LABOR CODE

Pursuant to the Constitution 1992 of the Socialist Republic of Vietnam amended and supplemented under the Resolution No. 51/2001/QH10;

The National Assembly promulgates the Labor Code.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

The Labor Code specifies the labor standards; the rights, obligations and responsibilities of the employees, the employers, the labor representative organizations, the employer representative organizations in the labor relation and other relations directly related to the labor relation, the State management of labor.

Article 2. Subjects of application

1. The Vietnamese employees, apprentices, interns and other employees specified in this Code.

2. The employers.

3. Foreign employees working in Vietnam.

4. Other individuals, agencies and organizations directly related to the labor relation.

Article 3. Interpretation of terms

In this Code, the following terms are construed as follows:

1. Employees are people from 15 years old and above, capable of working, working under labor contracts, receiving salaries and subject to the management of the employers.

2. The employers are enterprises, agencies, organizations, cooperatives, households and individuals hiring, employing employees under labor contracts. The individuals must be sufficiently capable of civil acts.

3. The labor collectives are organized collectives of the employees working for one employer or in one division under the organizational structure of the employer.

4. The internal labor representative organizations are the executive board of the internal Union or the executive board of the direct superior Union if the internal Union has not been established

5. The employer representative organizations are organizations legally established to represent and protect the lawful rights and interests of the employers in the labor relation.

6. Labor relation is the social relation occurring while hiring or employing, paying salaries between the employee and the employer.

7. Labor dispute is the dispute over the rights, obligations and interests arising in the labor relation.

The labor disputes include the personal labor dispute between the employee and the employer, and the collective labor dispute between the labor collective and the employer.

8. Collective labor dispute over rights is the dispute between the labor collective and the employer arising out of the inconsistent explanation and implementation of the law provisions on labor, the collective labor agreement, the labor regulations and other lawful agreements and regulations.

9. The collective labor dispute over interests is the labor dispute arising when the labor collective requests the establishment of new working conditions compared to the law provisions on labor, the collective labor agreement, labor regulations and other lawful agreements and regulations during the negotiation between the labor collective and the employers. 

10. Coercive labor is the use of force, the threat to use force or other tricks to coerce other people to work involuntarily.

Article 4. The State policies on labor

1. Ensuring the legitimate rights and interests of the employees; encouraging agreements that ensure more favorable conditions for the employees than that in the law provisions on labor; encouraging employees to purchase stocks and contribute capital to the production and business development.

2. Ensuring the lawful rights and interests of the employers, managing labor in a legal, democratic, equitable, civilized manner, and enhance the social responsibilities.

3. Facilitating the employment creation, self-employment, vocational training and learning towards employment opportunities, facilitating the production and business that attract a lot of labor.

4. Planning the development and distribution of labor force; providing vocational training and skill improvement courses for employees, offering incentives to employees with great professional expertise that satisfy the modernization and industrialization requirements of the country.

5. Planning the labor market development, diversifying the means of connection between the labor supply and demand.

6. Guiding the communication and collective negotiation between employees and employers, building stable, progressive and harmonious labor relations.

7. Ensuring the gender equality; imposing labor regulations and social policies in order to protect female employees, disabled employees, elderly employees and underage employees.

Article 5. Rights and duties of employees

1. The employees are entitled to:

a) Work, independently select works, vocations, get vocational training and improvement without discrimination;

b) Receive salaries consistently with the vocational skills and grade on the basis of the agreement with the employer; receive work protection, work in safe and hygienic conditions; take official leave, paid annual leave and enjoy collective benefits;

c) Establish, join and participate in activities of the Union, professional organizations and other organizations as prescribed by law; request and participating in discussions with the employer, exercise the democratic regulation and get consultancy at workplaces in order to protect the lawful rights and interests; participate in the management under the regulations of the employer.

d) Unilaterally terminate the labor contract as prescribed by law;

dd) Be on strike.

2. The employees are responsible to:

a) Perform the labor contract and the collective labor agreement;

b) Observe the labor discipline, labor regulations and obey the lawful management of the employer;

c) Implement the law provisions on social insurance and law provisions on medical insurance.

Article 6. Rights and obligations of employers

1. The employers are entitled to:

a) Employ, arrange and manage labor according to the demand for production and business; commend and discipline for violations of labor discipline;

b) Establish, join and participate in the activities of professional organizations and other organizations as prescribed by law;

c) Request the labor collective to discuss, negotiate and conclude the collective labor agreement; participate in settling labor disputes and strikes; discuss with the Union about the problem in labor relations, improve the material and mental life of the employees;

d) Temporarily shut down the workplace.

2. The employers are responsible to:

a) Perform the labor contract, collective labor agreement and other agreements with employees, respect the honor and dignity of employees;

b) Establish the mechanism and discuss with the labor collective at the enterprise and strictly observe the internal democratic regulations;

c) Make the labor management book, salary book and present them at the request from competent agencies;

d) Declare the employment within 30 days as from starting the operation, periodically make and send reports on the change in the labor status during the operation to local State labor management agencies;

dd) Implement the law provisions on social insurance and law provisions on medical insurance.

