Socialist Republic of Vietnam

NATIONAL ASSEMBLY

LEGISLATURE IX SESSION 5 Hanoi, 23 June 1994


LABOUR CODE OF SOCIALIST REPUBLIC OF VIETNAM


Labour is the most important activity of a human being creating both material products and social values. High labour productivity, quality and efficiency are significant factors which determine the level of development of a country.

By regulating the rights and obligations of employees and employers, labour standards, and labour utilization and management, the Labour Code not only contributes increased production but also plays an important role in society and in the legal system of the nation.

Pursuant to old labour legislation and legal development in labour of Vietnam since the August Revolution of 1945, this Code institutionalizes the "renovation" policy of the Communist Party of Vietnam and provides for detailed implementation of the provisions of the 1992 Constitution of the Socialist Republic of Vietnam on labour, and its utilization and management.

The Labour Code protects the right to work, benefits, and other rights of workers and, at the same time, the legal rights and benefits of employers thereby creating conditions for harmonious and stable labour relations. It assists a worker to utilize his creativity and skill through his mind and body, and protects the rights of a labour manager for the purposes of achieving high labour productivity and quality; social improvements in labour, production, and services; effective utilization and management of labour; and industrialization and modernization of the country. The aim of the Labour Code is to make Vietnam a wealthy and strong country, and its society fair and civilized.



CHAPTER I

General Provisions

Article 1

The Labour Code regulates the labour relationship between a wage earning worker and his employer, and the social relationship which is derived directly from this labour relationship.

Article 2

The Labour Code applies to all workers, and organizations or individuals utilizing labour on the basis of a labour contract in any sector of the economy and in any form of ownership.

This Code also applies to trade apprentices, domestic servants, and other forms of labour stipulated in this Code.

Article 3

A Vietnamese citizen who works in an enterprise with foreign owned capital in Vietnam, or in a foreign or international organization operating in the territory of Vietnam, and a foreigner who works in an enterprise or organization, or for an individual, operating in the territory of Vietnam, shall be subject to the provisions of this Code and other provisions of the law of Vietnam, except where the provisions of an international treaty to which the Socialist Republic of Vietnam is a signatory or participant provide otherwise.

Article 4

The labour regime which applies to State employees and officials, elected and appointed officials, members of units of the people's armed forces and police force, members of public organizations, members of political and social organizations, and members of co-operatives shall be governed by other separate legislation and a number of the provisions of this Code which shall be applied to each particular entity.

Article 5

1. Every person shall have the right to work, to choose freely the type of work or trade, to learn a trade, and to improve his professional skill without being discriminated against on the basis of his gender, race, social class, beliefs, or religion.

2. Maltreatment of workers and all forms of forced labour are prohibited.

3. Any activity which creates employment, which is a form of self employment, which teaches a skill or trade to assist others to find work, and any production or business activity which employs a high number of workers shall be encouraged by the State and shall enjoy favourable conditions or assistance.

Article 6

An employee shall be a person of at least fifteen (15) years of age who is able to work and has entered into a labour contract.

An employer shall be an enterprise, body, or organization, or an individual who is at least eighteen (18) years of age employing and paying wages to an employee.

Article 7

1. An employee shall be paid a wage on the basis of an agreement reached with the employer provided that the wage is not less than the minimum wage stipulated by the State, and is in accordance with his ability and the quality and standard of the work performed; the employee shall be entitled to labour protection, and safe and hygienic working conditions; the employee shall be entitled to stipulated rest breaks and holidays, fully paid annual leave, and social insurance benefits in accordance with the provisions of the law. The State shall stipulate a labour regime and a social policy aimed at protecting female workers and occupations having special characteristics.

2. An employee shall have the right to form, join, or participate in union activities in accordance with the Law on Trade Unions in order to protect his legal rights and benefits; he shall be entitled to collective welfare and be permitted to participate in the management of the business in accordance with the internal regulations of the enterprise and the provisions of the law.

3. An employee shall have an obligation to perform the labour contract and the collective labour agreement, to comply with labour rules, internal labour regulations, and the lawful administrative orders of the employer.

4. An employee shall have the right to strike in accordance with the provisions of the law.

Article 8

1. An employer shall have the right to recruit labour and to assign or manage labour in accordance with the requirements of business production; it shall have the right to reward and praise outstanding performances, and to deal with breaches of labour rules in accordance with the provisions of the Labour Code.

2. An employer shall have the right to appoint a representative to negotiate and sign a collective labour agreement of the enterprise or a collective labour agreement of an industry group, and have the responsibility to co-operate with trade unions in discussing issues relating to labour relations and to improve the material and spiritual lives of employees.

3. An employer shall have an obligation to perform the labour contract, the collective labour agreement, and other agreements reached with the employees, to respect their honour and dignity, and to treat employees well.

Article 9

The labour relationship between an employee and an employer is established and developed through negotiation and agreement on the principles of voluntary commitment, fairness, co-operation, mutual respect of legal rights and benefits, and full performance of undertakings of both parties.

The State shall encourage agreements which provide the employee with more favourable conditions than those stipulated in the Labour Code.

The employee and the employer shall have the right to request a competent body or organization to resolve a labour dispute. The State encourages the resolution of labour disputes by way of conciliation and arbitration.

Article 10

1. The State shall uniformly manage human resources and labour sources in accordance with the law and shall formulate policies to increase and apportion sources of labour, and to develop various forms of labour utilization and employment services.

2. The State shall provide guidelines for employees and employers to establish harmonious and stable labour relationships for the purpose of mutual co-operation in the development of businesses.

Article 11

The State shall, in order to achieve highly efficient management of labour and production within businesses, encourage democratic, fair and civilized labour management, and measures which increase a worker's commitment and loyalty towards the business including bonuses in the form of profit sharing.

The State shall formulate policies which enable an employee to participate in the development a business by purchasing shares in the business.

Article 12

Trade unions shall, in conjunction with State bodies and economic and social organizations, look after and protect the rights of employees; and inspect and supervise the implementation of the provisions of the Labour Code.


CHAPTER II

Employment

Article 13

Any labour activity which creates a lawful source of income shall be deemed to be employment.

The creation of employment for those who are able to work is the responsibility of the State, enterprises, and society.

Article 14

1. The State shall determine a target number of new jobs in both its annual and five-year social economic development plans. The State shall create the necessary conditions, provide financial assistance and loans, and reduce or exempt payment of tax in order to assist those who are able to work to find work, and to encourage organizations, entities, and individuals in all sectors of the economy to create and develop new occupations for the purpose of creating employment.

2. The State shall formulate policies which provide preferential treatment and employment opportunities in order to increase the employment rate of ethnic minorities.

3. The State shall establish policies to encourage and create favourable conditions for investment by domestic and foreign organizations or individuals (including Vietnamese residing abroad) in the development of the manufacturing, business, and service industries for the purpose of reducing unemployment.

Article 15

1. The Government shall, through its job creation programmes, establish national employment programmes, and investment projects for economic and social growth in new economic zones. The State shall establish a national employment fund with funds from the State treasury and from other sources. It shall develop a network of employment service agencies. The Government shall submit annually a national employment programme and fund to the National Assembly for approval.

2. People's committees of provinces and cities under central authority shall establish local employment programmes for submission to the people's council at the same level for approval.

3. State bodies, economic organizations, public associations, and social organizations shall, depending on their respective duties and powers, be responsible for the implementation of employment programmes and funds.

Article 16

1. An employee shall have the right to be employed by any employer in any location not prohibited by law. A worker who is seeking work shall have the right to approach a potential employer directly or to register with an employment service agency in order to find a job which matches his aspiration, ability, trade skill, and health.

2. An employer shall have the right to recruit labour directly or through employment service agencies, and to increase or reduce the number of employees in accordance with production and business requirements and in compliance with the provisions of the law.

Article 17

1. Where, as a result of organizational restructuring or technological changes, an employee who has been employed in the business for a period of one or more years becomes unemployed, the employer shall have the responsibility to re-train and assign the employee to another job within the enterprise; if a new job cannot be created, the employer must pay an allowance for loss of work equivalent to the aggregate amount of one month's salary for each year of employment but no less than two months salary.

2. In cases where the retrenchment referred to in clause 1 of this article applies to a number of employees, the employer must publish a list of the employees to be retrenched, and on the basis of business requirements, seniority, skill, family conditions, and other factors of each employee, the employer shall gradually retrench the employees provided that the executive committee of the trade union of the enterprise is consulted in accordance with the procedure stipulated in clause 2 of article 38 of this Code. An employer shall only be permitted to retrench employees after notifying the local labour office.

3. Business enterprises must establish a reserve for retrenchment payouts in accordance with the provisions of the Government in order to ensure that retrenched employees are paid in a timely manner.

4. In order to create favourable conditions for workers to find work or be self employed, the Government shall formulate policies and measures to provide trade skills, training, business and production guidance, and low interest loans from the national employment fund; it shall also provide financial assistance to localities or branches which have high unemployment rates due to organizational restructuring or technological changes.

Article 18

1. An employment service agency established in accordance with the law shall have a duty to provide consultancy services, to introduce and supply labour, to assist in the recruitment of labour, and to collect and provide information on the labour market. A Vietnamese worker shall only be permitted to be sent overseas if a permit issued by a competent body is obtained.

2. An employment service agency shall be permitted to collect fees, be considered for tax reduction or exemption, and organize trade training classes in accordance with the provisions of Chapter III of this Code.

3. The Ministry of Labour, War Invalids and Social Affairs shall uniformly manage the activities of employment service agencies within the country.

Article 19

Any conduct which is intended to deceive workers or to use an employment service agency as a means of breaching the law is strictly prohibited including forms of enticement, false promises, or false advertising.


CHAPTER III

Trade Apprenticeship and Training

Article 20

1. Each person shall have the right to choose freely a trade and a place to learn that trade in accordance with his work requirements.

2. An enterprise, organization, or individual satisfying the conditions stipulated by law shall be permitted to establish trade training centres. The Government shall promulgate provisions on the establishment of trade training centres.

Article 21

1. A trade training centre must be registered and must operate in accordance with the provisions on trade training. It shall be permitted to collect fees and shall be subject to payment of tax in accordance with the provisions of the law.

2. Trade training centres which cater for war invalids, injured soldiers, the disabled, and ethnic minorities; those which are located in high unemployment regions; and those which teach traditional trades in factories or at home shall be considered for tax exemption or reduction.

Article 22

Students registered at a trade training centre must be at least thirteen (13) years of age, except in the case of trades in respect of which the Ministry of Labour, War Invalids and Social Affairs determines otherwise. Students registered must be healthy and capable of satisfying the requirements of the trade.

Article 23

1. A business enterprise must establish programmes to improve the trade skills of its employees and to re-train employees who are assigned to other jobs within the enterprise.

2. A business enterprise which recruits apprentices or trainees for a fixed period specified in the apprenticeship or training contract shall not be required to register or pay tax for such training but shall be prohibited from collecting fees. The training or apprenticeship period shall be included in the employment period of an employee of the enterprise. Where a trainee or an apprentice directly produces or participates in the production of products for the enterprise during his training or apprenticeship period, he shall be paid a wage at a rate agreed between the trainee or apprentice and the employer.

Article 24

1. Trade training must be accompanied by a written or oral contract entered into between the student and the teacher of the trade or the representative of the trade training centre. Where the trade training contract is in writing, it must be made in duplicate with each party retaining a copy.

2. The main contents of a trade training contract must include the objective of the training programme, the venue, the fee, the duration, and the amount of compensation for breach of contract.

