NEW KEY POINTS IN THE LABOR CODE 2019 WILL COME INTO EFFECTIVE SINCE JANUARY 01ST, 2021
The Labor Code 2019 consists of 17 chapters, 220 articles. It was approved by National Assembly on November 20th, 2019, will come into effect from January 01st, 2021. The Labor Code 2019 instead of the Labor Code 2012. The law contains a number of new provisions aimed at ensuring better rights and obligations of parties, contributing to building a progressive, harmonious, stable labor relationship to satisfy the development of market economy and international integration in Vietnam.
1. The Labor Code 2019 acknowledges an employment contract in the form of electronic data
To better protect employee’s rights, the new law supplements the form of the employment contract. Accordingly, an employment contract in the form of electronic data conformable with electronic transaction laws shall have the same value as that of a written contract.
Besides, the provision of the conclusion of an oral contract is amended. Both parties may conclude an oral contract with a term of less than 01 months, compared with the provision in the Labor Code 2012, an oral contract is applied for temporary jobs with the duration of under 3 months.
2. A change in types of employment contracts
The Labor Code 2019 only stipulates two types of employment contracts which are indefinite-term employment contracts and fixed-term employment contracts. Thus, the seasonal or work-specific labor contract that has a duration of under 12 months will not exist.
3. Amendments to provisions of probation
Regarding the probation contract, in accordance with the Labor Code 2012, employees will not have to probate if they implement their work under the seasonal employment contract. Since 2021, probation is not allowed if the employee works under an employment contract with a term of less than 01 months.
In terms of the probationary period, the Labor Code 2019 supplements provisions of the probationary period for the position of enterprise executive prescribed by the Law on Enterprises, the Law on management and the use of state investment in enterprises. The duration of this case shall not exceed 180 days.
4. Supplements to some cases of suspension of an employment contract
Besides 05 cases of suspension of an employment contract prescribed in the Labor Code 2012, the Labor Code supplement 04 cases as follows:
- The employee is conscripted into the militia;
- The employee is designated as the executive of a wholly state-owned single-member limited liability company;
- The employee is authorized to represent the state investment in another enterprise;
- The employee is authorized to represent the enterprise’s investment in another enterprise.
5. The employee unilaterally terminates the employment contract without prior notice
According to the Labor Code 2012, the employee has the rights to unilaterally terminate the employment contract for the prescribed duration. Following the Labor Code 2019, the employee has the rights to unilaterally terminate the employment contract without prior notice in the following cases.
(1) He/She is not assigned to the work or workplace or not provided with the working conditions as agreed in the employment contract, except for the case of force majeure event, the employer may assign an employee to perform a work which is not prescribed in the employment contract.
(2) He/she is not paid adequately or on schedule, except for the case of a force majeure event in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented.
(3) He/she is maltreated, assaulted, physically or verbally insulted by the employer in a manner that affects the employee’s health, dignity or honor; is forced to work against his/her will;
(4) He/she is sexually harassed in the workplace;
(5) A female employee is pregnant and has to stop working. She must notify the employer that she obtains confirmation from a competent health facility which states that if she continues to work, it may adversely affect her pregnancy;
(6) He/She reaches the retirement age;
(7)He/She finds that the employer fails to provide truthful information. This affects the implementation of the employment contract.
6. Supplements to 03 cases which the employer has the right to unilaterally terminate the employment contract
The Labor Code 2019 supplement 03 cases which the employer has the right to unilaterally terminate the employment contract as follows:
- The employee reaches the retirement age specified.
- The employee who is absent from work without an acceptable reason for at least 05 consecutive working days;
- The employee fails to provide truthful information during the conclusion of the employment contract. This results in an effect on recruitment.
In the case where the employee who is absent from work without an acceptable reason for at least 05 consecutive working days, the employer has the right to unilaterally terminate the employment contract without prior notice.
7. An amendment to responsibilities of the parties upon termination of an employment contract
- According to the Labor Code 2012, the time limit for settling all payments in respect of the rights and interests of each party is stipulated as follows:
Within 07 working days from the date of employment contract termination, the employer and employee shall settle each other benefits. This time limit may be extended to up to 30 days in the following cases:
- The business operation is terminated by the employer that is not a natural person;
- The employer or employee suffers from a natural disaster, conflagration, enemy-inflicted destruction or infectious disease;
- The termination is caused by the employer’s changes in organizational structure or technology; economic causes; division, merger or consolidation of the enterprise or cooperative; transfer of the right to ownership or right to the enjoyment of assets.
The Labor Code 2019 increase the duration from 07 working days to 14 working days to the employer completes responsibility for paying all payments in respect of benefits of each other. In special cases, the maximum duration shall be maintained.