Article 7. Labor relations

1. Labor relation between the employee or the labor collective with the employer is established through communication, negotiation and agreement in a voluntary, affable, equitable, cooperative manner, in which the lawful rights and interests are mutually respected.

2. The Union, the employer representative organizations shall join the State agencies in building the stable, progressive and harmonious labor relations, supervising the implementation of law provisions on labor; protecting the lawful rights and interests of employees and the employers.

Article 8. Prohibited acts

1. Discrimination by sex, race, social class, marital status, belief, religion, discrimination against HIV sufferers, disabled people or against the reasons for establishing, joining and participate in the Union activities.

2. Maltreatment of employees, sexual harassment at workplaces.

3. Coercive labor.

4. Exploiting vocational training and apprenticeship to make profit, exploit labor or entice, coerce the vocational learners, apprentices into committing unlawful acts.

5. Using untrained employees or employees without national vocational certificates to do the jobs that required trained employees or employees with national vocational certificates

6. Deceitfully enticing and advertising in order to cheat employees or exploiting the employment services to contractually send employees abroad to commit unlawful acts.

7. Illegally using underage labor.

Chapter II

EMPLOYMENTS

Article 9. Employments and employment creation.

1. Employments are activities that generate incomes that the law does not prohibit

2. The State, the employers and the society are responsible to create employments and ensure that everyone capable of working is offered employment possibilities.

Article 10. The right to work of employees

1. The employee is entitled to work for any employer at any place that the law does not prohibit.

2. The employee may directly contact the employee or via the employment services to seek employment towards their expectations, vocational grade and health.

Article 11. The right to employ of employers

The employer is entitled to employ labor directly or via employment services, or outsourcing service providers. The employer is entitled to increase or decrease the labor depending on the production and business demand.

Article 12. The State policies on employment development support

1. The State shall determine the target for employment increase in the five-year and the annual socio-economic development plans.

Depending on the socio-economic condition in each period, the Government shall present the National Assembly to approve the National program of vocational training and employment.

2. Establishing the policies on unemployment insurance and incentives for employees to create self-employment, support employers that employ females, disabled people or people from ethnic groups.

3. Encouraging and facilitate the investment in production and business development of domestic, foreign organizations and individuals in order to create more employments.

4. Supporting employers and employees to seek and expand the labor markets overseas.

5. Establishing the National fund of employments to grant preferential loans for employment creation and other activities as prescribed by law.

Article 13. Employment programs

1. People’s Committees of central-affiliated cities and provinces (hereinafter referred to as provincial People’s Committees) shall establish and present the local employment programs to the People’s Council at the same level for approval.

2. Other employers, State agencies, enterprises, socio-political organizations, social organizations, within their scope of duties and authority, are responsible to participate in the employment programs.

Article 14. Employment service organizations

1. Employment service organizations shall provide consultancy, offer employments and provide vocational training to employees; supply and recruit labor at the request of the employer; collect and provide information about the labor market, and perform other duties as prescribed by law.

2. Employment service organizations include employment service centers and enterprises providing employment services.

Employment service centers are established and operated in accordance with the Government’s provisions.

The enterprises providing employment services are established and operated as prescribed by the Law on Enterprise and must obtain the Licenses to provide employment services issued by provincial State labor management agencies.

3. Employment service organizations are eligible for collecting fees, for tax exemption and reduction as prescribed by law provisions on fees and law provisions on tax.

Chapter III

LABOR CONTRACT

Section 1. LABOR CONTRACT CONCLUSION

Article 15. Labor contract

A labor contract is an agreement between the employee and the employer on the paid job, the work conditions, the rights and obligations of each party in the labor relation.

Article 16. Form of labor contracts

1. A labor contract must be concluded in writing and made into 02 copies, the employee shall keep 01 copy, the employer shall keep 01 copy, except for the case prescribed in Clause 2 this Article.

2. For temporary jobs with terms under 03 months, the parties may conclude verbal contracts.

Article 17. Principles of labor contract conclusion

1. Voluntary, equitable, affable, cooperative and truthful.

2. The contract is freely concluded without violating the law, the collective labor agreement and social ethics.

Article 18. Responsibilities for labor contract conclusion

1. Before recruiting, the employer and the employee must directly conclude the labor contract.

In case the employee is from 15 to 18 years old, the labor contract conclusion must be agreed by the legal representative of the employee.

2. For casual works and regular works with terms under 12 months, the employee group may authorize an employee in the group to conclude the written contract; in this case, the validity of the contract is equal to each person.

The labor contract concluded by the authorized person must be enclosed with the list specifying the full names, ages, genders, residences, occupations and signatures of every employee.

Article 19. Responsibilities to provide information before the labor contract conclusion

1. The employer must provide information for employees about the work, work location, work conditions, working hours, break time, labor safety, labor hygiene, salary, method of salary payment, social insurance, the provisions on business secret protection, technical know-how and other issues directly related to the labor contract conclusion requested by the employee.

2. The employee must provide information for the employer about their full name, gender, residence, educational background, vocational skills, health condition and other issues directly related to the labor contract conclusion requested by the employer.

Article 20. The prohibited acts committed by the employer during the conclusion and performance of the labor contract

1. Keeping the originals of the identity papers, certificates and qualifications of the employee.

2. Requesting the employee to mortgage cash or property for the labor contract performance.

Article 21. Concluding labor contracts with multiple employers.

