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LAW 10-2012-QH13

LABOUR CODE

Dated 18 June 2012

TABLE OF CONTENTS

CHAPTER 1 ................................................................................................................................................................... 1

General Provisions ......................................................................................................................................................... 1


Article 1 Governing scope ................................................................................................................................... 1
Article 2 Applicable entities ................................................................................................................................ 1
Article 3 Interpretation of terms .......................................................................................................................... 1
Article 4 State's policy on labour ........................................................................................................................ 2
Article 5 Rights and obligations of employees .................................................................................................... 3
Article 6 Rights and obligations of employers ..................................................................................................... 3
Article 7 Labour relationship .............................................................................................................................. 4
Article 8 Conduct which is strictly prohibited ..................................................................................................... 4

CHAPTER 2 ................................................................................................................................................................... 5

Employment .................................................................................................................................................................... 5
Article 9 Employment and finding jobs ............................................................................................................... 5
Article 10 Right of workers to work....................................................................................................................... 5
Article 11 Right of employers to recruit labour..................................................................................................... 5
Article 12 State policy on employment .................................................................................................................. 5
Article 13 Employment programs .......................................................................................................................... 5
Article 14 Employment services organizations...................................................................................................... 6

CHAPTER 3 ................................................................................................................................................................... 6

Labour Contracts ........................................................................................................................................................... 6


Section 1 ....................................................................................................................................................................... 6
Entering into Labour Contracts ................................................................................................................................... 6
Article 15 Labour contracts................................................................................................................................... 6
Article 16 Forms of labour contract ...................................................................................................................... 6
Article 17 Principles for entering into labour contracts ....................................................................................... 6
Article 18 Responsibility to enter into labour contracts ........................................................................................ 7
Article 19 Responsibility to provide information before entering into a labour contract ..................................... 7
Article 20 Prohibited conduct by an employer when entering into and performing a labour contract ................. 7
Article 21 Entering into multiple labour contracts with multiple employers ........................................................ 7
Article 22 Types of labour contract ....................................................................................................................... 7
Article 23 Contents of labour contracts ................................................................................................................ 8
Article 24 Addenda to labour contracts ................................................................................................................ 9
Article 25 Effectiveness of a labour contract ........................................................................................................ 9
Article 26 Probationary period of work ................................................................................................................ 9
Article 27 Duration of probationary period .......................................................................................................... 9
Article 28 Wage during probationary period ...................................................................................................... 10
Article 29 Termination of probationary period ................................................................................................... 10

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Section 2 ..................................................................................................................................................................... 10
Performance of Labour Contracts .............................................................................................................................. 10
Article 30 Performing work pursuant to a labour contract ................................................................................. 10
Article 31 Assigning employee to do other work different from the labour contract .......................................... 10
Article 32 Cases in which suspension of performance of a labour contract is permitted.................................... 11
Article 33 Responsibility to receive the employee back to work on expiry of suspension of performance of
labour contract ................................................................................................................................... 11
Article 34 Employees working part-time ............................................................................................................. 11
Section 3 ..................................................................................................................................................................... 11
Amending, Supplementing and Terminating Labour Contracts ................................................................................. 11
Article 35 Amending and supplementing labour contracts ................................................................................. 11
Article 36 Circumstances in which labour contract is terminated ...................................................................... 12
Article 37 Circumstances in which an employee has the right to unilaterally terminate the labour contract .... 12
Article 38 Circumstances in which an employer has the right to unilaterally terminate the labour contract ..... 13
Article 39 Circumstances in which an employer is not permitted to unilaterally terminate a labour contract ... 14
Article 40 Rescission of unilateral termination of labour contract ..................................................................... 14
Article 41 Illegal unilateral termination of labour contract ................................................................................ 14
Article 42 Obligations of employer who unilaterally terminates a labour contract illegally .............................. 14
Article 43 Obligations of employee who unilaterally terminates a labour contract illegally.............................. 15
Article 44 Obligations of employer in cases of restructuring, change of technology, or [changes for] economic
reasons ............................................................................................................................................... 15
Article 45 Obligations of employer upon merger, consolidation, division or separation of an enterprise or co-
operative............................................................................................................................................. 15
Article 46 Labour usage plan .............................................................................................................................. 16
Article 47 Responsibilities of employers who terminate labour contracts .......................................................... 16
Article 48 Severance allowance .......................................................................................................................... 16
Article 49 Retrenchment [job loss] allowance .................................................................................................... 17
Section 4 ..................................................................................................................................................................... 17
Invalid Labour Contracts ........................................................................................................................................... 17
Article 50 Invalid labour contract ....................................................................................................................... 17
Article 51 Authority to declare a labour contract invalid ................................................................................... 17
Article 52 Dealing with invalid labour contracts ................................................................................................ 18
Section 5 ..................................................................................................................................................................... 18
Labour Outsourcing ................................................................................................................................................... 18
Article 53 Labour outsourcing [or sub-leasing] ................................................................................................. 18
Article 54 Labour outsourcing enterprises .......................................................................................................... 18
Article 55 Labour sublease contract ................................................................................................................... 18
Article 56 Rights and obligations of labour outsourcing enterprises .................................................................. 19
Article 57 Rights and obligations of sub-leasing employers ............................................................................... 19
Article 58 Rights and obligations of sub-leased employees ................................................................................ 20

CHAPTER 4 ................................................................................................................................................................. 20

Apprenticeship, Providing Training, and Fostering Improvement of Job and Professional Skills ....................... 20
Article 59 Apprenticeship and providing trade training ..................................................................................... 20
Article 60 Responsibilities of employers to provide training, to foster and improve job and professional skills 21
Article 61 Apprenticeship and practical training in order to work for an employer ........................................... 21
Article 62 Trade training contract between employer and employee and training fees ...................................... 21

CHAPTER 5 ................................................................................................................................................................. 22

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Discussion at Workplaces, Collective Bargaining, and Collective Labour Agreements ........................................ 22
Section 1 ..................................................................................................................................................................... 22
Discussion at Workplaces........................................................................................................................................... 22
Article 63 Objectives and form of discussion at workplaces ............................................................................... 22
Article 64 Contents of discussion at workplaces ................................................................................................. 22
Article 65 Conducting discussion at workplace .................................................................................................. 22
Section 2 ..................................................................................................................................................................... 23
Collective Bargaining ................................................................................................................................................. 23
Article 66 Objective of collective bargaining ...................................................................................................... 23
Article 67 Principles for collective bargaining ................................................................................................... 23
Article 68 Right to require collective bargaining ................................................................................................ 23
Article 69 Representation at collective bargaining ............................................................................................. 23
Article 70 Matters subject to collective bargaining............................................................................................. 24
Article 71 Collective bargaining process ............................................................................................................ 24
Article 72 Responsibilities during collective bargaining of the trade union, of the organization representing the
employer, and of the State administrative body for labour ................................................................ 25
Section 3 ..................................................................................................................................................................... 25
Collective Labour Agreement ..................................................................................................................................... 25
Article 73 Collective labour agreement ............................................................................................................... 25
Article 74 Signing a collective labour agreement ............................................................................................... 25
Article 75 Sending copies of a collective agreement to State administrative bodies ........................................... 26
Article 76 Effective date of collective labour agreement ..................................................................................... 26
Article 77 Amendments and additions to collective labour agreement ............................................................... 26
Article 78 Invalid collective labour agreement ................................................................................................... 26
Article 79 Authority to declare a collective labour agreement invalid................................................................ 27
Article 80 Dealing with an invalid collective labour agreement ......................................................................... 27
Article 81 Expiry of collective labour agreement ................................................................................................ 27
Article 82 Expenses for collective bargaining and for signing collective labour agreement .............................. 27
Section 4 ..................................................................................................................................................................... 27
Enterprise Collective Labour Agreement ................................................................................................................... 27
Article 83 Signing an enterprise collective labour agreement ............................................................................ 27
Article 84 Implementation of enterprise collective labour agreement ................................................................ 27
Article 85 Duration of enterprise collective labour agreement ........................................................................... 28
Article 86 Implementation of collective labour agreement when an enterprise transfers ownership of, right to
manage or right to use the enterprise, or merges, consolidates, divides or separates ....................... 28
Section 5 ..................................................................................................................................................................... 28
Industry Collective Labour Agreement ....................................................................................................................... 28
Article 87 Signing an industry collective labour agreement ............................................................................... 28
Article 88 Relationship between enterprise collective labour agreement and industry collective labour
agreement ........................................................................................................................................... 29
Article 89 Duration of industry collective labour agreement .............................................................................. 29

CHAPTER 6 ................................................................................................................................................................. 29

Wages............................................................................................................................................................................. 29
Article 90 Wages ................................................................................................................................................. 29
Article 91 Minimum wage rate ............................................................................................................................ 29
Article 92 National Wage Council....................................................................................................................... 30

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Article 93 Formulation of wage scales, wage tables and labour rates................................................................ 30
Article 94 Method of payment of wages .............................................................................................................. 30
Article 95 Periodic payment of wages ................................................................................................................. 30
Article 96 Principles for payment of wages ......................................................................................................... 31
Article 97 Wages for working overtime and for night work ................................................................................ 31
Article 98 Wages on ceasing work ...................................................................................................................... 31
Article 99 Payment of wages by [contractor's] foreman ..................................................................................... 31
Article 100 Payment of wages in advance ............................................................................................................. 32
Article 101 Deducting sums from wages ............................................................................................................... 32
Article 102 Regime on allowances, subsidies, promotion and wage increases ..................................................... 32
Article 103 Bonuses ............................................................................................................................................... 32

CHAPTER 7 ................................................................................................................................................................. 33

Working Hours and Rest Breaks ................................................................................................................................ 33


Section 1 ..................................................................................................................................................................... 33
Working Hours ........................................................................................................................................................... 33
Article 104 Normal working hours ........................................................................................................................ 33
Article 105 Night working hours ........................................................................................................................... 33
Article 106 Additional working hours [overtime] ................................................................................................. 33
Article 107 Additional working hours [overtime] in special cases ....................................................................... 34
Section 2 ..................................................................................................................................................................... 34
Rest Breaks ................................................................................................................................................................. 34
Article 108 Rest breaks during working periods ................................................................................................... 34
Article 109 Rest breaks in order to transfer between shifts ................................................................................... 34
Article 110 Weekly days off ................................................................................................................................... 34
Article 111 Annual leave ....................................................................................................................................... 34
Article 112 Additional leave according to years of employment ........................................................................... 35
Article 113 Payment of wages in advance and travelling expenses for annual leave ........................................... 35
Article 114 Payment of wages for leave not taken ................................................................................................ 35
Section 3 ..................................................................................................................................................................... 36
Festivals [Public Holidays], Personal Leave of Absence and Leave without Pay ..................................................... 36
Article 115 Festivals [public holidays] and New Year .......................................................................................... 36
Article 116 Personal leave of absence and leave without pay............................................................................... 36
Section 4 ..................................................................................................................................................................... 36
Working hours and Rest Breaks for Workers on Jobs of a Special Nature ................................................................ 36
Article 117 Working hours and rest breaks for workers on jobs of a special nature ............................................ 36

CHAPTER 8 ................................................................................................................................................................. 37

Labour Discipline and Liability for Damage ............................................................................................................. 37


Section 1 ..................................................................................................................................................................... 37
Labour Discipline ....................................................................................................................................................... 37
Article 118 Labour discipline ................................................................................................................................ 37
Article 119 Internal labour rules ........................................................................................................................... 37
Article 120 Registration of internal labour rules .................................................................................................. 37
Article 121 File for registration of internal labour rules ...................................................................................... 38
Article 122 Effective date of internal labour rules ................................................................................................ 38
Article 123 Principles and sequence for dealing with breach of labour discipline ............................................... 38

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Article 124 Limitation period for dealing with breach of labour discipline .......................................................... 39
Article 125 Forms of dealing with breach of labour discipline ............................................................................. 39
Article 126 Application of dismissal as a form of dealing with breach of labour discipline ................................. 39
Article 127 Automatic clearance, and reduction of term of compliance with a labour disciplinary decision ....... 40
Article 128 Prohibited conduct when dealing with breach of labour discipline ................................................... 40
Article 129 Temporary suspension of work ........................................................................................................... 40
Section 2 ..................................................................................................................................................................... 41
Liability for Material Loss.......................................................................................................................................... 41
Article 130 Payment of compensation for loss and damage .................................................................................. 41
Article 131 Principles, sequence and procedures for ordering payment of compensation for loss and damage .. 41
Article 132 Complaints about labour discipline and about liability for loss and damage .................................... 41

CHAPTER 9 ................................................................................................................................................................. 42

Occupational Safety and Hygiene ............................................................................................................................... 42


Section 1 ..................................................................................................................................................................... 42
General Provisions on Occupational Safety and Hygiene ......................................................................................... 42
Article 133 Compliance with law on occupational safety and hygiene ................................................................. 42
Article 134 State's policy on occupational safety and hygiene .............................................................................. 42
Article 135 Program on occupational safety and hygiene .................................................................................... 42
Article 136 National technical regulations on occupational safety and hygiene .................................................. 42
Article 137 Ensuring occupational safety and hygiene in the workplace .............................................................. 42
Article 138 Obligations of employers and employees for occupational safety and hygiene work ......................... 43
Section 2 ..................................................................................................................................................................... 44
Work-Related Accidents and Occupational Disease .................................................................................................. 44
Article 139 Person conducting occupational safety and hygiene work ................................................................. 44
Article 140 Dealing with incidents and emergency rescue .................................................................................... 44
Article 141 Allowance in kind to employees working in a dangerous or toxic environment ................................. 44
Article 142 Work-related accidents ....................................................................................................................... 44
Article 143 Occupational disease .......................................................................................................................... 45
Article 144 Responsibilities of employers owed to employees who contract an occupational disease or are
injured in a work-related accident ..................................................................................................... 45
Article 145 Rights of employees injured in a work-related accident or who contract an occupational disease ... 45
Article 146 Conduct which is prohibited in the occupational safety and hygiene sector ...................................... 46
Section 3 ..................................................................................................................................................................... 46
Prevention of Work-Related Accidents and Occupational Disease ............................................................................ 46
Article 147 Testing and verification of machinery, equipment and materials with strict requirements for
occupational safety ............................................................................................................................. 46
Article 148 Plan on occupational safety and hygiene ........................................................................................... 46
Article 149 Personal protective facilities for workers ........................................................................................... 46
Article 150 Training on occupational safety and hygiene ..................................................................................... 46
Article 151 Information about occupational safety and hygiene ........................................................................... 47
Article 152 Health care for employees .................................................................................................................. 47

CHAPTER 10 ............................................................................................................................................................... 48

Separate Provisions on Female Employees ................................................................................................................ 48


Article 153 State policies on female employees ..................................................................................................... 48
Article 154 Obligations of employers owed to female employees ......................................................................... 48

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Article 155 Protecting pregnancy of female employees ........................................................................................ 48
Article 156 Right of pregnant employees to unilaterally terminate or postpone performance of labour contract 49
Article 157 Maternity leave ................................................................................................................................... 49
Article 158 Guaranteeing jobs of female employees on maternity leave ............................................................... 50
Article 159 Subsidies when taking leave to care for a sick child, to attend a pregnancy examination, or to carry
out family planning programs ............................................................................................................ 50
Article 160 Work which must not be assigned to female employees ...................................................................... 50

CHAPTER 11 ............................................................................................................................................................... 50

Separate Provisions on Junior Workers and a Number of Other Classes of Workers .......................................... 50
Section 1 ..................................................................................................................................................................... 50
Junior Workers ........................................................................................................................................................... 50
Article 161 Junior workers .................................................................................................................................... 50
Article 162 Employment of junior workers ............................................................................................................ 50
Article 163 Principles for employing junior workers ............................................................................................ 51
Article 164 Employment of workers under the age of fifteen (15) years ............................................................... 51
Article 165 Prohibited jobs and prohibited workplaces in the case of junior employees ...................................... 51
Section 2 ..................................................................................................................................................................... 52
Senior Workers ........................................................................................................................................................... 52
Article 166 Senior workers .................................................................................................................................... 52
Article 167 Employment of senior workers ........................................................................................................... 52
Section 3 ..................................................................................................................................................................... 53
Vietnamese Working Abroad, Labour for Foreign Organizations or Individuals in Vietnam, Foreign Employees
Working in Vietnam .................................................................................................................................................... 53
Article 168 Vietnamese working abroad, and Vietnamese working for foreign organizations and individuals in
Vietnam .............................................................................................................................................. 53
Article 169 Conditions for foreign citizens to work in Vietnam ............................................................................ 53
Article 170 Conditions for recruiting workers being foreign citizens ................................................................... 53
Article 171 Work permits for foreigners working in Vietnam ............................................................................... 54
Article 172 Foreign citizens working in Vietnam not required to have work permits ........................................... 54
Article 173 Valid duration of work permits ........................................................................................................... 54
Article 174 Circumstances in which validity of work permit expires .................................................................... 54
Article 175 Issuance, re-issuance and withdrawal of work permits ...................................................................... 55
Section 4 ..................................................................................................................................................................... 55
Disabled Workers ....................................................................................................................................................... 55
Article 176 State policies on disabled workers...................................................................................................... 55
Article 177 Employment of disabled persons ........................................................................................................ 55
Article 178 Prohibited conduct when employing disabled workers ...................................................................... 55
Section 5 ..................................................................................................................................................................... 56
Workers being Domestic Servants .............................................................................................................................. 56
Article 179 Domestic servants ............................................................................................................................... 56
Article 180 Labour contracts of domestic servants ............................................................................................... 56
Article 181 Obligations of employers owed to domestic servants ......................................................................... 56
Article 182 Obligations of domestic servants ........................................................................................................ 56
Article 183 Conduct by employers which is strictly prohibited ............................................................................. 57
Section 6 ..................................................................................................................................................................... 57
Other Workers ............................................................................................................................................................ 57

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Article 184 Employees in the artistic sector, and sports and physical training sector .......................................... 57
Article 185 Workers performing home-based work ............................................................................................... 57

CHAPTER 12 ............................................................................................................................................................... 57

Social Insurance ............................................................................................................................................................ 57


Article 186 Participation in social insurance ........................................................................................................ 57
Article 187 Retirement age .................................................................................................................................... 58

CHAPTER 13 ............................................................................................................................................................... 58

Trade Unions ................................................................................................................................................................ 58


Article 188 Role of trade unions in the labour relationship .................................................................................. 58
Article 189 Establishing, joining and participating in activities of trade unions at enterprises, agencies and
organizations ...................................................................................................................................... 58
Article 190 Conduct which is strictly prohibited by an employer regarding establishing, joining and
participating in trade union activities ................................................................................................ 59
Article 191 Rights of grassroots trade union officials in the labour relationship ................................................. 59
Article 192 Responsibilities of employers owed to trade unions ........................................................................... 59
Article 193 Guarantee of operational conditions of trade unions at enterprises, agencies and organizations..... 60

CHAPTER 14 ............................................................................................................................................................... 60

Resolution of Labour Disputes .................................................................................................................................... 60


