Tài liệu LABOUR CODE OF SOCIALIST REPUBLIC OF VIETNAM pdf

An employee shall have the right to form, join, or participate in union activities in accordance with the Law on Trade Unions in order to protect his legal rights and benefits; he shall

LABOUR CODE OF

SOCIALIST REPUBLIC OF

VIETNAM

NATIONAL ASSEMBLY SOCIALIST REPUBLIC OF VIETNAMLEGISLATURE IX SESSION 5 Independence - Freedom - Happiness

Hanoi, 23 June 1994

LABOUR CODE

OF SOCIALIST REPUBLIC OF VIETNAM

(Amended and supplemented in 2002)

Labour is the most important activity of a human being creating both material products andsocial values High labour productivity, quality and efficiency are significant factors whichdetermine the level of development of a country

By regulating the rights and obligations of employees and employers, labour standards, andlabour utilization and management, the Labour Code not only contributes increasedproduction but also plays an important role in society and in the legal system of the nation

Pursuant to old labour legislation and legal development in labour of Vietnam since theAugust Revolution of 1945, this Code institutionalizes the "renovation" policy of theCommunist Party of Vietnam and provides for detailed implementation of the provisions ofthe 1992 Constitution of the Socialist Republic of Vietnam on labour, and its utilization andmanagement

The Labour Code protects the right to work, benefits, and other rights of workers and, at thesame time, the legal rights and benefits of employers thereby creating conditions forharmonious and stable labour relations It assists a worker to utilize his creativity and skill

through his mind and body, and protects the rights of a labour manager for the purposes ofachieving high labour productivity and quality; social improvements in labour, production,and services; effective utilization and management of labour; and industrialization and

modernization of the country, for the objective of prosperous people, a mighty country and a just, demoncratic, civilized society

CHAPTER I

General Provisions Article 1

The Labour Code regulates the labour relationship between a wage earning worker and hisemployer, and the social relationship which is derived directly from this labour relationship

A Vietnamese citizen who works in an enterprise with foreign owned capital in Vietnam, or

in a foreign or international organization operating in the territory of Vietnam, and aforeigner who works in an enterprise or organization, or for an individual, operating in theterritory of Vietnam, shall be subject to the provisions of this Code and other provisions ofthe law of Vietnam, except where the provisions of an international treaty to which theSocialist Republic of Vietnam is a signatory or participant provide otherwise

Article 4

The labour regime which applies to State employees and officials, elected and appointedofficials, members of units of the people's armed forces and police force, members of publicorganizations, members of political and social organizations, and members of co-operativesshall be governed by other separate legislation and a number of the provisions of this Codewhich shall be applied to each particular entity.

Article 5

1 Every person shall have the right to work, to choose freely the type of work or trade, tolearn a trade, and to improve his professional skill without being discriminated against

on the basis of his gender, race, social class, beliefs, or religion

2 Maltreatment of workers and all forms of forced labour are prohibited

3 Any activity which creates employment, which is a form of self employment, whichteaches a skill or trade to assist others to find work, and any production or businessactivity which employs a high number of workers shall be encouraged by the State andshall enjoy favourable conditions or assistance

performed; the employee shall be entitled to labour protection, and safe and hygienicworking conditions; the employee shall be entitled to stipulated rest breaks andholidays, fully paid annual leave, and social insurance benefits in accordance with theprovisions of the law The State shall stipulate a labour regime and a social policyaimed at protecting female workers and occupations having special characteristics.

2 An employee shall have the right to form, join, or participate in union activities in

accordance with the Law on Trade Unions in order to protect his legal rights and

benefits; he shall be entitled to collective welfare and be permitted to participate in themanagement of the business in accordance with the internal regulations of theenterprise and the provisions of the law

3 An employee shall have an obligation to perform the labour contract and the collectivelabour agreement, to comply with labour rules, internal labour regulations, and thelawful administrative orders of the employer

4 An employee shall have the right to strike in accordance with the provisions of the law

Article 8

1 An employer shall have the right to recruit labour and to assign or manage labour inaccordance with the requirements of business production; it shall have the right toreward and praise outstanding performances, and to deal with breaches of labour rules

in accordance with the provisions of the Labour Code

2 An employer shall have the right to appoint a representative to negotiate and sign acollective labour agreement of the enterprise or a collective labour agreement of anindustry group, and have the responsibility to co-operate with trade unions indiscussing issues relating to labour relations and to improve the material and spirituallives of employees

3 An employer shall have an obligation to perform the labour contract, the collectivelabour agreement, and other agreements reached with the employees, to respect theirhonour and dignity, and to treat employees well

Article 9

The labour relationship between an employee and an employer is established and developedthrough negotiation and agreement on the principles of voluntary commitment, fairness, co-operation, mutual respect of legal rights and benefits, and full performance of undertakings

Article 10*

1 The State shall uniformly manage human resources and labour sources in accordancewith the law and shall formulate policies to increase and apportion sources of labour,

and to develop various forms of labour utilization and job introduction.