The employee may conclude contracts with multiple employers as long as they can ensure the implementation of the concluded contents.

For contracts concluded with multiple employers, the social insurance, medical insurance of the employee must comply with the Government’s provisions.

Article 22. Kinds of labor contracts

1. The labor contract must be concluded in one of the following kind:

a) Labor contracts without fixed term;

The labor contract without fixed term is a contract in which both parties do not specify the term and the expiry date of the contract.

b) Fixed-term labor contracts;

The fixed-term labor contract is a contract in which both parties specify the term and the expiry date of the contract within 12 to 36 months.

c) Casual labor contracts or regular labor contracts with terms under 12 months.

2. In case the employee keeps working when the labor contract prescribed in Point b and Point c Clause 1 this Article expires, both parties must conclude the new labor contract within 30 days as from its expiry date; if the new labor contract is not concluded, the contracts concluded as prescribed in Clause 1 this Article shall be come a labor contract without fixed term, and the contract concluded as prescribed in Point c Clause 1 this Article shall be come a labor contract with a fixed term of 24 months

The new labor contract being a fixed-term contract shall be concluded only one more time. After that, if the employee keeps working, the labor contract without fixed-term must be concluded.

3. It is prohibited to conclude casual labor contracts or regular labor contracts with terms under 12 months to do regular works from 12 months and above, except for temporary replacement of employees doing military service, taking maternity leave, suffering from sickness or occupational accidents, or taking other temporary leave.

Article 23. Labor contract contents

1. The labor contract must include the following contents:

a) Name and address of the employer or the legal representative;

b) The full name, date of birth, gender, residence, ID number or other legal papers of the employee;

c) The work and working location;

d) The labor contract term;

dd) The salary, method of salary payment, salary payment term, allowance and other additional pays;

e) The grade increase, salary increase regime;

g) The working hours, break time;

h) The labor protection equipment for the employee;

i) Social insurance and medical insurance.

k) The vocational training and improvement courses.

2. In case the employee doing works directly related to the business secret, technical know-how as prescribed by law, the employer is entitled to reach a written agreement with the employee on the contents and term of business secret,  technical know-how protection, the interests and compensation for the employee’s violations.

3. For employees working in the agriculture, forestry, fishery, salt industries, both parties may remove a number of primary contents from the labor contract and reach additional agreements on the settlement in case the contract performance is affected by natural disasters, fire and weather.

4. The contents of labor contracts with employees being hired as directors in the enterprise contributed by the State must comply with the Government’s provisions.

Article 24. Labor contract annex

1. The labor contract annex is part of the labor contract and as valid as an labor contract.

2. The labor contract annex is to specify a number of terms or to amend and supplement the labor contract.

In case the labor contract Annex specify a number of labor contract terms that leads to different interpretation of the labor contract, the labor contract contents shall apply.

In case the labor contract annex amends and supplements the labor contract, the amendments, supplements and date of effect must be specified.

Article 25. Labor contract effect

The labor contract takes effect as from the date of conclusion unless otherwise agreed by both parties or prescribed by the law.

Article 26. Probation

1. The employer and the employee may reach the agreements on the probation, the rights and obligations of both parties during the probation. If the probation is agreed, the probation contract may be concluded.

The probation contract includes the contents prescribed in Point a, b, c, d, dd, g and h Clause 1 Article 23 of this Code.

2. The employees working under casual labor contract do not have to undergo probation.

Article 27. Probation duration

Only one probation is given for a job. The probation duration varies according to the nature, the complication of the work and must satisfy the following conditions:

1. Within 60 days for works that demand college education or further;

2. Within 30 days for works that demand vocational intermediate education, technical workers, professional workers.

3. Within 6 working days for other works.

Article 28. Probation salary

The employee’s salary during the probation is agreed by both parties but must be at least 85% of the official salary.

Article 29. Probation expiry

1. If the probation is passed, the employer must conclude the labor contract with the employee.

2. During the probation, each party is entitled to terminate the probation without prior notice and without compensation if the probation fails to satisfy the requirements agreed by both parties.

Section 2. LABOR CONTRACT PERFORMANCE

Article 30. Doing works under the labor contract

The work under the labor contract must be done by the employee that concluded the labor contract. The working location must comply with the labor contract or other agreements between both parties.

Article 31. Transferring employees to do other works than in the labor contract

1. Upon sudden difficulties from natural disasters, fire, epidemics, from the implementation of preventive and remedial measures for occupational accidents and occupational illness, from electricity or water supply system malfunctions, or from the production and business demands, the employer is entitled to temporarily transfer the employee to do other work than in the labor contract within 60 cumulative working days in a year, unless otherwise agreed by the employee.

2. When the employee is temporarily transferred to other works than in the labor contract, the employer must notify the employee in advance at least 03 days, specify the duration and arrange works suitable for the employee’s health and gender.

3. The employee doing the works prescribed in Clause 1 this Article shall be paid for the new work. If the new work salary is lower than that of the old one, the old salary is kept within 30 working days. The new work salary must be at least 85% of that of the old one but must not be lower than the local minimum salary prescribed by the Government.