3. Where an enterprise recruits an apprentice to work in its operation, the trade training contract must specify the term of apprenticeship and a provision which guarantees the signing of a labour contract upon the completion of the apprenticeship. If, after the completion of the apprenticeship, the apprentice refuses to continue working in accordance with the undertakings stated in the contract, he must pay compensation for the costs of the apprenticeship.

4. Where the trade training contract terminates prior to expiry due to reasons of force majeure, neither party shall be liable for payment of compensation.

Article 25

Enterprises, organizations and individuals are strictly prohibited from exploiting workers for self interest motives through apprenticeship programmes or trade training. Any conduct which deceives or compels an apprentice or trainee to carry out illegal activities is also strictly prohibited.


CHAPTER IV

Labour Contract

Article 26

A labour contract is an agreement between the employee and the employer specifying remuneration, working conditions, and the rights and obligations of each party in the labour relationship.

Article 27

1. A labour contract shall be entered into in any one of the following forms:

(a) An indefinite term labour contract;

(b) A definite term labour contract with period of employment from one to three years;

(c) A labour contract for a specific or seasonal job with a duration of less than one year.

2. Parties are prohibited from signing short term specific or seasonal job labour contracts in respect of a job which is regular and has a duration of over one year, except in the case of the temporary replacement of an employee who has taken leave of absence because of military obligation, pregnancy, or other temporary reasons.

Article 28

A labour contract shall be entered into in writing and must be made in duplicate with each party retaining one copy. An oral agreement may be entered into in respect of certain temporary works which have a duration of less than three months, and in respect of domestic servants. In the case of an oral agreement, the parties must still comply with the provisions of the Labour Code.

Article 29

1. A labour contract must contain the following main provisions:

C Nature of work;

C Working hours and rest breaks;

C Wages or salary;

C Location of job;

C Duration of contract;

C Employment protection and conditions on occupational safety and hygiene; and

C Conditions in respect of social insurance for employee.

2. Where the whole or a part of a labour contract provides to the employee less rights than those stipulated in the Labour Code, in the collective labour agreement, and in the existing internal labour regulations of the enterprise, or limits other rights of an employee, the whole contract or the relevant part must be amended or added to accordingly.

3. Where a labour inspector discovers a contract referred to in clause 2 of this article, he shall provide guidelines for parties to amend or add to the contract. Where the parties refuse to amend or add to the contract, the labour inspector shall compel the deletion of such term from the labour contract.

Article 30

1. A labour contract shall be entered into directly between the employee and the employer.

2. A labour contract may be signed by the employer and an employee who is authorized to represent a group of employees. In this case, the labour contract shall be enforceable and effective as if it were entered into directly with each employee.

3. An employee may enter into one or more labour contracts with one or more employers provided that he is able to perform fully the contracts entered into.

4. The tasks stipulated in the labour contract must be carried out by the person who has directly entered into such contract, and the transfer of such tasks to another person without the approval of the employer is prohibited.

Article 31

In cases where an enterprise merges, divides, or transfers the ownership, management, or right to use the assets of the enterprise, the new employer shall continue to be bound by the labour contract of the employee until such time as both parties can agree on the amendment or termination of the contract, or can enter into a new labour contract.

Article 32

The employer and the employee shall agree on a trial period, the duration of the trial, and the rights and obligations of the parties. The wage of the employee during a trial period must be at least seventy (70) per cent of the normal wage for the job. The trial period shall not exceed sixty (60) days in respect of works which require specialized or highly technical skills, or thirty (30) days in respect of other works.

During a trial period, each party shall be entitled to terminate the trial work agreement without giving advance notice and shall not be obliged to pay compensation if the work performed does not satisfy the agreed requirements. If and when the work performed satisfies the agreed requirements, the employer must officially employ the employee as previously agreed.

Article 33

A labour contract shall become binding when it is signed or when both parties reach an agreement.

If, during the performance of a labour contract, a party requests the amendment of the terms and conditions of the contract, that party must give three days notice to the other party. Any amendment to the content of a labour contract may take place by way of amending or adding to the signed labour contract or by entering into a new labour contract.

Article 34

1. In cases of force majeure or due to business production demand, an employer may temporarily assign an employee to another job provided that the period of assignment does not exceed sixty (60) days in one year.

2. In cases of a temporary assignment, an employer must give three days notice to the employee, inform the employee of the duration of the temporary assignment, and assign a job which is suitable to the health and gender of the employee.

3. Where an employee is assigned to another job as stipulated in clause 1 of this article, the employee shall be paid a wage at a rate appropriate to the new job. Where the wage rate of the new job is less than that of the previous job, the employee shall be entitled to receive the previous wage for a period of thirty (30) days. The new wage shall be equal to at least seventy (70) per cent of the previous wage but not less than the minimum wage stipulated by the State.

Article 35

1. The performance of a labour contract shall be suspended in any of the following circumstances:

(a) The employee is required for military service or other public services as determined by the law;

(b) The employee is detained or is held temporarily in prison;

(c) In other circumstances agreed by both parties.

2. Where a labour contract is suspended in the cases stipulated in sub-clauses (a) and (c) of this article, the employer must re-employ the employee at the end of that suspension period.

3. Where a labour contract is suspended due to the employee being detained or held temporarily in prison, the re-employment of the employee shall be determined by the Government.

Article 36

A labour contract shall be terminated in the following circumstances:

1. the expiry of the contract;

2. the tasks stated in the contract have been completed;

3. both parties agree to terminate the contract;

4. the employee is convicted or sentenced to serve a jail term or is prevented from performing his former job in accordance with a judgment or decision of the Court;

5. the employee dies or is declared missing by the Court.

Article 37

1. An employee who is a party to a definite term labour contract with a duration of one to three years or a contract for a specific or seasonal job with a duration of less than one year may unilaterally terminate the contract prior to expiry in any one of the following circumstances:

(a) The employee is not assigned to a job or work place or is not provided with the work conditions agreed to in the contract;

(b) The employee is not paid in full and in time the wages due pursuant to the contract;

(c) The employer maltreats the employee or the employment is a form of forced labour;

(d) For personal or family reasons the employee is unable to continue performing the contract;

(e) The employee is elected to public office or is appointed to a position in a State body;

(f) A female employee is pregnant and requires leave of absence as advised by a doctor.

2. Where a labour contract is unilaterally terminated in accordance with the provisions of clause 1 of this article, the employee must give the employer:

(a) In the cases stipulated in sub-clauses (a), (b) and (c): at least three days notice;

(b) In the cases stipulated in sub-clauses (d) and (e): at least thirty (30) days notice in respect of a definite contract with duration of one to three years, and at least three days notice in respect of a contract for a specific or seasonal job with a duration of less than one year;

(c) In the case stipulated in sub-clause (f): notice in accordance with the period stipulated in article 112 of this Code.

3. An employee who is a party to an indefinite term labour contract may unilaterally terminate the contract at any time provided that he gives the employer forty five (45) days notice.

Article 38

1. An employer may unilaterally terminate a labour contract in any of the following circumstances:

(a) The employee repeatedly fails to perform the work in accordance with the terms of the contract;

(b) An employee is disciplined or dismissed in accordance with the provisions of article 85 of this Code.

(c) Where an employee suffers illness or injury and remains unable to work after having received treatment for a period of one year in respect of an indefinite term labour contract, or six consecutive months in respect of a definite term contract, or more than half the duration of the contract in respect of a contract for a specific or seasonal job. Upon the recovery of the employee, the employer shall consider the continuation of the labour contract;

(d) The employer is forced to reduce production and employment while trying to recover from a natural disaster, a fire, or an event of force majeure;

(e) The enterprise, organization, or individual ceases operation.

2. Prior to the termination of a labour contract in accordance with sub-clauses (a), (b) and (c) of clause 1 of this article, the employer must discuss and reach an agreement with the executive committee of the trade union. Where there is a disagreement, both parties must submit a report to the competent body or organization. After a period of thirty (30) days as from the date the labour office is notified, the employer shall have the right to make a decision and be responsible for such a decision. Where the executive committee of the trade union of the enterprise or the employee disagrees with the decision of the employer, either party shall have the right to request the resolution of a labour dispute in accordance with a procedure stipulated by the law.

3. Where an employer unilaterally terminates a labour contract, except in the case stipulated in sub-clause (b) of clause 1 of this article, the employer must give notice to the employee:

(a) no later than forty five (45) days in respect of an indefinite term labour contract;

(b) no later than thirty (30) days in respect of a definite term contract with duration of one to three years;

(c) no later than three days in respect of a contract for a specific or seasonal job with a duration of less than one year.

Article 39

An employer shall not be permitted to terminate unilaterally a labour contract in any of the following circumstances:

1. The employee is suffering from illness or injury caused by a work-related accident or occupational disease and is being treated or nursed on the advice of a doctor, except in the cases stipulated in sub-clauses (c) and (e) of clause 1 of article 38 of this Code.

2. The employee is on annual leave, personal leave of absence, or any other type of leave permitted by the employer.

3. The employee is a female referred to in clause 3 of article 111 of this Code.

Article 40

Each party may withdraw its notice of unilateral termination of a labour contract at any time before the notice period for termination has expired. If the time for giving notice has expired, each party shall have the right to terminate the labour contract.

Article 41

1. Where an employer unlawfully unilaterally terminates a labour contract, it must re-employ the employee and pay compensation equal to the amount of wages for the period the employee is absent from work. Where the employee refuses to return to work, the employee shall be paid the compensation referred to above plus an allowance stipulated in clause 1 of article 42 of this Code.

2. Where an employee unlawfully unilaterally terminates the labour contract, he shall not be entitled to any retrenchment allowance.

3. Where an employee unilaterally terminates the labour contract, he shall be liable for payment of compensation for costs of training (if any) in accordance with the provisions of the Government.

4. Where a labour contract is unilaterally terminated in breach of the provisions on giving advance notice, the party in breach shall pay compensation to the other party in a sum equal to the wages which would otherwise have been paid for those days not notified.

Article 42

1. Where the labour contract of an employee who has been employed in an enterprise or organization, or with an individual, for at least one year is terminated, the employer must pay such employee a retrenchment allowance equal to the aggregate amount of half a month's salary for each year of employment plus salary allowances (if any).

2. Where a labour contract is terminated in accordance with the provisions of sub-clauses (a) and (b) of clause 1 of article 85 of this Code, the employee shall not be entitled to a retrenchment allowance.

Article 43

Within seven days from the date of termination of a labour contract each party shall be responsible for full payment of all sums outstanding to the other party. In special cases, this period may be extended to thirty (30) days.

Where the enterprise is declared bankrupt, money relating to the rights of the employees shall be dealt with in accordance with the provisions of the Law on Business Bankruptcy.

The employer shall state in writing the reasons for the termination of the labour contract and return the labour book to the employee. Apart from what is stated in the labour book, the employer is prohibited from providing in writing or orally any additional information which might prevent the employee from finding employment.


CHAPTER V

Collective Labour Agreement

Article 44

1. A collective labour agreement (hereinafter referred to as a collective agreement) is a written agreement between a body of employees (labour collective) and the employer in respect of working conditions and utilization of labour, and the rights and obligations of both parties in respect of labour relations.

A collective agreement negotiated and signed by the representative of the labour collective and the employer shall be based on the principles of voluntary commitment and fairness, and shall be made public.

2. The terms and conditions of the collective agreement must be consistent with the provisions of the Labour Code and other labour laws.

The State encourages the parties to sign a collective agreement which provide employees with more favourable conditions than those stipulated in labour laws.

Article 45

1. The negotiating representatives of both parties to the collective agreement shall be:

(a) The representative of the labour collective shall be the executive committee of the trade union of the enterprise or a temporary trade union organization;

(b) The representatives of the employer shall be the manager of the enterprise, or a person authorized in accordance with the charter of the enterprise or delegated by the manager of the enterprise.