2 The State shall provide guidelines for employees and employers to establishharmonious and stable labour relationships for the purpose of mutual co-operation inthe development of businesses

Article 11

The State shall, in order to achieve highly efficient management of labour and productionwithin businesses, encourage democratic, fair and civilized labour management, andmeasures which increase a worker's commitment and loyalty towards the business includingbonuses in the form of profit sharing

The State shall formulate policies which enable an employee to participate in thedevelopment a business by purchasing shares in the business

Article 12

Trade unions shall, in conjunction with State bodies and economic and social organizations,look after and protect the rights of employees; and inspect and supervise the implementation

of the provisions of the Labour Code

2 The State shall formulate policies which provide preferential treatment andemployment opportunities in order to increase the employment rate of ethnicminorities

3 The State shall establish policies to encourage and create favourable conditions forinvestment by domestic and foreign organizations or individuals (including

Vietnamese residing abroad) in the development of the manufacturing, business, andservice industries for the purpose of reducing unemployment.

Article 15*

1 The Government shall, through its job creation programmes, establish nationalemployment programmes, and investment projects for economic and social growth innew economic zones The State shall establish a national employment fund with funds

from the State treasury and from other sources It shall develop a network of job introducing agencies The Government shall submit annually a national employment

programme and fund to the National Assembly for approval

2 People's committees of provinces and cities under central authority shall establish localemployment programmes for submission to the people's council at the same level forapproval

3 State bodies, economic organizations, public associations, and social organizationsshall, depending on their respective duties and powers, be responsible for theimplementation of employment programmes and funds

Article 16*

1 An employee shall have the right to be employed by any employer in any location notprohibited by law A worker who is seeking work shall have the right to approach a

potential employer directly or to register with a job introducing agency in order to find

a job which matches his aspiration, ability, trade skill, and health

2 An employer shall have the right to recruit labour directly or through job introducing

agencies, and to increase or reduce the number of employees in accordance withproduction and business requirements and in compliance with the provisions of thelaw

Article 17*

1 Where, as a result of organizational restructuring or technological changes, an

employee who has been employed in the business for more than 12 months becomes

unemployed, the employer shall have the responsibility to re-train and assign theemployee to another job within the enterprise; if a new job cannot be created, theemployer must pay an allowance for loss of work equivalent to the aggregate amount

of one month's salary for each year of employment but no less than two months salary

2 In cases where the retrenchment referred to in clause 1 of this article applies to anumber of employees, the employer must publish a list of the employees to beretrenched, and on the basis of business requirements, seniority, skill, familyconditions, and other factors of each employee, the employer shall gradually retrenchthe employees provided that the executive committee of the trade union of theenterprise is consulted in accordance with the procedure stipulated in clause 2 of article

38 of this Code An employer shall only be permitted to retrench employees afternotifying the local labour office

3 Business enterprises must establish a reserve for retrenchment payouts in accordancewith the provisions of the Government in order to ensure that retrenched employees arepaid in a timely manner

4 In order to create favourable conditions for workers to find work or be self employed,the Government shall formulate policies and measures to provide trade skills, training,business and production guidance, and low interest loans from the nationalemployment fund; it shall also provide financial assistance to localities or brancheswhich have high unemployment rates due to organizational restructuring ortechnological changes

Article 18*

1 Job introducing agency shall have duty to provide consultancy services and introduce jobs to workers, to supply and recruit labor by requirement of employers, to collect and

provide information on the labour market and to perform other duties in accordance with provisions of the law

2 An job-recommending agency shall be permitted to collect fees, be considered for taxreduction or exemption, and organize trade training classes in accordance with theprovisions of Chapter III of this Code

3 The Ministry of Labour, War Invalids and Social Affairs shall carry out the Stateadministration of the activities of job introducing agencies

Article 19

Any conduct which is intended to deceive workers or to use an job-recommending agency as

a means of breaching the law is strictly prohibited including forms of enticement, falsepromises, or false advertising

CHAPTER III

Trade Apprenticeship and Training

Article 20

1 Each person shall have the right to choose freely a trade and a place to learn that trade

in accordance with his work requirements

2 An enterprise, organization, or individual satisfying the conditions stipulated by lawshall be permitted to establish trade training centres The Government shallpromulgate provisions on the establishment of trade training centres

Article 21

1 A trade training centre must be registered and must operate in accordance with theprovisions on trade training It shall be permitted to collect fees and shall be subject topayment of tax in accordance with the provisions of the law.

