Labor Code 2019 takes effect from the date of 01.01.2021. Some prominent notes for employers are as follows:

1. The probationary period

The Labor Code 2019 requires the parties to sign a probationary contract, which can be recorded into a separate contract, agreed by mouth or recorded in the contents of the labor contract; change the regulations on the subjects who are not required to sign the probationary contract (for those with a labor contract of less than 01 month) and expand the probationary audience. The probation period for each subject is specified in Article 25 of the Labor Code 2019, specifically as follows:

1. 180 days for the position of enterprise executive prescribed by the Law on Enterprises, the Law on management and use of state investment in enterprises;

2. 60 days for positions that require a junior college degree or above;

3. 30 days for positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees;

4. 06 working days for other jobs.

2. The employer unilaterally terminates without prior notice (Article 36 Labor Code 2019)

Cases where employers unilaterally terminate without prior notice include:

– The employee voluntarily quit his job without having a plausible reason for 05 or more consecutive working days

– The employee is not present at the workplace after the period specified in Article 31

3. Salary regulations

The Labor Code 2019 has a number of additional requirements for employers in terms of wages as follows:

– Not to limit or interfere with the employee’s right to self-determination to spend salary; do not force the employee to spend the salary on buying goods or using services of the employer or other units designated by the employer.

– Each time the salary is paid, the employer must notify the payroll to the employee, clearly stating the salary, overtime pay, night work salary, content and deductible amount (if any). .

– If due to force majeure, the employer has found all remedies but cannot pay the salary on time, it must not exceed 30 days; If the salary is delayed for 15 days or more, the employee must be compensated an amount as prescribed in Article 95.

– In case of resignation due to water and water problems, but not due to the fault of the employer and not the natural disaster … as prescribed in Article 95, the salary must not be lower than the regional minimum wage.

4. Working time, rest time

Maximum overtime hours 40 hours / month (Article 105)

– Additional cases are not allowed to overtime more than 300 hours / year (Article 107)

– In special cases, there will be no limit on overtime hours (Đ108)

– Add jobs with specified working hours and rest time (Article 109)

– Employers are responsible for setting the annual leave schedule after consulting with the employee and must notify the employee in advance.

5. Retirement age

The retirement age for employees is specified as follows:

	2021	Increase annually	Retirement age
Male	60 years old 3 months	3 months / year	62 years old from 2028
Female	55 years old 4 months	4 months / year	60 years old from 2035
Hard work	Less than 05 years

Changes in retirement age lead to changes in retirement conditions and retirement conditions in some cases (Article 218). For male employees, the salary used as a basis for pension calculation is the average salary of 20 social insurance contributions..

6. Some other new points of Labor Code 2019

– Form a labor contract agreement may be entered through electronic means (Article 14)
– Type of employment contract (Article 20)
– Quoc Khanh vacation 02 days full salary
– A female employee who “works hard” while pregnant can reduce 1 hour of work per day but still receive full salary (Article 137).
– In addition to monetary rewards, which could be property, or any other form (Article 104)
– The statute of limitations for handling the labor force: It is allowed to extend the time limit for disciplinary action by 60 days in some cases (Article 122)
– Some new points about the settlement of labor disputes: Articles 185, 187, 188, 190, 194, 199, …

Your company needs advice and implementation of the provisions of the Labor Code 2019; or any other need for legal advice, real estate consulting please contact us directly:

INCO MINH ANH Co,.Ltd

Hotline: 0982674857

Email: [email protected]

Best regards.