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Official Gazette

Sunday, November 19, 2017

Ministry proposes revision of the Labor Code to be more beneficial for employees

Updated: 14:56’ - 11/11/2016
The Ministry of Labor, War Invalids and Social Affairs (MOLISA) has recently proposed amendment of the 2012 Labor Code’s provisions concerning incentives for employers of female employees, overtime work, strike, and settlement of social insurance regimes for employees whose employers owe social insurance premiums.

Incentives for businesses employing many female employees

The 2012 Labor Code has specific provisions applicable to female employees, such as the provisions on working time, rest time, wage and maternity regime. But in fact, not a few businesses do not wish to employ women because they are afraid of having to cover special entitlements for female employees.

Therefore, the MOLISA proposed inclusion of the provisions on incentives for businesses that employ many female employees in the draft Law revising a number of articles of the Labor Code.
The MOLISA proposed inclusion of the provisions on incentives for businesses that employ many female employees__Photo: Internet

Maximum permissible overtime to be increased

Under the current Labor Code, an employee is allowed to work overtime for no more than half of the prescribed working hours per day or for no more than 12 hours per day if they work on public holidays or weekends.

The law-drafting board suggested increasing overtime working hours per year, or providing the maximum allowable overtime per day and week or per day and month, or applying flexible work schedules under special conditions, in order to make Vietnam’s labor law be compatible with relevant laws of other countries in the region. This is aimed at creating a more favorable investment climate for businesses.

More detailed guidance on strike

Most strikes taking place over the past years have failed to comply with the prescribed order and procedures although the 2012 Labor Code has introduced a complete process for settlement of a labor dispute.

So the revision of the Code is expected to take into consideration the adjustment of the order and procedures for organizing a strike. The provisions on settlement of labor disputes would also be revised to be more practical and feasible by empowering the Labor Arbitration Council to resolve individual labor disputes and right-based collective labor disputes.

Settlement of social insurance regimes for employees whose employers owe social insurance premiums

At present, both the 2012 Labor Code and the 2014 Law on Social Insurance have no provisions on settlement of social insurance regimes for employees whose employers owe social insurance premiums, leading to the fact that the employees’ interests are not guaranteed.

The drafting board is expected to add such provisions to the draft law in an attempt to remove difficulties for, and guarantee the interests of, employees.

As scheduled, the draft law will be tabled at the National Assembly’s third session in May and passed at the fourth session in October next year.- (VLLF)
 

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