Section 1 ..................................................................................................................................................................... 60
General Provisions on Resolution of Labour Disputes .............................................................................................. 60
Article 194 Principles for resolution of labour disputes ....................................................................................... 60
Article 195 Responsibilities of agencies, organizations and individuals in resolution of labour disputes ............ 61
Article 196 Rights and obligations of the two parties during resolution of a labour dispute ................................ 61
Article 197 Rights of agencies, organizations and individuals competent to resolve labour disputes .................. 61
Article 198 Labour conciliators ............................................................................................................................ 61
Article 199 Labour arbitration councils ................................................................................................................ 62
Section 2 ..................................................................................................................................................................... 62
Authority and Procedures for Resolution of Individual Labour Disputes .................................................................. 62
Article 200 Agencies and individuals authorized to resolve individual labour disputes ....................................... 62
Article 201 Sequence and procedures for resolution of individual labour disputes by labour conciliators.......... 62
Article 202 Limitation periods for requesting resolution of an individual labour dispute .................................... 63
Section 3 ..................................................................................................................................................................... 64
Authority and Procedures for Resolution of Collective Labour Disputes .................................................................. 64
Article 203 Agencies, organizations and individuals authorized to resolve collective labour disputes ................ 64
Article 204 Order for resolution of a collective labour dispute at the grassroots level ........................................ 64
Article 205 Resolution of a collective labour dispute about rights by the chairman of the district people's
committee ........................................................................................................................................... 65
Article 206 Resolution of a collective labour dispute about benefits by a labour arbitration council .................. 65
Article 207 Limitation period for requesting resolution of a collective labour dispute about rights .................... 66
Article 208 Prohibition on unilateral acts during the process of resolution of a collective labour dispute .......... 66
Section 4 ..................................................................................................................................................................... 66
Strikes and Resolution of Strikes ................................................................................................................................ 66
Article 209 Strikes ................................................................................................................................................. 66

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Article 210 Organizing and leading a strike ......................................................................................................... 66
Article 211 Sequence for a strike ........................................................................................................................... 66
Article 212 Procedures for obtaining opinions from the labour collective ........................................................... 66
Article 213 Notification of time of commencement of a strike ............................................................................... 67
Article 214 Rights of parties before and during a strike ....................................................................................... 67
Article 215 Circumstances in which a strike is illegal .......................................................................................... 68
Article 216 Notification of decision to temporarily close a workplace ................................................................. 68
Article 217 Circumstances in which it is prohibited to temporarily close a workplace ........................................ 68
Article 218 Wages and other lawful benefits of employees during period of a strike ........................................... 68
Article 219 Conduct which is prohibited before, during and after a strike ........................................................... 68
Article 220 Circumstances in which strikes are prohibited ................................................................................... 69
Article 221 Decision staying or suspending a strike ............................................................................................. 69
Article 222 Dealing with a strike which does not comply with sequence and procedures .................................... 69
Section 5 ..................................................................................................................................................................... 70
Strikes and Resolution of Strikes ................................................................................................................................ 70
Article 223 Petitioning a court to consider legality of a strike.............................................................................. 70
Article 224 Procedures for lodging a petition with a court to consider legality of a strike .................................. 70
Article 225 Authority to consider legality of a strike............................................................................................. 70
Article 226 Composition of Council of Adjudicators to consider legality of a strike ............................................ 70
Article 227 Procedures for resolution of a petition to consider [hear] legality of a strike ................................... 71
Article 228 Staying consideration of legality of a strike ....................................................................................... 71
Article 229 Persons [required to] participate in a session hearing legality of a strike ........................................ 71
Article 230 Stay of a session hearing legality of a strike ....................................................................................... 71
Article 231 Procedures for a session hearing legality of a strike .......................................................................... 71
Article 232 Decision on legality of a strike ........................................................................................................... 72
Article 233 Dealing with breaches ........................................................................................................................ 72
Article 234 Sequence and procedures for resolving a complaint about a decision on legality of a strike ............ 72

CHAPTER 15 ............................................................................................................................................................... 73

State Administration of Labour .................................................................................................................................. 73


Article 235 Contents of State administration of labour ......................................................................................... 73
Article 236 Authority for State administration of labour ...................................................................................... 73

CHAPTER 16 ............................................................................................................................................................... 74

State Inspection of Labour and Dealing with Breaches of the Law on Labour ...................................................... 74
Article 237 Duties of State Labour Inspectorates.................................................................................................. 74
Article 238 Labour Inspectorates .......................................................................................................................... 74
Article 239 Dealing with breaches in the labour sector ........................................................................................ 74

CHAPTER 17 ............................................................................................................................................................... 74

Implementing Provisions ............................................................................................................................................. 74


Article 240 Effectiveness ....................................................................................................................................... 74
Article 241 Effectiveness in the case of locations employing less than ten employees .......................................... 75
Article 242 Detailed regulations and guidelines on implementation .................................................................... 75

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NATIONAL ASSEMBLY SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness

Law 10-2012-QH13 Ha Noi, 18 June 2012

LABOUR CODE

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam as amended by Resolution 51-2001-
QH10;

The National Assembly hereby promulgates the Labour Code.

CHAPTER 1

General Provisions

Article 1 Governing scope

The Labour Code regulates labour standards; the rights, obligations and responsibilities of employees,
employers, organizations representing labour collectives, and organizations representing employers in the
labour relationship and in other relationships directly related to the labour relationship; and regulates State
administration of labour

Article 2 Applicable entities

1
1. Vietnamese employees, people studying trades or practising trades [trainees and apprentices] , and
other employees stipulated in the Labour Code.

2. Employers.

3. Foreign employees working in Vietnam.

4. Other agencies, organizations and individuals directly related to the labour relationship.

Article 3 Interpretation of terms

In this Code, the following terms are construed as follows:

1. Employee means a person at least fifteen (15) years of age, with the ability to work, who works
pursuant to a labour contract, who is paid wages and who is subject to management by the
employer.

2. Employer means an enterprise, agency, organization, co-operative, business household or individual


who hires [or] employs labour pursuant to a labour contract; and in the case of an individual employer
must have full legal capacity for civil acts.

3. Labour collective means an organized collective of employees working together for one employer or
within any one section of the organizational structure of an employer.

1
Allens Arthur Robinson footnote: Square brackets contain translator's comments only.

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4. Organization representing the labour collective at the grassroots level means the executive
committee of the grassroots trade union, or the executive committee of the trade union at the directly
superior level to the grassroots level in a place where a grassroots trade union has not yet been
established.

5. Organization representing the employer means a legally established organization which represents
and protects the legal rights and interests of the employer in the labour relationship.

6. Labour relationship means a social relationship arising during the hiring or employment of a worker,
[or] payment of wages between an employee and an employer.

7. Labour dispute means a dispute [or disagreement] about rights, obligations and benefits arising
between parties in a labour relationship.

Labour disputes comprise individual labour disputes between an employee and employer, and
collective labour disputes between the labour collective and the employer.

8. Collective labour dispute about rights means a dispute between the labour collective and the
employer arising about different explanations and implementation of provisions of the law on labour,
of a collective labour agreement, of internal labour rules or of other rules or lawful agreements.

9. Collective labour dispute about benefits means a dispute arising about a request of the labour
collective to establish new labour conditions as compared with provisions of the law on labour, of a
collective labour agreement, of internal labour rules or of other rules or lawful agreements during the
process of negotiation between the labour collective with the employer.

10. Labour coercion means using force, threatening to use force or using other tricks aimed at coercing a
worker contrary to his or her will.

Article 4 State's policy on labour

1. The State ensures the legitimate rights and interests of employees; encourages agreements which
ensure employees have more favourable conditions than those stipulated in the law on labour; and
has policies enabling employees to purchase shares and contribute capital to develop production and
business.

2. Ensuring the lawful rights and interests of employers, that labour is correctly managed in accordance
with law, and ensuring democracy, fairness, civilized behaviour and the raising of social
responsibility.

3. The State facilitates activities of job creation, self-employment, job training and apprenticeship to
enable people to find work, and facilitates labour-intensive production and business activities.

4. The State has policies on developing and allocating manpower; on training, fostering and raising
technical skill of employees, and grants incentives to employees with high qualifications and
technical expertise satisfying requirements for industrialization and modernization of the country.

5. The State has policies on developing the labour market and diversifying the forms of linking labour
supply and demand.

6. The State shall guide employees and employers to engage in collective discussion and negotiation in
order to develop an harmonious, stable and progressive relationship.

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7. The State ensures the principle of gender equality; and regulates labour regimes and social policies
aimed at protecting female employees, disabled employees, senior employees and junior employees.

Article 5 Rights and obligations of employees

1. Employees have the following rights:

(a) To work, to freely choose types of work and trades and professions, to learn a trade, to
improve professional skills, and not to be discriminated against;

(b) To be paid a wage commensurate with his or her professional skills on the basis of an
agreement reached with the employer; to be entitled to labour protection and to work in safe
and hygienic working conditions; to be entitled to stipulated leave and paid annual leave and to
receive collective welfare benefits;

(c) To establish, join and participate in the activities of trade unions, professional and occupational
associations and other organizations in accordance with law; to request and participate in
discussions with the employer, to implement democratic regulations, and to receive advice at
workplaces in order to protect the employee's lawful rights and interests; and to participate in
management in accordance with the internal rules of the employer;

(d) To strike.

2. Employees have the following obligations:

(a) To implement labour contracts and collective labour agreements;

(b) To comply with labour discipline and internal labour rules and to be subject to lawful
management by the employer;

(c) To implement provisions of law on social insurance and health insurance.

Article 6 Rights and obligations of employers

1. Employers have the following rights:

(a) To recruit, arrange and manage labour in accordance with business and production
requirements; to reward employees and to deal with breaches of labour discipline;

(b) To establish, join and participate in the activities of professional and occupational associations
and other organizations in accordance with law;

(c) To require the labour collective to discuss, negotiate and sign a collective labour agreement; to
participate in resolution of labour disputes and strikes; and to discuss with the trade union
labour relations issues and improvement of the material and spiritual lives of the employees;

(d) To temporarily close down the workplace.

2. Employers have the following obligations:

(a) To implement labour contracts, collective labour agreements and other agreements with
employees; and to respect the honour and dignity of employees;

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(b) To establish a regime on organizing discussions with the labour collective at the enterprise and
to strictly implement democratic regulations at the grassroots level;

(b) To comply with labour standards; to implement labour contracts, collective labour agreements
and other agreements with employees, and to respect the honour and dignity of employees;

(c) To establish a register managing personnel and a register managing salary, and to present
these registers on request by competent agencies;

(d) To prepare a declaration of employment of employees and submit it within thirty (30) days from
the date of inauguration of activities to the local State authority for labour, and to periodically
provide reports to such authority on status of labour changes during operation;

(dd) To implement other provisions of the law on labour, and provisions of law on social insurance
and health insurance.

Article 7 Labour relationship

1. The labour relationship between an individual employee or labour collective with the employer shall
be established via discussion, negotiation and agreement on the principles of voluntary commitment,
goodwill, equality, co-operation and mutual respect of legal rights and interests.

2. The trade union and employer representative shall jointly participate with State authorities to assist
formulation of an harmonious, stable and progressive labour relationship; shall supervise
implementation of the law on labour; and shall protect the lawful rights and interests of both
employers and the employer.

Article 8 Conduct which is strictly prohibited

1. Discrimination on the basis of gender, race, colour, social class, marital status, beliefs, religion, HIV
infection, disability, or because of establishing, joining or participating in activities of a trade union.

2. Maltreatment or sexual harassment of employees at the workplace.

3. Labour coercion.

4. Taking advantage of an apprenticeship or trade-training program to seek profit or exploit an


employee or to entice or compel an apprentice or trainee to conduct an illegal act.

5. Employing workers who have not yet passed training courses or who do not yet have national trade
or technical certificates in the case of any trade or work for which the law requires employees to have
passed such courses or have such certificates.

6. Seducing, making false promises or conducting false advertising in order to deceive employees, or
taking advantage of employment services or labour export to foreign countries pursuant to contracts
in order to conduct an illegal act.

7. Employing juniors contrary to law.

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CHAPTER 2

Employment

Article 9 Employment and finding jobs

1. Working or a job means any labour activity which creates income and which is not prohibited by law.

2. The State, employers and society are responsible to participate in job creation, ensuring that all
people with the ability to work have the opportunity to work.

Article 10 Right of workers to work

1. A worker has the right to be employed by any employer and in any location not prohibited by law.

2. A person seeking work has the right to make a direct approach to prospective employers or to
approach them via an employment services organization in order to find work which matches his/her
aspirations, capability, trade or professional skills, and health.

Article 11 Right of employers to recruit labour

An employer has the right to recruit labour directly or to do so via an employment services organization or
labour subleasing enterprise, and has the right to increase or reduce the number of employees for
compliance with production and business requirements.

Article 12 State policy on employment

1. The State shall set targets on creation of additional new jobs in both its annual and five-year
socio-economic development plans.

Based on the socio-economic conditions in each period, the Government shall submit a national
program with targets on job creation and occupational training to the National Assembly for decision.

2. The State has a policy on job loss insurance and other policies encouraging workers to create their
own jobs; and to assist employers to employ many female workers, disabled people and ethnic
minority people in order to resolve the search for employment.

3. The State encourages and creates favourable conditions for investment by both domestic and foreign
organizations and individuals to develop business and production for the purpose of creating jobs for
workers.

4. The State assists employers and workers to find work and to expand the labour market overseas.

5. The State shall create a national Job Creation Fund to assist with loans and other incentives for job
creation and other activities in accordance with law.

Article 13 Employment programs

1. People's committees of provinces and cities under central authority (provincial people's committees)
shall formulate local employment programs for submission to the same level people's council for
decision.

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2. State bodies, enterprises, socio-political and social organizations and other employers are
responsible, within the scope of their respective duties and powers, to participate in implementing
employment programs.

Article 14 Employment services organizations

1. Employment services organizations have the function of providing consultancy, introducing jobs and
providing vocational training to workers; of supplying and recruiting labour at the request of
employers; and of collecting and providing information on the labour market and implementing other
duties in accordance with law.

2. Employment services organizations comprise employment introduction centres and enterprises


providing employment services.

Employment introduction centres shall be established and operate in accordance with Government
regulations.

Enterprises providing employment services shall be established and operate in accordance with the
provisions of the Law on Enterprises and must be licensed to provide employment services by the
provincial level State authority for labour.

3. Employment services organizations are permitted to collect fees, and shall be considered for tax
reduction or exemption in accordance with the law on fees and charges and the law on tax.

CHAPTER 3

Labour Contracts

Section 1

Entering into Labour Contracts

Article 15 Labour contracts

Labour contract means an agreement between an employee and an employer on a paid job, on working
conditions, and on the rights and obligations of each party to the labour relationship.

Article 16 Forms of labour contract

1. A labour contract must be entered into in writing and made in two copies, each party to retain one
copy, except in the case prescribed in clause 2 of this article.

2. The parties may enter into an oral labour contract for temporary work of less than three months.

Article 17 Principles for entering into labour contracts

1. Voluntary commitment, equality, goodwill, co-operation and honesty.

2. Voluntary entering into of a labour contract but not contrary to law, to the collective labour agreement
or to social ethics.

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Article 18 Responsibility to enter into labour contracts

1. Before accepting a worker to work, the employer and such worker must directly enter into a labour
contract.

If the worker is from 15 years up to under 18 years of age, then the legal representative of the worker
must consent to the entering into the labour contract.

2. For seasonal work or a specific job with a duration of less than twelve (12) months, a group of
workers may authorize one of the workers in their group to enter into a written labour contract; and in
this case, the labour contract has the same validity as if it was entered into with each worker.

A labour contract entered into by an authorized person must enclose a list setting out the full name,
age, sex, residential addresses, trade or occupation, and signature of each worker.

Article 19 Responsibility to provide information before entering into a labour contract

1. [Before signing a labour contract], an employer must provide information to the employee on the
work to be performed, the workplace, working conditions, working hours, rest breaks, [conditions on]
occupational safety and hygiene, [rates of] wages, method of payment of wages, social insurance
and health insurance, and provisions on confidentiality of business secrets (if any) and other matters
directly relevant to the entering into of a labour contract which an employee needs to know.

2. [Before signing a labour contract], an employee must also provide the employer with information
being the employee's full name, age, sex, residential address, educational standard, professional
qualifications, health status, and other matters directly relevant to signing of a labour contract which
the employer requests.

Article 20 Prohibited conduct by an employer when entering into and performing a labour contract

1. Retaining originals of personal papers, degrees and certificates of the employee.

2. Requiring the employee to provide security measures by way of cash or assets to guarantee
performance of the labour contract.

Article 21 Entering into multiple labour contracts with multiple employers

An employee may enter into multiple labour contracts with multiple employers, provided that all the contents
in the executed contracts are fully performed.

If [an employee] enters into multiple labour contracts with multiple employers, participation by the employee
in the social insurance and health insurance schemes shall be implemented in accordance with
Government regulations.

Article 22 Types of labour contract

1. A labour contract must be entered into in one of the following types:

(a) Indefinite term labour contract.

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An indefinite term labour contract is a contract in which the two parties do not fix the term nor
the time of termination of validity of the contract;

(b) Definite term labour contract.

A definite term labour contract is a contract in which the two parties fix the term and the time of
termination of the validity of the contract as a period between twelve (12) months and thirty six
(36) months;

(c) A seasonal or specific job labour contract with a duration of less than twelve (12) months.

2. Where a labour contract prescribed in sub-clauses (b) or (c) of clause 1 of this article expires and the
employee continues to work, then within thirty (30) days from the date of expiry of the contract the
two parties must sign a new labour contract; if a new labour contract is not signed, then an executed
contract as prescribed in sub-clause (b) of clause 1 of this article shall become an indefinite term
labour contract, and an executed contract as prescribed in sub-clause (c) of clause 1 of this article
shall become a definite term labour contract with a duration of twenty-four (24) months.

Where the two parties enter into a new labour contract which is a definite term labour contract, they
may only sign one additional contract, and if the employee thereafter continues to work then an
indefinite term labour contract must be entered into.

3. It is prohibited to enter into a seasonal or specific job labour contract for a term of less than twelve
(12) months in respect of work which is regular and has a duration of twelve (12) months or more,
except to temporarily replace an employee who has taken leave of absence for military service, is on
maternity leave or sick leave, is on leave as the result of a work-related accident, or is on leave for
other temporary reasons.

Article 23 Contents of labour contracts

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

(a) Name and address of the enterprise or of the employer's lawful representative;

(b) Full name, date of birth, sex, residential address, and number of identity card or other legal
document of the employee;

(c) Job description and workplace;

(d) Term of the labour contract;

(dd) Wage rate, method of and time of payment of wages, allowances and other additional
payments;

(e) Regime for wage increases and promotion;

(g) Working hours and holidays;

(h) Personal protective equipment of the employee;

(i) Social insurance and health insurance;

(k) Training and skill improvement;

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2. When an employee does work which is directly related to business or technological secrets as
defined by law, the employer has the right to a written agreement with the employee on contents and
term of confidentiality of business secrets and of technology, of interests [or benefits] and on
payment of compensation if the employee breaches such agreement.

3. In the case of employees working in the sectors of agriculture, forestry, fisheries and salt mining,
then depending on the type of work, the two parties may exclude some of the main particulars of the
labour contract and reach agreement on adding items on method of resolution of a case where
performance of the labour contract is affected by natural disaster, fire or weather.