Article 32. Cases of labor contract suspension

1. The employee have to do military service

2. The employee is detained as prescribed by law provisions on criminal procedures.

3. The employee have to implement the decision on compulsory treatment and education in reformatories, detoxification centers or educational facilities.

4. The pregnant female employees prescribed in Article 156 of this Code.

5. Other cases agreed by the parties.

Article 33. Re-employing employees after the labor contract suspension expires.

Within 15 days as from the labor contract suspension expires as prescribed in Article 32 of this Code, the employee must be present at the workplace and the employee must re-employ the employee, unless otherwise agreed by the parties.

Article 34. Employees working shorter hours

1. The employees working shorter hours are employees that work less than the usual working hours by day or by week specified in the law provisions on labor, collective labor agreement, professional collective labor agreement or the employer’s provisions.

2. The employee may reach an agreement with the employer on the shorter working hours when concluding the labor contract.

3. The employee working shorter hours shall have the salary, rights and obligations similarly to that of other full-time employees, shall have equitable opportunities, labor safety and labor hygiene conditions without discrimination.

Section 3. AMENDING, SUPPLEMENTING, TERMINATING LABOR CONTRACT

Article 35. Amending and supplementing labor contract

1. During the performance of labor contract, the party that demands to amend and supplement the labor contract must notify to the other party in advance at least 3 working days of the contents being amended and supplemented.

2. If the agreement is reached, the amendment and supplement of the labor contract must be carried out by concluding the labor contract annex or concluding the new labor contract.

3. If the agreement on the amendment and supplement of the labor contract cannot be reached, the concluded labor contract shall continue to be performed.

Article 36. Cases of labor contract termination

1. The labor contract expires, except for the case prescribed in Clause 6 Article 192 of this Code.

2. The work under the labor contract is done.

3. Both parties agree to terminate the labor contract.

4. The employee satisfies the requirements of about social insurance duration and pension age as prescribed in Article 187 of this Code.

5. The employee is condemned to imprisonment, to death or prohibited from doing the work in the labor contract according to the legal judgment and decision from the Court.

6. The employee dies, is declared dead, missing or incapable of civil acts by the Court.

7. The employer being an individual dies, is declared dead, missing or incapable of civil acts by the Court; the employer not being an individual stops the operation.

8. The employee is disciplinarily dismissed as prescribed in Clause 3 Article 125 of this Code.

9. The employee unilaterally terminates the labor contract as prescribed in Article 37 of this Code.

10. The employer unilaterally terminates the labor contract as prescribed in Article 38 of this Code; the employer dismisses the employee due to changes in the mechanism, technology or for some economic reasons, or merger, separation of enterprises, cooperatives.

Article 37. The right to unilaterally terminate the labor contract of employees

1. The employee working under the fixed-term labor contract, casual labor contract or regular labor contract with term under 12 months is entitled to unilaterally terminate the contract sooner in the following cases:

a) The employee is not provided with the right work, the workplace or the working conditions as agreed in the labor contract;

b) The salary is not adequately or punctually paid as agreed in the labor contract;

c) The employee suffers from maltreatment, sexual harassment, coercive labor;

d) The employee or their family encounters difficulties that the labor contract cannot continue to be performed;

dd) The employee is elected to perform specialized duties at elective agencies or designated to hold a position in the State mechanism;

e) The pregnant female employee has to quit job under the direction from competent medical examination and treatment facilities.

g) The employees suffering from sickness or accidents cannot recover after 90 consecutive days of treatment for employees working under fixed-term labor contracts, or one fourth of the contract term for employees working under casual labor contract or regular labor contract with term under 12 months.

2. When unilaterally terminate the labor contract as prescribed in Clause 1 this Article, the employee must notify the employer:

a) At least 3 working days for the cases prescribed in Point a, b, c and g Clause 1 this Article;

b) At least 30 working days for fixed-term labor contracts, 03 working days for casual labor contracts or regular labor contracts with term under 12 months regarding the cases prescribed in Point d and dd Clause 1 this Article;

c) For the cases prescribed in Point e Clause 1 this Article, the advance notice time must comply with the provisions in Article 156 of this Code.

3. The employees working under labor contracts without fixed term are entitled to unilaterally terminate the labor contract but the employer must be notified in advance at least 45 days, except for the case prescribed in Article 156 of this Code.

Article 38. The right to unilaterally terminate the labor contract of the employer 

1. The employer is entitled to unilaterally terminate the labor contract in the following cases:

a) The employee regularly fails to complete the works according to the labor contract;

b) The employee suffering from sickness or accidents cannot recover after 12 consecutive months of treatment for labor contracts without fixed term, after 06 months for employees working under fixed-term labor contracts, or over one half of the contract term for employees working under casual labor contract or regular labor contract with term under 12 months

When the employee recovers, he/she may be considered to conclude the new contract.

c) The employer have to reduce the production and vacancies after taking all measures to overcome the consequences from natural disasters, fire or other force majeure;

d) The employee fails to be present at the workplace after the duration prescribed in Article 33 of this Code.

2. When unilaterally terminating the labor contract, the employer must notify the employee:

a) At least 45 days for labor contracts without fixed term;

a) At least 30 days for fixed-term labor contracts;

c) At least 30 working days for the case prescribed in Point b Clause 1 this Article and for casual labor contracts or regular labor contracts with term under 12 months.