2 Trade training centres which cater for war invalids, injured soldiers, the disabled, andethnic minorities; those which are located in high unemployment regions; and thosewhich teach traditional trades in factories or at home shall be considered for taxexemption or reduction

Article 22

Students registered at a trade training centre must be at least thirteen (13) years of age,except in the case of trades in respect of which the Ministry of Labour, War Invalids andSocial Affairs determines otherwise Students registered must be healthy and capable ofsatisfying the requirements of the trade

Article 23

1 A business enterprise must establish programmes to improve the trade skills of itsemployees and to re-train employees who are assigned to other jobs within theenterprise

2 A business enterprise which recruits apprentices or trainees for a fixed period specified

in the apprenticeship or training contract shall not be required to register or pay tax forsuch training but shall be prohibited from collecting fees The training orapprenticeship period shall be included in the employment period of an employee ofthe enterprise Where a trainee or an apprentice directly produces or participates in theproduction of products for the enterprise during his training or apprenticeship period,

he shall be paid a wage at a rate agreed between the trainee or apprentice and theemployer

Article 24

1 Trade training must be accompanied by a written or oral contract entered into betweenthe student and the teacher of the trade or the representative of the trade training centre.Where the trade training contract is in writing, it must be made in duplicate with eachparty retaining a copy.

2 The main contents of a trade training contract must include the objective of the trainingprogramme, the venue, the fee, the duration, and the amount of compensation forbreach of contract

3 Where an enterprise recruits an apprentice to work in its operation, the trade trainingcontract must specify the term of apprenticeship and a provision which guarantees thesigning of a labour contract upon the completion of the apprenticeship If, after thecompletion of the apprenticeship, the apprentice refuses to continue working inaccordance with the undertakings stated in the contract, he must pay compensation forthe costs of trainning cost

4 Where the trade training contract terminates prior to expiry due to reasons of forcemajeure, neither party shall be liable for payment of compensation

Article 25

Enterprises, organizations and individuals are strictly prohibited from exploiting workers forself interest motives through apprenticeship programmes or trade training Any conductwhich deceives or compels an apprentice or trainee to carry out illegal activities is alsostrictly prohibited

CHAPTER IV

Labour Contract Article 26

A labour contract is an agreement between the employee and the employer specifyingremuneration, working conditions, and the rights and obligations of each party in the labourrelationship.

Article 27*

1 A labour contract shall be entered into in any one of the following forms:

(a)An indefinite term labour contract;

A contract with an indefinite term is the one in which both parties did not define a time limit

or a date to terminate the effect of the contract

(b)A definite term labour contract with period of employment from one to three years;

A contract with a definite term is the one in which both parties defined a time limit or a date

to terminate the effect of the contract within the duration from full 12 months to 36 months

(c)A labour contract for a specific or seasonal job with a duration of less than 12months

2 When a labor contract as indicated in sub-clauses (b) and (c) of clause 1 of this Article is expired and the worker continues to work, both parties shall have to conclude a new contract within 30 days from the date of the contract expiration; if there is no conclusion of

a new labor contract, the signed contract shall become a contract with indefinite term Where both parties conclude new contract, which is a contract with a definite term, they shall only be permitted to conclude for such one more time limit, after that if the worker still continue his/her work, a labor contract with indefinite term must be signed

2 Parties are prohibited from signing labour contracts for seasonal work or a specific taskwith a terrm of less than 12 months to carry out work of a regular nature for more than

12 months, except in the case of the temporary replacement of an employee who hastaken leave of absence because of military obligation, pregnancy, or other temporaryreasons

Article 28

A labour contract shall be entered into in writing and must be made in duplicate with eachparty retaining one copy An oral agreement may be entered into in respect of certaintemporary works which have a duration of less than three months, and in respect of domesticservants In the case of an oral agreement, the parties must still comply with the provisions

of the Labour Code

 Conditions in respect of social insurance for employee

2 Where the whole or a part of a labour contract provides to the employee less rights thanthose stipulated in the Labour Code, in the collective labour agreement, and in theexisting internal labour regulations of the enterprise, or limits other rights of an

employee, the whole contract or the relevant part must be amended or added toaccordingly.

3 Where a labour inspector discovers a contract referred to in clause 2 of this article, heshall provide guidelines for parties to amend or add to the contract Where the partiesrefuse to amend or add to the contract, the labour inspector shall compel the deletion of

such term from the labour contract; the rights, obligations and the interest of the parties thereafter shall be settled in accordance with the provisions of the laws

Article 30

1 A labour contract shall be entered into directly between the employee and theemployer

2 A labour contract may be signed by the employer and an employee who is authorized

to represent a group of employees In this case, the labour contract shall beenforceable and effective as if it were entered into directly with each employee

3 An employee may enter into one or more labour contracts with one or more employersprovided that he is able to perform fully the contracts entered into

4 The tasks stipulated in the labour contract must be carried out by the person who hasdirectly entered into such contract, and the transfer of such tasks to another personwithout the approval of the employer is prohibited