4. The Government shall regulate contents of labour contracts of employees hired to act as directors of
enterprises with State owned capital.

Article 24 Addenda to labour contracts

1. An addendum to a labour contract constitutes a part of such labour contract and has the same
validity as the labour contract.

2. An addendum to a labour contract may elaborate in detail some of the articles of the labour contract,
or may amend or supplement the labour contract.

If the addendum to a labour contract elaborates in detail some of the articles or clauses of the labour
contract resulting in an interpretation different from the labour contract, then implementation shall be
in accordance with the contents of the labour contract.

An addendum to a labour contract which amends or supplements the labour contract must clearly
specify the articles which are amended or supplemented and the effective date of such amended and
supplemented articles.

Article 25 Effectiveness of a labour contract

A labour contract is effective from the date the parties enter into the contract, unless otherwise agreed by
the two parties or unless otherwise stipulated by law.

Article 26 Probationary period of work

1. The employer and the employee may reach agreement on a probationary [trial] period of work and
the rights and obligations of the two parties within that period. If agreement is reached on a
probationary period of works, the parties may enter into a probationary contract.

The contents of a probationary contract shall comprise the contents prescribed in sub-clauses (a),
(b), (c), (d), (dd), (g) and (h) of article 23.1 of this Code.

2. An employee working pursuant to a seasonal labour contract is not engaged in a probationary period
of work.

Article 27 Duration of probationary period

The duration of a probationary period shall depend on the nature and complexity of the work, but there may
only be probation on one occasion for one job, and probation must ensure the following conditions:

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1. The probationary period must not exceed sixty (60) days for working in a position requiring college
level or higher specialized or technical expertise.

2. The probationary period must not exceed thirty (30) days for working in a position requiring
vocational or professional intermediate level specialized or technical expertise or for technical
workers and professional staff.

3. The probationary period must not exceed six (6) working days for other work.

Article 28 Wage during probationary period

The wage of an employee during a probationary period shall be as agreed by the two parties but must be at
least 85% of the scale wage rate for the relevant working position [job].

Article 29 Termination of probationary period

1. When the employee's work satisfies the requirements during the probationary period, the employer
must enter into a labour contract with the employee.

2. During the probationary period, each party has the right to rescind the agreement on probationary
work without providing advance notice and without paying compensation if the employee's
probationary work does not satisfy the requirements agreed by the two parties.

Section 2

Performance of Labour Contracts

Article 30 Performing work pursuant to a labour contract

Work pursuant to a labour contract must be performed by the employee who entered into such contract.
2
The working address shall be implemented in accordance with the labour contract or an agreement
between the two parties.

Article 31 Assigning employee to do other work different from the labour contract

1. In a case of unforeseeable difficulty due to a natural disaster, fire, epidemic, application of measures
to prevent or overcome a work-related accident or occupational disease, in the event of a power
failure or water shortage or due to business and production demand, an employer has the right to
temporarily assign an employee to do work other than that specified in the labour contract, but not for
more than an accumulated period of sixty (60) working days in any one year unless the employee
[otherwise] consents.

2. An employer must, when temporarily assigning an employee to do other work than that specified in
the labour contract, give at least three (3) working 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 temporarily assigned to another job pursuant to clause 1 of this article, the
employee must be paid a wage at the rate appropriate to the new job; if the wage rate of the new job

2
Allens Arthur Robinson footnote: This is the literal translation here as opposed to "workplace" which is mostly used in the
original text.

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is less than that of the previous job, the employee is entitled to receive the previous wage for a
period of thirty (30) working days. The new wage must equal at least eighty-five (85) per cent of the
previous wage, but must not be less than the minimum wage for the relevant area stipulated by the
Government.

Article 32 Cases in which suspension of performance of a labour contract is permitted

1. The employee is required to do military service.

2. The employee is detained or temporarily held in prison in accordance with the law on criminal
procedure.

3. The employee must comply with a mandatory decision on admission to a detention centre, to a drug
rehabilitation centre or to an educational establishment.

4. A female employee is pregnant as stipulated in article 156 of this Code.

5. In other circumstances agreed by both parties.

Article 33 Responsibility to receive the employee back to work on expiry of suspension of performance of
labour contract

Within fifteen (15) days from expiry of the term of suspension of performance of the labour contract in the
cases prescribed in article 32, the employee must attend the workplace and the employer must receive the
employee back to work, unless the two parties have some other agreement.

Article 34 Employees working part-time

1. A part-time employee means an employee with working hours shorter than the average daily or
weekly working hours prescribed in the law on labour, in the collective labour agreement of the
enterprise, in the industry labour collective agreement, or in the rules of the employer.

2. An employee may reach agreement with an employer for the former to work part-time when entering
into the labour contract.

3. Part-time employees are entitled to receive wages, and have rights and obligations the same as full-
time employees, and are entitled to equal opportunity the same as full-time employees, must not be
discriminated against, and are entitled to [the same conditions] on occupational safety and hygiene.

Section 3

Amending, Supplementing and Terminating Labour Contracts

Article 35 Amending and supplementing labour contracts

1. Any party who during the process of performing the labour contract wishes to amend or supplement
the contractual items must notify the other party at least three (3) working days in advance of the
specific items to be amended or added.

2. Amendments or additions to contents of a labour contract shall take place by way of amending or
supplementing the signed labour contract in the form of an addendum to the labour contract, or by
entering into a new labour contract.

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If the two parties fail to reach agreement on the amendment or addition to the contents of the labour
contract, then the executed labour contract must continue to be performed.

Article 36 Circumstances in which labour contract is terminated

[A labour contract is terminated in the following circumstances:]

1. On expiry of the labour contract, except in the case prescribed in article 192.6 of this Code.

2. The job has been completed in accordance with the labour contract.

3. Both parties agree to terminate the contract.

4. The employee has satisfied the conditions of period of employment for social insurance contributions
and reaches the age of pension entitlement pursuant to article 187 of this Code;

5. The employee is sentenced to a jail term or to the death penalty, or is prohibited from performing the
job prescribed in the labour contract by a legally enforceable decision of a court.

6. The employee dies; or is declared by a court to have lost legal capacity for civil acts, to be missing or
to be deceased.

7. The employer being an individual dies, or is declared by a court to have lost legal capacity for civil
acts, to be missing or to be deceased; [or] the employer not being an individual terminates its
operation.

8. The employee is disciplined in the form of dismissal in accordance with article 125.3 of this Code.

9. The employee unilaterally terminates the labour contract in accordance with article 37 of this Code.

10. The employer unilaterally terminates the labour contract in accordance with article 38 of this Code;
[or] the employer retrenches the employee as a result of restructuring, change of technology, for
economic reasons, or due to merger, consolidation or separation of the enterprise or co-operative.

Article 37 Circumstances in which an employee has the right to unilaterally terminate the labour contract

1. An employee working under a definite term labour contract, or a seasonal or specific job labour
contract with a duration of less than twelve (12) months has the right to unilaterally terminate the
labour contract prior to expiry of its duration in the following circumstances:

(a) The employee is not assigned to the correct job or workplace or is not ensured the working
conditions agreed in the labour contract;

(b) The employee is not paid in full or on time the wages due as agreed in the labour contract;

(c) The employee is maltreated, sexually harassed, or is subject to labour coercion;

(d) The employee is unable to continue performing the contract due to personal or family
difficulties;

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3
(dd) The employee is elected to full-time public office duties in a body elected by the people or is
appointed to a position in a State body;

(e) A female employee is pregnant and must cease working on the advice of a competent medical
consulting or treating establishment;

4
(g) The employee is ill or injured and remains unable to work after having received treatment for
a period of ninety (90) consecutive days in the case of work pursuant to a definite term labour
contract, or for a quarter of the duration of the contract in the case of work pursuant to a
seasonal or specific job labour contract with a duration of less than twelve (12) months.

2. On unilateral termination of a labour contract pursuant to clause 1 above, the employee must provide
the employer with the following advance notice:

(a) At least three (3) working days in the cases stipulated in sub-clauses (a), (b), (c) and (g) of
clause 1 of this article;

(b) At least thirty (30) days in the case of a definite term labour contract; and at least three (3)
working days in the case of a seasonal or specific job labour contract with a duration of less
than twelve (12) months in the cases prescribed in sub-clauses (d) and (dd) of clause 1 of this
article;

(c) In the cases prescribed in sub-clause (e) of clause 1 of this article, the employee must give
advance notice to the employer in accordance with article 156 of this Code.

3. An employee working pursuant to an indefinite term labour contract has the right to unilaterally
terminate the contract, but must provide the employer with at least forty-five (45) days' advance
notice, except in the case prescribed in article 156 of this Code.

Article 38 Circumstances in which an employer has the right to unilaterally terminate the labour contract

1. An employer has the right to unilaterally terminate a labour contract in the following circumstances:

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

(b) The employee is ill or injured and remains unable to work after having received treatment for a
period of twelve (12) consecutive months in the case of an indefinite term labour contract, or
six consecutive months in the case of a definite term contract, or more than half the duration of
the contract in the case of a seasonal or specific job labour contract with a duration of less
than twelve (12) months.

On recovery of the employee's health, the employee shall be considered for continued entering
into of a labour contract;

(c) Where as a result of a natural disaster, fire or for any other reason of force majeure as
prescribed by law, the employer, despite having taken all necessary measures to remedy the
problem, still needs to narrow production and reduce the number of jobs;

3
Allens Arthur Robinson footnote: An example would be a people' s council.
4
Allens Arthur Robinson footnote: The literal translation is "and has not recovered the ability to work".

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(d) The employee failed to attend the workplace on expiry of the period prescribed in article 33 of
this Code [15 days].

2. An employer who unilaterally terminates a labour contract must provide the following period of
advance notice to the employee:

(a) At least forty-five (45)days in the case of an indefinite term labour contract;

(b) At least thirty (30) days in the case of a definite term contract;

(c) At least three (3) working days in the case prescribed in clause 1(b) of this article and in the
case of a seasonal or specific job labour contract with a duration of less than twelve (12)
months.

Article 39 Circumstances in which an employer is not permitted to unilaterally terminate a labour contract

[An employer is not permitted to unilaterally terminate a labour contract in the following circumstances:]

1. The employee, after contracting an or suffering an injury caused by a work-related accident or


occupational disease, is being treated or nursed on the decision of a competent medical consulting
or treating establishment, except in the case prescribed in article 38.1(b) above.

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

3. The employee is a female in the cases stipulated in article 155.3 of this Code.

4. The employee is on leave pursuant to the regime on parental leave prescribed in the law on social
insurance.

Article 40 Rescission of unilateral termination of labour contract

Each party has the right to rescind its unilateral termination of a labour contract at any time prior to expiry of
the notice period, but must provide written notice to the other party and must have consent from the other
party.

Article 41 Illegal unilateral termination of labour contract

Illegal unilateral termination of a labour contract means any case of termination of a labour contract which is
incorrect in terms of articles 37, 38 and 39 of this Code.

Article 42 Obligations of employer who unilaterally terminates a labour contract illegally

1. The employer must receive the employee back to work in accordance with the executed labour
contract and must pay wages, social insurance and health insurance for the period during which the
employee did not work, plus at least two months' wages in accordance with the labour contract.

2. An employee who does not wish to continue to work must be paid by the employer, in addition to the
compensation prescribed in clause 1 of this article, the severance allowance stipulated in article 48 of
this Code.

3. If the employer does not wish to receive the employee back to work and has the employee's consent,
then in addition to the compensation prescribed in clause 1 of this article and the severance

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allowance stipulated in article 48 of this Code, the two parties may agree on additional compensation
of at least two months' wages in accordance with the labour contract in order to terminate the labour
contract.

4. If there is no longer the working position or job for which the labour contract was entered into and the
employee wishes to continue to work, then in addition to the compensation pursuant to clause 1 of
this article, the two parties shall negotiate in order to amend and supplement the labour contract.

5. If there was a breach of the provisions on the required period of advance notice, then [the employer]
must pay the employee compensation being an amount of money equivalent to the wage of the
employee for the period during which advance notice was not provided.

Article 43 Obligations of employee who unilaterally terminates a labour contract illegally

1. The employee is not entitled to a severance allowance and must pay compensation to the employer
of one half of one month's wage in accordance with the labour contract.

2. If the employee breaches the provisions on the period of advance notice which must be provided,
then the employee must pay compensation to the employer being a sum of money equivalent to the
wage of the employee during the period for which advance notice was not provided.

3. The employee must refund training costs to the employer in accordance with article 62 of this Code.

Article 44 Obligations of employer in cases of restructuring, change of technology, or [changes for]


economic reasons

1. If restructuring or a change of technology adversely affects the jobs of many employees, the
employer must formulate and implement a labour usage plan in accordance with article 46 of this
Code. If new jobs are created, then the employer must prioritize retraining for employees in order to
continue to employ them.

If the employer is unable to resolve new jobs but must retrench employees, then the employer must
pay severance allowances for job loss to employees in accordance with article 49 of this Code.

2. If for economic reasons many employees are in danger of losing their jobs and must be retrenched,
then the employer must formulate and implement a labour usage plan in accordance with article 46
of this Code.

If the employer is unable to resolve new jobs but must retrench employees, then the employer must
pay severance allowances for job loss to employees in accordance with article 49 of this Code.

3. Many employees may only be retrenched pursuant to this article after discussion with the
organization representing the labour collective at the grassroots level and after thirty (30) days'
advance notice has been provided to the provincial State administrative body for labour.

Article 45 Obligations of employer upon merger, consolidation, division or separation of an enterprise or


co-operative

1. Upon merger, consolidation, division or separation of an enterprise or co-operative, the succeeding


employer is responsible to continue to employ the current number of employees and to amend and
supplement their labour contracts.

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If the succeeding employer is unable to employ all current employees, then such employer must
prepare and implement a labour usage plan in accordance with article 46 of this Code.

2. On transfer of ownership or right to use assets of an enterprise, the previous employer must prepare a
labour usage plan in accordance with article 46 of this Code.

3. An employer who retrenches employees pursuant to this article must pay severance allowances for
job loss to the employees in accordance with article 49 of this Code.

Article 46 Labour usage plan

1. A labour usage plan shall contain the following basic particulars:

(a) List and the number of employees who will continue to be employed, and of employees to
undergo retraining for further employment;

(b) List and the number of employees who will retire;

(c) List and the number of employees who will be transferred to work part-time; and of employees
whose labour contracts will be terminated;

(d) Measures and financial funding for ensuring implementation of the plan.

2. The organization representing the labour collective at the grassroots level must participate in
formulation of the labour usage plan.

Article 47 Responsibilities of employers who terminate labour contracts

1. At least fifteen (15) days prior to the date of expiry of a definite labour contract, the employer must
provide advance written notice to the employee of the time [the date] when the contract terminates.

2. Within seven (7) working days from the date of termination of a labour contract, each party must fully
pay all sums outstanding and relating to rights and interests to the other party. In special cases this
period may be extended, but shall not exceed thirty (30) days.

3. The employer is responsible to complete procedures for certification of, and return of, the social
insurance book to the employee, and also return other documents to the employee which the
employer retained.

4. In a case where an enterprise or a cooperative has its operation terminated, or is dissolved or


declared bankrupt, then there shall be priority payment of wages, severance allowances, social
insurance and health insurance, job loss insurance, and other interests of the employees in
accordance with the labour collective agreement and signed labour contracts.

Article 48 Severance allowance

1. When a labour contract is terminated in accordance with clauses 1, 2, 3, 5, 6, 7, 9 or 10 of article 36


of this Code, the employer is responsible to pay a severance allowance to any employee who has
regularly worked for a full twelve months or more. The severance allowance shall be one half of one
month's wage for each year of employment.

2. The length of a working period for calculating a severance allowance on retrenchment means the
total working time the employee actually worked for the employer minus the period for which the

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employee received unemployment benefits in accordance with the Law on Social Insurance and the
working period for which the employer has already paid a severance allowance.

3. Wages for the purpose of calculating a severance allowance on retrenchment means the average
wage pursuant to the labour contract for the six (6) months immediately preceding retrenchment of
the employee.

Article 49 Retrenchment [job loss] allowance

1. The employer shall pay a severance allowance for job loss to an employee who had regularly worked
for the employer for 12 or more months and who loses his or her job pursuant to article 44 or 45 of
this Code. The severance allowance shall be one month's wages for each working year but at least 2
months' salary.

2. The length of a working period for calculating a severance allowance for job loss means the total
working time the employee actually worked for the employer minus the period for which the
employee received unemployment benefits in accordance with the Law on Social Insurance and the
working period for which the employer has already paid a severance allowance.

3. Wages for the purpose of calculating a severance allowance for job loss means the average wage
pursuant to the labour contract for the six months immediately preceding job loss.

Section 4

Invalid Labour Contracts

Article 50 Invalid labour contract

1. A labour contract is wholly invalid in the following cases:

(a) The entire contents of the labour contract are illegal;

(b) A signatory to the labour contract lacked authority;

(c) The job for which the two parties entered into the labour contract is work prohibited by law;

(d) The contents of the labour contract restrict or prevent exercise of the right of the employee to
establish or join a trade union and participate in its activities.

2. A labour contract is partially invalid when the contents of a part of the contract are illegal without
affecting the residual contents of the contract.

3. If a part or the entire contents of a labour contract specify interests of the employee as being less
than those prescribed in the law on labour, in labour rules, or in any collective labour agreement
currently applicable, or if the contents of the labour contract restrict other rights of the employee, then
such part or entire contents are invalid.

Article 51 Authority to declare a labour contract invalid

1. The Labour Inspectorate and People's Courts shall have the right to declare a labour contract to be
invalid.

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2. The Government shall provide regulations on the sequence and procedures for the Labour
Inspectorate to declare labour contracts invalid.

Article 52 Dealing with invalid labour contracts

1. A labour contract which is declared partially invalid shall be dealt with as follows:

(a) The rights, obligations and interests of the parties shall be resolved in accordance with
provisions in the collective labour agreement or provisions of law;

(b) That parties shall amended that part of the labour contract declared to be invalid for
compliance with the collective labour agreement or the law on labour.

2 A labour contract which is declared wholly invalid shall be dealt with as follows:

(a) If a signatory to the labour contract lacked authority as prescribed in article 50.1(d) above, then
the State administrative body for labour shall guide the parties to resign the contract;

(b) The rights, obligations and interests of the employee shall be resolved in accordance with law.

3. The Government shall provide specific regulations on this article.

Section 5

Labour Outsourcing

Article 53 Labour outsourcing [or sub-leasing]

1. Labour outsourcing means an employee recruited by an enterprise licensed to conduct labour


outsourcing [the sub-lessor] thereafter works for another employer [sub-leasing employer], and is
subject to management by such other employer but maintains the labour relationship with the labour
outsourcing enterprise.

2. Labour outsourcing activities are a business line subject to conditions and may only be conducted in
respect of a number of specified jobs.

Article 54 Labour outsourcing enterprises

1. A labour outsourcing enterprise must pay an escrow deposit and must be licensed for labour
outsourcing activities.

2. The period of any labour sublease [outsourcing] shall not exceed twelve (12) months.

3. The Government shall regulate licensing of labour outsourcing activities, payment of escrow deposits
and the list of jobs for which labour may be outsourced.