Article 39. The employer must not unilaterally terminate the labor contract in the following cases:

1. The employee is undergoing treatment for sickness or occupational accidents, occupational illness under the decision from the competent medical examination and treatment facility except for the case prescribed in Point b Clause 1 Article 38 of this Code.

2. The employee is on annual leave, personal leave and other leave permitted by the employer.

3. The female employees prescribed in Clause 3 Article 155 of this Code.

4. The employee is on maternity leave as prescribed by law provisions on social insurance.

Article 40. Canceling the unilateral termination of the labor contract

Each party is entitled to cancel the unilateral termination of the labor contract before the advance notice time limit expires. The cancellation must be made in writing and agreed by the other party

Article 41. Illegal unilateral termination of the labor contract 

The illegal unilateral termination of the labor contract is the labor contract termination contrary to Article 37, 38 and 39 of this Code.

Article 42. Obligations of the employer when illegally unilaterally terminating the labor contract

1. Re-employing the employee under the concluded labor contract and pay the salary, social insurance, medical insurance for the days the employee is banned from working plus the salary of at least 02 months under the labor contract.

2. In case the employee does not wish to continue working, the employer must give the severance pay as prescribed in Article 48 of this Code apart from the compensation prescribed in Clause 1 this Article.

3. In case the employer does not wish to re-employ the employee and the employee agrees, both parties shall reach the agreement on the extra compensation equal to the salary of at least 02 months under the labor contract apart from the compensation prescribed in Clause 1 this Article and the severance pay as prescribed in Article 48 of this Code.

4. If no vacancy for the position in the labor contract is available but the employee still wishes to continue working, both parties must negotiate to amend and supplement the labor contract apart from the compensation prescribed in Clause 1 this Article.

5. For violations of the advance notice time, the employee must be paid a compensation equivalent to the his/her salary of the unnoticed days.

Article 43. Obligations of the employee when illegally unilaterally terminating the labor contract 

1. Being ineligible for severance pay and paying compensation equivalent to the half-month salary under the labor contract to the employee.

2. For violations of the advance notice time, the employer must be paid a compensation equivalent to the employee’s salary of the unnoticed days.

3. The training cost must be returned to the employer as prescribed in Article 62 of this Code.

Article 44. Obligations of the employer in case of changes in the mechanism, technology or economic reasons

1. In case of changes in the mechanism, technology that affect the employment of multiple employees, the employer is responsible to devise and implement the employment plan as prescribed in Article 46 of this Code; if new positions are available, the employees must be retrained and employed.

In case the employer cannot create new employments that the employees must be dismissed, the employer must give the redundancy pay to the employees as prescribed in Article 49 of this Code.

2. If the employee faces the risk of unemployment or dismissal for some economic reasons, the employer must devise and implement the employment plan as prescribed in Article 46 of this Code.

In case the employer cannot create new employments that the employees must be dismissed, the employer must give the redundancy pay to the employee as prescribed in Article 49 of this Code.

3. The dismissal of multiple employees prescribed in this Article is only carried out after the discussion with the internal labor representative organization and the provincial State labor management agency must be notified in advance 30 days.

Article 45. Obligations of the employer when merging, dividing, separating the enterprise or the cooperative

1. For the merger, division, separation of the enterprise or cooperative, the succeeding employer must be responsible to continue employing the existing employees and carry out the labor contract amendment and supplement.

In case there are not enough vacancies for the existing employees, the succeeding employer must be responsible to continue devising and implementing the employment plan as prescribed in Article 46 of this Code.

2. For ownership transfers or property use right transfers, the preceding employer must devise the employment plan as prescribed in Article 46 of this Code.

3. In case the employer dismisses the employee as prescribed in this Article, the employer must give the redundancy pay to the employee as prescribed in Article 49 of this Code.

Article 46. Employment plan

1. The employment plan must include the following contents:

a) The list and quantity of the employees being directly employed, the employees being retrained for re-employment;

b) The list and quantity of the retired employees;

c) The list and quantity of the employees being transferred to work shorter hours; the dismissed employees;

d) The measures and financial sources for implementing the plan.

2. The plan development must be participated by the internal labor representative organization.

Article 47. Obligations of the employer when terminating the labor contract

1. At least 15 days before the expiry date of the fixed-term labor contract, the employer must notify the employee in writing of the expiry date of the labor contract.

2. Within 07 working days as from terminating the labor contract, both parties are responsible to fully pay the amounts related to each party’s interests. This time limit may be longer if necessary but must not exceed 30 days.

3. The employer is responsible to complete the procedures for certifying and returning the social insurance book and other papers of the employee that have been kept by the employer.

4. In case the enterprise or cooperative is shut down, dissolve or bankrupt, the salary, severance pay, social insurance, medical insurance, unemployment insurance and other benefits of the employee under the collective labor agreement and the signed labor contract shall be paid first.

Article 48. Severance pay

1. When the labor contract terminates as prescribed in Clause 1, 2, 3, 5, 6, 7, 9 and 10 Article 36 of this Code, the employer is responsible to give the severance pay to the regular employees that have been worked for 12 months or more. A half- month salary shall be paid for each working year.