Article 31*

In cases where an enterprise merges, unifies, divides, separates or transfers the ownership,management, or right to management, or to the use of property of the enterprise, the newemployer shall be responsible for the continued implementation of the contract entered into

with the employees In the case of unsufficient employment for all existing employees, there shall be a proposal on appropriate measures for the utilization of the labor force in accordance with the provisions of the law

The worker who had to terminate the labor contract as persuant to the stipulations of this articles shall be entiled to the allowance for loss of work in accordance with the provisions

of clause 1 of article 17 of this code

During a trial period, each party shall be entitled to terminate the trial work agreementwithout giving advance notice and shall not be obliged to pay compensation if the workperformed does not satisfy the agreed requirements If and when the work performedsatisfies the agreed requirements, the employer must officially employ the employee aspreviously agreed

to the signed labour contract or by entering into a new labour contract Where both parties fail to agree on the amendments to existing labor contract or to the conclusion of a new labor contract, they shall have to continue to implement the concluded labor contract or they shall terminate the contract in accordance with the provisions of clause 3 of article 36 of this code

Article 34

1 In cases of force majeure or due to business production demand, an employer maytemporarily assign an employee to another job provided that the period of assignmentdoes not exceed sixty (60) days in one year.

2 In cases of a temporary assignment, an employer must give three days notice to theemployee, inform the employee of the duration of the temporary assignment, andassign a job which is suitable to the health and gender of the employee

3 Where an employee is assigned to another job as stipulated in clause 1 of this article,the employee shall be paid a wage at a rate appropriate to the new job Where thewage rate of the new job is less than that of the previous job, the employee shall beentitled to receive the previous wage for a period of thirty (30) days The new wageshall be equal to at least seventy (70) per cent of the previous wage but not less thanthe minimum wage stipulated by the State

(b)The employee is detained or is held temporarily in prison;

(c)In other circumstances agreed by both parties

2 Where a labour contract is suspended in the cases stipulated in sub-clauses (a) and (c)

of this article, the employer must re-employ the employee at the end of that suspensionperiod

3 Where a labour contract is suspended due to the employee being detained or heldtemporarily in prison, the re-employment of the employee shall be determined by theGovernment.

Article 36

A labour contract shall be terminated in the following circumstances:

1 the expiry of the contract;

2 the tasks stated in the contract have been completed;

3 both parties agree to terminate the contract;

4 the employee is convicted or sentenced to serve a jail term or is prevented fromperforming his former job in accordance with a judgment or decision of the Court;

5 the employee dies or is declared missing by the Court

Article 37*

1 An employee employed under a labor contract with a definite term of full 12 months to

36 months, or a contract for seasonal work or a specific task of less than 12 months,

shall be entitled to unilaterally terminate the contract prior to expiry in any one of thefollowing circumstances:

(a)The employee is not assigned to a job or work place or is not provided with thework conditions agreed to in the contract;

(b)The employee is not paid in full and in time the wages due pursuant to the contract;(c)The employer maltreats the employee or the employment is a form of forced labour;

(d)For personal or family reasons the employee is unable to continue performing thecontract;

(e)The employee is elected to public office or is appointed to a position in a Statebody;

(f) A female employee is pregnant and requires leave of absence as advised by adoctor

(g)The employee is ill or is victim of an accident and no recovery of working ability after having received treament for 3 consecutive months in respect of a labor contract with a definite term of full 12 months to 36 months, or for a quarter of the term of the contract in respect of a contract for seasonal work or a specific task of less than 12 months

2 Where a labour contract is unilaterally terminated in accordance with the provisions ofclause 1 of this article, the employee must give the employer:

(a)In the cases stipulated in sub-clauses (a), (b) and (c): at least three days notice;

(b)In the cases stipulated in sub-clauses (d) and (e): at least thirty (30) days notice inrespect of a definite term of full 12 months to 36 months, and at least three daysnotice in respect of a contract for a specific or seasonal job with a duration of lessthan 12 months

(c)In the case stipulated in sub-clause (f): notice in accordance with the periodstipulated in article 112 of this Code

3 An employee who work under a labor contract with an indefinite term, shall have theright to unilaterally terminate the contract, provided that he gives the employer at least

45 days notice, the employee is ill or victim of an accident and having received treament for 6 consecutive monhts must give at least three days notice

Article 38

1 An employer may unilaterally terminate a labour contract in any of the followingcircumstances:

(a)The employee repeatedly fails to perform the work in accordance with the terms ofthe contract;

(b)An employee is disciplined or dismissed in accordance with the provisions of article

85 of this Code

(c)Where an employee suffers illness or injury and remains unable to work afterhaving received treatment for 12 consecutive months in respect of a labor contractwith an indefinite term, or for 6 consecutive months in respect of a contract with a

definite term of full 12 months to 36 months, or for more than half the duration of the contract in respect of a contract for seasonal job or a specific task of less than

12 months Upon the recovery of the employee, the employer shall consider the

continuation of the labour contract;