Article 55 Labour sublease contract

1. The labour outsourcing enterprise and the subleasing employer must sign a sublease contract in
writing, which contract must be made in two copies, with each party to receive one copy.

2. A labour sublease contract must contain the following main particulars:

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(a) Workplace, description of the job which requires a subleased employee; specific contents of
the job, and specific requirements applicable to the subleased employee;

(b) Term of the labour sublease, and date of commencement of work by the employee;

(c) Working hours, rest breaks, and conditions on occupational safety and hygiene at the
workplace;

(d) Obligations of each party owed to the employee.

3. A labour sublease contract must not contain agreements on the rights and interests of the employee
which are less [favourable] than those in the labour contract which the labour outsourcing enterprise
signed with the employee.

Article 56 Rights and obligations of labour outsourcing enterprises

1. To ensure that the employee provided has the professional qualifications which match the
requirements of the sub-lessee and the contents of the labour contract [which the labour outsourcing
enterprise] signed with the employee.

2. To notify employees of the contents of subleases.

3. To sign labour contracts with employees in accordance with the provisions of this Code.

4. To notify the labour sub-lessee of the curriculum vitae of the employee or of the requirements of the
employee (if any).

5. To discharge obligations of an employer in accordance with this Code; to pay employees in


accordance with law the following: wages, wages for public holidays and for annual leave, wages on
cessation of work, severance allowances on retrenchment or job loss, compulsory social insurance
payments, health insurance and job loss insurance.

To ensure that the sub-leased employee receives a wage not lower than the wage of an employee of
the sub-leasing employer with the same professional qualifications and doing the same job or a job of
the same value.

6. To formulate a file recording the number of sub-leased employees, sub-leasing employers, the fees
for outsourcing labour and to report same to the provincial State administrative body for labour.

7. To discipline any sub-leased employee in breach of labour discipline when the sub-leasing employer
returns such employee because of a breach of labour discipline.

Article 57 Rights and obligations of sub-leasing employers

1. To inform and guide sub-leased employees of the internal labour rules and other regulations of the
sub-leasing employer.

2. Not to discriminate regarding labour conditions as between sub-leased employees and [other]
employees of such sub-leasing employer.

3. To reach agreement with any sub-leased employee who is required for night work or for overtime
outside the scope of contents of the labour sub-lease contract.

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4. Not to further outsource a sub-leased employee to another employer.

5. To reach agreement with the sub-leased employee and the labour outsourcing enterprise to officially
recruit the sub-leased employee to work for the sub-leasing employer in a case where the labour
contract of the employee with the outsourcing enterprise has not yet terminated.

6. To return the employee to the outsourcing enterprise if the former fails to satisfy the agreed
requirements or is in breach of labour discipline.

7. To provide evidence to the outsourcing enterprise of any breach of labour discipline by the sub-
leased employee in order to consider disciplinary measures to be taken.

Article 58 Rights and obligations of sub-leased employees

1. To perform work in accordance with the labour contract signed with the labour outsourcing
enterprise.

2. To comply with internal rules, labour discipline, lawful management and the collective labour
agreement of the sub-leasing employer.

3. To be paid a wage not lower than the wage of an employee of the sub-leasing employer with the
same professional qualifications and doing the same job or a job of the same value.

4. To make a complaint to the labour outsourcing enterprise if the sub-leasing employer breaches the
contents of the labour sub-lease contract.

5. To exercise the right to unilaterally terminate the labour contract with the outsourcing labour
enterprise in accordance with article 37 of this Code.

6. To reach agreement to enter into a labour contract with the sub-leasing employer after termination of
the labour contract with the outsourcing labour enterprise.

CHAPTER 4

Apprenticeship, Providing Training, and Fostering Improvement of Job and Professional Skills

Article 59 Apprenticeship and providing trade training

1. An employee is permitted to select the trade or apprenticeship at the workplace in conformity with his
or her working requirements.

5
2. The State encourages eligible enterprises to establish a trade training establishment or open a trade
training class at the workplace in order to train, re-train, foster and improve job and professional skills
of employees currently working at the enterprise, and to provide trade training for other apprentices
in accordance with the law on vocational training.

5
Allens footnote: The literal translation is "enterprises which satisfy all the conditions".

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Article 60 Responsibilities of employers to provide training, to foster and improve job and professional
skills

1. Employers must have annual plans on training and improving job and professional skills of
employees currently working at the enterprise, and must arrange funding [a budget] for same; and
must provide retraining for employees prior to assigning them to other trades inside the enterprise.

2. Employers must provide a report, in their annual labour reports to the provincial State administrative
authority for labour, on the results of training, fostering and improving job and professional skills.

Article 61 Apprenticeship and practical training in order to work for an employer

1. Any employer who recruits people as apprentices or to provide them with practical training in order to
work for the enterprise is not required to register trade training activities and is not permitted to
collect study fees.

Apprentices and practical trainees in this case must be at least 14 years of age and be in good health
sufficient to satisfy the requirements of the [particular] trade, except for a number of trades stipulated
by the Ministry of Labour.

The two parties must sign a trade training contract, which shall be formulated in two copies, each
party to retain one copy.

2. If during the period of apprenticeship or practical training the apprentice or trainee directly makes or
participates in the making of eligible products, the employer must pay such person a wage at a rate
agreed by the two parties.

3. On expiry of the period of apprenticeship or practical training, the two parties must sign a labour
contract if all conditions prescribed in this Code are satisfied.

4. An employer is responsible to facilitate the employee's participation in assessing the technical skills
achieved in order to issue a national trade and professional skill certificate.

Article 62 Trade training contract between employer and employee and training fees

1. The two parties must sign a trade training contract if the worker is provided with training, job and
professional skills improvement or re-training in Vietnam or overseas with funding provided by the
employer, including funding provided to the employer by its partner.

A trade training contract shall be made in two copies, and each party shall retain one copy.

2. A trade training contract shall include the following basic particulars:

(a) The trade in which training is provided;

(b) Training location and training period;

(c) Training fees;

(d) Period for which the worker undertakes to work for the enterprise after training;

(dd) Responsibility to refund training fees;

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(e) Responsibilities of the employer.

3. Training fees comprise fees which have valid vouchers being fees paid to trainers, training materials,
school classes, machinery, equipment and practical materials, other expenses paid to support the
trainee, and wages, social insurance and health insurance paid for the trainee during the training
period. If a worker is sent overseas for training, then the training fees also include travelling
expenses and living expenses for the period the worker spends overseas.

CHAPTER 5

Discussion at Workplaces, Collective Bargaining, and Collective Labour Agreements

Section 1

Discussion at Workplaces

Article 63 Objectives and form of discussion at workplaces

1. Discussion at the workplace is aimed at sharing information and increasing understanding between
the employer and employees in order to formulate the labour relationship at the working location.

2. Discussion at the workplace shall be conducted via a direct exchange between the employer and
employees or between the labour collective representative with the employer, ensuring
implementation of democratic regulations at the grassroots level.

3. The employer and employees must implement democratic regulations at the grassroots level at the
workplace in accordance with Government regulations

Article 64 Contents of discussion at workplaces

1. Status of production and business of the employer.

2. Performance of labour contracts, of the collective labour agreement, of internal rules and other
regimes [regulations],and of other undertakings and agreements at the workplace.

3. Working conditions.

4. Requests from the employees and labour collective to the employer.

5. Requests from the employer to the employees and labour collective.

6. Other matters in which the parties are interested.

Article 65 Conducting discussion at workplace

[Discussion must be held at the workplace:]

1. Discussion must be held at the workplace once every three months or on one-off occasions at the
request of one of the parties.

2. Employers are responsible to arrange locations and other material conditions to ensure that
discussion is able to take place at the workplace.

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Section 2

6
Collective Bargaining

Article 66 Objective of collective bargaining

Collective bargaining means debate and negotiation between the labour collective representative and the
employer with the following objectives:

1. Formulating an harmonious, stable and progressive labour relationship.

2. Establishing new working conditions to provide the basis for signing a collective labour agreement.

3. Resolving problems and difficulties in exercise of rights and implementation of obligations of each
party to the labour relationship.

Article 67 Principles for collective bargaining

1. Collective bargaining shall be conducted on the principles of goodwill, equality, cooperation, publicity
and transparency.

2. Collective bargaining shall be carried out periodically or on one-off occasions.

3. Collective bargaining shall be conducted at the location agreed by the two parties.

Article 68 Right to require collective bargaining

1. Each party has the right to request that collective bargaining be carried out, and the requested party
must not refuse. No later than seven (7) working days from such request, the parties must agree on
a time for commencing a negotiating meeting.

2. If either party is unable to participate in the negotiating meeting at the time specified, it has the right
to request a postponement but bargaining must commence no later than thirty (30) days from the
date of receipt of the request for collective bargaining.

3. If either party refuses to engage in bargaining or fails to conduct bargaining within the time
prescribed in this article, then the other party has the right to conduct procedures to petition for
resolution of a labour dispute in accordance with law.

Article 69 Representation at collective bargaining

1. Representation at collective bargaining is regulated as follows:

(a) The labour collective party in the case of collective bargaining within the scope of an enterprise
shall be the organization representing the labour collective at the grassroots level, and within
the scope of an industry shall be the representative of the executive committee of the trade
union of the industry;

6
Allens Arthur Robinson footnote: Alternative translation is "Collective negotiation".

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(b) The employer party in the case of collective bargaining within the scope of an enterprise shall
be the employer or the representative of the employer; and in the scope of an industry shall be
the representative of the organization representing employers in the industry.

2. The number of participants in negotiating [bargaining] meetings shall be agreed by the two parties.

Article 70 Matters subject to collective bargaining

1. Wages, bonuses, allowances and pay rises.

2. Working hours and rest breaks [holidays or leave]; overtime and rest breaks between shifts.

3. Job security for employees.

4. Ensuring occupational safety and hygiene; implementation of internal labour rules.

5. Other matters in which the parties are interested.

Article 71 Collective bargaining process

1. The process of preparing for collective bargaining is regulated as follows:

(a) At least ten (10) days prior to commencing the first collective bargaining session, the employer
must supply information about the status of production and business when the labour
collective so requests, except for business secrets and confidentiality of technology of the
employer;

(b) Obtaining opinions from the labour collective:

The negotiating representative of the labour collective shall obtain opinions directly from the
labour collective or indirectly via the employees' congress regarding proposals of employees to
the employer and regarding proposals of the employer to the labour collective.

(c) Notification of matters to be negotiated during collective bargaining:

At least five (5) working days prior to commencing the first collective bargaining session, the
party requesting collective bargaining must provide written notice to the other party about the
matters proposed to be negotiated during collective bargaining.

2. The process of conducting collective bargaining is regulated as follows:

(a) Organizing the collective bargaining session:

The employer is responsible to hold a collective bargaining session at the time and location
agreed by the two parties.

The conduct of collective bargaining must be recorded in minutes, specifying the issues
agreed upon by the two parties, the proposed time for signing an agreement on the agreed
item, and the items remaining in dispute.

(b) Minutes of the collective bargaining session must be signed by the labour collective
representative, the employer, and the person who prepared the minutes.

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3. Within fifteen (15) days after the end of the collective bargaining session, the negotiating
representative of the labour collective must widely publish the minutes of the collective bargaining
session for the information of the labour collective, and at the same time seek an opinion on voting
by the labour collective on the issues agreed.

4. If the negotiations were unsuccessful then either party has the right to continue to request bargaining
or to conduct procedures for resolution of a labour dispute in accordance with this Code.

Article 72 Responsibilities during collective bargaining of the trade union, of the organization
representing the employer, and of the State administrative body for labour

1. To arrange training in collective bargaining skills for the people participating in collective bargaining.

2. To participate in the negotiation session if requested by either of the parties to the collective
bargaining.

3. To provide and exchange information relevant to the collective bargaining.

Section 3

Collective Labour Agreement

Article 73 Collective labour agreement

1. Collective labour agreement means a written agreement between the labour collective and the
employer on working conditions which were reached via collective bargaining.

A collective labour agreement shall comprise an agreement of the enterprise labour collective, an
agreement of the industry labour collective and other forms of labour agreements as stipulated by the
Government.

2. The contents of a collective labour agreement must not be contrary to the provisions of law and must
contain greater benefits for employees than those prescribed in the law.

Article 74 Signing a collective labour agreement

1. A collective labour agreement shall be signed between the representative of the labour collective with
the employer or the employer's representative.

2. A collective labour agreement shall only be signed after items have been agreed by the parties at a
collective bargaining session, and

(a) More than 50% of the people in the labour collective have voted in favour of the negotiated
items which have been agreed in the case of signing an enterprise collective labour
agreement;

(b) More than 50% of the representatives of the executive committees of the grassroots trade
unions or of the superior trade union of grassroots trade unions have voted in favour of the
negotiated items which have been agreed in the case of signing an industry collective labour
agreement;

(c) In the case of a collective labour agreement in another form, [voting has been conducted] as
stipulated in Government regulations.

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3. After a collective labour agreement is signed, the employer must publicly announce it for the
information of all employees.

Article 75 Sending copies of a collective agreement to State administrative bodies

Within ten (10) days from the date of signing a collective labour agreement, the employer or its
representative must send one copy of such agreement to:

1. The provincial level State administrative body for labour in the case of an enterprise collective labour
agreement.

2. The Ministry of Labour, War Invalids and Social Affairs in the case of an industry collective labour
agreement.

Article 76 Effective date of collective labour agreement

The effective date of a collective labour agreement must be recorded in the agreement. If no such date is
recorded in the agreement, then the effective date shall be the date of signing by the parties.

Article 77 Amendments and additions to collective labour agreement

1. The parties have the right to request amendments or additions to a collective labour agreement
within the following deadlines:

(a) After three months' implementation in the case of a collective labour agreement with a term of
under one year;

(b) After six months' implementation in the case of a collective agreement with a term of from one
to three years.

2. If there is a change of law resulting in a collective labour agreement becoming inconsistent with
provisions of law, then the two parties must amend or supplement such agreement within fifteen (15)
days from the date on which the new provisions of law take effect.

During the period of conducting amendments or additions to a collective labour agreement, the rights
and interests of employees shall be implemented in accordance with law.

3. The procedures for amendments and additions to a collective labour agreement shall be conducted
the same as those for signing a collective labour agreement.

Article 78 Invalid collective labour agreement

1. A collective labour agreement is partially invalid if one or a number of items in it are contrary to law.

2. A collective labour agreement is wholly invalid in any of the following circumstances:

(a) The whole contents of the agreement are contrary to law;

(b) The person signing the agreement lacked authority;

(c) The signing of the collective labour agreement did not comply with the collective bargaining
rules [process].

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Article 79 Authority to declare a collective labour agreement invalid

People's courts have the right to declare a collective labour agreement to be invalid.

Article 80 Dealing with an invalid collective labour agreement

When a collective labour agreement is declared invalid, then the rights, obligations and interests of the
parties set out in the collective labour agreement and corresponding to the entire or partial invalidity shall
be resolved in accordance with provisions of law on labour and the lawful agreements in labour contracts.

Article 81 Expiry of collective labour agreement

Within the three month period prior to expiry of a collective labour agreement, both parties may negotiate
an extension of the duration of the existing collective labour agreement or enter into a new collective labour
agreement.

When a collective labour agreement expires during the negotiation process, the former collective labour
agreement shall continue to be implemented for a maximum sixty (60) day period.

Article 82 Expenses for collective bargaining and for signing collective labour agreement

The employer is responsible to pay all expenses of negotiating, signing, amending and supplementing, and
announcing the collective labour agreement.

Section 4

Enterprise Collective Labour Agreement

Article 83 Signing an enterprise collective labour agreement

1. People competent to sign an enterprise collective labour agreement are regulated as follows:

(a) The representative of the labour collective at the grassroots level on behalf of the labour
collective;

(b) The employer or its representative on behalf of the employer.

2. An enterprise collective labour agreement shall be made in five copies, of which:

(a) Each signing party shall retain one copy;

(b) One copy shall be sent to the State authority prescribed in article 75 of this Code;

(c) One copy shall be sent to the superior level trade union [above] the grassroots trade union and
one copy shall be sent to the organization representing employers of which the employer is a
member.

Article 84 Implementation of enterprise collective labour agreement

1. The employer and [all] employees including those who commence work after the effective date of a
collective labour agreement are responsible to fully implement such agreement.

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2. If the rights, obligations and interests of the parties in a labour contract entered into before the
effective date of a collective labour agreement are less favourable than the corresponding provisions
in such collective labour agreement, then the corresponding provisions of the collective labour
agreement must be implemented. Labour rules of the employer which are not yet consistent with the
collective labour agreement must be amended for consistency with it, within fifteen (15) days after
the effective date of the collective labour agreement.

3. If either party considers that the other party has failed to fully implement or is in breach of the
provisions of the collective labour agreement, such party has the right to demand proper
implementation and the two parties must jointly consider resolution; and if the matter is unable to be
resolved, then either party has the right to request resolution of a collective labour dispute in
accordance with law.

Article 85 Duration of enterprise collective labour agreement

An enterprise labour collective agreement shall have a duration of from one to three years. When an
enterprise signs an enterprise collective labour agreement for the first time, the duration of such agreement
may be less than one year.

Article 86 Implementation of collective labour agreement when an enterprise transfers ownership of, right
to manage or right to use the enterprise, or merges, consolidates, divides or separates

1. In cases of transfer of ownership or of right to manage or right to use an enterprise; or where an


enterprise merges, consolidates, divides or separates, then the employer shall continue [to rely on]
and the representative of the labour collective shall rely on the labour usage plan to consider and
select continuance of performance of, amendment of or addition to the old collective labour
agreement, or shall conduct bargaining in order to sign a new collective labour agreement.

2. In cases where the validity of a collective labour agreement is terminated because the employer
terminates its operation, the interests of the employees shall be resolved in accordance with the law
on labour.

Section 5

Industry Collective Labour Agreement

Article 87 Signing an industry collective labour agreement

1. Representatives competent to sign an industry collective labour agreement are regulated as follows:

(a) The Chairman of the industry union on behalf of the collective labour party;

(b) The representative of the organization representing employers which participated in industry
collective bargaining, on behalf of the employing party.

2. An [industry] collective labour agreement shall be made in four copies, of which:

(a) Each signing party shall retain one copy;

(b) One copy shall be sent to the State authority prescribed in article 75 of this Code;

(c) One copy shall be sent to the directly superior trade union above the grassroots level.

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Article 88 Relationship between enterprise collective labour agreement and industry collective labour
agreement

1. If any provisions in an enterprise collective labour agreement or rules of the employer regarding
lawful rights, obligations and interests of employees in the enterprise are less than those stipulated in
the corresponding provisions of the industry collective labour agreement, then the enterprise
collective labour agreement must be amended for compliance with the industry collective labour
agreement within three (3) months from the effective date of the industry collective labour agreement.

2. Enterprises to which an industry collective labour agreement applies and which do not have an
enterprise collective labour agreement may formulate an additional enterprise labour collective
agreement with more favourable conditions for employees than those of the industry collective labour
agreement.

3. Enterprises in an industry which are not yet participants in the industry collective labour agreement
are encouraged to also implement such agreement.