2. The working time for severance pay calculation is the total duration that the employee has actually worked for the employer excluding the time the employee has taken the unemployment insurance as prescribed in the Law on Social insurance and the time the employer paid the severance pay.

3. The salary for severance pay calculation is the average salary under the labor contract of the preceding 06 months before the employee is dismissed.

Article 49. Redundancy pay

1. The employer is responsible to give the redundancy pay to the dismissed regular employees that have worked for 12 months or more as prescribed in Article 44 and 45 of this Code. 1-month salary is paid for each working year but must not be lower than the salary of 02 months.

2. The working time for redundancy pay calculation is the total duration that the employee has actually worked for the employer excluding the time the employee has taken the unemployment insurance as prescribed in the Law on Social insurance and the time the employer paid the severance pay.

3. The salary for redundancy pay calculation is the average salary under the labor contract of the preceding 06 months before the employee is dismissed.

Section 4. LABOR CONTRACT INVALIDATION

Article 50. Labor contract invalidation

1. The labor contract is totally invalidated in one of the following cases:

a) The entire labor contract contents are illegal;

b) The labor contract is concluded by incompetent persons;

c) The works in the concluded labor contract is prohibited by law;

d) The labor contract restricts or obstructs the right to establish, join and participate in the Union activities of the employee.

2. The labor contract is partially invalidated when part of it violates the law provisions but does not affect the rest.

3. In case part or the entire labor contract specifies the employee’s interests that are inferior to that in the effective collective labor agreement, law provisions on labor, labor regulations, or the labor contract restricts other rights of the employee, part or the entire labor contract shall be invalidated.

Article 51. Authority to invalidate labor contracts

1. The Labor Inspectors, People’s Courts are entitled to invalidate labor contracts.

2. The Government shall specify the order and procedures for the Labor Inspectors, People’s Courts to invalidate labor contracts.

Article 52. Handling invalidated labor contracts

1. The partially invalidated labor contract shall be handled as follows:

a) The rights, obligations and interests of the parties shall be settled under the collective labor agreement or law provisions;

b) The parties shall amend, supplement the invalidated part of the labor contract to suit the collective labor agreement or law provisions on labor.

2. The totally invalidated labor contract shall be handled as follows:

a) In case of ultra virus signing prescribed in Point b Clause 1 Article 50 of this Code, the State labor management agencies shall guide the parties to sign it again;

b) The rights, obligations and interests of employees shall be settled under the collective labor agreement or law provisions;

3. The Government shall elaborate this Article.

Section 5. OUTSOURCING

Article 53. Outsourcing

1. Outsourcing is when an employee employed by an enterprise licensed to provide outsourcing services works for another employer and subject to the latter’s management while the labor relation with the outsourcing service provider is still sustained.

2. Outsourcing service is a conditional business and only provided for a certain number of works.

Article 54. Outsourcing service providers

1. Outsourcing service providers must pay a deposit and obtain the license to provide outsourcing services.

2. The maximum outsourcing duration is 12 months.

3. The Government shall specify the outsourcing licensing, the deposit payment and the list of works eligible for outsourcing.

Article 55. Outsourcing contract

1. The outsourcing service provider and the outsourcing party must sign the written outsourcing contract. The contract is made into 02 copies, each party keeps one copy.

2. The outsourcing contract must include the following contents:

a) The working location, the position being outsourced, the work detail and requirements for the outsourced employee;

b) The outsourcing duration, the starting time of the employee;

c) The working hours, breaking time, labor safety and hygiene conditions at the work place;

d) The responsibilities for the employees of each party.

3. The outsourcing contract must not include the agreements on the rights and interests of the employee that are inferior to that in the labor contract signed by the outsourcing service provider and the employee.

Article 56. Rights and obligations of outsourcing service providers

1. Providing the eligible employees consistently with the requirements of the outsourcing party and the labor contract signed with the employee.

2. Informing the employee about the outsourcing contract contents.

3. Signing the labor contract with the employee as prescribed in this Code.

4. Informing the outsourcing party about the employee’s résumé and requirements.

5. Fulfilling the obligations of the employer as prescribed in this Code; paying salaries, holiday pay, annual leave pay, work suspension pay, severance pay, redundancy pay, compulsory social insurance, unemployment insurance for the employee as prescribed by law.

Ensuring that the outsourced employee’s salary is not lower than that of the outsourcing party’s employees at equal levels, doing the same or equivalent job.

6. Recording the quantity of the outsourced employees, the outsourcing fees and sending reports to provincial State labor management agencies.

7. Disciplining employees that violate labor discipline when they are returned due to labor discipline violations.

Article 57. Rights and obligations of the outsourcing party

1. Notifying and guiding the outsourced employee about the labor regulations and other regulations.

2. The working condition discrimination against outsourced employees in favor of their own employees is prohibited.

3. Reaching agreements with the outsourced employees when they are mobilized to work on the night shift or to work overtime outside the outsourcing contract.

4. The outsourced employees must not be transferred to other employers.

5. Reaching the agreement with the outsourced employee and the outsourcing service provider on officially employing the outsourced employee in case the labor contract between the employee and the outsourcing service provider is unexpired.