The representatives of both parties in the negotiation of a collective agreement shall be agreed on by the parties and be in equal numbers.

2. The representative who signs the collective agreement for the labour collective must be the chairman of the executive committee of the trade union of the enterprise or a person authorized by the executive committee. The representing signatory of the employer shall be the manager of the enterprise or a person authorized by him.

3. A collective agreement shall only be signed if the negotiated content of such agreement is approved by more than fifty (50) per cent of the members of the labour collective.

Article 46

1. Each party shall have the right to request the signing of a collective agreement and to propose its terms and conditions. No later than twenty (20) days after receiving the request, the receiving party must agree to the negotiation proposal and a commencement date for the negotiation.

2. The principal provisions of the collective agreement include undertakings of the parties in respect of employment and guarantee of employment; working hours and rest breaks; salaries, bonuses, and allowances; work limits; labour protection, occupational safety and hygiene; and social insurance for the employees.

Article 47

1. The signed collective agreement must be made in four copies:

(a) one for the employer;

(b) one for the executive committee of the trade union of the enterprise;

(c) one to be submitted to a higher trade union body by the executive committee of the trade union of the enterprise;

(d) one to be submitted by the employer to the provincial labour office for registration within ten (10) days from the date of signing.

An enterprise with offices in several provinces and cities must register its collective agreement with the labour office of the province in which its head office is located.

2. The collective agreement shall become effective as from the date of its signing. The provincial labour office must issue a written confirmation of the registration within fifteen (15) days at the latest from the date of receipt of the collective agreement. Where such confirmation is not issued, the collective agreement shall become effective after that time.

Article 48

1. The collective agreement shall be partially invalid if the approval of the provincial labour office is required for one or a number of provisions in the agreement. The remaining registered provisions shall still be effective and binding.

2. The collective agreement shall be wholly invalid in the following circumstances:

(a) all of the terms and conditions of the agreement are contrary to the law;

(b) the person signing the agreement was not fully authorized;

(c) the signing procedure was not strictly followed;

(d) the agreement is not registered at a provincial labour office.

3. The provincial labour office shall be the body vested with the power to declare an invalid collective agreement as stipulated in sub-clause (a) of clause 2 of this article void. In respect of collective agreements as stipulated in sub-clauses (b), (c) and (d) of clause 2 of this article, and where the terms of the agreement are beneficial to the employees, the provincial labour office shall instruct the parties to amend the agreement in accordance with the provisions of the law or declare the agreement void if the parties fail to carry out such instructions.

Article 49

1. The collective agreement shall be made known to all employees of the enterprise after it becomes legally effective. All employees including new employees who are employed after the signing of the agreement shall be responsible for the full implementation of the collective agreement.

2. Where the rights stipulated in a signed labour contract of an employee are less favourable than those provided for in the collective agreement, the terms of the collective agreement must be complied with. All labour regulations within the enterprise must be amended so that they are consistent with the provisions of the collective agreement.

3. Where a party fails to perform fully the provisions of the collective agreement or breaches the provisions of the collective agreement, the other party has the right to request full compliance with the agreement. Any dispute between the parties must be resolved firstly by way of conciliation. Where the parties fail to resolve the dispute, each party shall have the right to request resolution of the collective labour dispute in accordance with the procedure stipulated by law.

Article 50

A signed collective agreement shall be for a duration of one to three years. When an enterprise signs a collective agreement for the first time, the duration of the collective agreement may be less than one year.

Each party shall have the right to request the amendment of or addition to the collective agreement only after three months from the date of signing in respect of a collective agreement with a duration of less than one year, or six months in respect of an agreement with a duration of one to three years. The procedure for the amendment of or addition to a collective agreement shall be in accordance with the signing procedure.

Article 51

Prior to the expiry of a collective agreement, both parties may negotiate the extension of the duration of the existing collective agreement or enter into a new agreement. Where the collective agreement expires during the negotiation process, it shall continue to be effective and binding. If the negotiations between the parties are still inconclusive three months after the expiry of the agreement, the old agreement shall be deemed to have expired and become invalid.

Article 52

1. Where an enterprise divides or transfers its rights of ownership or management, or right to use its assets, the new employer must continue to perform the collective agreement until its expiry or the signing of a new agreement.

Where an enterprise merges, the performance of the collective agreement shall be determined by the Government.

2. In cases where an enterprise ceases its operation and the collective agreement becomes void, the interest of the employees shall be dealt with in accordance with article 66 of this Code.

Article 53

The employer shall be responsible for all expenses of the negotiation, signing, registration, amendment of, addition to, and announcement of the collective agreement.

The representatives of the labour collective shall be entitled to payment of salary during the time of negotiation and signing of the collective agreement provided that those representatives are employees working in the enterprise.

Article 54

The provisions of this Chapter shall govern the negotiation and signing of collective agreements in all industries and areas of business.


CHAPTER VI

Wages

Article 55

The wage of an employee shall be agreed in the labour contract and shall be paid in consideration of rate of production, and the quality and result of the work performed. The wage of an employee must not be lower than the minimum wage stipulated by the State.

Article 56

The minimum wage is calculated on the basis of the cost of living of an employee who is employed in the most basic job with normal working conditions, and includes payment for the work performed and an additional amount for contribution towards the savings of the employee. The minimum wage shall be used as a basis for employers to calculate the wages of various jobs within an enterprise.

Subject to consultation with the Trade Union Federation of Vietnam and representatives of employers, the Government shall determine and promulgate for each period a general minimum wage, a minimum wage for each region, and a minimum wage for each industry.

When the price index increases, resulting in the reduction of the real wages of employees, the Government shall adjust the minimum wage accordingly.

Article 57

Subject to consultation with the Trade Union Federation of Vietnam and representatives of employers, the Government shall promulgate a wage scale and a wage table to enable the calculation of social insurance contributions, medical insurance, overtime rates, nightshift rates, retrenchment allowances, and payments for annual leave and other leave of absence of employees.

Article 58

1. An employer shall have the right to select the method of payment of wages: calculated by reference to hours, days, weeks, or months, or on the basis of a product produced or a project, provided that the selected method is applied for a fixed period of time and the employee is notified of the method.

2. An employee whose wage is calculated by reference to hours, days, or weeks shall be paid at the end of the hour, day, or week, or such period as agreed by the parties provided that each payment of wage is made within a period of fifteen (15) days.

3. An employee whose wage is calculated by reference to months shall be paid monthly or half-monthly.

4. An employee whose wage is calculated on the basis of a product produced or a completed project shall be paid in accordance with an agreement reached between the two parties: where the work to be performed is carried out over many months, the employee shall be entitled to monthly payments in advance calculated on the amount of work performed within the month.

Article 59

1. An employee shall be entitled to receive his wage directly, in full, in a timely manner, and at the place of work.

In special cases of late payment of wages, the employer must settle the outstanding wage within one month and pay to the employee compensation equal to at least the interest earned on the amount due calculated by reference to the interest rate of saving deposits published by the State Bank at the time when the wage was due.

2. Payment of wages shall be made by way of cash. Both parties may agree on payment in part by cheque or State coupons provided that the employee does not suffer any loss or inconvenience.

Article 60

1. An employee shall have the right to be aware of any deductions made from his salary. Prior to making any deduction, the employer must consult with and obtain the approval of the executive committee of the trade union of the enterprise. Where there are deductions, the aggregate amount deducted must not exceed thirty (30) per cent of the monthly wage.

2. An employer shall be prohibited from imposing fines and penalties by way of deductions from wages.

Article 61

1. An employee who works overtime shall be paid as follows:

(a) On normal days, the employee shall be paid for that overtime at a rate of at least one hundred and fifty (150) per cent of the standard rate;

(b) On days off or holidays, the employee shall be paid for that work at a rate of at least two hundred (200) per cent of the standard rate.

Where an employee is required to work at night, he shall be paid an overtime rate calculated in accordance with the provisions of clause 2 of this article.

Where an employee is allowed time off for the additional hours worked, the employer shall only be required to pay the difference between the overtime rate and the standard rate for the additional hours.

2. An employee who works at night as referred to in article 70 of this Code shall be paid an additional allowance of at least thirty (30) per cent of the standard day shift wage.

Article 62

In cases where the employee has to cease working, he shall be paid as follows:

1. If due to the fault of the employer, the employee shall be entitled to payment of the full wage;

2. If due to the fault of the employee, that employee shall not be entitled to payment of wage; other employees in the same unit who have to also cease work shall be paid wages agreed on by the parties provided that those wages are not less than the minimum wage;

3. If there is a breakdown in electricity or water through no fault of the employer, or due to reasons of force majeure, the level of salary shall be agreed on by the parties but shall not be less than the minimum wage.

Article 63

Allowances, bonuses, salary increases, and other incentives may be agreed in the labour contract, collective agreement, or the regulations of the enterprise.

Article 64

Employers shall be responsible for paying a portion of annual profits into funds in accordance with the law for the purpose of giving bonuses to employees who have worked in the enterprise for one year or more in compliance with the provisions of the Government and pursuant to the special characteristics of each enterprise.

Article 65

1. Where a contractor's foreman or equivalent intermediary is used, the employer who is the principal owner must prepare a list of the names and addresses of such persons accompanied by a list of their employees, and must ensure that their activities comply with the provisions of the law on wages, labour protection, occupational safety and hygiene.

2. In cases where a contractor's foreman or an equivalent intermediary fails to pay, or to pay in full the wages and other rights and interests of employees, the employer who is the principal owner must be responsible for the full payment to the employees. In this case, the employer who is the principal owner shall have the right to request compensation from the contractor's foreman or equivalent intermediary, or request a competent State body to resolve the dispute in accordance with the provisions of the law.

Article 66

In the event that an enterprise merges, divides, or transfers its rights of ownership and management, or right to use its assets, the new employer must be responsible for the payment of wages and other rights and interests to the employees. In the event that the enterprise becomes bankrupt, all salaries, retrenchment allowances, social insurance, and other rights and interests of the employees stipulated in the collective agreement and labour contracts entered into with employees shall be the first and foremost liability of the enterprise in order of priority for payment.

Article 67

1. Where an employee or his family faces financial difficulties, the employee shall be entitled to an advance in salary in accordance with the conditions agreed by both parties.

2. The employer shall advance salary or wage to an employee who is temporarily absent from work due to public obligations.

3. Payments of salary in advance to employees who are detained or held temporarily in prison shall be determined by the Government.


CHAPTER VII

Working Hours and Holidays

Part I Working Hours

Article 68

1. The normal working hours of each employee shall not exceed eight hours per day or forty eight (48) hours per week. An employer shall have the right to determine the working hours on a daily or a weekly basis provided that the employees are notified.

2. The normal working hours shall be reduced by one or two hours for workers who perform extremely heavy, dangerous, or toxic works as stipulated in a list issued by the Ministry of Labour, War Invalids and Social Affairs and the Ministry of Health.

Article 69

An employer and an employee may agree on additional working hours provided that the number of additional hours worked is less than four hours a day or two hundred (200) hours annually.

Article 70

Nightshift hours are from 10.00 pm to 6.00 am or from 9.00 pm to 5.00 am depending on geographical climatic regions as determined by the Government.

Part II Rest Breaks and Holidays

Article 71

1. An employee who works for eight hours consecutively shall be entitled to a break of at least half an hour which shall be included in the number of hours worked.

2. An employee who works nightshift shall be entitled to a break of at least forty five (45) minutes which shall be included in the number of hours worked.