Article 89 Duration of industry collective labour agreement

An industry collective labour agreement has a duration of from one to three years.

CHAPTER 6

Wages

Article 90 Wages

1. Wages means money which the employer pays to the employee in order for the latter to undertake
the work as agreed.

Wages includes wage rates for the work or position plus wage allowances and other additional items.

The wage rate of an employee must not be lower than the minimum wage rate stipulated by the
Government.

2. The wage paid to an employee shall be based on quality of work and labour productivity.

3. Employers must ensure that wages are paid fairly, without discrimination between males and females
for the same work with the same value.

Article 91 Minimum wage rate

1. Minimum wage rate means the lowest rate paid to employees doing the most basic work in normal
working conditions, and it must ensure minimum living conditions of employees and family
households.

The minimum wage rate shall be fixed on a monthly, daily and/or hourly basis and shall be fixed in
accordance with areas and industries.

2. Depending on what are the minimum living conditions of employees and family households, socio-
economic conditions and wage rates on the labour market, the Government shall announce minimum
area wage rates on the basis of recommendations from the National Wage Council.

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3. The minimum wage of any one industry shall be determined by way of industry collective bargaining,
shall be recorded in the industry collective labour agreement, but shall not be less than the minimum
area wage rates announced by the Government.

Article 92 National Wage Council

1. The National Wage Council is an agency advising the Government and comprises members being
representatives of the Ministry of Labour, War Invalids and Social Affairs, of Vietnam General
Confederation of Labour, and of the central level organization representing employers.

2. The Government shall provide specific regulations on the functions, duties and organizational
structure of the National Wage Council.

Article 93 Formulation of wage scales, wage tables and labour rates

1. An employer is responsible to formulate wage scales, wage tables and labour rates based on the
principles stipulated by the Government on formulation of wage scales, wage tables and labour rates
in order to provide the bases for recruiting and employing workers and reaching agreement with them
on the wage rate to be stipulated in labour contracts and on payment of such wages to employees.

2. The employer must, when formulating wage scales, wage tables and labour rates, seek an opinion
from the organization representing the labour collective at the grassroots level, and make a public
announcement of such items at workplaces of employees before implementing same and must also
send them to the district level State administrative authority for labour in the locality where the
employer has its production and business establishment.

Article 94 Method of payment of wages

1. The employer has the right to select the method of payment of wages calculated by reference to time
or by reference to products [produced] or completed pieces of work. The selected method of
payment of wages must be maintained for a fixed period of time, and if such form is changed, the
employer must provide the employees with advance notice of at least ten (10) days.

2. Wages may be paid in cash or via the personal account of an employee opened at a bank. In the
case of payment via a bank, the employer must reach agreement with the employee on service fees
for opening and maintaining the bank account.

Article 95 Periodic payment of wages

1. An employee entitled to a wage calculated by reference to hours, days or weeks shall be paid at the
end of the working hour, day or week or shall be paid a lump sum as agreed by the two parties,
provided that at least one payment of wages is made every fifteen (15) days.

2. An employee entitled to a wage calculated by reference to months shall be paid either monthly or
half-monthly.

3. An employee entitled to a wage calculated on the basis of products produced or a completed pieces
of work shall be paid in accordance with the agreement reached between the two parties; if the work
to be performed must be carried out over many months, the employee is entitled to payments in
advance calculated on the amount of work performed within the month.

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Article 96 Principles for payment of wages

An employee is entitled to receive his or her wage directly, in full, and on time.

In special cases where payment of wages cannot be made on time, payment must not be later than one
month and the employer must also pay the employee an additional sum of money at least equal to [interest
at] the interest rate for raising deposits published by the State Bank at the time when the wage is paid.

Article 97 Wages for working overtime and for night work

1. An employee who works overtime must be paid according to the wage unit price or wage of his or her
current work as follows:

(a) On normal days, at a rate of at least one hundred and fifty per cent (150%);

(b) On weekly days off, at a rate of at least two hundred per cent (200%);

(c) On holidays and paid leave days, at a rate of at least three hundred per cent (300%) exclusive
of the wage for the holiday or the wage for the paid leave day of the employee entitled to the
[daily] wage for the day.

2. Any employee working at night shall be paid an additional minimum thirty per cent (30%) of the wage
calculated at the wage unit price or wage for such work conducted during a normal day time.

3. An employee working overtime at night shall be paid, in addition to the wages prescribed in clauses 1
and 2 of this article, an additional twenty per cent (20%) of the wage calculated at the wage unit price
or wage for such work conducted during day time.

Article 98 Wages on ceasing work

An employee who is required to cease work shall be paid as follows:

1. If [ceasing work] was due to the fault of the employer, the employee is entitled to payment of the full
wage.

2. If [ceasing work] was due to the fault of the employee, the employee is not entitled to payment of
wages; and other employees in the same unit who also have to cease work shall be paid wages at a
rate agreed on by the two parties but not less than the minimum area wage stipulated by the
Government.

3. If there is a breakdown in electricity or water through no fault of the employer or employee, or due to
an objective cause such as a natural disaster, fire, dangerous epidemic, enemy destruction, or
relocation of operational address pursuant to a request of the competent State authority or for
economic reasons, then the level of wages for ceasing work shall be agreed by the two parties but
not less than the minimum area wage stipulated by the Government.

Article 99 Payment of wages by [contractor's] foreman

1. In locations where a foreman or person with an equivalent intermediary role is employed, the
employer being the principal must have a list of such persons together with their addresses and also
a list of employees working with the foreman or equivalent person, and the employer must ensure
compliance by the foreman or equivalent person with the law on payment of wages and on
occupational safety and hygiene.

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2. If such foreman or equivalent person fails to pay wages in full or at all and fails to ensure other
interests of the employees, then the employer being the principal is responsible to make payment of
wages and ensure the interests of employees.

In this case, the employer being the principal has the right to require compensation from the
[contractor's] foreman or equivalent person, or to request a competent State body to resolve the
dispute in accordance with law.

Article 100 Payment of wages in advance

1. An employee is entitled to payment of wages in advance in accordance with the conditions agreed by
both parties.

2. The employer must pay wages in advance to an employee who is temporarily absent from work due
to discharging citizen's obligations, for the number of days of temporary absence but at a maximum
of one (1) month's wage and the employee must refund the amount of money paid in advance except
in cases of performing military service.

Article 101 Deducting sums from wages

1. Employers are only permitted to deduct sums from employees' wages to pay as compensation for
loss arising from [the employee] damaging tools and equipment of the employer as prescribed in
article 130 of this Code.

2. Employees have the right to be informed of the reason why any item is deducted from their wages.

3. No more than thirty per cent (30%) of the monthly wage of an employee may be deducted, after
allowing for sums deducted for payments [premiums] for compulsory social insurance, health
insurance and job loss insurance, and personal income tax withheld.

Article 102 Regime on allowances, subsidies, promotion and wage increases

The regime on allowances, subsidies, promotion and wage increases and other encouragement regimes
applicable to employees shall be agreed in labour contracts, collective labour agreements or in the rules of
the employer.

Article 103 Bonuses

1. Bonus means a sum of money which the employer grants an employee based on annual production
and business results and the level at which the employee has completed his or her work.

2. The rules on payment of bonuses shall be decided by the employer and publicly announced at
workplaces after consulting the opinion of the organization representing the labour collective at the
grassroots level.

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CHAPTER 7

Working Hours and Rest Breaks

Section 1

Working Hours

Article 104 Normal working hours

1. Normal working hours shall not exceed eight (8) hours in one day and forty-eight (48) hours in one
week.

2. Employers have the right to stipulate [that employees] work on an hourly or daily or weekly basis; if
on a weekly basis, then normal working hours must not exceed ten (10) hours in one day and must
not exceed forty-eight (48) hours in one week.

The State encourages employers to implement the forty (40) hour working week.

3. Working hours shall not exceed six (6) hours in one day for workers who perform extremely heavy,
toxic or dangerous work as stipulated in the list issued by the Ministry of Labour, War Invalids and
Social Affairs after presiding over coordination with the Ministry of Health.

Article 105 Night working hours

Night working hours shall be calculated from 10 pm until 6 am of the following day.

Article 106 Additional working hours [overtime]

1. Overtime means the period of time spent working in addition to normal working hours as stipulated
by law, in the collective labour agreement or in internal labour rules.

2. Employers have the right to require employees to work overtime when the following conditions are
satisfied:

(a) The employee agrees;

(b) [The employer] ensures the number of overtime hours of the employee does not exceed 50%
of the normal working hours in one day, and if the employer stipulates work on a weekly basis
then the total of normal working hours plus overtime hours must not exceed twelve (12) hours
in one day, and does not exceed 30 hours in one month, and the total [overtime] hours must
not exceed two hundred (200) hours in one year, except in a number of special cases
regulated by the Government where the number of overtime hours worked must not exceed
three hundred (300) hours in one year.

(c) After an overtime working period over successive days in a month, the employer must arrange
for the employee to take extra leave for the period of time for which he or she was unable to
7
take leave.

7
Allens Arthur Robinson footnote: This is the literal translation here.

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Article 107 Additional working hours [overtime] in special cases

Employers have the right to require employees to work overtime on any day at all and employees are not
permitted to refuse, in the following cases:

1. In order to implement a mobilization order to ensure performance of national defence and security
tasks during a national defence and security emergency situation in accordance with law.

2. In order to carry out work aimed at ensuring preservation of human life and assets of agencies,
organizations and individuals during prevention and remedying consequences of a natural disaster,
fire, epidemic or tragedy.

Section 2

Rest Breaks

Article 108 Rest breaks during working periods

1. An employee who works for eight (8) hours consecutively or for six (6) hours consecutively as
described in article 104 of this Code is entitled to a break of at least thirty (30) minutes which shall be
included in the number of working hours.

An employer shall decide on the actual point of time of rest breaks and record them in the internal
labour rules.

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

3. In addition to the rest breaks during working periods prescribed in clauses 1 and 2 above, employers
shall decide the actual point of time of rest breaks and record them in the internal labour rules.

Article 109 Rest breaks in order to transfer between shifts

Employees working on shifts are entitled to a break of at least twelve (12) hours before moving to another
shift.

Article 110 Weekly days off

1. In every week, an employee is entitled to a break of at least twenty-four consecutive hours. Where in
special cases due to the work cycle it is impossible for an employee to have weekly leave, the
employer is responsible to ensure that the employee on average has at least four days off in one
month.

2. An employer has the right to arrange scheduled weekly breaks for employees either on Sunday or
other specified days in the week, but must stipulate such arrangements in the internal labour rules.

Article 111 Annual leave

1. An employee who has worked for any one employer for a full twelve (12) months is entitled to fully
paid annual leave pursuant to the labour contract as follows:

(a) Twelve (12) working days, applicable to employees working in normal working conditions;

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(b) Fourteen (14) working days, applicable to employees working in heavy, toxic or dangerous
jobs, and to employees in places with harsh living conditions as stipulated in the list issued by
the Ministry of Labour, War Invalids and Social Affairs after presiding over coordination with
the Ministry of Health, and to employees who are juniors or disabled persons;

(c) Sixteen (16) working days, applicable to employees working in extremely heavy, toxic or
dangerous jobs, and to employees in places with specially harsh living conditions as stipulated
in the list issued by the Ministry of Labour, War Invalids and Social Affairs after presiding over
coordination with the Ministry of Health.

2. Employers have the right to fix the timetable for annual leave after consulting the opinion of
employees, and must notify the timetable in advance to employees.

3. An employee may reach agreement with the employer on taking annual leave in instalments or on
combining 3 annual leaves [and taking leave once every 3 years].

4. If when taking annual leave an employee uses road, rail or sea transportation and the travelling time
(including the return trip) is more than two (2) days, then the third day onwards will be calculated as
additional travelling time apart from annual leave and shall only be calculated in one period of annual
leave taken per year.

Article 112 Additional leave according to years of employment

An employee shall be given one (1) additional annual leave day for every five (5) consecutive years working
for an employer, in addition to the number of annual leave days stipulated in article 111.1 of this Code.

Article 113 Payment of wages in advance and travelling expenses for annual leave

1. When an employee takes annual leave, he or she is entitled to advance payment of a sum at least
equal to wages for the number of days of leave.

2. The parties shall reach agreement on travelling expenses and wages for days spent travelling.

In the case of lowland employees working in mountainous, remote and distant areas, border areas or
on islands, and in the case of employees from mountainous, remote and distant areas, border areas
or on islands working in the lowlands, the employer must pay travelling expenses and wages
payable for days spent travelling.

Article 114 Payment of wages for leave not taken

1. Any employee who is retrenched or who loses his or her job or who for any other reason does not
take up or fully take up annual leave, shall be paid in money for the leave days not taken.

2. In the case of employees who have worked for under 12 months, the period of their annual leave
shall be calculated as a ratio corresponding to the time spent working, and they shall be paid in
money for the leave days not taken.

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Section 3

Festivals [Public Holidays], Personal Leave of Absence and Leave without Pay

Article 115 Festivals [public holidays] and New Year

1. An employee is entitled to have fully paid days off on the following public holidays and New Year:

(a) Western New Year: one day (the first day of January of each calendar year);

(b) Lunar New Year Holiday: five days;

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

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

(dd) National Day: one day (the second day of September of each calendar year);

(e) Hung Kings Commemoration Day: one day (the tenth day of March of each Lunar year).

2. Workers being foreign citizens working in Vietnam shall, in addition to the public holidays prescribed
in clause 1 above, also be entitled to one traditional public holiday and one national day of their
country.

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

Article 116 Personal leave of absence and leave without pay

1. An employee is entitled to fully paid leave of absence for personal reasons in the following
circumstances:

(a) Marriage: three (3) days;

(b) Marriage of his or her children: one (1) day;

(c) Death of a natural parent (including a parent of his or her spouse), spouse, or child: three (3)
days.

2. An employee is entitled to one (1) day leave of absence without pay, and must so notify the
employer, on the death of a grandparent or sibling, or on the marriage of a parent or sibling.

3. In addition to the provisions in clauses 1 and 2 of this article, an employee may reach agreement with
the employer on leave of absence without pay.

Section 4

Working hours and Rest Breaks for Workers on Jobs of a Special Nature

Article 117 Working hours and rest breaks for workers on jobs of a special nature

In the case of jobs of a special nature in the sectors of road transport, rail transport, waterways transport
and aviation transport, and exploration and mining of petroleum at sea; in the case of offshore work; in the

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arts sector; use of radiation and nuclear technology; application of high radio frequency technology; work of
divers or work in underground mines; production of a seasonal nature and processing goods pursuant to
orders; and work requiring attendance 24 hours per day, the managing ministry or branch shall provide
specific regulations on working hours, rest breaks and holidays after reaching agreement with the Ministry
of Labour, War Invalids and Social Affairs.

CHAPTER 8

Labour Discipline and Liability for Damage

Section 1

Labour Discipline

Article 118 Labour discipline

Labour discipline means rules governing compliance with time, technology, and management of business
and production in the internal labour rules.

Article 119 Internal labour rules

1. Employers employing ten (10) or more employees must have internal labour rules in writing.

2. The contents of internal labour rules must not be contrary to the law on labour or other relevant laws.
Internal labour rules must contain the following main items:

(a) Working hours and rest breaks;

(b) Order in the workplace;

(c) Occupational safety and hygiene in the workplace;

(d) Protection of assets, business secrets and confidentiality of technology and of intellectual
property of the employer;

(dd) Conduct by employees constituting a breach of labour discipline and penalties imposed for
those breaches, and liability for damage.

3. The employer must, prior to issuing the internal labour rules, consult the opinion of the organization
representing the labour collective at the grassroots level.

4. The internal labour rules must be notified to employees and the main contents must be posted at
necessary locations in the workplace.

Article 120 Registration of internal labour rules

1. The employer must register the internal labour rules with the provincial level State administrative
authority for labour.

2. The employer must lodge a file for registration of the internal labour rules within ten (10) days from
the date of issuing such rules.

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3. Within seven (7) working days from the date of receipt of the file for registration of the internal labour
rules, if such rules contain any provision contrary to law, then the provincial State administrative
authority for labour shall notify and guide the employer to amend or supplement such rules and re-
register them.

Article 121 File for registration of internal labour rules

A file for registration of internal labour rules shall comprise:

1. Written request for registration of the internal labour rules.

2. Any documents of the employer which contain regulations relevant to labour discipline and liability for
damage.

3. Minutes of opinion obtained from the organization representing the labour collective at the grassroots
level;

4. Internal labour rules.

Article 122 Effective date of internal labour rules

Internal labour rules shall be effective fifteen (15) days after the provincial State administrative authority for
labour receives the file for registration of such internal labour rules, except in the case prescribed in article
120.3 of this Code.

Article 123 Principles and sequence for dealing with breach of labour discipline

1. Dealing with a breach of labour discipline is regulated as follows:

(a) The employer must be able to prove the employee's fault;

(b) There must be participation by the organization representing the labour collective at the
grassroots level;

(c) The employee must be present and has the right to defend himself or herself or to employ a
lawyer or another person to do so; in the case of an employee under 15 years, a parent or the
legal representative must participate;

(d) Minutes must be prepared of any dealing with a breach of labour discipline.

2. Multiple forms of penalty for breach of labour discipline shall not apply to any one act of breach of
labour discipline.

3. If any one employee commits multiple breaches of labour discipline at the same time, then only the
highest form of penalty corresponding to the most serious breach shall be applied.

4. An employee shall not be dealt with for a breach of labour discipline during the following periods:

(a) The employee is on sick leave, is on leave for medical treatment or recuperation, or is on leave
with the consent of the employer;

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

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(c) The employee is awaiting results from a competent investigative agency on verifying and
concluding whether conduct was in breach as prescribed in article 126.1 of this Code;

(d) A female employee is pregnant or on maternity leave; or the employee is raising a child under
the age of 12 months.

5. An employee shall not be examined for a breach of labour discipline when he or she is suffering from
a mental or other illness resulting in lack of awareness or inability to control his or her actions.

Article 124 Limitation period for dealing with breach of labour discipline

1. The limitation period for dealing with a breach of labour discipline is a maximum six (6) months as
from the date the breach occurred; in a case of a breach directly relating to finance, property [assets],
or disclosure of technological or business secrets of the employer, then the limitation period for
dealing with a breach of labour discipline is a maximum twelve (12) months.

2. If the limitation period for dealing with a breach of labour discipline has not expired after the periods
referred to in article 123.4(a), (b) or (c), the employer must immediately deal with such breach, but if
the limitation period has expired then it may be extended in order to deal with the breach but shall not
exceed a maximum sixty (60) days from expiry of the above-mentioned periods [referred to in article
123.4(a), (b) or (c)].

If the limitation period for dealing with a breach of labour discipline has expired after the period
referred to in article 123.4(d), such limitation period may be extended but shall not exceed a
maximum sixty (60) days from expiry of the above-mentioned period [referred to in article 123.4(d].

3. A decision dealing with a breach of labour discipline must be issued within the limitation period
prescribed in clauses 1 and 2 of this article.

Article 125 Forms of dealing with breach of labour discipline

1. Reprimand.

8
2. Deferral of wage increase for a maximum six months; [or] demotion .