6. Returning the employee to the outsourcing service provider if they are not eligible as agreed or if they violate labor discipline.

7. Providing evidence of the labor discipline violations of the outsourced employee for the outsourcing service provider for disciplining.

Article 58. Rights and obligations of outsourced employees

1. Doing the work under the labor contract signed with the outsourcing service provider.

2. Observing the labor regulations, labor discipline, collective labor agreement and the lawful management of the outsourcing party.

3. Receiving salary not lower than that of the outsourcing party’s employees at the same level, doing the same or equivalent job.

4. Lodging complaints with the outsourcing service provider in case the outsourcing party violates the agreements in the outsourcing contract.

5. Exercising the right to unilaterally terminate the labor contract with the outsourcing service provider as prescribed in Article 37 of this Code.

6. Reaching the agreement to conclude the labor contract with the outsourcing party after terminating the labor contract with the outsourcing service provider.

Chapter IV

VOCATIONAL LEARNING AND TRAINING, VOCATIONAL SKILL AND GRADE IMPROVEMENT

Article 59. Vocational learning and training

1. The employees are entitled to choose their vocation and vocational training at workplaces consistently with their demands for employment. 

2. The eligible employers are supported by the State to establish vocational training facilities or hold vocational training classes at workplaces to train, retrain, improve the vocational skill and grade for their employees and provide vocational training to other learners as prescribed by law provisions on vocational training.

Article 60. Responsibilities of employers for vocational training, vocational skill and grade improvement

1. The employers shall make the annual plan and prepare budget to provide vocational training or vocational skill and grade improvement courses for their employees; train the employees before they change their jobs to be recruited by the employers.

2. The employer must send reports on the results of vocational skill and grade training and improvement to provincial State labor management agencies in the annual labor reports.

Article 61. Vocational learning and apprenticeship towards employment

1. When the employer recruits vocational learners and apprentices to work for them, the vocational training registration is not required and school fee collection is prohibited.

The vocational learners and apprentices in this case must be 14 years or over and physically capable of the vocational demand, except for the occupations prescribed by the Ministry of Labor, War Invalids and Social Affairs.

Both parties must sign the vocational training contract. The vocational training contract must be made into 02 copies, each party shall keep one copy.

2. During the vocational training and apprenticeship, if the vocational leaner or the apprentice directly creates or participates in the creation of qualified products, they shall be paid an amount agreed by both parties.

3. When the vocational training or apprenticeship completes, both parties must sign the labor contract when the conditions prescribed in this Code are satisfied.

4. The employer is responsible to encourage the employee to participate in the vocational skill assessment in order to be issued with the national vocational certificate.

Article 62. The vocational training contract between the employer and the employee, vocational training cost

1. Both parties must sign the vocational training contract when the employee is provided with the vocational training, vocational skill and grade improvement courses domestically or overseas using the employer’s budget, including the sponsorship from the employer’s partners.

The vocational training contract must be made into 02 copies, each party shall keep one copy.

2. The vocational training contract must include the following contents:

a) The vocation being trained;

b) The training location and duration;

c) The training cost;

d) The duration that the employee commits to work for the employer after being trained;

dd) The responsibility to return the training cost;

e) The responsibilities of the employer.

3. The training cost includes the expenses on the trainers, the documents, the school, the equipment, the practice materials and, supportive expenses for the learner, the salary, the social insurance medical insurance payment being paid during the training. In case the employee is sent to study overseas, the training cost shall include the travel cost and living cost during the time living overseas.

Chapter V

DIALOGUE AT THE WORKPLACE, COLLECTIVE NEGOTIATION, COLLECTIVE LABOR AGREEMENT

Section 1. DIALOGUE AT THE WORKPLACE

Article 63. Purpose and form of dialogue at workplace

1. Dialogue at the workplace in order to share information and enhance the understanding between the employer and the employee to build the labor relations at the workplace.

2. Dialogue at work is done through the direct exchange between the employee and the employer or between the representatives of labor collective with the employer to ensure the implementation of democratic regulations at the grassroots level.

3. The employer and the employee are obliged to implement the democratic regulations at the grassroots level at workplace in accordance with the regulations of the Government.

Article 64. Content of dialogue at the workplace

1. The situation of production and business of the employer.

2. The implementation of labor contracts, collective labor agreements, internal rules, regulations and commitments and agreements at the workplace.

3. Working conditions

4. Requirements of the employee and the labor collective for the employer.

5. Requirements of the employer with the employee and the labor collective.

6. Other contents that both parties are concerned about

Article 65. Conducting dialogue at the workplace

1. Dialogue at the workplace is conducted once every 03 months periodically or at the request of one party.

2. The employer is obliged to arrange the venue and other material conditions to ensure the dialogue at the workplace.

Section 2. COLLECTIVE NEGOTIATION

Article 66. Purpose of the collective negotiation

The collective negotiation is that the labor collective makes discussion and negotiation with the employer for the following purposes:

1. Building harmonious, stable and progressive labor relations;

2. Establishing new working conditions as a basis for signing the collective labor agreements;

3. Settling the problems and difficulties in implementing the rights and obligations of each party in the labor relations.

