New Vietnam Labour Code: Summary of Key Changes

February 20, 2020

After an amendment process lasting almost four years, on 20 November 2019, the Vietnamese National Assembly adopted the Labour Code No 45/2019/QH14 (known as the "New Labor Code.") which takes effect on January 1, 2021.

The new Vietnam Labour Code revises and updates some clauses in all parts of the current one. All of these reforms are projected to have a significant impact on Vietnamese businesses and organizations. 

Looking at key changes of the new law, most laws remain the same with certain improvements in probationary jobs, mandatory work conditions, notice standards and other provisions that are generally acceptable for employees. Key provisions of the labor code include, but are not limited to:

a) Expanding the scope of application for non-work relationship employees.

b) Improving the flexibility and autonomy of the salary of Labour Relations parties through dialog and negotiation.

c) Promoting gender equality for the protection of women employees.

d) Increased flexibility in working hours, and increased rest time assurance.

e) Changes in the execution of the labor contract, Appendix amendment regulation.

f) Changes to the law on retirement ages.

In summary, the new code should have a major impact on businesses, and employers should seek support for their labor practice to ensure that policy complies legally by 2021.

NVM Group has been keeping track of the process of revising the Labor Code and deeply understands the underlying rationale of the regulations and changes. If you would like to obtain further information or want to discuss issues in relation to the new Labor Code as well as the impact of the changes on your business, please do not hesitate to contact us.

Last but not least, we would like to present to you our full summary of key changes in the new Labour Code in comparison with its former 2012 version.