(d)The employer is forced to reduce production and employment while trying torecover from a natural disaster, a fire, or an event of force majeure;

(e)The enterprise, organization, or individual ceases operation

2 Prior to the termination of a labour contract in accordance with sub-clauses (a), (b) and(c) of clause 1 of this article, the employer must discuss and reach an agreement withthe executive committee of the trade union Where there is a disagreement, bothparties must submit a report to the competent body or organization After a period ofthirty (30) days as from the date the labour office is notified, the employer shall havethe right to make a decision and be responsible for such a decision Where theexecutive committee of the trade union of the enterprise or the employee disagreeswith the decision of the employer, either party shall have the right to request theresolution of a labour dispute in accordance with a procedure stipulated by the law

3 Where an employer unilaterally terminates a labour contract, except in the casestipulated in sub-clause (b) of clause 1 of this article, the employer must give notice tothe employee:

(a)no later than forty five (45) days in respect of an indefinite term labour contract;

(b)no later than thirty (30) days in respect of a definite term contract with duration of

12 months to 36 months

(c)no later than three days in respect of a contract for a specific or seasonal job with a

duration of less than 12 months

2 The employee is on annual leave, personal leave of absence, or any other type of leavepermitted by the employer

3 The employee is a female referred to in clause 3 of article 111 of this Code

Article 40

Each party may withdraw its notice of unilateral termination of a labour contract at any timebefore the notice period for termination has expired If the time for giving notice hasexpired, each party shall have the right to terminate the labour contract

Article 41*

1 Where unilaterally terminating a labour contract in infringement of the law, the employer must re-employ the employee to the work as agreed upon in the contract and pay a compensation equal to the amount of wage and additional payment to wage, if any, corresponding to the period the worker was not allowed to work, and an addition of at least two months wages plus allowances, if any

A worker not wishing to return to work shall receive, in addition to such compensationstipulated in the first section of this paragraph, a severance allowance in accordance with theprovision of clause 1 of article 42 of this Code

In the case the employer does not want to re-employ the employee and the employee also agrees with such a decision, both parties can negotiate upon the additional compensation apart from sums indicated in the first section of this clause as well as in the provisions of article 42 of this code in order to terminate the labor contract

2 Where unilaterally terminating a labour contract in infringement of the law, the worker

is not entitled to the above mentioned severance allowance and shall pay the employer

a compensation equal to the amount of a half of his/her monthly wage rate plus salary allowance, if any

3 Where an employee unilaterally terminates the labour contract, he shall be liable forpayment of compensation for costs of training (if any) in accordance with theprovisions of the Government

4 Where a labour contract is unilaterally terminated in breach of the provisions on givingadvance notice, the party in breach shall pay compensation to the other party in a sumequal to the wages which would otherwise have been paid for those days not notified

Article 42

1 Where the labour contract of an employee who has been employed in an enterprise ororganization, or with an individual, for full and more than more than 12 months, theemployer must pay such employee a retrenchment allowance equal to the aggregate

amount of half a month's salary for each year of employment plus salary allowances (ifany).

2 Where a labour contract is terminated in accordance with the provisions of sub-clauses(a) and (b) of clause 1 of article 85 of this Code, the employee shall not be entitled to aretrenchment allowance

Article 43

Within seven days from the date of termination of a labour contract each party shall beresponsible for full payment of all sums outstanding to the other party In special cases, thisperiod may be extended to thirty (30) days

Where the enterprise is declared bankrupt, money relating to the rights of the employees

shall be dealt with in accordance with the provisions of the Law on Business Bankruptcy.

The employer shall state in writing the reasons for the termination of the labour contract andreturn the labour book to the employee Apart from what is stated in the labour book, theemployer is prohibited from providing in writing or orally any additional information whichmight prevent the employee from finding employment

CHAPTER V

Collective Labour Agreement Article 44

1 A collective labour agreement (hereinafter referred to as a collective agreement) is a

written agreement between a body of employees (labour collective) and the employer

in respect of working conditions and utilization of labour, and the rights andobligations of both parties in respect of labour relations

A collective agreement negotiated and signed by the representative of the labourcollective and the employer shall be based on the principles of voluntary commitmentand fairness, and shall be made public.

2 The terms and conditions of the collective agreement must be consistent with theprovisions of the Labour Code and other labour laws

The State encourages the parties to sign a collective agreement which provideemployees with more favourable conditions than those stipulated in labour laws

Article 45*

1 The negotiating representatives of both parties to the collective agreement shall be:

(a)The Executive Committee of the enterprises trade union or a provisional trade union Executive Committee, on the side of the labor collective;

(b)The representatives of the employer shall be the manager of the enterprise, or aperson authorized in accordance with the charter of the enterprise or delegated bythe manager of the enterprise

The representatives of both parties in the negotiation of a collective agreement shall beagreed on by the parties and be in equal numbers

2 The representative who signs the collective agreement for the labour collective must bethe chairman of the executive committee of the trade union of the enterprise or aperson authorized by the executive committee The representing signatory of theemployer shall be the manager of the enterprise or a person authorized by him

3 A collective agreement shall only be signed if the negotiated content of such agreement

is approved by more than fifty (50) per cent of the members of the labour collective

Article 46

1 Each party shall have the right to request the signing of a collective agreement and topropose its terms and conditions No later than twenty (20) days after receiving therequest, the receiving party must agree to the negotiation proposal and acommencement date for the negotiation.

