The amendment of the Labor Code 2012 passed through the legislature with 90.06% approval from the National Assembly Deputies on 20 November 2019. These amendments shall take effect from 1 January 2021.
The most important change in the revised Labor Code is the freedom of association whereby employees may form or join a representative organization of their choosing that is independent of the State-run Vietnam General Confederation of Labor. This amendment is a part of Vietnam’s efforts to conform to labor standards laid out in various new-generation free trade agreements that it has signed. These include; the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). However, until the issuance of further implementing guidance by relevant agencies, the practical exercise of this right is still pending.
Some other basic and significant changes are also made in this amended Labor Code, particularly regarding working hours, public holidays and the age of retirement. These changes are as follows:
Head of the Regional Employment & Labor Practice
Regional Legal Adviser
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.