Article 67. Principle of collective negotiation

1. Collective negotiation is conducted on the principles of goodwill, equality, cooperation, openness and transparency.

2. Collective negotiation is conducted periodically or irregularly.

3. Collective negotiation is done at the place agreed upon by both parties.

Article 68. Right to require the collective negotiation

1. Each party shall have the right to require the collective negotiation; the party receiving the requirement is not entitled to decline the negotiation. Within 07 working days after receiving the negotiation request, the parties shall agree upon the starting time of the negotiation meeting.

2. Where a party cannot participate in the negotiation meeting at the starting time for negotiation as agreed, that party has the right to propose the postponement, but the starting time of negotiation shall not exceed 30 days after receiving the request for collective negotiation.

3. Where a party declines to negotiate or not conduct the negotiation within the time limit prescribed in this Article, the other party has the right to carry out the procedures for requesting the settlement of labor disputes in accordance with the law.

Article 69. Representative of collective negotiation

1. Representative of collective negotiation is defined as follows:

a) For the labor collective in collective negotiation, the scope of enterprise is the representative organization of the labor collective at the grassroots level; the collective negotiation of the scope of sector is the representative of the sector Executive Committee of the Trade union;

b) For the employer in the collective negotiation, the scope of enterprise is the employer or the representative of the employer; the collective negotiation in the scope of sector is the representative of the representative organization of the sector employer

2. The number of people attending the negotiation meeting of each party shall be agreed upon by both parties.

Article 70. Content of collective negotiation

1. Salary, bonus, allowance and pay rise

2. Working hour, rest time, overtime working, break between shift.

3. Job guarantee for the employee

4. Ensuring the labor safety, occupational health and complying with labor rule.

5. Other contents that both parties are concerned about.

Article 71. Process of collective negotiation

1. The process for preparation of the collective negotiation is regulated as follows:

a) Before the collective negotiation meeting at least 10 days, the employer must provide information on the situation of production and business upon the requirement from the labor collective except for business secrets and technology secrets of the employer.

b) Gathering opinions of the labor collective

The negotiation representative of the labor collective party shall directly gather opinions of the labor collective or indirectly through the delegate conference of the employee concerning the requirements of the employee for the employer and the requirements of the employer with the labor collective;

c) Notification of the content of collective negotiation.

Within 05 working days before the start of the collective negotiation meeting, the party requiring the collective negotiation must notify in writing the other party of the estimated contents for the conduct of collective negotiation.

2. Procedures for the collective negotiation are regulated as follows:

a) Organizing the meeting of collective negotiation

The employer shall organize the meeting of collective negotiation with time and place agreed upon by both parties.

The collective negotiation must be recorded in writing, in which there must be the contents agreed upon by the two parties. The estimated time for the signing of the agreed content; the contents with different opinions;

b) The minutes of the meeting of collective negotiation must have the signature of the representative of labor collective, of the employer and the person recording the minutes.

3. Within 15 days from the day of termination of the meeting of collective negotiation, the negotiation representatives of the labor collective party must diffuse widely and publicly the minutes of the meeting of collective negotiation to the labor collective and collect suggestion by voting from the labor collective on the contents agreed upon.

4. Where the negotiation fails either party may request to continue the negotiation or conduct the procedures for the settlement of the labor disputes in accordance with this Code.

Article 72. Responsibilities of the trade unions, representative organizations of the employers and the state management agencies on labor in collective negotiation.

1. Organizing the training of the collective negotiation skills for the persons participating in the collective negotiation.

2. Participating in the meeting of collective negotiation upon the request from either collective negotiation party.

3. Providing and exchanging information relating to the collective negotiation

Section 3. COLLECTIVE LABOR AGREEMENT

Article 73. Collective Labor Agreement

1. A collective labor agreement is a written agreement between a labor collective and the employer in respect of working conditions that both parties have agreed upon through collective negotiation.

A collective labor agreement includes the enterprise collective labor agreement, the sector collective labor agreement and other form of collective labor agreement as prescribed by the Government.

2. The contents of the collective labor agreement must not be inconsistent with the regulation of law and must be more favorable to the employee compared with the provisions of law.

Article 74. Signing of the collective labor agreement

1. The collective labor agreement is signed between the representative of the labor collective with the employer or the the employer’s representative.

2. The collective labor agreement is only signed when the parties have reached the agreement at the meeting of collective negotiation and:

a) There is over 50% of the labor collective to vote for the content of the collective negotiation agreed upon in case of signing the enterprise collective labor agreement;

b) There is over 50% of the Executive Committee of the Trade union at the grassroots level or the senior Trade union voting for the approval of the content of the collective negotiation agreed upon in case of signing the sector collective labor agreement;

c) For the other form of the collective labor agreement in accordance with the regulation of the Government.

3. When the collective labor agreement has been signed, the employer must announce it to his/her employee.

Article 75. Sending the collective labor agreement to the state management agency

Within a period of 10 days from the signing day, the employer or the employer’s representative must send a copy of the collective labor agreement to:

1. The provincial state management agency on labor for the enterprise collective labor agreement,

2. The Ministry of Labor, War Invalids and Social Affairs for the sector collective labor agreement and other collective labor agreement.

Article 76. Effective day of collective labor agreement

The effe