2 The principal provisions of the collective agreement include undertakings of the parties

in respect of employment and guarantee of employment; working hours and restbreaks; salaries, bonuses, and allowances; work limits; labour protection, occupationalsafety and hygiene; and social insurance for the employees

Article 47*

1 The signed collective agreement must be made in four copies:

(a)one for the employer;

(b)one for the executive committee of the trade union of the enterprise;

(c)one to be submitted to a higher trade union body by the executive committee of thetrade union of the enterprise;

(d)one to be submitted by the employer for rigistration to the labor authority of the province or the city coming directly under the central administration where the enterprise’s head office is located, within ten (10) days from the date of signing.

2 The collective agreement shall become effective as from the agreed date specified incollective agreement, or from the date of signing of the agreement if there is nospecification by both parties

Article 48*

1 The collective agreement shall be partially invalid if the approval of the provinciallabour office is required for one or a number of provisions in the agreement are ininfringement of the laws

2 The collective agreement shall be wholly invalid in the following circumstances:

(a)all of the terms and conditions of the agreement are contrary to the law;

(b)the person signing the agreement was not fully authorized;

(c)the signing procedure was not strictly followed;

(d)the agreement is not registered at a provincial labour office

3 The labor authority of the province or the city coming directly under the centraladministration shall have the right to declare a collective agreement partially or whollyvoid as stipulated in clause 1 and 2 of this article In respect of collective agreements asstipulated in sub-clauses (b) and (c) of clause 2 of this article, and where the terms ofthe agreement are beneficial to the employees, the labour authority of the province orthe city coming directly under the central administration shall instruct the parties toproceed again in conformity with legal requirement within 10 days from the date ofbeing instructed; or shall declare the agreement null and void if the parties fail to carry

out such instructions As such, the rights, obligations and interests of the parties shall

be settled hereafter in accordance with the provisions of the laws

Article 49

1 The collective agreement shall be made known to all employees of the enterprise after

it becomes legally effective All employees including new employees who areemployed after the signing of the agreement shall be responsible for the fullimplementation of the collective agreement

2 Where the rights stipulated in a signed labour contract of an employee are lessfavourable than those provided for in the collective agreement, the terms of the

collective agreement must be complied with All labour regulations within theenterprise must be amended so that they are consistent with the provisions of thecollective agreement.

3 Where a party fails to perform fully the provisions of the collective agreement orbreaches the provisions of the collective agreement, the other party has the right torequest full compliance with the agreement Any dispute between the parties must beresolved firstly by way of conciliation Where the parties fail to resolve the dispute,each party shall have the right to request resolution of the collective labour dispute inaccordance with the procedure stipulated by law

Article 50

A signed collective agreement shall be for a duration of one to three years When anenterprise signs a collective agreement for the first time, the duration of the collectiveagreement may be less than one year

Each party shall have the right to request the amendment of or addition to the collectiveagreement only after three months from the date of signing in respect of a collectiveagreement with a duration of less than one year, or six months in respect of an agreementwith a duration of one to three years The procedure for the amendment of or addition to acollective agreement shall be in accordance with the signing procedure

Article 51

Prior to the expiry of a collective agreement, both parties may negotiate the extension of theduration of the existing collective agreement or enter into a new agreement Where thecollective agreement expires during the negotiation process, it shall continue to be effectiveand binding If the negotiations between the parties are still inconclusive three months afterthe expiry of the agreement, the old agreement shall be deemed to have expired and becomeinvalid

Article 52*

1 In cases of enterprise merger, consolidation, separation or splitting, transfer of the right to own, manage, or the right use assets of, enterprises, the employers and the grassroots trade unions’ executive committees shall base themselves on the employment plans to

consider the continued implementation, revision, supplementation of the collective

agreements or signing new ones.”

2 In cases where an enterprise ceases its operation and the collective agreement becomesvoid, the interest of the employees shall be dealt with in accordance with article 66 ofthis Code

The wage of an employee shall be agreed in the labour contract and shall be paid inconsideration of rate of production, and the quality and result of the work performed Thewage of an employee must not be lower than the minimum wage stipulated by the State.