3. Dismissal.

Article 126 Application of dismissal as a form of dealing with breach of labour discipline

The employer is permitted to apply the form of dismissal in the following cases:

1. An employee commits an act of theft, embezzlement, gambling, deliberate violence causing injury,
uses drugs at the workplace, discloses technology or business secrets or infringes intellectual
property rights of the employer, or is guilty of conduct causing serious loss and damage or which
threatens to cause particularly serious loss and damage to property or interests of the employer.

2. The employee is disciplined [dealt with] by the form of deferral of a wage increase and then commits
a second offence during the period when the initial disciplinary measure had not been absolved, or
the employee was disciplined in the form of demotion and thereafter committed a second offence.

8
Allens Arthur Robinson footnote: The meaning here is that the employee is relieved from his or her current position in the
enterprise and demoted to the rank of an ordinary employee.

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Second offence means a case where the employee recommits the breach for which he or she has
already been dealt with for a breach of discipline and for which the disciplinary action record has not
yet been removed in accordance with article 127 of this Code

3. An employee of his or her own accord takes an aggregate of five (5) days off in one month or an
aggregate twenty (20) days off in one year without proper reasons.

Cases deemed to be "proper reasons" comprise a natural disaster, fire, employee's illness, illness of
a relative of the employee as certified by a competent medical consulting or treating establishment,
and other cases prescribed in the internal labour rules.

Article 127 Automatic clearance, and reduction of term of compliance with a labour disciplinary decision

1. An employee who is reprimanded and an employee who has been disciplined by extension of the
period for wage increase shall, after three and six months respectively from the date the breach is
dealt with, be automatically cleared of all charges if a second offence is not committed. If an
employee who is dealt with for a breach of labour discipline by the form of demotion continues to
breach labour discipline after three (3) years has expired from the date of the initial penalty, such
employee shall be deemed not to have committed a second offence.

2. An employee who was disciplined in the form of extension of the period for wage increase and who
has observed half of the term of the discipline and shows improvement, may be considered by the
employer for a reduction of such period.

Article 128 Prohibited conduct when dealing with breach of labour discipline

[The following conduct is prohibited when dealing with a breach of labour discipline:]

1. Physical violence to or infringement of the dignity of the employee.

2. Using the forms of imposing a fine or reducing wages instead of dealing with the breach of labour
discipline.

3. Dealing with an employee for conduct in breach of labour discipline when such conduct is not
stipulated in the internal labour rules.

Article 129 Temporary suspension of work

1. An employer has the right to temporarily suspend an employee from working if the breach committed
is complex in nature and it is considered that any further work carried out by the employee may
jeopardize the investigation. An employee may only be temporarily suspended from working after
consultation of the opinion of the organization representing the labour collective at the grassroots
level.

2. A period of temporary suspension shall not exceed fifteen (15) days, or ninety (90) days in special
circumstances. During that period, the employee shall be advanced fifty (50) per cent of his or her
wage prior to the temporary suspension.

Upon expiry of the period of temporary suspension, the employer must receive the employee back to
work.

3. Where the employee is dealt with for a breach of labour discipline, he or she shall not be required to
repay the amount of wage advanced to him.

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4. Where the employee is not dealt with for a breach of labour discipline, the employer must pay the full
wage for the period of temporary suspension.

Section 2

Liability for Material Loss

Article 130 Payment of compensation for loss and damage

1. An employee who damages tools and/or equipment or whose other conduct causes loss and
damage to the assets of the employer must pay compensation in accordance with law.

Where the loss and damage is not serious, is due to the employee's carelessness and the value of
the loss and damage does not exceed 10 months' minimum area wage as stipulated in Government
regulations applicable to the employee's working location, then the employee must pay a maximum
compensation of three (3) months' wages which shall be deducted monthly from wages in
accordance with the provisions in article 101 of this Code.

2. An employee who loses tools, equipment or assets of the employer or other assets assigned to him
or her by the employer, or who uses materials at an excessive rate [beyond the permitted limits] must
pay compensation for the whole or part of the assets at the current market price; in cases where
there is a contract of responsibility, the amount of compensation must be in accordance with the
contract of responsibility; no compensation is required in a case [where loss was] the result of a
natural disaster, fire, enemy destruction, epidemic, tragedy or other objective event which was both
unforeseen and unable to be remedied despite application of all necessary and permissible
measures.

Article 131 Principles, sequence and procedures for ordering payment of compensation for loss and
damage

1. An examination and decision on the amount of compensation for loss and damage must be based on
fault, the actual level of loss and damage, and the actual family, personal and property status of the
employee.

2. The sequence, procedures and limitation period for dealing with a case in which compensation for
loss and damage is payable shall be in accordance with articles 123 and 124 of this Code.

Article 132 Complaints about labour discipline and about liability for loss and damage

Where a person who is disciplined, temporarily suspended from work, or ordered to pay compensation in
accordance with the regime on liability for loss and damage is dissatisfied with the decision, he or she has
the right to complain to the employer, or to a competent body in accordance with law, or to request
resolution of a labour dispute in accordance with the procedure stipulated by law.

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CHAPTER 9

Occupational Safety and Hygiene

Section 1

General Provisions on Occupational Safety and Hygiene

Article 133 Compliance with law on occupational safety and hygiene

Every enterprise, agency, organization and individual involved in labour activities or production must
comply with the law on occupational safety and hygiene.

Article 134 State's policy on occupational safety and hygiene

1. The State invests in scientific research and provides assistance for development of establishments
which manufacture tools and equipment for occupational safety and hygiene and personal protective
facilities.

2. The State encourages development of occupational safety and hygiene services.

Article 135 Program on occupational safety and hygiene

1. The Government shall make a decision on a national program on occupational safety and hygiene.

2. Provincial people's committees shall make a submission to the same level people's council to issue a
decision on a local program on occupational safety and hygiene and shall include same within the
[local] plan on socio-economic development.

Article 136 National technical regulations on occupational safety and hygiene

1. The Ministry of Labour, War Invalids and Social Affairs shall preside over co-ordination with
ministries, branches and localities to formulate, issue and guide organization of implementation of
national technical regulations on occupational safety and hygiene.

2. Employers must rely on standards, on national technical regulations, and on local technical
regulations on occupational safety and hygiene in order to formulate their own internal rules and
working procedures to ensure occupational safety and hygiene as appropriate for each type of
machinery, equipment and workplace.

Article 137 Ensuring occupational safety and hygiene in the workplace

1. Where an [investor or employer] constructs a new establishment, or expands or renovates an


existing establishment for the purposes of production or utilization, preservation or storage of
machinery, equipment, materials, or items which have strict requirements for occupational safety and
hygiene, then such investor or employer must prepare a plan outlining measures to be taken to
ensure occupational safety and hygiene applicable to the workplace of employees and to the
environment.

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2. The production, usage, storage or transportation of machinery, equipment, materials, energy,
electricity, chemicals, plant protection substances, and the change of technology or importation of
new technology must be carried out in accordance with announced and applicable national technical
regulations on occupational safety and hygiene or standards on occupational safety and hygiene in
the workplace.

Article 138 Obligations of employers and employees for occupational safety and hygiene work

1. Employers have the following obligations:

(a) To ensure that the workplace satisfies the requirements on space, ventilation, dust, steam,
toxic gas, radiation, magnetism, heat, humidity, noise, vibration and other harmful factors
stipulated in relevant technical regulations, and such factors must be periodically checked and
measured;

(b) To ensure conditions on occupational safety and hygiene in that machinery, equipment and
workshops satisfy the announced and applicable national technical regulations on
occupational safety and hygiene or standards on occupational safety and hygiene in the
workplace;

(c) To inspect and evaluate dangerous and harmful factors in workplaces of the establishment in
order to provide measures for excluding such factors, for reducing danger levels, for improving
working conditions, and for providing health care to employees;

(d) To periodically check and maintain machinery, equipment, workshops and warehouses;

(dd) To ensure there are boards with instructions on occupational safety and hygiene regarding
machinery, equipment and workplaces which are installed in locations at workplaces where
they are easily seen and read;

(e) To obtain an opinion from the organization representing the labour collective at the grassroots
level when formulating and implementing plans on activities ensuring occupational safety and
hygiene.

2. Employees have the following obligations:

(a) To comply with regulations, procedures and internal rules on occupational safety and hygiene
relevant to the work and tasks assigned to them;

(b) To use and maintain personal protective equipment supplied to them and other protective
devices ensuring occupational safety and hygiene in the workplace;

(c) To promptly report to the responsible person the discovery of any potential danger of a work-
related accident, occupational disease, dangerous toxicity or breakdown; and to participate in
providing emergency aid and remedying the consequences of a work-related accident when so
ordered by the employer.

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Section 2

Work-Related Accidents and Occupational Disease

Article 139 Person conducting occupational safety and hygiene work

1. An employer must appoint a person to conduct [in charge of] occupational safety and hygiene work.
In any production and business establishment in a sector where there is a high danger of work-
related accidents and occupational disease and which employs ten (10) or more employees, the
employer must appoint a person with appropriate expertise to act as full-time officer in charge of
occupational safety and hygiene work.

2. The person [or officer] in charge of occupational safety and hygiene work must have received training
in occupational safety and hygiene.

Article 140 Dealing with incidents and emergency rescue

1. An employer has the following responsibilities in dealing with incidents [breakdowns] and emergency
rescue:

(a) To formulate a plan on dealing with incidents and on emergency rescue, and to periodically
conduct drills on same;

(b) To equip [the workplace] with technical and medical facilities to ensure that rescue measures
and first aid are promptly provided on occurrence of an incident or work-related accident;

(c) To immediately implement remedial measures or issue an order to immediately cease


operation of any machinery, equipment or workplace where there is a danger of occurrence of
a work-related accident or occupational disease.

2. An employee has the right to refuse to work or to leave the workplace and shall still be entitled to full
payment of wages and shall not be deemed to have breached labour discipline when there is an
obvious risk of occurrence of a work-related accident or occupational disease, or a serious threat to
the employee's health or life; and the employee must immediately report such danger to his or her
direct superior. An employer must not compel the employee to continue to do such work or to return
to such workplace if the risk remains.

Article 141 Allowance in kind to employees working in a dangerous or toxic environment

An employer must pay an allowance in kind to employees working in a dangerous or toxic environment in
accordance with regulations of the Ministry of Labour, War Invalids and Social Affairs.

Article 142 Work-related accidents

1. Work-related accident means any accident causing injury to any part or function of the body of an
employee, or causing death of the employee, which occurs during the working process and in
connection with performance of a job or labour task.

This provision applies to apprentices, trade trainees and employees on probation.

2. Any person involved in a work-related accident must promptly be provided with emergency first aid
and adequate treatment.

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3. All cases of work-related accidents, occupational disease and serious incidents in the workplace
must be declared and investigated, minutes must be recorded, statistics maintained, and they must
be periodically reported in accordance with Government regulations.

Article 143 Occupational disease

1. Occupational disease means a disease contracted by an employee as a result of harmful working


conditions in a particular trade or occupation.

The Ministry of Health shall preside over coordination with the Ministry of Labour, War Invalids and
Social Affairs in issuing a list of types of occupational diseases after obtaining an opinion from
Vietnam General Confederation of Labour and from organizations representing employers.

2. A person who has contracted an occupational disease must be adequately treated and be given
periodical health examinations; and separate medical records of the disease must be maintained.

Article 144 Responsibilities of employers owed to employees who contract an occupational disease or are
injured in a work-related accident

1. To pay the share of expenses payable by the insurer and the expenses not included in the list of
expenses payable by medical insurance in the case of an employee covered by medical insurance,
and to pay all medical expenses incurred from the time of first aid or emergency treatment up until
treatment has stabilized in the case of an employee not covered by health insurance.

2. To pay full wages pursuant to the labour contract to any employee injured in a work-related accident
or who contracts an occupational disease and who must take leave during a treatment period.

3. To pay compensation in accordance with the provisions in article 145 of this Code to any employee
injured in a work-related accident or who contracts an occupational disease.

Article 145 Rights of employees injured in a work-related accident or who contract an occupational
disease

1. Employees participating in the compulsory social insurance scheme are entitled to the regime on
work-related accidents and occupational disease stipulated in the Law on Social Insurance.

2. In the case of any employee within the category of entities required to be compulsory insured for
social insurance but the employer has failed to pay social insurance premiums to the competent
body, then the employer must pay an amount of money equivalent to that payable under the regime
on work-related accidents and occupational disease stipulated in the Law on Social Insurance.

Payment may be made on one occasion or a on a monthly basis as agreed by the parties.

3. An employer shall pay compensation as follows to an employee injured in a work-related accident or


who contracts an occupational disease not caused by the fault of the employee and resulting in the
employee's ability to work being reduced by five (5) per cent or more:

(a) At least one and a half months' salary pursuant to the labour contract if the employee's ability
to work is reduced from five (5) per cent up to ten (10) per cent; and thereafter an increase of
one (1) per cent [in reduction of ability to work] shall be compensated by an additional 0.4
month's salary pursuant to the labour contract if the employee's ability to work has been
reduced from eleven (11) per cent up to eighty (80) per cent.

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(b) At least 30 months' salary pursuant to the labour contract to any employee whose ability to
work has been reduced by eighty-one (81) per cent or more, or to the relatives of an employee
who dies as a result of a work-related accident.

4. If the accident or disease was due to the fault of the employee, then the employee is entitled to a
monetary payment of at least forty (40) per cent of the amounts prescribed in clause 3 of this article.

Article 146 Conduct which is prohibited in the occupational safety and hygiene sector

1. Monetary payments in lieu of allowances in kind.

2. Concealing or making a false declaration or report about a work-related accident or occupational


disease.

Section 3

Prevention of Work-Related Accidents and Occupational Disease

Article 147 Testing and verification of machinery, equipment and materials with strict requirements for
occupational safety

1. All types of machinery, equipment and materials with strict requirements for occupational safety must
be tested and verified prior to being commissioned for use, and must be periodically tested and
verified during the use process by an organization conducting technical occupational safety testing
and verification.

2. The Ministry of Labour, War Invalids and Social Affairs shall issue the list of machinery, equipment
and materials with strict requirements for occupational safety.

3. The Government shall regulate the conditions applicable to organizations conducting technical
occupational safety testing and verification.

Article 148 Plan on occupational safety and hygiene

Employers must, on an annual basis when formulating their plan on production and business, also
formulate a plan including measures for occupational safety and hygiene and on improvement of labour
conditions.

Article 149 Personal protective facilities for workers

1. Employers must provide employees who work in dangerous or toxic jobs with sufficient personal
protective facilities which the employees must then use during the work process in accordance with
the regulations of the Ministry of Labour, War Invalids and Social Affairs.

2. Personal protective facilities must meet [stipulated] quality standards.

Article 150 Training on occupational safety and hygiene

1. An employer and the person [employee or officer] in charge of occupational safety and hygiene work
must attend training classes on occupational safety and hygiene; and there must be checks,
examinations and issuance of certificates by an organization providing occupational safety and
hygiene training services.

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2. Employers must hold training classes on occupational safety and hygiene for employees, apprentices
and trainees when they are recruited and when work is assigned to them; and employers must
provide guidance on regulations on occupational safety and hygiene for people coming to visit or
work at an establishment managed by the employer.

3. Employees doing jobs that have strict requirements for occupational safety and hygiene must attend
training classes on occupational safety and hygiene, and must be checked, examined and issued
with certificates.

4. The Ministry of Labour, War Invalids and Social Affairs shall regulate the conditions applicable to
organizations providing occupational safety and hygiene training services; shall formulate a general
program on the work of training in the occupational safety and hygiene sector; and shall regulate the
list of jobs with strict requirements for occupational safety and hygiene.

Article 151 Information about occupational safety and hygiene

Employers must provide adequate information about the status of work-related accidents and occupational
disease, about toxic and dangerous work, and about measures ensuring occupational safety and hygiene
at workplaces for employees.

Article 152 Health care for employees

1. Employers must rely on the health standards stipulated for each type of job when recruiting
employees and assigning work to them.

2. Employers must arrange an annual health check [examination] for employees including apprentices
and trainees. The health check must be conducted at least once each six (6) months for female
employees who shall be given a specialized gynaecological examination; and for workers performing
extremely heavy or toxic work; for disabled employees; and for junior employees and for senior
employees.

3. Employees working in conditions where there is a danger of contracting an occupational disease


must be medically examined for occupational disease in accordance with regulations of the Ministry
of Health.

4. Employees injured in a work-related accident or who contract an occupational disease must be


provided with a medical examination in order to determine the level of their injury or disease, to
determine the [percentage] reduction in their ability to work, to receive treatment and care, and
rehabilitation of their ability to work in accordance with law.

5. Any employee who continues working after having been involved in a work-related accident or after
having contracted an occupational disease must be assigned to a job which is appropriate for his or
her health in accordance with the conclusion of the Council for Occupational Health Examinations.

6. Employers must manage health files of individual employees and overall monitoring files as
stipulated in regulations of the Ministry of Health.

7. Employers must provide employees working in poisonous or infectious environments with personal
decontamination and disinfectant facilities for use after work.

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CHAPTER 10

Separate Provisions on Female Employees

Article 153 State policies on female employees

1. The State ensures women's right to work on a basis of equality with men.

2. The State encourages employers to facilitate female employees to have regular employment, and to
widely apply an employment regime based on a flexible timetable with part-time work and
home-based work.

3. The State has measures for creating jobs, improving working conditions, raising professional
standards, improving health standards, and strengthening the material and spiritual welfare of female
employees for the purpose of assisting female employees to achieve their professional potential and
to harmoniously combine a working life with their family life.

4. The State has a policy on reducing tax of employers employing multiple female employees in
accordance with the law on tax.

5. The State shall expand various forms of training favourable to female workers in order for them to
gain additional skills and trades and to facilitate employment suitable to their biological and
physiological characteristics as well as to their role as mothers.

6. The State has plans and measures to arrange for nurseries [crèches] and kindergartens at localities
with multiple female employees.

Article 154 Obligations of employers owed to female employees

1. To ensure implementation and promotion of gender equality during recruitment, employment and
training, and regarding working hours, rest breaks and holidays, wage rates and other regimes.

2. To consult the opinion of female employees or their representatives when making decisions on
matters relevant to the rights and interests of women.

3. To ensure that female employees have adequate changing rooms, shower facilities and toilets in the
workplace.

4. To provide assistance for the construction of nurseries [crèches] and kindergartens, or to assist in
covering part of the expenses incurred by female employees with children in nurseries [crèches] and
kindergartens.

Article 155 Protecting pregnancy of female employees

1. An employer is not permitted to employ a female employee to do night work, overtime, or to go on


business trips to remote areas in the following circumstances:

(a) As from the employee's seventh month of pregnancy, or as from the sixth month of pregnancy
in the case of work in mountainous or remote areas, border areas or on islands;

(b) The female employee is nursing a child under twelve (12) months.

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2. A female employee who is employed in extremely heavy work and is in her seventh [or later] month
of pregnancy must be either transferred to lighter duties or her working hours must be reduced by
one hour every day, and the employee shall still receive the same [full] wage.

3. An employer is not permitted to dismiss or unilaterally terminate the labour contract of a female
employee due to her marriage, pregnancy, maternity leave or nursing a child under twelve (12)
months, except where the female employee dies, or is declared by a court to have lost legal capacity
for civil acts, to be missing or to be deceased; [or] the employer not being an individual terminates its
operation.