3. An employee who works in shifts shall be entitled to a break of at least twelve hours between each shift.

Article 72

1. In every week, each employee shall be entitled to a break of at least one day (twenty four consecutive hours).

2. An employer may arrange for the weekly day off to fall on a Sunday or another specified day of the week.

3. Where, due to the nature of the work, it is impossible for the employees to have a weekly day off, the employer must make alternative arrangements to ensure that the employees on average have at least four days off in a month.

Article 73

An employee shall be entitled to have fully paid days off on the following public holidays:

C Calendar New Year Holiday: one day (the first day of January of each calendar year);

C Lunar New Year Holidays: four days (the final day of the old year and the first three days of the new Lunar year);

C Victory Day: one day (the thirtieth day of April of each calendar year);

C International Labour Day: one day (the first day of May of each calendar year);

C National Day: one day (the second day of September of each calendar year).

Where the public holidays referred to above coincide with a weekly day off, the employee shall be entitled to take the following day off also.

Article 74

1. An employee who has been employed in an enterprise or by an employer for twelve (12) months shall be entitled to annual leave as follows:

(a) Annual leave of twelve (12) working days shall apply to employees working in normal working conditions;

(b) Annual leave of fourteen (14) working days shall apply to persons working in heavy, dangerous, or toxic jobs, or in places with harsh living conditions, and to persons under the age of 18;

(c) Annual leave of sixteen (16) working days shall apply to persons working in extremely heavy, dangerous, or toxic jobs, or in heavy, dangerous, or toxic jobs in places with harsh living conditions.

2. Travelling time not included in the annual leave shall be determined by the Government.

Article 75

The number of days of annual leave shall be increased in accordance with the period of employment in an enterprise or with an employer by one additional day for every five years of employment.

Article 76

1. Subject to consultation with the executive committee of the trade union of an enterprise, an employer shall have the right to determine a timetable for the annual leave of employees provided that everyone in the enterprise is notified.

2. An employee may reach an agreement with the employer on taking annual leave in instalments. Persons who work in distant and remote regions may, if they so request, combine two annual leaves together, or where three annual leaves are desired to be taken at one time, the approval of the employer must be obtained.

3. A former employee of an enterprise or an employee who for some reason fails to take his annual leave or has not used up all his annual leave shall be paid the normal wage in lieu of those days not taken.

Article 77

1. When taking annual leave, an employee may be paid in advance an amount equal to at least the wages for the days on holiday. Travel expenses and wages paid during travel shall be agreed on by the parties.

2. An employee whose period of employment is less than twelve (12) months shall be entitled to a holiday of a duration calculated in proportion to the period of employment or an equivalent payment in lieu of the holiday.

Part III Personal Leave of Absence and Holiday Without Pay

Article 78

An employee may take fully paid leave of absence for personal reasons in the following circumstances:

1. Marriage: for three days;

2. Marriage of his children: for one day;
3. Death of a parent (including the spouse's parents), spouse, or child: for three days.

Article 79

An employee shall be entitled, with the permission of the employer, to unpaid leave of absence.

Part IV Working Hours and Rest Breaks for Workers in Jobs of a Special Nature

Article 80

The working hours and rest breaks of workers working offshore, in mines, or in other jobs with special characteristics shall be determined by the Government.


Article 81

The working hours and rest breaks of workers working on a casual basis (incomplete days or weeks) and on contract basis shall be determined by an agreement between the worker and the employer.


CHAPTER VIII

Labour Rules and Responsibility for Damage

Article 82

1. Labour rules are regulations governing compliance with time, technology, and business production management in the form of internal labour regulations.

Internal labour regulations must not be contrary to labour legislation and other laws. Enterprises which employ ten (10) or more employees must have internal labour regulations in writing.

2. Prior to proclaiming the internal labour regulations, the employer must consult the executive committee of the trade union of the enterprise.

3. An employer must register the internal labour regulations document with the provincial labour office. The internal labour regulations shall be effective and binding as from the date of registration. No later than ten (10) days after the receipt of the internal labour regulations document, the provincial labour office must issue confirmation of the registration. If the labour office fails to issue such confirmation after the expiry of the period referred to above, the internal labour regulations document shall become effective.

Article 83

1. The internal labour regulations must include the following main contents:

(a) Working hours and rest breaks;

(b) Rules and order of the enterprise;

(c) Occupational safety and hygiene in the work place;

(d) Protection of assets and confidentiality of technology and business secrets of the enterprise;

(e) Conduct which is in breach of labour rules and penalties imposed for those breaches, and responsibility for damage.

2. The internal labour regulations must be notified to each employee and the main rules must be posted at strategic locations within the enterprise.

Article 84

1. An employee who breaches labour rules shall, depending on the seriousness of the breach, be dealt with in the following manner:

(a) The employee shall be held accountable for the breach;

(b) The employee shall be transferred to another position with a lower wage for a maximum period of six months;

(c) The employee shall be dismissed.

2. A breach of labour rules shall only be dealt with by one form of penalty.

Article 85

1. Dismissal shall only be applied as a means of penalty in the following circumstances:

(a) Where an employee commits an act of theft, bribery, disclosure of business or technology secrets, or other conduct which is detrimental to the assets or well-being of the enterprise.

(b) Where an employee who is disciplined and assigned to another job commits other offences during the period when he is on trial.

(c) Where an employee takes seven (7) days off in one month or twenty (20) days off in one year without proper reasons.

2. Where an employer dismisses an employee, the provincial labour office must be notified.

Article 86

The period for assessing a breach of labour rules shall not exceed three months as from the date the breach occurred. The period for special cases shall not exceed six months.

Article 87

1. When dealing with breaches of labour rules, the employer must be able to prove that the breach was committed by the employee.

2. An employee shall have the right to represent himself or employ the service of a lawyer, a public defence counsellor, or a representative at a hearing.

3. When examining and dealing with a breach of labour rules, the concerned party and a representative of the executive committee of the trade union of the enterprise must be present for participation.

4. Minutes must be prepared of hearings which examine breaches of labour rules.

Article 88

1. An employee who is held accountable for a breach and an employee who has been disciplined and assigned to other work shall, after three and six months respectively as from the date of the breach, be cleared of all charges if no further offence is committed.

2. An employee who has performed half of the term of the assigned work shall be considered by the employer for a reduction of such term provided that he shows repentance and improvement.

Article 89

An employee who damages tools and equipment or whose conduct causes damage to the assets of the enterprise shall be liable for payment of compensation in accordance with the provisions of the law for the damage caused. Where the damage is not serious in nature and is due to carelessness, the maximum amount of compensation shall be limited to three months wages and shall be deducted gradually from wages in accordance with the provisions of article 60 of this Code.

Article 90

An employee who loses tools, equipment, or other assets assigned to him by the enterprise, or uses consumables at an excessive rate must, depending on the nature of each case, compensate the enterprise with an amount for the whole or a part of the asset at the market price. In cases where a contract of responsibility has been signed by the parties, the amount of compensation must be in accordance with the terms and conditions of the contract of responsibility. In cases of force majeure, no compensation is required.

Article 91

The order and procedure for determining the amount of compensation referred to in articles 89 and 90 shall be governed by the provisions of articles 86 and 87 of this Code.

Article 92

1. Provided that the executive committee of the trade union of the enterprise is consulted, an employer shall have the right to suspend temporarily an employee from working if the employer considers that the breach committed is complex in nature and that any further work carried out by the employee may jeopardise the result of the investigation.

2. The period of temporary suspension shall not exceed fifteen (15) days, or three months in special circumstances. During that period, the employee shall be compensated temporarily with fifty (50) per cent of the wage previously earned.

Upon the expiry of the period of temporary suspension, the employee must resume his former work.

3. Where the employee is found guilty of a breach of labour rules, he shall not be required to repay the amount of wage temporarily paid to him.

4. Where the employee is found not guilty of the breach of labour rules, the employer must pay the full wage and the related allowances for the period of temporary suspension.

Article 93

Where a person who is being disciplined, temporarily suspended from work, or ordered to pay compensation in accordance with the regime on responsibility for damage is not satisfied with the decision, he shall have the right to appeal to the employer against the decision, or to appeal to an authorized body, or to request resolution of the labour dispute in accordance with the procedure stipulated by law.

Article 94

Where a competent body concludes that a decision made against an employee accused of breaching labour rules is incorrect, the employer must withdraw such decision, apologise publicly, and restore the honour and material rights of the employee.


CHAPTER IX

Occupational Safety and Hygiene

Article 95

1. An employer shall be responsible for the provision of protective equipment, and ensuring occupational safety and hygiene. The employer shall be responsible for the improvement of work conditions in the work place. The employee must comply with all labour safety and hygiene regulations of the enterprise. Any organization or individual engaging in labour activities or production must comply with the laws on occupational safety and hygiene and environment protection.

2. The Government shall establish national programmes on labour protection and occupational safety and hygiene in its social economic development plans and budget; it shall invest in scientific research and shall provide assistance for establishments which manufacture tools and equipment for safety, hygiene, and personal protection; and it shall promulgate provisions on the regime of standards and procedures for, and violations of occupational safety and hygiene.

3. The Trade Union Federation of Vietnam shall participate with the Government in preparing national programmes on occupational safety and hygiene, in the preparation of scientific research programmes, and in the preparation of laws on labour protection and occupational safety and hygiene.

Article 96

1. Where an enterprise wishes to construct a new establishment, or expand or renovate an existing establishment for production, or utilisation, preservation, storage, or receipt of machinery, equipment, materials, or items which have strict requirements for occupational safety and hygiene, it must prepare a feasibility study outlining all measures to be taken to ensure labour safety and hygiene in the work place and the surrounding areas in accordance with the provisions of the law.

A list of machinery, equipment, materials, or items which require special standards for occupational safety and hygiene shall be issued by the Ministry of Labour, War Invalids and Social Affairs and the Ministry of Health.

2. The production, or usage, storage, or transportation of machinery, equipment, materials, energy, electricity, chemicals, insecticide, weed killer, rat poison, and the replacement of technology or import of new technology must be carried out in accordance with occupational safety and hygiene criteria. Machinery, equipment, materials, and items which have high standards for occupational safety and hygiene must be declared and registered, and be issued with a permit by a State inspection body which deals with occupational safety and hygiene.

Article 97

An employer must ensure that the work place satisfies the requirements of space, ventilation, lighting, and health standards such as dust, steam, toxic gas, radioactivity, electromagnetic field, heat, humidity, noise, vibration, and other detrimental factors. Such factors must be inspected and assessed on a regular basis.

Article 98

1. The employer must, on a regular basis, inspect, maintain, and repair machinery, equipment, plants and buildings, and storage facilities in accordance with occupational safety and hygiene standards.

2. The employer must have adequate protection for sensitive parts or sections of machinery and equipment within the enterprise. In work places and in places where there is machinery and equipment, or dangerous factors, the employer must install preventive measures and safety equipment for cases of breakdown, and instructions on occupational safety and hygiene in locations where they can be easily noticed and read.

Article 99

1. In the event that an accident occurs due to faulty machinery or equipment, or where there is an occupational disease in the work place, the employer must immediately implement preventive measures or issue an order to cease all operations in that work place, or the operation of that machinery or equipment until the situation is under control.

2. An employee shall have the right to cease work or leave the work place where there is an obvious and serious danger to his life or health and be responsible for immediately reporting the danger to a responsible person. An employer must not force an employee to continue working or to return to the work place if the danger is still present.

Article 100

In a work place which contains dangerous or toxic elements and has a high risk of accident, an employer must equip such place with suitable technical and medical facilities, and protective equipment to ensure a timely response to any breakdown or occupational accidents which may occur.

