Labor Laws of Vietnam

Topics: Employment, Termination of employment, Trade union Pages: 9 (2784 words) Published: February 26, 2013
I. Overview
Vietnam is known for being a disciplined, hard-working, and fast-learning population. Traditions emphasizing learning and respect for authority as well as low wages and a high adult literacy rate are often cited by investors as among one of the most attractive aspects of the country’s investment environment (Treutler &Kien, 2010). The Labour Code of Vietnam serves as the main legal base for all the labour matters. It applies to both employees and employers including foreign organizations employing local and foreign staff working on regular basis in Vietnam (Chee &Le, 2008). On the other hand, there are also a number of implementing regulations such as Decrees, Decisions, and Circulars, which provide detailed guidelines for implementation the Code. These regulations play useful and significant roles in the Vietnamese legal system, as the government authorities would often refer to them in practice.        In this Code, employment in all business entities, including foreign-invested enterprises, should be based on a written employment contract, which contains sections relating to: * The scope of work

* Working hours
* Rest/breaks
* Recreation time
* Wages
* Place of work
* Terms of contract
* Occupational safety and hygiene,
* Social and medical insurance
II. Preamble
“Labor is the most important activity of man. It creates the material wealth and spiritual values of society. High-productivity, high-quality and high-efficiency labor is the determinant factor of national development. Labor legislation defines the rights and obligations of the employee and the employer, the labor standards and the principles for labor use and management, thus contributing to the promotion of production. Therefore, it plays an important role in social life and in the legal system of the country. Inheriting and developing the labor legislation of our country since 1945, the Labor Code institutionalizes the renewal line of the Communist Party of Vietnam and concretizes the provisions of the 1992 Constitution of the Socialist Republic of Vietnam on labor and on the use and management of labor. The Labor Code protects the right to work, the interests and other rights of the employee. At the same time it protects the legitimate rights and interests of the employer, thus creating conditions for the establishment of harmonious and stable labor relations, helping to develop the creativeness and talent of the intellectual and manual workers as well as of the labor managers, in order to achieve high productivity, quality and social progress in labor, production and service, efficient use and management of labor, thus contributing to the industrialization and modernization of the country in the cause of bringing prosperity to the people and strength to the nation and building a just and civilized society.” III. Main Sources of Labor Law

* The Labor Code
* The Law on Sending Vietnamese Laborers to Work Overseas * Government decrees, ministerial circulars and decisions, provincial decisions and guidelines * Collective labor agreements, company rules, individual contracts * The Supreme Court’s annual practice summaries and guidelines IV. Special Hiring Considerations

A. Hiring Non-Citizens
* Generally, if an expatriate wants to work in Vietnam for three months or longer, he/she must obtain a work permit. Vietnamese employers are required to provide support and submit application documents for the work permit. B. Hiring Specified Categories of Individuals

* Employers are prohibited from employing female employees, pregnant employees, child employees, and old employees for hazardous and hard work that may cause health problems. * Normally, the minimum working age is 15. There is no restriction on the maximum working age. The daily working hours of senior workers (over 60 for men or over 55 for women), however, should be reduced. C. Outsourcing and/or...
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