Article 56

The minimum wage is calculated on the basis of the cost of living of an employee who isemployed in the most basic job with normal working conditions, and includes payment forthe work performed and an additional amount for contribution towards the savings of theemployee The minimum wage shall be used as a basis for employers to calculate the wages

of various jobs within an enterprise

Subject to consultation with the Trade Union Federation of Vietnam and representatives ofemployers, the Government shall determine and promulgate for each period a generalminimum wage, a minimum wage for each region, and a minimum wage for each industry

When the price index increases, resulting in the reduction of the real wages of employees, theGovernment shall adjust the minimum wage accordingly

Article 57*

After consulting with Vietnam Confederation of Labor and the employers’ representatives, the Government shall prescribe the principles for formulating the salary levels and scales as well as labor norms so that the employers can formulate and apply them in a way suitable to their enterprises’ production and business conditions; and prescribe the salary levels and tables for State enterprises

When formulating salary levels and scales as well as labor norms, the employers mustconsult with the grassroots trade unions’ executive committees; the salary levels and scalesmust be registered with the agencies in charge of the State management over labor in theprovinces or centrally-run cities where the employers’ head offices are based, and bepublicized within the enterprises.”

Article 58

1 An employer shall have the right to select the method of payment of wages: calculated

by reference to hours, days, weeks, or months, or on the basis of a product produced or

a project, provided that the selected method is applied for a fixed period of time andthe employee is notified of the method

2 An employee whose wage is calculated by reference to hours, days, or weeks shall bepaid at the end of the hour, day, or week, or such period as agreed by the partiesprovided that each payment of wage is made within a period of fifteen (15) days

3 An employee whose wage is calculated by reference to months shall be paid monthly

or half-monthly

4 An employee whose wage is calculated on the basis of a product produced or acompleted project shall be paid in accordance with an agreement reached between thetwo parties: where the work to be performed is carried out over many months, theemployee shall be entitled to monthly payments in advance calculated on the amount

of work performed within the month

2 Payment of wages shall be made by way of cash Both parties may agree on payment

in part by cheque or State coupons provided that the employee does not suffer any loss

or inconvenience

Article 60

1 An employee shall have the right to be aware of any deductions made from his salary.Prior to making any deduction, the employer must consult with and obtain the approval

of the executive committee of the trade union of the enterprise Where there aredeductions, the aggregate amount deducted must not exceed thirty (30) per cent of themonthly wage

2 An employer shall be prohibited from imposing fines and penalties by way ofdeductions from wages

Article 61*

1 The laborers working overtime shall be paid according to the unit salary or salaries of the jobs they are doing as follows:

a/ On weekdays, an amount at least equal to 150%;

b/ On weekends, an amount at least equal to 200%;

c/ On paid public holidays, an amount at least equal to 300%

If overtime work is performed at night, an additional amount shall be paid as prescribed in Clause 2 of this Article

If the laborers are granted compensatory days-off for the hours they worked overtime, the employers shall only have to pay the amounts in excess of the salaries calculated according

to the unit salary or the remuneration of the jobs being done on weekdays

2 The laborers working at night as prescribed in Article 70 of this Code shall be paid an additional amount at least equal to 30% of the salaries calculated according to the unit salary

or the salaries of the jobs being done at daytime.”

Article 62

In cases where the employee has to cease working, he shall be paid as follows:

1 If due to the fault of the employer, the employee shall be entitled to payment of the fullwage;

2 If due to the fault of the employee, that employee shall not be entitled to payment ofwage; other employees in the same unit who have to also cease work shall be paidwages agreed on by the parties provided that those wages are not less than theminimum wage;

3 If there is a breakdown in electricity or water through no fault of the employer, or due

to reasons of force majeure, the level of salary shall be agreed on by the parties butshall not be less than the minimum wage

The reward regulations shall be decided by the employers after consulting with the grassrootstrade unions’ executive committees

Article 65

1 Where a contractor's foreman or equivalent intermediary is used, the employer who isthe principal owner must prepare a list of the names and addresses of such personsaccompanied by a list of their employees, and must ensure that their activities complywith the provisions of the law on wages, labour protection, occupational safety andhygiene

2 In cases where a contractor's foreman or an equivalent intermediary fails to pay, or topay in full the wages and other rights and interests of employees, the employer who is

the principal owner must be responsible for the full payment to the employees In thiscase, the employer who is the principal owner shall have the right to requestcompensation from the contractor's foreman or equivalent intermediary, or request acompetent State body to resolve the dispute in accordance with the provisions of thelaw.