Article 101

Employees who work in dangerous or toxic jobs must be provided with personal protective clothing and equipment.

The employer must ensure that all personal protective clothing and equipment meets the quality standards and criteria stipulated by the law.

Article 102

When recruiting or organizing employees, the employer must base his selection on the stipulated health criteria in respect of each job, and organize the training, instructing, and notifying employees of occupational safety and hygiene regulations, preventive measures, and possible accidents which might occur for each particular job of each employee.

An employee must have his health examined during recruitment and, on a regular basis, during employment in accordance with the stipulated regime. The expenses of the health examination of the employee shall be borne by the employer.

Article 103

Enterprises shall be responsible for the provision of health care to employees and the implementation of emergency actions when required.

Article 104

Persons working in dangerous or toxic environment shall be compensated materially and be entitled to the regime of preferential treatment in respect of working hours and rest breaks pursuant to the provisions of the law.

An employer must provide employees working in poisonous or contaminated environments with personal decontamination or disinfectant facilities for use after work.

Article 105

Work-related accidents are accidents which injure any bodily parts or functions of an employee, or cause the death of the employee during the process of working and while performing the work or labour activity.

An employee who is injured in a work-related accident must be treated immediately and be fully attended to. The employer must take full responsibility for the cause of the work-related accident in accordance with the provisions of the law.

Article 106

Occupational disease is a disease contracted by the employee from working in a harmful environment. After consultation with the Trade Union Federation of Vietnam and representatives of employers, the Ministry of Health and the Ministry of Labour, War Invalids and Social Affairs shall issue jointly a list of all occupational diseases.

A person suffering from an occupational disease must be fully treated and have his health examined on a regular basis with separate medical records.

Article 107

1. A person who has become disabled as a result of a work-related accident or occupational disease shall be medically assessed for classification as an invalid, or to determine the reduction in his ability to work, and shall be rehabilitated. Where the employee continues to work, he shall be employed in a job which is appropriate to his health as determined by the report of the labour medical assessment council.

2. The employer must bear all medical expenses incurred from the time of the accident to the completion of the medical treatment in respect of an employee who, through no fault of his own, was injured in a work-related accident or contracted an occupational disease. The employee shall be entitled to the compensation stipulated in the regime on social insurance for work-related accidents and occupational diseases. If an enterprise has not participated in any form of social insurance, the employer shall be obliged to pay the employee an amount of compensation equal to the amount stipulated in the Regulations on Social Insurance.

3. An employer shall be responsible for payment of compensation equal to thirty (30) months salary for an employee whose ability to work has been reduced by eighty one (81) per cent or more, or for the relatives of an employee who has died as a result of a work-related accident or occupational disease which is not caused by the fault of the employee. Where the employee is at fault, he or his relative shall still be entitled to payment of compensation equal to twelve (12) months salary.

Article 108

All work-related accidents and cases of occupational disease must be declared, investigated, recorded, statistically noted, and reported on a regular basis in accordance with the provisions of the law.

All conduct which intends to conceal or to falsely declare or report a work-related accident or occupational disease is strictly prohibited.


CHAPTER X

Separate Provisions on Female Employees

Article 109

1. The State shall, on the basis of equality of the sexes, protect the right to work of women. It shall establish policies to encourage employers to create conditions for women to work on a regular basis and it shall apply widely the regime of casual part-time employment and work carried out at home.

2. The State shall progressively establish policies and implement measures to expand employment opportunities, improve working conditions, increase professional level, improve health, and strengthen the material welfare of female workers for the purposes of assisting women to achieve their full professional potential and to combine harmoniously work and family life.

Article 110

1. State bodies shall be responsible for the expansion of various forms of training which are favourable to female workers in order to enable women to gain an additional skill or trade for the purposes of giving employers more incentives to employ female workers and women more opportunities to find work which is suitable to their biological and physiological characteristics as well as their role as a mother.

2. The State shall establish policies on preferential treatment, and reduction of taxes for business enterprises which employ a high number of female employees.

Article 111

1. Employers are prohibited from conduct which is discriminatory towards a female employee or conduct which degrades the dignity and honour of a female employee.

An employer must implement the principle of equality of males and females in respect of recruitment, utilization, salary increase, and wages.

2. An employer must give preference to a female who satisfies all the recruitment criteria for a vacant position in an enterprise.

3. An employer shall be prohibited from dismissing a female employee or unilaterally terminating the labour contract of a female employee for reason of marriage, pregnancy, taking maternity leave, or raising a child under twelve (12) months old, except where the enterprise ceases its operation.

Article 112

Where there is a doctor's certificate which states that continued employment would affect her womb, a pregnant female employee may unilaterally terminate the labour contract and not be liable for payment of the compensation stipulated in article 42 of this Code. In such cases, the period in which the female employee must give notice to the employer shall depend on the period determined by the doctor.

Article 113

1. An employer must not assign a female employee to heavy, dangerous, or toxic and poisonous works which might have adverse effects on her ability to bear and raise a child, in accordance with the list of works issued by the Ministry of Labour, War Invalids and Social Affairs and the Ministry of Health.

Enterprises which currently employ female employees in works referred to above must formulate plans to train and gradually transfer those female employees to other suitable work. These enterprises must also carry out measures to protect the health of female workers, improve working conditions, or reduce the number of working hours.

2. Regardless of her age, an employer must not employ a female to work regularly in mines or in deep water.

Article 114

1. A female employee shall be entitled to maternity leave prior to and after the birth of her child for a total period of four to six months as determined by the Government on the basis of the working conditions and nature of the work (whether the work is heavy, harmful, or in remote locations). Where a female gives birth to more than one child at one time, she shall be entitled to an additional thirty (30) days leave for every additional child calculated from the second child onwards. The rights and benefits of a female employee during her maternity leave shall be as stipulated in articles 141 and 144 of this Code.

2. Where required and with the permission of the employer, a female employee may take additional leave without pay at the end of the maternity leave stipulated in clause 1 of this article. Provided that the employer is given notice, a female employee may return to work prior to the expiry of her maternity leave if she has at least two months rest after birth and a doctor's certificate confirming that early resumption of work does not affect her health. In such a case, the female employee shall still be entitled to the maternity leave allowance as well as the normal wages for the days worked.

Article 115

1. An employer must not allow a female employee who is seven months pregnant or currently raising a child under twelve (12) months old to work overtime, at night, or in distant locations.

2. A female employee who is employed in heavy work and is in her seventh month of pregnancy shall be either transferred to lighter duties or entitled to work one hour less and still receive the same wage.

3. During her menstruation, a female employee shall be entitled to a thirty (30) minutes break every day, and during the period of raising a child under twelve (12) months old, a female employee shall be entitled to a sixty (60) minutes break every day, and still receive the same wage.

Article 116

1. Enterprises which employ female workers must have changing rooms, shower facilities, and toilets.

2. Enterprises which employ a high number of female employees must organize child minding centres and kindergartens, or assist female employees with young children with a portion of the costs of child minding or kindergarten.

Article 117

1. When taking leave of absence to attend pregnancy examinations; to carry out family planning programmes, or to have medical treatment for miscarriage; to attend to a sick child under seven years of age; or to adopt a newly born baby, a female employee shall be entitled to social insurance benefits or be paid by the employer a sum equal to the amount of social insurance benefits. The duration of the leave of absence and the allowance entitlement stipulated in this clause shall be determined by the Government. Where another person looks after the sick child instead of the mother, the mother shall still be entitled to social insurance benefits.

2. At the end of normal maternity leave, or maternity leave with additional unpaid days off, a female employee shall be guaranteed employment upon her return to work.

Article 118

1. In enterprises where a high number of female employees are employed, a member of management of the enterprise must be assigned the duty of monitoring all issues relating to female employees. Where a decision is made which affects the rights and benefits of females or children, the representative of the female employees must be consulted.

2. Within the labour inspection team, an appropriate proportion must be female inspectors.


CHAPTER XI

Separate Provisions on Junior Workers and
a Number of Other Labour Activities

Part I Junior Workers

Article 119

1. Junior workers are workers under the age of eighteen (18). Enterprises which employ junior workers must establish separate records containing the full names, dates of birth, current employment positions, and regular health reports of the junior workers, and must produce these records upon request by a labour inspector.

2. Any abuse of junior workers is strictly prohibited.

Article 120

Persons under the age of fifteen (15) are prohibited from working, except in a number of trades permitted by the Ministry of Labour, War Invalids and Social Affairs.

In trades where the employment of persons under the age of fifteen (15) for work, training, or apprenticeship is permitted, the approval of the parents or guardian must be obtained.

Article 121

An employer shall only be permitted to employ a junior worker in jobs which are suitable to the health of the junior worker to ensure the development and growth of the worker's body, mind, and personality. An employer shall have the responsibility of looking after the interests of the junior worker in respect of labour, wages, health, and training.

An employer shall be prohibited from employing junior workers in heavy, dangerous, or toxic works stated in a list issued by the Ministry of Labour, War Invalids and Social Affairs and the Ministry of Health.

Article 122

1. The normal working hours of a junior worker shall not exceed seven (7) hours per day or forty two (42) hours per week.
2. An employer shall only be permitted to employ junior workers for overtime or nightshift work in a number of trades and occupations stipulated by the Ministry of Labour, War Invalids and Social Affairs.

Part II Senior Employees

Article 123

Senior employees are employees over the age of sixty (60) in respect of males and fifty five (55) in respect of females.

During the final year prior to retirement, a senior employee shall be entitled to reduce the number of working hours in a day or to request casual part-time employment in accordance with the provisions of the Government.

Article 124

1. If required, an employer may reach an agreement with a senior employee on the extension of the labour contract or the signing of a new labour contract in accordance with the provisions of Chapter IV of this Code.

2. Where a retiree continues to work pursuant to a new labour contract, he shall be entitled to receive a pension and any other rights or benefits agreed in the labour contract.

3. An employer shall be responsible for the health of a senior employee and shall be prohibited from assigning a senior employee to heavy, dangerous, or toxic work which might have adverse effects on the health of the senior employee.

Part III Disabled Employees

Article 125

1. The State shall protect the right to work of the disabled and encourage the employment of the disabled. The State shall annually set aside funds in the budget in order to assist the disabled to recover from their disability or to regain their ability to work, to train the disabled, and shall formulate policies to provide low interest loans to the disabled for the purposes of creating self employment for the disabled and stabilizing the lives of the disabled.

2. Enterprises which recruit disabled persons for training or apprenticeship shall, for the purpose of creating training conditions and facilities, be considered for tax reduction or low interest loans, and other preferential treatment.

3. The Government shall determine the proportion of disabled employees which business enterprises must recruit in certain trades and occupations. An enterprise which does not employ disabled workers must pay a levy into a fund established for the purpose of reducing the unemployment rate of disabled workers. An enterprise which recruits more disabled employees than the stipulated proportion shall be provided with State grants or low interest loans to enable the creation of suitable employment for the disabled.

4. The number of working hours of the disabled must not exceed seven (7) hours in a day or forty two (42) hours in a week.

Article 126

Trade training establishments and business production establishments which cater for the disabled shall be provided with initial assistance in the form of buildings, schools, classes, furniture, equipment, and tax exemptions and low interest loans.

Article 127

1. An enterprise which trains or employs disabled workers must comply with provisions on suitable working conditions, special tools and equipment, and occupational safety and hygiene for the disabled, and must provide regular health examination for disabled employees.

2. An employer shall be prohibited from allowing a disabled person whose ability to work has been reduced by fifty one (51) per cent or more to work overtime or at night.

3. An employer shall be prohibited from assigning disabled workers to heavy, dangerous, or toxic works stated in a list issued by the Ministry of Labour, War Invalids and Social Affairs and the Ministry of Health.