4. A female employee must not be dealt with for a breach of labour discipline during pregnancy, while
on maternity leave in accordance with the law on social insurance for birth of a child, or while nursing
a child under twelve (12) months.

5. A female employee is entitled during her menstruation to a break of thirty (30) minutes every day,
and during the period of nursing a child under twelve (12) months is entitled to a break of sixty (60)
minutes every day and shall still receive the same wage pursuant to her labour contract.

Article 156 Right of pregnant employees to unilaterally terminate or postpone performance of labour
contract

A female employee who is pregnant and has a certificate from a competent medical consulting or treating
establishment certifying that continued employment would adversely affect her foetus, has the right to
unilaterally terminate or postpone implementation of her labour contract. In such case, the period in which
the female employee must give advance notice to the employer shall depend on the period determined by
the medical consulting or treating establishment.

Article 157 Maternity leave

1. A female employee is entitled to prenatal and postnatal leave of six (6) months.

If a female employee gives birth to more than one child at the one time, she is entitled to an
additional one (1) month's leave for each child counted from the second child.

The maximum period of prenatal leave shall be two (2) months.

2. During maternity leave, female employees are entitled to the regime on maternity leave prescribed in
the law on social insurance.

3. On expiry of the maternity leave period prescribed in clause 1 above, if so required, a female
employee may take additional leave without pay pursuant to an agreement reached with the
employer.

4. Prior to expiry of the maternity leave period prescribed in clause 1 of this article, if so required and if
there is certification from a competent medical consulting or treating establishment that early
resumption of work will not adversely affect the health of the employee and the employer consents, a
female employee may return to work if she has had at least four months' rest after birth.

In this case, in addition to the wage for the days worked which the employer must pay, the female
employee is entitled to an maternity leave allowance pursuant to the law on social insurance.

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Article 158 Guaranteeing jobs of female employees on maternity leave

Female employees shall be guaranteed their old jobs on returning to work on expiry of the maternity leave
period prescribed in clauses 1 and 3 of article 157 of this Code. If a female employee's old job is no longer
available, then the employer must arrange another job for the female employee with a wage rate not lower
than the wage rate prior to the female employee taking maternity leave.

Article 159 Subsidies when taking leave to care for a sick child, to attend a pregnancy examination, or to
carry out family planning programs

Female employees are entitled to social insurance benefits pursuant to the law on social insurance when
taking leave of absence to attend a pregnancy examination; for abortion including suction and curettage, or
for various measures for family planning purposes or to have medical treatment for a miscarriage; to attend
to a sick child under seven years of age; or to nurse an adopted child under six years of age.

Article 160 Work which must not be assigned to female employees

[An employer must not assign the following work to a female employee:]

1. Work which has an adverse affect on the ability to bear and raise a child, in accordance with the list
issued by the Ministry of Labour, War Invalids and Social Affairs after presiding over coordination
with the Ministry of Health.

2. Work involving regular underwater immersion.

3. Work involving regular underground work.

CHAPTER 11

Separate Provisions on Junior Workers and a Number of Other Classes of Workers

Section 1

Junior Workers

Article 161 Junior workers

Junior worker means a worker who is under eighteen (18) years of age.

Article 162 Employment of junior workers

1. Employers are only permitted to employ junior workers in jobs which are suitable to their health so as
to ensure their physical, spiritual and personal development; and employers are responsible to take
care of junior workers with respect to their labour, wages, health and training throughout the course
of their employment.

2. When an employer employs a junior worker, the employer must formulate a separate monitoring
book for the employee recording his or her full name, date of birth, current job and results of
periodical health checks, and this record must be presented to the competent State authority on
request.

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Article 163 Principles for employing junior workers

1. An employer is prohibited from employing a junior worker in extremely heavy, toxic or dangerous
work, or in workplaces or in jobs which adversely affect the personality of junior workers as stipulated
in the list issued by the Ministry of Labour, War Invalids and Social Affairs after presiding over
coordination with the Ministry of Health.

2. The working hours of junior workers from the age of fifteen (15) to below eighteen (18) shall not
exceed eight (8) hours per day and forty (40) hours per week.

The working hours of junior workers below fifteen (15) years of age shall not exceed four (4) hours
per day and twenty (20) hours per week, and such employees may not work overtime or work at
night.

3. Employees aged from fifteen (15) to under eighteen (18) years may work overtime and do night work
in a number of trades and jobs as stipulated in regulations of the Ministry of Labour, War Invalids and
Social Affairs.

4. Junior workers are not permitted to be employed in the production and business of alcohol, spirits,
beer, tobacco, or other addictive substances.

5. Employers must facilitate vocational and cultural training for junior workers and for employees under
fifteen (15) years of age.

Article 164 Employment of workers under the age of fifteen (15) years

1. Employers are only permitted to employ workers from the age of thirteen (13) up to fifteen (15) years
in light work in accordance with the list issued by the Ministry of Labour, War Invalids and Social
Affairs.

2. An employer must comply with the following provisions when employing workers from the age of
thirteen (13) up to fifteen (15) years:

(a) They must sign a written labour contract with the legal representative and must have consent
from the worker aged from thirteen (13) up to fifteen (15) years;

(b) They must arrange working hours which do not adversely affect the school study hours of the
worker;

(c) They must ensure working conditions and occupational safety and hygiene conditions which
are appropriate for the particular age of the worker.

3. Employers are not permitted to employ workers under the age of thirteen (13) years except in a
number of specific jobs stipulated by the Ministry of Labour, War Invalids and Social Affairs.

Any employer who employs a worker below the age of thirteen (13) years to do a job must comply
with the provisions in clause 2 of this article.

Article 165 Prohibited jobs and prohibited workplaces in the case of junior employees

1. It is prohibited to employ junior workers in the following jobs:

(a) Carrying or lifting heavy objects which exceed the constitutional capacity of juniors;

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(b) Production, use or transportation of chemicals, gas or explosives;

(c) Maintenance of machinery and equipment;

(d) Demolition of construction works;

(dd) Melting, casting, grinding, stamping or welding metal;

(e) Offshore diving or fishing;

(g) Other work which is harmful to the health, safety or morals of junior workers.

2. It is prohibited for junior workers to work in the following locations:

(a) Underwater, underground, in caves or in tunnels;

(b) Construction sites

(c) Abattoirs;

(d) Casinos, bars, dance halls, karaoke parlours, hotels, rest houses, saunas or massage
parlours;

(dd) Other working locations which are harmful to the health, safety or morals of junior workers.

3. The Ministry of Labour, War Invalids and Social Affairs shall issue a list of the items prescribed in
clause 1(g) and in clause 2(dd) of this article.

Section 2

Senior Workers

Article 166 Senior workers

1. Senior worker means a worker who continues to work after he or she has reached the [retirement]
age prescribed in article 187 of this Code.

2. Senior workers are entitled to reduce the number of working hours in a day, or the regime of part -
time work shall apply to them.

3. During the final year prior to retirement, a senior employee is entitled to reduce the number of normal
working hours or the regime of part-time work shall apply to him or her.

Article 167 Employment of senior workers

1. Where so required, an employer may reach agreement with a senior worker in good health to extend
his or her labour contract or to enter into a new labour contract in accordance with the provisions in
Chapter 3 of this Code.

2. Where a retiree continues to work pursuant to a new labour contract, such senior employee is also
entitled, in addition to benefits under the retirement regime, to the benefits agreed in the labour
contract.

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3. An employer is prohibited from assigning a senior employee to heavy, toxic or dangerous work which
might have adverse effects on the health of the senior employee, except in special cases pursuant to
Government regulations.

4. Employers are responsible to take care of the health of senior employees in the workplace.

Section 3

Vietnamese Working Abroad, Labour for Foreign Organizations or Individuals in Vietnam,


Foreign Employees Working in Vietnam

Article 168 Vietnamese working abroad, and Vietnamese working for foreign organizations and individuals
in Vietnam

1. The State encourages enterprises, agenicies, organizations and individuals to search and expand
the labour market in order to create employment for Vietnamese workers in foreign countries.

Vietnamese workers working abroad must comply with the law of Vietnam and the law of the foreign
country, unless an international treaty of which Vietnam is a member contains some other provision.

2. Vietnamese citizens working in foreign enterprises in Vietnam, in industrial zones, economic zones
and export processing zones, in foreign agencies and organizations or in international bodies in
Vietnam, or working for individuals being foreign citizens in Vietnam, must comply with the law of
Vietnam and shall be protected by law.

Article 169 Conditions for foreign citizens to work in Vietnam

1. Workers being foreign citizens must satisfy all the following conditions in order to work in Vietnam:

(a) Have full legal capacity for civil acts;

(b) Possess specialized and technical skills, and have good health appropriate for the work
requirements;

(c) They must not have been convicted of a crime or be subject to investigation for a criminal
offence in accordance with the law of Vietnam and the law of the foreign country;

(d) They must have a work permit issued by the competent Vietnamese authority, except in the
case prescribed in article 172 of this Code.

2. Workers being foreign citizens working in Vietnam must comply with the law of Vietnam on labour
[unless] an international treaty of which Vietnam is a member contains some other provision, and
they shall be protected by the law of Vietnam.

Article 170 Conditions for recruiting workers being foreign citizens

1. Domestic enterprises, agencies, organizations, individuals and contractors are only permitted to
recruit workers being foreign citizens to work in jobs as managers, executives, experts and
technicians, and if Vietnamese workers are not yet been able to satisfy the production and business
requirements.

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2. Before foreign enterprises, agencies, organizations, individuals and contractors recruit a foreign
citizen to work in the territory of Vietnam, they must explain their need to employ the worker to, and
receive written consent from the competent State authority.

Article 171 Work permits for foreigners working in Vietnam

1. Workers being foreign citizens are required to present their work permits when conducting
procedures for entry and exit, and are required to present them on request by competent State
authorities.

2. Foreign citizens working in Vietnam without a work permit shall be deported from the territory of
Vietnam in accordance with Government regulations.

3. Employers employing foreign citizens without work permits to work for them shall be dealt with in
accordance with law.

Article 172 Foreign citizens working in Vietnam not required to have work permits

[The following foreign citizens working in Vietnam are not required to have work permits:]

1. Capital contributing member or owner of a limited liability company.

2. Member of the board of management of a shareholding company.

3. Head of a representative office or of a project of an international organization or non-governmental


organization in Vietnam.

4. Entering Vietnam for a period under three (3) months in order to offer services.

5. Entering Vietnam for a period under three (3) months in order to resolve an incident [breakdown] or
technically or technologically complex situation arising and affecting, or with the risk of affecting
production or business with which Vietnamese experts or foreign experts currently in Vietnam are
unable to deal.

6. A foreign lawyer issued with a certificate to practice law in Vietnam in accordance with the law on
lawyers.

7. In accordance with provisions of an international treaty of which Vietnam is a member.

8. A student studying in Vietnam is permitted to work in Vietnam, but the employer must provide seven
(7) days advance notice to the provincial State administrative authority for labour.

9. In other cases pursuant to Government regulations.

Article 173 Valid duration of work permits

The maximum duration of a work permit shall be two (2) years.

Article 174 Circumstances in which validity of work permit expires

[A work permit shall no longer be valid in the following cases:]

1. The work permit expires.

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2. The labour contract is terminated.

3. The contents of the labour contract are inconsistent with the contents of the issued work permit.

4. The economic, commercial, financial, banking, insurance, scientific and technical, cultural, sporting,
educational or medical health contract is terminated or expires.

5. There is notice from the foreign party terminating the appointment of the foreign citizen to work in
Vietnam.

6. The work permit is withdrawn.

7. The enterprise, organization, Vietnamese party or foreign non-governmental organization in Vietnam


terminates its operation.

8. The worker being the foreign citizen is sentenced to prison, dies, or is proclaimed by a court to be
deceased or to be missing.

Article 175 Issuance, re-issuance and withdrawal of work permits

The Government shall provide specific regulations on conditions applicable to the issuance, re-issuance,
and withdrawal of work permits of workers being foreign citizens working in Vietnam.

Section 4

Disabled Workers

Article 176 State policies on disabled workers

1. The State protects the right to work, including self-employment of the disabled, and has policies
encouraging and granting incentives to employers to create jobs for the disabled in accordance with
the Law on Disabled Persons.

2. The Government shall regulate the policy on providing low interest loans from the Job Creation Fund
to employers employing disabled persons.

Article 177 Employment of disabled persons

1. An employer must ensure suitable working conditions, tools and equipment, and occupational safety
and hygiene appropriate for disabled employees, and must take regular care of their health.

2. An employer must consult the opinion of a disabled employee when making a decision on any matter
relevant to his or her rights and interests.

Article 178 Prohibited conduct when employing disabled workers

1. It is prohibited to allow a disabled person whose ability to work has been reduced by fifty one (51) per
cent or more to work overtime or at night.

2. An employer is prohibited from assigning disabled workers to heavy, toxic or dangerous work, or
work requiring contact with toxic substances as stipulated in a list issued by the Ministry of Labour,
War Invalids and Social Affairs in coordination with the Ministry of Health.

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Section 5

Workers being Domestic Servants

Article 179 Domestic servants

1. Domestic servant means a worker who conducts regular work within a family of one or more
households.

Work within a family comprises work of housekeeping, acting as steward [or butler], taking care of
children, taking care of sick or elderly people, driving, gardening and doing other jobs for households
unrelated to commercial activity.

2. People working as domestic servants in the form of a package of works are not governed by this
Code.

Article 180 Labour contracts of domestic servants

1. The employer must sign a written labour contract with a domestic servant.

2. The duration of a labour contract with a domestic servant shall be as agreed by the two parties.
Either party has the right to unilaterally terminate the labour contract at any time, but must provide
fifteen (15) day's advance notice to the other party.

3. The two parties shall reach agreement on, and record in the labour contract, the method of payment
of wages, the period for payment of wages, daily working hours, and accommodation.

Article 181 Obligations of employers owed to domestic servants

1. To fully implement the agreement reached in the executed labour contract.

2. To pay the employee money for social insurance and medical insurance in accordance with law in
order for the employee to himself or herself arrange insurance.

3. To respect the honour and dignity of a domestic servant.

4. To arrange a clean and hygienic meal place and accommodation for a domestic servant, if so
agreed.

5. To facilitate opportunities for the employee to be educated or to participate in vocational training.

6. To pay travelling expenses when the employee ceases work to return home, except in a case where
the employee terminates the labour contract prior to its expiry.

Article 182 Obligations of domestic servants

1. To fully implement the agreement reached by the two parties in the labour contract.

2. To pay compensation as agreed or in accordance with law if assets of the employer are broken or
lost.

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3. To promptly notify the employer of any risks of accidents, or threats to the safety, health, life or
assets of the employer.

4. To make a denunciation to the competent authority if the employer conducts any act of abuse
[maltreatment], sexual harassment, labour coercion or any other act in breach of law.

Article 183 Conduct by employers which is strictly prohibited

1. Abuse, sexual harassment, labour coercion or use of force against an employee being a domestic
servant.

2. Assigning work to the employee which is not prescribed in the labour contract.

3. Retaining personal papers of the employee.

Section 6

Other Workers

Article 184 Employees in the artistic sector, and sports and physical training sector

Persons who work in trades or special jobs within the artistic sector and sports and physical training sector
are entitled to appropriate regimes with respect to age for vocational training, signing of labour contracts,
working hours, rest breaks and holidays, wages, allowances, bonuses, and occupational safety and
hygiene in accordance with Government regulations.

Article 185 Workers performing home-based work

1. A worker may reach agreement with an employer to accept regular home-based work.

2. Workers carrying out home-based processing are not governed by this Code.

CHAPTER 12

Social Insurance

Article 186 Participation in social insurance

1. Employers and employees must participate in compulsory social insurance, compulsory health
insurance and job loss insurance, and are entitled to the regimes stipulated in the law on social
insurance and in the law on health insurance.

Employers and employees are encouraged to take out other forms of social insurance cover for
employees.

2. During the period when an employee on leave receives social insurance benefits, the employer is not
required to pay wages to such employee.

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3. In the case of employees who are ineligible to participate in compulsory social insurance, compulsory
health insurance and job loss insurance, the employer must pay such employees, in addition to their
wages for work, and at the same time as periodic payment of wages, a sum of money equivalent to
the amount of the contribution to social insurance, compulsory health insurance and job loss
insurance, and paid annual leave as prescribed by law.

Article 187 Retirement age

1. An employee who satisfies the conditions on period of payment of social insurance contributions
stipulated in the law on social insurance is entitled to pension benefits at sixty (60) years of age in
the case of a male, and fifty five (55) years of age in the case of a female.

2. An employee whose ability to work is reduced; who performs extremely heavy, toxic or dangerous
work; who performs heavy, toxic or dangerous work; who works in mountainous, remote and distant
areas, border areas or on islands as stipulated in the list issued by the Government is entitled to
retire at an age lower than that prescribed in clause 1 of this article.

3. Employees with high technical expertise and employees working as managers and employees in a
number of other special cases may retire at an older age but not more than five (5) years later than
the age prescribed in clause 1 of this article.

4. The Government shall provide detailed regulations on clauses 2 and 3 of this article.

CHAPTER 13

Trade Unions

Article 188 Role of trade unions in the labour relationship

1. Grassroots trade unions implement the role of representing and protecting the legitimate and lawful
rights and interests of trade union members and workers; of participating, negotiating, signing and
supervising implementation of collective labour agreements, wage scales, payrolls, labour rates,
regimes on payment of wages and bonuses, internal labour rules and democratic regimes
[regulations] at [employers being] enterprises, agencies and organizations; assisting in resolution of
labour disputes; and in discussions and co-ordination with employers to formulate an harmonious,
stable and progressive labour relationship at enterprises, agencies and organizations.

2. Directly superior trade unions are responsible to assist grassroots trade unions to implement their
functions and duties in accordance with clause 1 of this article; and to disseminate information to,
educate and raise the understanding of workers of the law on labour and the law on trade unions.

3. The directly superior level trade union is responsible to undertake the responsibilities prescribed in
clause 1 of this article in any place which has not yet established a grassroots trade union.

4. All level trade unions shall participate with the same level State administrative authority and with
organizations representing employers to exchange information and resolve labour issues.

Article 189 Establishing, joining and participating in activities of trade unions at enterprises, agencies and
organizations

1. An employee working in an enterprise, agency or organization has the right to establish and join
trade unions and to participate in their activities in accordance with the Law on Trade Unions.

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2. The directly superior level trade union above a grassroots trade union has the right and obligation to
persuade employees to join trade unions, and to establish a grassroots trade union in their
enterprise, agency or organization; and has the right to require employers and the local State
administrative authority for labour to facilitate and assist establishment of grassroots trade unions.

3. When a grassroots trade union is correctly established in accordance with the Law on Trade Unions,
employers must recognize it and create favourable conditions for its activities.

Article 190 Conduct which is strictly prohibited by an employer regarding establishing, joining and
participating in trade union activities

1. Hindering or causing difficulty for any employee to establish or join a trade union or participate in its
activities.

2. Compelling an employee to establish or join a trade union or participate in its activities.

3. Requesting an employee not to participate in trade union activities or requesting an employee to


leave a trade union.