Article 66*

In cases of enterprise merger, consolidation, separation or splitting, transfer of the right toown, manage, or the right to use assets of, enterprises, the succeeding employers must beresponsible for paying salaries and other interests to the laborers transferred from the oldenterprises Where the enterprises go bankrupt, the salaries, severance allowances, socialinsurance premiums and other interests of the laborers under the signed collectiveagreements and labor contracts shall be the debts payable first in the payment priority order

Article 67

1 Where an employee or his family faces financial difficulties, the employee shall beentitled to an advance in salary in accordance with the conditions agreed by bothparties

2 The employer shall advance salary or wage to an employee who is temporarily absentfrom work due to public obligations

3 Payments of salary in advance to employees who are detained or held temporarily inprison shall be determined by the Government

CHAPTER VII

Working Hours and Holidays

Part IWorking Hours

Article 68

1 The normal working hours of each employee shall not exceed eight hours per day orforty eight (48) hours per week An employer shall have the right to determine theworking hours on a daily or a weekly basis provided that the employees are notified

2 The normal working hours shall be reduced by one or two hours for workers whoperform extremely heavy, dangerous, or toxic works as stipulated in a list issued by theMinistry of Labour, War Invalids and Social Affairs and the Ministry of Health

Article 69*

The employers and laborers may agree on the latter’s overtime which must not exceed fourhours a day, 200 hours a year, except for a number of special cases where the overtime canreach 300 hours a year, which shall be prescribed by the Government after consulting withVietnam Confederation of Labor and the employers’ representatives

3 An employee who works in shifts shall be entitled to a break of at least twelve hoursbetween each shift.

Article 73

An employee shall be entitled to have fully paid days off on the following public holidays:

 Calendar New Year Holiday: one day (the first day of January of each calendar year);

 Lunar New Year Holidays: four days (the final day of the old year and the first threedays of the new Lunar year);

 Victory Day: one day (the thirtieth day of April of each calendar year);

 International Labour Day: one day (the first day of May of each calendar year);

 National Day: one day (the second day of September of each calendar year)

Where the public holidays referred to above coincide with a weekly day off, the employeeshall be entitled to take the following day off also.

(c)Annual leave of sixteen (16) working days shall apply to persons working inextremely heavy, dangerous, or toxic jobs, or in heavy, dangerous, or toxic jobs inplaces with harsh living conditions

2 Travelling time not included in the annual leave shall be determined by theGovernment

2 An employee may reach an agreement with the employer on taking annual leave ininstalments Persons who work in distant and remote regions may, if they so request,combine two annual leaves together, or where three annual leaves are desired to betaken at one time, the approval of the employer must be obtained.

3 A former employee of an enterprise or an employee who for some reason fails to takehis annual leave or has not used up all his annual leave shall be paid the normal wage

in lieu of those days not taken

Article 77

1 When taking annual leave, an employee may be paid in advance an amount equal to atleast the wages for the days on holiday Travel expenses and wages paid during travelshall be agreed on by the parties

2 An employee whose period of employment is less than twelve (12) months shall beentitled to a holiday of a duration calculated in proportion to the period of employment

or an equivalent payment in lieu of the holiday

Part III Personal Leave of Absence and Holiday Without Pay

Article 78

An employee may take fully paid leave of absence for personal reasons in the followingcircumstances:

1 Marriage: for three days;

2 Marriage of his children: for one day;

3 Death of a parent (including the spouse's parents), spouse, or child: for three days

2 Prior to proclaiming the internal labour regulations, the employer must consult theexecutive committee of the trade union of the enterprise.

3 An employer must register the internal labour regulations document with the provinciallabour office The internal labour regulations shall be effective and binding as fromthe date of registration No later than ten (10) days after the receipt of the internallabour regulations document, the provincial labour office must issue confirmation ofthe registration If the labour office fails to issue such confirmation after the expiry ofthe period referred to above, the internal labour regulations document shall becomeeffective

Article 83

1 The internal labour regulations must include the following main contents:

(a)Working hours and rest breaks;

(b)Rules and order of the enterprise;

(c)Occupational safety and hygiene in the work place;

(d)Protection of assets and confidentiality of technology and business secrets of theenterprise;

(e)Conduct which is in breach of labour rules and penalties imposed for thosebreaches, and responsibility for damage

2 The internal labour regulations must be notified to each employee and the main rulesmust be posted at strategic locations within the enterprise

Article 84*

1 Those who breach labor disciplines shall, depending on the seriousness of their breaches,

be handled in one of the following forms:

1 Dismissal shall be applied as a disciplinary measure only in one of the following cases:

a/ The laborers commit acts of theft, embezzlement, disclosure of technological and business secrets or other acts causing severe losses to the enterprises’ assets and/or benefits;

b/ The laborers who have been disciplined with the prolongation of salary-raise time limit or the transfer to other jobs relapse into the previous violations while their disciplinary records have not yet been wiped off, or who have been subject to demotion relapse into the previous violations;

c/ The laborers abandon their jobs at their own will for an aggregate number of five days in amonth or an aggregate number of 20 days in a year without plausible reasons

2 After dismissing the laborers, the employers must inform such to the provincial/municipalagencies in charge of the State management over labor

Article 86

The period for assessing a breach of labour rules shall not exceed three months as from thedate the breach occurred The period for special cases shall not exceed six months

Article 87