Tiếng Việt
中文 (中国)
Vietnam has an abundant labor force that can probably adapt with the current industrial production development needs. However, the recruitment of labor for foreign enterprises may face some difficulties due to lack of understanding of Vietnam’s Labor Law. Above all, the article also gives some concrete information about Vietnam labor law as well as labor resources in the vicinity of Viet Kieu Industrial Park in Binh Phuoc.
Important information about Vietnam Labor Law
Minimum wage as per Vietnam Labor Law
According to Decree 90/2019/ND-CP, the minimum wage by region in Vietnam is currently regulated as follows::
– Area I: 4.420.000 VND
– Area II: 3.920.000 VND
– Area III: 3.430.000 VND
– Area IV: 3.070.000 VND
Binh Phuoc province is located between Area II and III.
The salary for overtime work is regulated as follows::
Employees working overtime shall be paid at least 150% of wages for weekdays and at least 200% of wages for weekly rest days. Particularly for statutory holidays, employees are paid at least 300% of the agreed salary.
For night workers, the Vietnam Labor Law stipulates that night work time is calculated from 10pm to 6am the next day. Employees working during this period will be paid at least 30% of the salary calculated according to the salary unit price for the job.
(Source: Articles 98, 106 of Vietnam Labor Law amended year 2019, effective from 01/01/2021)
Notes when signing a contract under Vietnam Labor Law
In terms of content, the contract needs to ensure all basic contents such as information of the two parties; work and place of work; salary level, payment method and payment term; working time, rest;… In addition, the enterprise may add some other terms depending on the nature of the work and the agreement between the two parties.
(Source: Article 21 of Vietnam Labor Law amended year2019, effective from 01/01/2021)
In terms of form, according to Vietnam’s Labor Law, labor contracts can be divided into 3 types:
– Labor contract in writing;
– Labor contract in the form of data messages signed through electronic means;
– Verbal labor contracts (applicable to contracts with a term of less than 1 month)
Depending on the time and recruitment needs, enterprises should consider to choose the appropriate form of contract.
(Source: Article 14 of Vietnam Labor Law amended year2019, effective from 01/01/2021)
Provisions on termination of labor contracts
For Employees:
The employee has the right to unilaterally terminate the labor contract but must notify the employer in advance as follows:
- At least 45 days if working under an indefinite term labor contract;
- At least 30 days if working under a definite-term labor contract with a term of between 12 and 36 months;
- At least 03 working days if working under a definite-term labor contract with a term of less than 12 months;
- For a number of specific industries, trades and jobs, the notice period shall comply with the Government’s regulations.
The employee has the right to unilaterally terminate the labor contract without prior notice in the following cases::
- Not being arranged according to the right job, working location or not guaranteed the agreed working conditions, except for the case specified in Article 29 of this Code;
- Not being paid in full or on time, except for the case specified in Clause 4, Article 97 of this Code;
- Being abused, beaten by the employer or having insulting words or acts, acts affecting health, dignity and honor; forced labor;
- Being sexually harassed at work;
- Pregnant female employees must take leave as prescribed in Clause 1, Article 138 of this Code;
- Having reached the retirement age as prescribed in Article 169 of this Code, unless otherwise agreed by the parties;
- The employer provides untruthful information as prescribed in Clause 1, Article 16 of this Code, affecting the performance of the labor contract.
For Employers:
The employer has the right to unilaterally terminate the labor contract in the following cases:
- The employee who regularly fails to complete the work under the labor contract is determined according to the criteria for assessing the job completion level in the employer’s regulations.
- An employee suffering from an illness or an accident has received treatment for 12 consecutive months, for employees working under an indefinite term labor contract, or has received treatment for 6 consecutive months, for an employee working under a definite labor contract. definite term from 12 months to 36 months or more than half of the term of the labor contract for the employee working under the definite term labor contract with a term of less than 12 months but the working capacity has not yet recovered. When the worker’s health recovers, the employer will consider continuing to enter into a labor contract with the employee;
- Due to natural disasters, fires, dangerous epidemics, enemy sabotage or relocation, downsizing of production and business at the request of competent state agencies, the employer has sought all remedies but still forced to reduce workplaces;
- The employees reach the retirement age as prescribed in Article 169 of this Code, unless otherwise agreed;
- An employee who provides dishonest information as prescribed in Clause 2, Article 16 of this Code when entering into a labor contract affects the recruitment of employees.
In the above cases, the employer must notify the employee in advance as follows::
- At least 45 days for an indefinite term employment contract.
- At least 30 days for definite-term labor contracts with a term of between 12 and 36 months;
- At least 03 working days for a definite-term labor contract with a term of less than 12 months and for the case specified at Point b, Clause 1 of this Article;
- For a number of specific industries, trades and jobs, the notice period shall comply with the Government’s regulations.
In the following cases, the employer has the right to unilaterally terminate the contract without having to comply with the provisions of labor law.:
- The employee is not present at the workplace after the time limit specified in Article 31 of this Code;
- The employee voluntarily quits his job without a legitimate reason for 05 consecutive working days or more.
Regulations related to Social Insurance
Compulsory social insurance is a type of social insurance organized by the State that employees and employers must participate in. Fees are paid according to the provisions of law..
Personel subjected in participating compulsory social insurance.
- Persons working under an indefinite term labor contract, a definite term labor contract, a seasonal labor contract or a certain job with a term from full 3 months to less than 12 months, counting both labor
- contracts signed between the employer and the legal representative of the person under 15 years of age in accordance with the labor law;Persons working under labor contracts with a term of from full 1 month to less than 3 months;
- The enterprise manager, the executive manager of the cooperative receiving salary
Labor source in the vicinity of Viet Kieu Industrial Park
Viet Kieu Industrial Park is located between two areas of Binh Phuoc, Binh Long Town and Hon Quan District, which is one of the densely populated areas in Binh Phuoc.
The total population in these two areas is about 170,000 people according to the Binh Phuoc Statistical Department in 2019. In which, people of working age are estimated at about 100,000 people, so it will meet the demand. labor demand of investors who want to expand production and business activities in this area.
In addition, services related to introduction and labor supply are also very popular in Binh Phuoc area in general and in the vicinity of Viet Kieu Industrial Park in particular. The above services will ensure the supply of short-term and long-term personnel needs for businesses.