Article 128

An employee who is a war invalid or injured soldier shall, in addition to the rights and benefits stipulated in the articles of this part, be entitled to State preferential treatment reserved for war invalids and injured soldiers.

Part IV Specialists and Highly Technical Works

Article 129

1. A worker who has specialized or highly technical skills shall have the right to enter into a number of labour contracts with a number of employers provided that he is able to perform fully all the labour contracts signed and notifies the employer(s).

2. A worker who has specialized or highly technical skills shall enjoy copyright protection for any beneficial findings, innovations, or inventions pursuant to the provisions of the law. Where a research project is funded by a business enterprise, the economic benefits of that project must be distributed in accordance with the proportion stipulated in the signed research contract.

3. A worker who has specialized or highly technical skills shall have the right to take long leave of absence without salary or with a portion of the normal salary for scientific research purposes or for higher study and still maintain his current employment position pursuant to an agreement reached with the employer.

4. A worker who has specialized or highly technical skills shall be given priority in the cases stipulated in clauses 1 and 2 of article 124 of this Code.

5. Where a worker referred to above discloses technological or business secrets of his employer, in addition to being disciplined in accordance with the provisions of article 85 of this Code, the worker shall also be liable for payment of compensation for damages in accordance with the provisions of articles 89 and 90 of this Code.

Article 130

1. An employer shall be permitted to enter into a labour contract with any person with specialized or highly technical skills including specialists who are State employees provided that the work is not prohibited.

2. Employees with specialized or highly technical skills shall be preferentially treated by the State and employers and shall enjoy favourable conditions for the continuous development of their talents which will benefit both the enterprise and the country. The preferential treatment reserved for employees with specialized or highly technical skills shall not be deemed as discriminatory conduct in employment.

3. The State encourages workers who have specialized or highly technical skills to work in mountainous regions, regions near borders, on islands, and in regions which have harsh living conditions, and shall promulgate policies which provide such workers with preferential treatment.

Part V Labour for Foreign Organizations or Individuals Operating in Vietnam, Foreigners Working in Vietnam, and Vietnamese Citizens Working Overseas

Article 131

Vietnamese citizens working in enterprises established in accordance with the Law on Foreign Investment in Vietnam, enterprises in export processing zones, foreign or international bodies and organizations operating in Vietnam, or businesses of foreign individuals in Vietnam, and foreigners working in Vietnam shall be subject to and protected by the labour laws of Vietnam.

Article 132

1. Where an enterprise, organization, or individual stipulated in article 131 of this Code wishes to recruit a Vietnamese worker, it must do so through an employment service agency stipulated in article 18 of this Code. Where an employment service agency introduces or recruits a worker which does not satisfy the requirements of the job, the enterprise, organization, or individual shall have the right to recruit workers directly provided that the provincial labour office or another competent body is notified.

Where a Vietnamese cannot be recruited for works which require highly technical or management skills, enterprises, organizations, or individuals shall be permitted to employ foreign employees provided that the period of employment is fixed and appropriate training plans and programmes are established for Vietnamese workers in order to enable early replacement of foreign employees.

2. The minimum wage which applies to a Vietnamese worker in cases stipulated in article 131 of this Code shall be determined by the Government after consultation with the Trade Union Federation of Vietnam and the representative of the employer.

3. Working hours, rest breaks, occupational safety and hygiene measures, social insurance contributions, and labour dispute resolution in the case of an enterprise or organization and other cases stipulated in article 131 of this Code shall be governed by the provisions of the Government of Vietnam.

Article 133

1. A foreigner who works regularly for a Vietnamese enterprise, organization, or individual, or an enterprise with foreign owned capital operating in Vietnam must obtain a working permit issued by the Ministry of Labour, War Invalids and Social Affairs.

2. A foreigner who works in Vietnam shall be entitled to all rights and benefits, and be subject to all obligations stipulated by the law of Vietnam, except in cases where the provisions of an international treaty to which the Socialist Republic of Vietnam is a signatory or participant provide otherwise.

Article 134

1. A Vietnamese citizen who is permitted to work overseas must comply with the provisions of the labour laws of the particular foreign country if, pursuant to a labour contract, a Vietnamese worker is contracted to abide by the management of a foreign organization or individual. Where a Vietnamese worker is sent overseas pursuant to a labour co-operation treaty entered into between the Government of Vietnam and the government of another country, the Vietnamese worker must comply with the provisions of the labour laws of that country and the provisions of that treaty.

2. In the case of a Vietnamese citizen who is permitted to work overseas as a contractor or on a project by project basis and is managed and employed by a Vietnamese enterprise, he shall be subject to the provisions of this Code, except in cases where the provisions of an international treaty to which the Socialist Republic of Vietnam is a signatory or participant provide otherwise.

Article 135

1. A Vietnamese worker who is assigned to work overseas shall have the right to be informed of all his rights and obligations, to be protected by authorized Vietnamese bodies in foreign countries in respect of consular and legal matters, to remit income in foreign currencies and transfer personal belongings back to Vietnam, and to be entitled to social insurance and other policies in accordance with the provisions of the law of Vietnam and the law of the foreign country.

2. A Vietnamese worker who works overseas has an obligation to pay a portion of his wage into social insurance funds.

Part VI Other Labour Activities

Article 136

Persons who work in trades or special jobs within the artistic field shall be subject to certain regimes which deal with the training age, retirement age, signing of labour contracts, working hours, rest breaks, wages, wage allowances, bonuses, and occupational safety and hygiene in accordance with the provisions of the Government.

Article 137
1. An employee who has entered into an agreement with an employer to work at home on a regular basis shall still be entitled to the rights and benefits enjoyed by other employees working at the enterprise.

2. A worker who works at home in a cottage industry shall not be subject to the provisions of the Code.

Article 138

An enterprise which has less than ten (10) employees must still provide its employees with the basic rights and benefits stipulated in this Code but shall be considered for a reduction of, or exemption from a number of criteria and procedures stipulated by the Government.

Article 139

1. A person who has been employed for household chores may enter into an oral or written labour contract provided that the duty is not to safeguard assets which duty must be governed by a written labour contract.

2. An employer must respect the honour, dignity and welfare of a domestic servant and shall be responsible for the provision of medical treatment upon the person falling ill or becoming injured in an accident.

3. Wages, working hours, rest breaks, and allowances shall be agreed on by the parties when negotiating the labour contract. The employer must provide the domestic servant with travelling expenses to return home at the end of his employment, except in cases where the domestic servant voluntarily resigns prior to the expiry of the labour contract.


CHAPTER XII

Social Insurance

Article 140

1. The State shall stipulate policies on social insurance in order to expand and improve the material security of an employee, and to stabilize the life of an employee and his family when the employee falls ill, becomes pregnant, retires, dies, becomes injured in an accident, becomes unemployed, suffers some unexpected crisis, or suffers from other problems.

2. Forms of compulsory or voluntary social insurance shall apply to entities and businesses on a case by case basis in order to ensure employees receive benefits from an appropriate social insurance.

Article 141

1. Compulsory forms of social insurance shall apply to business enterprises which employ ten (10) or more employees. In these enterprises, the employer and the employees must make contributions in social insurance funds in accordance with the provisions of article 149 of this Code and the employees shall be entitled to social insurance benefits and allowances in the event of illness, work-related accidents and occupational disease, pregnancy, retirement, and death.

2. In respect of an employee who works in an enterprise which employs less than ten (10) employees, in jobs which have a duration of less than three months, in seasonal jobs, or in jobs which are temporary, social insurance contributions shall be included in the wage paid by the employer to enable the employee to participate in social insurance on a voluntary or self-funding basis.

Article 142

1. When an employee becomes ill, he shall be examined and treated at medical centres in accordance with the medical insurance regime.

2. Provided that he has a doctor's certificate to prove that he requires medical treatment at home or at a hospital, an employee who is ill shall be entitled to sick benefits paid from the social insurance fund.

The amount of sick benefits paid shall depend on the working conditions and the rate and period of social insurance contribution determined by the Government.

Article 143

1. During the period in which an employee is absent from work for medical treatment in respect of a work-related accident or occupational disease, the employer must pay the full wage and expenses to the employee in accordance with the provisions of clause 2 of article 107 of this Code.

After the treatment, the employee shall, depending on the reduction in his ability to work due to an accident or disease, be examined and considered for classification as an invalid and be entitled to a social insurance benefit paid as a lump sum or in monthly instalments.

2. Where an employee dies from a work-related accident or occupational disease during the term of his employment, the next of kin of the employee shall be entitled to receive compensation for his death pursuant to the provisions of article 146 of this Code, and an additional lump sum of social insurance benefit equivalent to twenty four (24) months minimum wage in accordance with the provisions of the Government.

Article 144

1. During maternity leave stipulated in article 114 of this Code, a female employee who has paid social insurance contributions shall be entitled to a social insurance allowance equal to one hundred (100) per cent of her wage and an additional allowance of one month's wage if it is her first or second birth.

2. All other regimes which apply to female employees shall be governed by the provisions of article 117 of this Code.

Article 145

1. An employee who satisfies the following criteria in respect of age and period of participation in social insurance shall be entitled to pension benefits as follows:

(a) The retirement age of an employee who has worked in heavy, dangerous, or toxic jobs, or in regions with harsh conditions, near the border, or on islands, and in a number of special cases determined by the Government shall be sixty (60) years for a male and fifty five (55) years for a female;

(b) An employee who has paid social insurance contributions for a period of twenty (20) years or more.

2. In cases where an employee fails to satisfy the requirements stipulated in clause 1 of this article, but satisfies one of the following conditions, he shall be entitled to monthly payment of a pension at a lower rate:

(a) An employee who satisfies the age requirement stipulated in clause 1 of this article but has only paid social insurance contributions for a period of fifteen (15) to twenty (20) years;

(b) A male employee who is fifty (50) years of age or a female employee who is forty five (45) years of age with an accumulated social insurance contribution of at least twenty (20) years, and is reduced in his or her capacity to work by sixty one (61) per cent or more;

(c) An employee who has worked in an extremely heavy or harmful job as stipulated by the Government, has paid social insurance for twenty (20) years or more, and is reduced in his or her capacity to work by sixty one (61) per cent or more.

3. An employee who does not satisfy the requirements stipulated in clauses 1 and 2 of this article for monthly payment of a pension shall be entitled to a lump sum retirement payment.

4. The level of monthly payments of a pension and the lump sum retirement payment stipulated in clauses 1, 2 and 3 of this article shall, depending on the rate and period of social insurance contributions, be determined by the Government.

Article 146

1. Relatives of an employee who is currently working, in retirement, or receiving monthly benefits for an injury suffered as a result of a work-related accident or occupational disease shall, upon the death of the employee, be entitled to a benefit paid for burial and funeral expenses stipulated by the Government.

2. Any children under the age of fifteen (15) years, the spouse, or a retired parent of an employee who has died from a work-related accident or occupational disease, who has died after paying social insurance contributions for fifteen (15) years or more, who has died while receiving monthly payments of a pension, or who has died while receiving monthly payments of benefits for injuries suffered in a work-related accident or occupational disease shall be entitled to monthly payments of survivors benefits provided that he or she is a direct dependant of the deceased employee. In cases where the deceased employee has no surviving dependants or has not paid social insurance contributions for fifteen (15) years or more, the family of the deceased shall be entitled to a lump sum benefit of not more than the twelve (12) months wages or benefits previously received.

3. A person who is currently receiving a pension, benefits for reduction in work capacity, or benefits for a class 1 or 2 injury suffered as a result of a work-related accident or occupational disease prior to the promulgation of this Code shall be subject to the benefits of the provisions of this article on benefits for the deceased.

