor Contracts
This section includes:
- Definition of labor contract: agreement on paid work, wages, working conditions.
- Forms of contracts: written, electronic; contracts under 1 month may be verbal.
- Principles: voluntariness, equality, goodwill, cooperation, honesty.
- Information disclosure obligations when concluding contracts.
- Prohibited acts by employers: keeping original personal documents, requiring deposits, forcing employees to work to repay debt.
- Authority to conclude contracts for both employees and employers.
- Employees may sign multiple contracts with different employers.
- Types of contracts: Indefinite‑term contract and Fixed‑term contract (maximum 36 months)
- Rules when fixed‑term contracts expire.
- Mandatory contents of labor contracts.
- Contract appendices: may detail or amend clauses but cannot change contract duration.
- Contract validity: effective from the date of signing.
Section 2 – Probation
This section includes:
- Probation may be included in the labor contract or in a separate probation contract.
- Probation contract contents: probation period, job, wage, working conditions, etc.
- No probation for contracts under 1 month.
- Probation period depends on job complexity; only one probation period per job.
Chapter IV – Wages
This chapter includes:
- Principles of wage payment: based on productivity, quality, agreement; no discrimination.
- Wage payment methods: time‑based, product‑based, or lump‑sum.
- Payment via bank transfer or cash.
- Wage payment schedule: as agreed but must be timely.
- Overtime, night work, and holiday wages must be higher than normal wages.
- Regulations on wage advances, wage deductions, and wages during work suspension.
- The State sets regional minimum wages.
- Employers must publicize wage scales, payrolls, and labor norms.
Chapter V – Working Hours and Rest Periods
This chapter includes:
- Normal working hours: not more than 8 hours/day, 48 hours/week.
- Encouragement to reduce to 40 hours/week.
- Overtime: maximum 40 hours/month and 200 hours/year (300 hours/year for certain sectors).
- Breaks during shifts; weekly rest of at least 24 consecutive hours.
- Paid holidays (Lunar New Year, April 30, May 1, National Day, etc.).
- Annual leave: minimum 12 days, increasing with seniority.
- Personal leave and unpaid leave as prescribed.
Chapter VI – Labor Discipline and Material Responsibility
This chapter includes:
- Forms of discipline: reprimand, wage‑increase delay, demotion, dismissal.
- Dismissal for serious violations: theft, fighting, sexual harassment, prolonged absence, etc.
- Disciplinary procedures: proper process, participation of employee representatives.
- No discipline during employee’s sick leave, maternity leave, or detention.
- Material responsibility: employees compensate for damage based on fault.
- Employers cannot impose fines or wage deductions as disciplinary measures.
Chapter VII – Occupational Safety and Hygiene
This chapter includes:
- Employers must ensure safe and hygienic working conditions; provide protective equipment.
- Risk assessment and workplace environment monitoring.
- Employees must receive safety training before working.
- Employees may refuse work if there is a clear danger to life.
- Occupational accidents and diseases must be reported, investigated, and compensated.
- Employers must purchase occupational accident and disease insurance.
Chapter VIII – Female Employees
This chapter includes:
- Ensuring gender equality in recruitment, training, and promotion.
- Prohibition of dismissal or unilateral termination due to pregnancy, childbirth, or childcare.
- Maternity leave: 6 months; up to 2 months before childbirth.
- Leave for antenatal checkups, miscarriage, abortion, stillbirth.
- Breastfeeding mothers: 60 minutes daily break.
- No assignment of heavy or hazardous work to pregnant employees.
Chapter IX – Minor Employees
This chapter includes:
- Minor employees: under 18 years old.
- Prohibition of hazardous, heavy, overtime, or night work for minors (except specific cases).
- Employees aged 15–18 may work with appropriate conditions.
- Employees under 15 may only do light work with guardian consent.
- Labor contracts for minors must be signed with their legal representative.
Chapter X – Employees with Disabilities
This chapter includes:
- Prohibition of discrimination against employees with disabilities.
- Employers must ensure suitable working conditions, provide assistive devices, and adjust the workplace.
- Prohibition of assigning dangerous or harmful work.
- State incentives for employers hiring many disabled employees.
- Disabled employees receive support for vocational training and job placement.
Chapter XI – Employees Under 15 Years Old
This chapter includes:
- Employees under 15 may only perform light work that does not harm their health or development.
- Must have written consent from their legal representative.
- Not allowed to work overtime or at night.
- Employment contracts must be signed by the legal representative.
- Employers must ensure appropriate working conditions and periodic health checks.
- The Ministry of Labor issues the list of prohibited jobs for employees under 15.
Chapter XII – Foreign Employees Working in Vietnam
This Chapter includes:
- Foreign employees must have a work permit, except for exempted cases.
- Conditions for issuance: civil capacity, health, professional qualifications.
- Forms of work include experts, managers, technical workers, etc.
- Work permits are valid for up to 2 years and may be extended.
- Employers must justify the need for foreign workers.
- Employment ends when the work permit expires or is revoked.
Chapter XIII – Workplace Dialogue, Collective Bargaining, and Collective Agreements
This chapter includes:
- Workplace dialogue is held periodically or upon request.
- Dialogue topics include production status, employment, wages, working conditions, discipline, etc.
- Collective bargaining aims to conclude collective labor agreements.
- Agreements may apply at enterprise level, sector level, or across multiple enterprises.
- Agreements are binding on all parties involved.
- Bargaining cannot include illegal content or reduce employees’ minimum statutory rights.
Chapter XIV – Settlement of Labor Disputes
This chapter includes:
- Labor disputes include individual disputes and collective disputes.
- Principles: negotiation, mediation, arbitration, and court settlement.
- Individual disputes must go through a labor mediator before court proceedings (with some exceptions).
- Collective disputes over rights may be referred to the Chairperson of the district People’s Committee or the court.
- Collective disputes over interests may lead to a strike if unresolved.
Chapter XV – Strikes
This chapter includes:
- A strike is a collective work stoppage by employees to achieve demands in a labor dispute.
- Strikes are only permitted for collective disputes over interests.
- Procedures: voting, issuing a strike decision, and notifying the employer in advance.
- Illegal strikes include those not following procedures, outside permitted scope, or organized by unauthorized persons.
- Rights and obligations of employees and employers during strikes are regulated.
- Prohibits coercion, obstruction, or incitement related to strikes.
Chapter XVI – State Management of Labor
This chapter includes:
- State management includes policy-making, labor inspection, labor statistics, and labor market development.
- The Ministry of Labor, War Invalids and Social Affairs is responsible for national labor management.
- People’s Committees at all levels manage labor within their jurisdictions.
- Labor inspectors have authority to examine and sanction violations.
Chapter XVII – Implementation Provisions
This chapter includes:
- Specifies the effective date of the Labor Code 2019.
- Repeals previous regulations inconsistent with the new Code.
- The Government, the Ministry of Labor, and relevant agencies provide detailed guidance.
- Existing contracts, agreements, and regulations remain valid but must be adjusted if inconsistent with the new law.