New Labour Code Takes Effect

On 18 June 2012, the new Labour Code No. 12/2012/QH13 ("New Labour Code") was passed by the National Assembly of Vietnam. The New Labour Code took effect on 1 May 2013.

Some of the key developments provided for in the New Labour Code are: the increase of employee's salary during probation and temporary re-assignment period up to 85% of full salary; the extension of maternity leave duration to six months; the extension of annual leave entitlement for the Lunar Tet Holiday from four to five days; the grounds for termination of employment contract and other enhancements relating to labour relations. In order to implement the New Labour Code, the Government has also recently issued a number of decrees providing detailed guidance with respect to provisions relating to employment contracts, working hours, rest breaks, labour safety and hygiene, trade unions, and labour outsourcing.