Article 147

1. Provided that no retrenchment allowance or lump sum payment has been paid to the employee from a social insurance fund, the period of employment of an employee in State enterprises prior to this Code becoming effective shall be deemed as a period of contribution to social insurance.

2. The social insurance rights and benefits of a person currently receiving a pension benefit or a monthly benefit for reduction in work capacity, injuries suffered from a work-related accident or occupational disease, or survivors benefits prior to this Code becoming effective shall continue to be guaranteed by the State and shall be adjusted accordingly pursuant to the social insurance policy in force from time to time.

Article 148

Enterprises in agricultural, forestry, fishing, and salt-making industries shall, pursuant to regulations on social insurance, have the responsibility to participate in a form of social insurance which is suitable to their production characteristics and labour usage in accordance with the Regulations on Social Insurance.

Article 149

1. Social insurance funds shall be established from the following sources:

(a) The employer shall contribute a sum equivalent to fifteen (15) per cent of the total balance of the salary fund;

(b) Each employee shall contribute five per cent of his wage;

(c) The State shall contribute and assist with additional funds to ensure the implementation of social insurance for workers;

(d) Other sources.

2. Social insurance funds shall be uniformly managed in accordance with State financial policies and on the basis of accounting records, and be protected by the State. The retention and growth of social insurance funds shall be carried out in accordance with the provisions of the Government.

Article 150

The Government shall, with the co-operation of the Trade Union Federation of Vietnam, promulgate regulations on social insurance, and establish an organizational system of social insurance and issue regulations on the organization and operation of social insurance funds.

Article 151

1. An employee who participates in social insurance shall be entitled to receive social insurance benefits fully, conveniently, and in a timely manner.

2. Where a dispute arises between an employee and an employer on social insurance issues, the parties must resolve the dispute in accordance with the provisions of Chapter XIV of this Code. Where the dispute is with a social insurance body, the resolution of the dispute shall be governed by the regulations on the organization and operation of social insurance funds.

Article 152

The State encourages employees, trade unions, employers, and other social organizations to establish other types of social funds.

CHAPTER XIII

Trade Unions

Article 153

1. For enterprises which are currently operating without a trade union organization and for new enterprises, the trade unions of the province must, within six months from the date on which this Code becomes effective or from the commencement of operation respectively, establish provisional trade union organizations at those enterprises to represent and protect the rights and interests of the employees and the labour collective.

2. The activities of the provisional trade union organization shall be determined by the Government in conjunction with the Trade Union Federation of Vietnam.

Article 154

1. When a trade union organization is established in accordance with the Law on Trade Unions and the charter of the trade union, the employer must acknowledge the lawfulness of the trade union organization in the enterprise.

2. The employer must co-operate closely with trade unions and create favourable conditions for trade union activities pursuant to the provisions of the Labour Code and the Law on Trade Unions.

3. The employer must not prejudice an employee because he has formed, joined, or participated in a trade union organization. The employer must not apply economic pressures or other measures to interfere with the organization and activities of trade unions.

Article 155

1. The employer shall be responsible for provision of the necessary working conditions and facilities to enable the trade union to carry out its activities.

2. An employee who carries out trade union activities on an irregular basis shall be given free time during working hours to carry out such activities, and still be entitled to his full wage. The amount of time allowed shall depend on the size of the enterprise and the agreement reached between the employer and the executive committee of the trade union of the enterprise but shall not be less than three full working days in one month.

3. A person who carries out trade union activities on a regular basis and receives a salary from trade union funds shall be entitled to the rights, benefits, and collective welfare enjoyed by other employees of the enterprise in accordance with the regulations of the enterprise and the collective agreement.

4. When an employer decides to retrench or to terminate unilaterally the labour contract of an employee who is a member of the executive committee of the trade union of the enterprise, the approval of the executive committee of the trade union of the enterprise must be obtained. Where the employee is the chairman of the executive committee of the trade union of the enterprise, the approval of a higher level trade union organization must be obtained.

Article 156

The Trade Union Federation of Vietnam and trade unions at all levels shall participate with State bodies and representatives of employers in discussing and resolving issues relating to labour relations. Trade unions shall have the right to establish employment service agencies, trade training centres, aid funds, legal consultancy centres, and other establishments for the mutual welfare of employees, and other rights in accordance with the provisions of the Law on Trade Unions and this Code.


CHAPTER XIV

Resolution of Labour Disputes

Article 157

1. A labour dispute is a dispute about rights and benefits in respect of working conditions, salaries, incomes, and other labour conditions; about the performance of the labour contract and the collective agreement; and about issues which arise during a training or apprenticeship period.

2. Labour disputes include an individual labour dispute between an employee and an employer, and a collective labour dispute between a labour collective and an employer.

Article 158

A labour dispute shall be resolved on the basis of the following principles:

1. Direct negotiation and conciliation between the disputing parties at the place where the dispute arises.

2. Conciliation and arbitration on the basis of mutual respect of rights and benefits, respect of general social benefits, and compliance with the law.

3. A labour dispute must be resolved publicly, objectively, in a timely manner, using a quick and simple resolution process, and in compliance with the law.

4. The trade union organization of the enterprise and the representative of the employer must participate in the resolution process of the labour dispute.

Article 159

A labour dispute shall only be resolved by a labour dispute resolution body or organization if either party refuses to negotiate; if both parties fail to resolve the dispute by way of negotiation; or if one or both of the parties lodge a request for resolution of the labour dispute.

Article 160

1. During the resolution process of a labour dispute, either party shall have the right to:

(a) participate in the resolution process directly or through a representative;

(b) withdraw the application for resolution or to amend the nature of the dispute;

(c) request that the person responsible for resolving the dispute be replaced if it can be shown that such a person cannot be objective or fair in carrying out his duty.

2. During the resolution process of a labour dispute, both parties shall have the obligation to:

(a) provide all relevant documents and evidence upon the request of the body or organization resolving the labour dispute;

(b) comply strictly with the agreement reached, the conciliation agreement, the binding decision of the body or organization resolving the dispute, or the binding judgment or decision of the people's court.

Article 161

Labour dispute resolution bodies or organizations shall, depending on their duties and power, have the right to request the disputing parties and relevant bodies, organizations, and individuals to provide documents or evidence. They shall have the right to request the opinion of an expert, and to summon witnesses and other parties concerned.

Part I Resolution Authority and Procedure for an Individual Labour Dispute

Article 162

The following bodies and organizations are vested with the power to resolve an individual labour dispute:

1. The labour conciliatory council of an enterprise, or a labour conciliator of a labour office in wards, districts, villages, and cities of provinces (hereinafter referred to as provincial labour offices) in cases where an enterprise does not have a labour conciliatory council;

2. The people's court.

Article 163

1. A labour conciliatory council of an enterprise shall be established in enterprises which employ ten (10) or more employees and shall consist of an equal number of representatives of the employees and the employer. The number of members in the conciliatory council shall be determined by the parties.

2. The term of office of the labour conciliatory council shall be two years. The representatives of each party shall alternate between the positions of chairman and secretary. The labour conciliatory council in an enterprise shall carry out its duty in accordance with the principles of agreement and unanimous approval.

3. The employer must provide the necessary working conditions for the labour conciliatory council of an enterprise to carry out its duty.

Article 164

The resolution procedure of an individual labour dispute is stipulated as follows:

1. Within seven (7) days from the date of receipt of the request, the labour conciliatory council of the enterprise shall commence the resolution process of a labour dispute. Both parties or their duly appointed representatives must be present at the conciliation hearing.

2. The labour conciliatory council of the enterprise shall put forward a resolution proposal to the parties. If both parties accept the resolution proposal, a settlement agreement shall be prepared and signed by the disputing parties, and the chairman and the secretary of the labour conciliatory council. Both parties shall be bound by the provisions of the settlement agreement.

3. In the event that the conciliation fails, a non-settlement statement specifying the view of the parties and the council shall be prepared by the labour conciliatory council of the enterprise and signed by the parties, and the chairman and the secretary of the council. Copies of the non-settlement statement must be forwarded to the disputing parties within a period of three days from the date the conciliation is declared unsuccessful. Each party to the dispute has the right to request the district people's court to hear the matter. The file submitted to the people's court must be accompanied by the non-settlement statement.

Article 165

1. A labour conciliator shall, in accordance with the resolution procedure stipulated in article 164 of this Code, resolve an individual labour dispute at an enterprise with less than ten (10) employees, a dispute between a domestic servant and the employer, and a dispute relating to the performance of an apprenticeship contract or training fees.

2. A labour conciliator must commence the resolution process within seven (7) days from the date of receipt of the request for conciliation.

Article 166

1. The district people's court shall, upon receiving a request from either party, resolve an individual labour dispute which is unresolved by the labour conciliatory council of an enterprise or a labour conciliator.

2. The following individual labour disputes may be resolved directly by a district people's court without having to be referred first to a conciliation body at the enterprise:
(a) Disputes relating to dismissal in respect of a breach of labour rules or disputes which arise from the unilateral termination of a labour contract;

(b) Disputes relating to payment of compensation for damages suffered by an employer.

3. An employee shall be exempted from payment of costs in all litigation matters involving claims for wages due, compensation for work-related accidents or occupational disease, compensation for damages, or compensation for wrongful dismissal or unlawful termination of a labour contract.

Article 167

A request for resolution of a labour dispute must be lodged within the following time limits calculated from the date on which a party claims that its rights and benefits have been violated:

1. One year in respect of labour disputes stipulated in clause 2 of article 166 of this Code;

2. Six months in respect of other labour disputes.

Part II Resolution Authority and Procedure for a Collective Labour Dispute

Article 168

The following bodies and organizations shall be vested with the power to resolve a collective labour dispute:

1. The labour conciliatory council of an enterprise, or the labour conciliator of the district labour office in the case of enterprises which do not have a labour conciliatory council;

2. The provincial labour arbitration council;

3. The people's court.

Article 169

1. The labour conciliatory council of an enterprise stipulated in article 163 of this Code shall have the authority to resolve collective labour disputes.

2. The standing members of the provincial labour arbitration council shall consist of representatives of the labour office, the trade union, the employer, and a number of other respected lawyers, administrators, and social workers of the locality. The number of members in the provincial labour arbitration council shall be an odd number but shall not exceed nine (9) and shall be chaired by the representative of the provincial labour office.

The term of office of the labour arbitration council shall be three years.

The labour arbitration council shall make decisions by majority and sealed votes.

The provincial labour office shall provide the necessary conditions for the labour arbitration council to carry out its duty.

Article 170

The resolution procedure for a collective labour dispute shall be as follows:

1. The labour conciliatory council of an enterprise or the labour conciliator shall commence the resolution procedure within seven (7) days from the date of receipt of the request for resolution. Both parties to the dispute or their duly appointed representatives must be present at the conciliation hearing.

2. The labour conciliatory council of the enterprise or the labour conciliator shall put forward a resolution proposal to the parties for consideration. If both parties accept the resolution proposal, a settlement agreement shall be prepared and signed by the parties, and the chairman and secretary of the labour conciliatory council of the enterprise. Both parties shall have the obligation to carry out the provisions of the settlement agreement.

3. In the event that the conciliation fails, a non-settlement statement outlining the view of the parties and the council shall be prepared by the labour conciliatory council or labour conciliator, and be signed by the parties, and the chairman and secretary of the council. Either party to the dispute shall have the right to request the provincial labour arbitration council to resolve the dispute.

Article 171

1. The labour arbitration council shall commence conciliation and resolution proceeding for the collective labour dispute within ten (10) days from the date of receipt of a request.

Both parties or their duly appointed representatives must be present at the resolution hearing for the collective labour dispute. Where necessary, the labour arbitration council shall invite a representative of a higher trade union body and a representative of a relevant State body to attend the hearing.

2. The labour arbitration council shall put forward a resolution proposal to the parties for consideration. If both parties accept the proposal, a settlement agreement shall be prepared and signed by the disputing parties, and the chairman and secretary of the labour arbitration council. Both parties shall have an obligation to carry out the provisions of the settlement agreement.

3. In cases where the conciliation fails, the labour arbitration council shall resolve the dispute and immediately notify the disputing parties of its decision. If both parties are satisfied, the decision shall become effective.

Article 172

1. Where the labour collective is not satisfied with the decision of the labour arbitration council, it shall have the right to request the people's court to resolve the matter, or to strike.

2. Where the employer is not satisfied with the decision of the labour arbitration council, the employer shall have the right to request the people's court to review the decision of the arbitration council. The decision of the employer to request the people's court to review the decision of the arbitration council does not affect the right to strike of the labour collective.

Article 173

1. While the labour conciliatory council or the labour arbitration council attempts to resolve the labour dispute, neither party shall have the right to interfere with the other party.

2. The decision to strike of the executive committee of the trade union of the enterprise must have the approval, by sealed votes or signatures, of more than half the number of employees in the labour collective.
The executive committee of the trade union of the enterprise must nominate a maximum of three representatives to present the request of the labour collective to the employer and, at the same time, to notify the provincial labour office and the provincial trade unions federation. The request and notice must clearly outline the concern of the employees, the proposed solutions, the decision to strike of the employees (by votes or by signatures), and the commencement time of the strike.

3. Any act of violence which damages machinery, equipment, and assets of the enterprise, and any act which violates public order and safety during a strike are strictly prohibited.

Article 174

Strikes at enterprises which serve the public, and enterprises which are important to the national economy or national security and defence are prohibited as stipulated in the list issued by the Government.

State administrative bodies must regularly organize discussion meetings with representatives of the labour collective and the employer at these enterprises in order to assist and resolve any reasonable request of the labour collective. In cases where there is a collective labour dispute, it shall be resolved by the provincial labour arbitration council. If either party is not satisfied with the decision of the labour arbitration council, that party shall have the right to request the people's court for resolution of the dispute.

Article 175

Where the strike is considered to be detrimental to the national economy or public safety, the Prime Minister of the Government shall have the power to issue a decision to suspend or end the strike.

Article 176

1. The following forms of strike are unlawful:

(a) Strikes which do not arise from a collective labour dispute; strikes which fall outside the area of labour relations;

(b) Strikes which fall outside the scope of operation of an enterprise;

(c) Strikes which breach the provisions of clauses 1 and 2 of articles 173 and 174 of this Code.

2. The people's court shall be the body vested with the power to decide whether a strike is lawful or unlawful.

Article 177

The people's court shall have the power to make the final decision in relation to strikes and collective labour disputes.

Article 178

1. Any act which is a form of revenge on a person participating in, or organizing a strike shall be strictly prohibited.

2. A person who interferes with the right to strike, or forces another person to strike; a person who commits any unlawful act during a strike; and a person who fails to comply with the decision of the Prime Minister of the Government or the people's court shall, depending on the seriousness of the offence, be liable for payment of compensation for damages, penalised administratively, or prosecuted for criminal responsibility.

Article 179

The Standing Committee of the National Assembly shall determine the resolution of strikes and other labour matters.


CHAPTER XV

State Management of Labour

Article 180

State management of labour encompasses the following:

1. Maintaining the balance of labour supply and demand, and making appropriate adjustments where necessary to formulate national policies, plans, or schemes on labour sources, distribution, and utilization for society as a whole;

2. Promulgating and providing guidelines for the implementation of labour laws;

3. Establishing and organizing the implementation of national programmes relating to employment, migration, establishment of new economic zones, and overseas Vietnamese workers;

4. Formulating policies on salaries, social insurance, occupational safety and hygiene, and other policies on labour and society; formulating policies on the development of labour relations within enterprises;

5. Organizing and conducting scientific research on labour and society, and gathering statistics and information on labour and the labour market and on the cost of living and income levels of workers;

6. Inspecting and controlling the implementation of labour laws, dealing with breaches of labour laws, and resolving labour disputes in accordance with the provisions of this Code;

7. Expanding international co-operation relations with foreign countries and international organizations in the area of labour.

Article 181

1. The Government shall uniformly carry out State labour management duties within the country.

The Ministry of Labour, War Invalids and Social Affairs shall carry out State management of labour in branches and localities within the country.

2. People's committees at all levels shall carry out State management of labour within their own localities. The local labour office shall assist the people's committee of the same level to carry out State management of labour in accordance with the delegated authority of the Ministry of Labour, War Invalids and Social Affairs.

3. Trade unions of Vietnam and trade unions at all levels shall participate in the supervision of State management of labour in accordance with the provisions of the law.

4. The State shall create conditions for employers to put forward their views to State bodies in respect of management and utilisation of labour.

Article 182

Within thirty (30) days from the date on which an enterprise commences its operation, the employer must declare the current labour usage and, during the period of operation, submit to the local labour office reports on any changes relating to labour within the enterprise in accordance with the provisions of the Ministry of Labour, War Invalids and Social Affairs. Within thirty (30) days from the date on which the enterprise ceases its operation, the employer must submit a report to the local labour office on the termination of labour usage.

In the case of enterprises which employ more than ten (10) employees, the employer must establish labour books, wage books and social insurance books.

Article 183

An employee shall be issued with a labour book, a wage book, and a social insurance book in accordance with the provisions of the law.

Article 184

1. Any Vietnamese worker who is assigned to work overseas must obtain a permit issued by the Ministry of Labour, War Invalids and Social Affairs and other competent State bodies in accordance with the provisions of the law.

Any illegal activity which involves sending Vietnamese workers overseas is strictly prohibited.

2. The Ministry of Labour, War Invalids and Social Affairs shall issue working permits to foreigners who wish to enter Vietnam to work in Vietnamese enterprises, organizations, and private businesses, or in enterprises with foreign owned capital operating in Vietnam as stipulated in article 133 of this Code in accordance with the application of the concerned party and the enterprise, organization or individual requiring labour.


CHAPTER XVI

State Inspection of Labour
and Dealing With Breaches of Labour Laws

Part I State Inspection of Labour

Article 185

State labour inspectors include labour inspectors, occupational safety inspectors, and health inspectors.
The Ministry of Labour, War Invalids and Social Affairs and local labour offices shall carry out inspections of labour and inspections of occupational safety. The Ministry of Health and local medical centres shall carry out inspections of occupational hygiene.

Article 186

State labour inspectors shall have the following duties:

1. To inspect compliance with provisions on labour, occupational safety, and occupational hygiene;

2. To inspect work-related accidents and other violations of occupational health standards.

3. To appraise and approve occupational safety standards and measures specified in the economic - technical feasibility study and project design; register and authorize the operation or usage of machinery, equipment, and materials which require strict control in respect of occupational safety as stipulated in the list issued by the Ministry of Labour, War Invalids and Social Affairs.

4. To participate, appraise, and approve site locations and health measures for the construction, expansion, or renovation of establishments for production, usage, preservation, storage, or receipt of radioactive, poisonous, or toxic materials in accordance with the list issued by the Ministry of Health.

5. To resolve any complaints or claims of the employee in respect of breaches of labour laws;

6. To deal with breaches of labour laws in accordance with the delegated authority and request other competent bodies to deal with breaches which fall under the jurisdiction of those bodies.

Article 187

When conducting an inspection, a labour inspector shall have the power to:

1. Inspect and investigate any enterprise within his area of responsibility at any time without having to give advance notice;

2. Request the employer and other persons concerned to provide current labour papers and other documents which relate to the inspection or investigation;

3. Receive and resolve all complaints or claims in respect of breaches of labour laws in accordance with the provisions of the law;

4. Suspend temporarily the operation of machinery and equipment, or restrict access temporarily to work places where there is an occupational safety danger or a serious case of environmental pollution. The labour inspector shall be responsible for his decision and have the duty to notify immediately a competent State body.

Article 188

A labour inspector must be a person who is not directly or indirectly receiving personal benefits from the entity which is the subject of the inspection. A labour inspector must, even after his employment, keep confidential any secrets obtained while carrying out his duty, and the sources of report of breaches.

Article 189

When carrying out an inspection, a labour inspector must co-operate closely with the executive committee of the trade union. Where the matter requires scientific, technical, specialized, or business knowledge, the labour inspector may invite experts and experienced technicians to participate in the inspection or investigation as consultants. When inspecting machinery, equipment, and storage facilities, the employer and the person responsible for the machinery, equipment, or storage facility must be present.

Article 190

A labour inspector shall notify the decision directly to the party concerned. The decision must specify clearly the date from which the decision becomes effective and the date by which the enterprise must correct the situation as advised by the labour inspector. Where necessary, the date of the second inspection may also be stated.

The decision of the labour inspector is binding and must be implemented.

The person to whom the decision applies has the right to appeal against the decision to a competent State body but only after he has complied with the decision of the labour inspector.

Article 191

1. The Government shall make provisions on the organization and activities of State labour inspectors.

2. The Ministry of Labour, War Invalids and Social Affairs and the Ministry of Health shall be responsible for the establishment of a State labour inspection organization in accordance with their respective powers and functions; for establishing criteria for recruitment, appointment, transfer, discharge, and dismissal of labour inspectors, for issuing inspector identity cards, and for issuing provisions on regular and irregular reports, and other necessary procedures or formalities.

3. The inspection of occupational safety and hygiene in relation to radioactive materials, exploration and exploitation of oil and gas, transportation facilities by means of rail, ships, roads, or air, and units of the armed forces shall be carried out by the managing body of the relevant branch with the co-operation of State labour inspection bodies.

Part II Dealing with Breaches of Labour Laws

Article 192

Breaches of the provisions of this Code shall, depending on the seriousness of the breach, be dealt with in the following ways: a warning, a fine, and other penalty measures such as withdrawal of licences, compulsory payment of compensation, or compulsory cessation of business operations, or criminal prosecution in accordance with the provisions of the law.

Article 193

A person who obstructs, bribes, or takes revenge on an authorized officer who is carrying out his duty as stipulated in this Code shall, depending on the seriousness of the offence, be disciplined, dealt with administratively, or prosecuted for criminal responsibility in accordance with the provisions of the law.

Article 194

Owners of business enterprises must be responsible for any decision made by a State body authorized to penalise a director, manager, or legal representative of an enterprise in respect of any breach committed whilst managing labour in accordance with the provisions of the law. These persons shall be responsible for payment of compensation to the enterprise in accordance with the internal regulations and charter of the enterprise, the contract of responsibility entered into with the enterprise, or the provisions of the law.

Article 195

The Government shall make provisions on administrative penalties in respect of breaches of labour laws.


CHAPTER XVII

Implementation Provisions

Article 196

The provisions of this Code shall apply to all labour contracts, collective agreements, and other legal agreements signed before the effective date of this Code. Any agreement which provides workers with more favourable provisions than those provided for in this Code shall continue to be performed. Any agreement which is inconsistent with the provisions of this Code must be amended or added to accordingly.

Article 197

This Code shall be of full force and effect as of 1 January 1995.

All previous provisions which are inconsistent with this Code are repealed.

Article 198

The Standing Committee of the National Assembly and the Government shall provide guidelines and detailed provisions on the implementation of this Code.


Chairman of the National Assembly


NONG DUC MANH