4. Discriminatory treatment regarding wages, working hours or other rights and obligations in the labour
relationship, aimed at hindering any employee in establishing or joining a trade union or participating
in its activities.

Article 191 Rights of grassroots trade union officials in the labour relationship

1. To meet employers in order to discuss, exchange information and negotiate labour and employment
issues.

2. To attend workplaces to meet employees within the scope of the responsibilities which such trade
union officials represent.

3. Officials of the directly superior level trade union are permitted to exercise the rights prescribed in
clause 1 of this article in any place which has not yet established a grassroots trade union.

Article 192 Responsibilities of employers owed to trade unions

1. To facilitate employees to establish or join trade unions and to participate in their activities.

2. To coordinate with and facilitate trade unions at the superior level to grassroots trade unions to
disseminate information to and persuade employees to become trade union members, to develop
trade union membership, to establish a grassroots trade union, and to arrange full-time trade union
officials in the enterprise, agency or organization.

3. To guarantee operational conditions for trade unions in accordance with article 193 of this Code.

4. To coordinate with grassroots trade unions in formulating and implementing democratic regimes and
other operation or coordinating regimes which are appropriate to the functions and tasks of each
party.

5. To consult the opinion of the executive committee of the grassroots trade union before issuing
regulations relevant to rights and obligations of and policy regimes applicable to employees.

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6. If the labour contract of an employee who is a part-time trade union officer expires while such officer
is still within the term of such office, to extend such labour contract until expiry of the period of such
office.

7. If an employer wishes to unilaterally terminate the labour contract of an employee who is a part-time
trade union officer, transfer him or her to other work or apply the disciplinary penalty of dismissal to
such part-time trade union officer, the employer must obtain written agreement from the executive
committee of the grassroots trade union or from the executive committee of the directly superior
trade union.

If the parties are unable to reach agreement, then the two parties must report to the competent
agency or organization. The employer only has the right to make a decision, and shall be legally
liable for such decision, after thirty (30) days have expired from the date of notification to the local
State authority for labour.

In a case of disagreement with the decision of the employer, the executive committee of the
grassroots trade union and the employer have the right to request resolution of a labour dispute in
accordance with the sequence and procedures stipulated by law.

Article 193 Guarantee of operational conditions of trade unions at enterprises, agencies and organizations

1. Employers must arrange a working location for grassroots trade unions and must supply information
to them and guarantee the necessary conditions for operation of trade unions.

2. Part-time trade union officers are entitled to use working hours to conduct trade union activities in
accordance with the Law on Trade Unions and shall be paid wages by their employer.

3. Full-time trade union officers at enterprises, agencies and organizations shall be paid wages by the
trade union, and their employer must ensure their collective welfare the same as the other
employees working in such agency, organization or enterprise in accordance with the collective
labour agreement or regulations of the employer.

CHAPTER 14

Resolution of Labour Disputes

Section 1

General Provisions on Resolution of Labour Disputes

Article 194 Principles for resolution of labour disputes

1. Respect for and guarantee of the principle that the parties engage in direct negotiation and reach
their own decision on settlement of the labour dispute.

2. Ensuring conciliation and arbitration are held on the basis of mutual respect of the rights and benefits
of the two disputing parties, respect of general social interests, and compliance with law.

3. Resolution must be achieved publicly, transparently, objectively, promptly and correctly in


accordance with law.

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4. Ensuring participation of representatives of the parties during the process of resolution of the labour
dispute.

5. Resolution of a labour dispute must, first and foremost, be based on direct negotiation between the
two parties aimed at reaching a harmonious solution of the interests of the two parties to the dispute,
stabilizing production and business, and ensuring social order and safety.

6. A labour dispute shall be resolved by an agency, organization or individual authorized to conduct


labour dispute resolution if one of the two parties files a petition [for resolution] because the other
refused to conduct negotiation, if negotiation was conducted but was unsuccessful, or if negotiation
was successful but a party failed to implement [the agreement reached].

Article 195 Responsibilities of agencies, organizations and individuals in resolution of labour disputes

1. State administrative authorities for labour are responsible to coordinate with trade unions and with
organizations representing employers to guide and assist the parties to resolve a labour dispute.

2. The Ministry of Labour, War Invalids and Social Affairs shall arrange training to raise the professional
capacity of labour conciliators and labour arbitrators for resolution of labour disputes.

3. Competent State authorities must take the initiative in promptly conducting resolution of collective
labour disputes about rights.

Article 196 Rights and obligations of the two parties during resolution of a labour dispute

1. The two parties have the following rights during resolution of a labour dispute:

(a) To participate in the resolution process either directly or via a representative;

(b) To withdraw the petition for resolution or to amend the items in dispute;

(c) To request that the person directly resolving the labour dispute be replaced if there is any
reason why such person will be unable to be objective or fair.

2. The two parties have the following obligations during resolution of a labour dispute:

(a) To promptly provide all relevant documents and evidence in order to prove the party's
requests.

(b) To strictly comply with all agreements reached, and with any legally effective judgment or
decision.

Article 197 Rights of agencies, organizations and individuals competent to resolve labour disputes

Agencies, organizations and individuals competent to resolve labour disputes have the right, within the
scope of their respective duties and power, to require the two disputing parties and other agencies,
organizations and individuals concerned to provide data and evidence; and have the right to seek
assessments and to invite attendance by witnesses and other relevant people.

Article 198 Labour conciliators

1. The State administrative authority for labour of a district, town or provincial city shall appoint labour
conciliators to conciliate labour disputes and disputes about trade training contracts.

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2. The Government shall regulate the criteria and authority for appointing labour conciliators.

Article 199 Labour arbitration councils

1. The Chairman of a provincial people's committee shall issue a decision on establishment of a Labour
Arbitration Council . A Labour Arbitration Council shall comprise as its President the head of the
State administrative authority for labour, and the secretary of the Council and its members shall be
representatives of the provincial level trade unions and of organizations representing employers.
The number of members of a Labour Arbitration Council shall be an odd number, but shall not
exceed seven (7).

In necessary cases, the President of a Labour Arbitration Council may invite representatives of
relevant agencies and organizations and people with experience in the sector of labour management
in the locality.

2. A Labour Arbitration Council shall conduct conciliation of the following collective labour disputes:

(a) A collective labour dispute about benefits;

(b) A collective labour dispute occurring at employing units not permitted to strike as stipulated in
the list regulated by the Government.

3. The Labour Arbitration Council shall make a decision on the principle of majority vote after a secret
ballot.

4. Provincial people's committees shall ensure the necessary conditions for Labour Arbitration Councils
to carry out their activities.

Section 2

Authority and Procedures for Resolution of Individual Labour Disputes

Article 200 Agencies and individuals authorized to resolve individual labour disputes

[The following agencies and individuals are authorized to resolve individual labour disputes:

1. Labour conciliators.

2. People's Courts.

Article 201 Sequence and procedures for resolution of individual labour disputes by labour conciliators

1. An individual labour dispute must pass through procedures for conciliation by a labour conciliator
prior to a petition to a court to resolve the dispute, except for the following labour disputes for which it
is not mandatory to conduct conciliation procedures:

(a) A dispute relating to the disciplinary measure of dismissal for breach of the law on labour, or a
dispute arising from unilateral termination of a labour contract;

(b) A dispute relating to payment of compensation for loss and damage, or payment of allowances
upon termination of a labour contract;

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(c) A dispute between a domestic servant and the employer;

(d) A dispute relating to social insurance in accordance with the law on social insurance, or health
insurance in accordance with the law on health insurance;

(dd) A dispute relating to payment of compensation for loss and damage between an employee and
an enterprise or professional entity sending a worker to work overseas pursuant to a contract.

2. A conciliator must terminate the conciliation within five (5) working days from the date of receipt of
the request for conciliation.

3. The two disputing parties must be present at a conciliation session but may appoint authorized
representatives to participate at the conciliation session [on their behalf].

The labour conciliator is responsible to guide the parties in their negotiations, and if the two parties
reach a settlement then the labour conciliator shall prepare minutes of settlement.

In the event that the two parties do not reach a settlement, the labour conciliator shall provide a
settlement proposal for consideration by the two parties. If the two parties agree to the settlement
proposal, then the labour conciliator shall prepare minutes of successful conciliation.

If the two parties to the dispute fail to agree on the settlement proposal, or if one of the parties has
been validly summonsed twice but is still absent without a legitimate reason, then the labour
conciliator shall prepare minutes of unsuccessful conciliation.

The minutes shall be signed by the parties in dispute who were present and also by the labour
conciliator.

Copies of minutes of settlement or minutes of unsuccessful conciliation must be sent to the two
disputing parties within one working day after the date of preparation of such minutes.

4. In the event of an unsuccessful conciliation, or if one of the parties fails to implement the agreement
set out in the minutes of successful conciliation, or if on expiry of the time-limit for conciliation
stipulated in clause 2 of this article the labour conciliator has not conducted a conciliation, each
disputing party has the right to petition the people's court to resolve the dispute.

Article 202 Limitation periods for requesting resolution of an individual labour dispute

1. The limitation period for requesting a labour conciliator to resolve an individual labour dispute is six
(6) months from the date of discovery of the conduct which a disputing party claims breaches his or
her lawful rights and interests.

2. The limitation period for requesting a court to resolve an individual labour dispute is one year from
the date of discovery of the conduct which a disputing party claims breaches his or her lawful rights
and interests.

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Section 3

Authority and Procedures for Resolution of Collective Labour Disputes

Article 203 Agencies, organizations and individuals authorized to resolve collective labour disputes

1. Agencies, organizations and individuals authorized to resolve collective labour disputes about rights
comprise:

(a) Labour conciliators;

(b) Chairmen of people's committees of a district, town or provincial city (hereinafter referred to as
the chairman of a district people's committee);

(c) People's courts.

2. Agencies, organizations and individuals authorized to resolve collective labour disputes about
benefits comprise:

(a) Labour conciliators;

(b) Labour arbitration councils.

Article 204 Order for resolution of a collective labour dispute at the grassroots level

1. The order for conciliation of a collective labour dispute shall be implemented in accordance with the
provisions in article 201 of this Code. Minutes of conciliation must specify the type of collective
labour dispute.

2. If a conciliation is unsuccessful or if either of the parties fails to implement the agreement set out in
the minutes of successful conciliation, then the following provision applies:

(a) In the case of a collective labour dispute about rights, the parties have the right to petition the
chairman of the district people's committee to resolve the dispute;

(b) In the case of a collective labour dispute about benefits, the parties have the right to petition a
labour arbitration council to resolve the dispute.

3. If on expiry of the time-limit for resolution stipulated in article 201.2 of this Code the labour conciliator
has not conducted a conciliation, the parties have the right to petition the chairman of the district
people's committee to resolve the dispute.

The chairman of the district people's committee is responsible, within two (2) working days from
receipt of a petition, to determine whether the dispute is one about rights or one about benefits.

If the collective labour dispute is about rights, then it shall be resolved in accordance with clause 2(a)
of this article and article 205 of this Code.

If the collective labour dispute is about benefits, then the parties must be immediately guided to
request dispute resolution in accordance with clause 2(b) of this article.

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Article 205 Resolution of a collective labour dispute about rights by the chairman of the district people's
committee

1. The chairman of a district people's committee must conduct resolution of a collective labour dispute
about rights within five (5) working days from receipt of the request for resolution.

2. The authorized representatives of the two disputing parties must be present at a session resolving a
collective labour dispute about rights. In necessary cases, the chairman of the district people's
committee may invite representatives of other agencies and organizations concerned to attend the
session.

The chairman of a district people's committee must rely on the law on labour, the collective labour
agreement, internal labour rules which have been registered, and on other legal regulations and
agreements in order to hear and resolve the labour dispute.

3. In the event that the parties disagree with the decision of the chairman of the district people's
committee, or if such chairman has not resolved the matter on expiry of the time-limit, then the
parties have the right to petition the court to resolve the matter.

Article 206 Resolution of a collective labour dispute about benefits by a labour arbitration council

1. The Labour Arbitration Council must complete a conciliation of a collective labour dispute about
benefits within seven (7) working days from the date of receipt of a request for resolution.

2. The representatives of the two disputing parties must be present at a session held by the Labour
Arbitration Council. In necessary cases, Labour Arbitration Council may invite representatives of
other agencies, organizations and individuals concerned to attend the session.

The Labour Arbitration Council is responsible to assist the parties to conduct their own negotiations,
but if the parties are unable to reach a settlement then the Labour Arbitration Council shall provide a
settlement proposal for the two parties' consideration.

If the two parties reach their own settlement or agree to the settlement proposal, the Labour
Arbitration Council shall prepare minutes of successful conciliation and at the same time issue a
decision recognizing the agreement reached by the parties.

If the two parties fail to reach an agreement, or if one of the disputing parties has been validly
summonsed twice but is still absent without a legitimate reason, then the Labour Arbitration Council
shall prepare minutes of unsuccessful conciliation.

Minutes shall be signed by the party/parties present and also by the President and secretary of the
Labour Arbitration Council.

Copies of minutes of successful conciliation or minutes of unsuccessful conciliation must be sent to


the two disputing parties within one (1) working day from the date of preparation of such minutes.

3. If one of the parties fails to implement the agreement reached after expiry of five (5) days from the
date on which the Labour Arbitration Council prepared the minutes of successful conciliation, then
the labour collective has the right to conduct procedures in order to strike.

In a case where the Labour Arbitration Council prepared the minutes of unsuccessful conciliation, the
labour collective has the right to conduct procedures in order to strike after expiry of three (3) days
[from the date of preparation of such minutes].

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Article 207 Limitation period for requesting resolution of a collective labour dispute about rights

The limitation period for requesting resolution of a collective labour dispute about rights is one year from the
date of discovery of the conduct which either disputing party claims breached its lawful rights and interests.

Article 208 Prohibition on unilateral acts during the process of resolution of a collective labour dispute

Neither party is permitted to act unilaterally against the other party during the period of resolution of a
collective labour dispute by an authorized agency, organization or individual as prescribed in this Code.

Section 4

Strikes and Resolution of Strikes

Article 209 Strikes

1. A strike means a temporary and voluntary cessation of work organized by the labour collective in
order to achieve demands during resolution of a labour dispute.

2. A strike may only be held in respect of a collective labour dispute about benefits and on expiry of the
time-limits prescribed in article 206.3 of this Code.

Article 210 Organizing and leading a strike

1. A strike must be organized and led by the executive committee of the grassroots trade union in any
location where there is a grassroots trade union organization.

2. The superior level trade union organization may organize and lead a strike at the request of workers
in any location where there is not yet a grassroots trade union organization.

Article 211 Sequence for a strike

1. Obtaining opinions from the labour collective.

2. Issuing a decision to strike.

3. Holding the strike.

Article 212 Procedures for obtaining opinions from the labour collective

1. In the case of a labour collective which has a grassroots trade union organization, opinions shall be
taken from the members of the executive committee of the grassroots trade union and from the
leaders of manufacturing groups. In a case where there is not a grassroots trade union organization,
opinions shall be taken from leaders of manufacturing groups or from the employees.

2. Taking of opinions may be in the form of voting or by collecting signatures.

3. The contents of obtaining opinions about striking shall comprise:

(a) The proposal of the executive committee of the trade union about the items stipulated in sub-
clauses (b), (c) and (d) of article 213.2 of this Code;

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(b) Opinion of the employees agreeing or not agreeing to a strike.

4. The time-limit for and form of taking opinions about striking shall be decided by the executive
committee of the trade union and must be notified to the employees at least one day in advance.

Article 213 Notification of time of commencement of a strike

1. When there are opinions in agreement from more than fifty (50) per cent of the employees on the
proposal made by the executive committee of the trade union, then such executive committee shall
issue a written decision on a strike.

2. A decision on a strike must contain the following particulars:

(a) Results of obtaining opinions on the strike;

(b) Time of commencement of the strike and the location of the strike;

(c) Scope within which the strike will be conducted;

(d) Demands of the labour collective;

(dd) Full name of the person representing the executive committee of the labour union and a
contact address for resolution.

3. At least five (5) working days prior to the date of commencement of a strike, the executive committee
of the trade union must send the decision on the strike to the employer, and at the same time send
one copy to the provincial State administrative authority for labour and one copy to the provincial
trade union.

4. If by the time for commencement of the strike the employer fails to agree to the demands of the
labour collective, then the executive committee of the trade union shall organize and lead the strike.

Article 214 Rights of parties before and during a strike

1. To continue to reach agreement on resolution of the contents of the collective labour dispute, or to
jointly propose that the provincial State administrative authority for labour, the provincial trade union
organization and the organization representing employers at the provincial level conduct a
conciliation.

2. The executive committee of the trade union has the following rights:

(a) To withdraw the decision to strike if the strike has not yet taken place, or to end a strike which
has commenced;

(b) To petition a court to declare that the strike is lawful [legal].

3. An employer has the following rights:

(a) To agree with all or a part of the demands and to provide written notification thereof to the
executive committee of the trade union organization and to the leaders of the strike;

(b) To temporarily close workplaces during the duration of a strike if there are insufficient
conditions for maintaining normal activities or in order to protect assets;

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(c) To petition a court to declare that the strike is illegal.

Article 215 Circumstances in which a strike is illegal

1. The strike does not arise from a collective labour dispute.

2. The strike is not held by employees jointly working for the same employer.

3. The strike is held when a collective labour dispute remains unresolved by, or is currently being
resolved by an [authorized] agency, organization or individual pursuant to the provisions of this Code.

4. The strike is held at an enterprise at which strikes are prohibited pursuant to the list issued by the
Government.

5. There is a decision staying or suspending the strike.

Article 216 Notification of decision to temporarily close a workplace

An employer must, at least three (3) working days prior to the date on which it temporarily closes a
workplace, publicly list such decision on temporary closure at the workplace and also notify the following
agencies and organizations:

1. The executive committee of the trade union organization, and the leaders of the strike.

2. The provincial trade union.

3. The organization representing the employer.

4. The provincial State administrative authority for labour.

5. The district people's committee in the locality where the employer's head office is located.

Article 217 Circumstances in which it is prohibited to temporarily close a workplace

1. Within twelve (12) hours of the time of commencement of the strike as recorded in the decision to
strike.

2. After the labour collective has stopped the strike.

Article 218 Wages and other lawful benefits of employees during period of a strike

1. Any employee not participating in a strike who must cease work because of the strike shall be paid
salary for cessation of work in accordance with article 98.2 of this Code and shall be entitled to other
benefits in accordance with the law on labour.

2. Employees participating in a strike shall not be paid salary or other benefits pursuant to law, unless
the two parties agree otherwise.

Article 219 Conduct which is prohibited before, during and after a strike

1. Interfering with exercise of the right to strike; or inciting, embroiling or coercing employees to strike;
preventing an employee not participating in a strike from going to work.

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2. Using violence; causing damage to machinery, equipment or assets of the employer.

3. Infringing public order and safety.

4. Terminating a labour contract or applying a labour disciplinary penalty to employees or to organizers


or leaders of a strike, or transferring employees or leaders of a strike to do other work or to work at
another location because of their preparation for or participation in a strike.

5. Taking revenge on or victimizing any employee participating in a strike or any person leading a strike.

6. Taking advantage of a strike in order to act contrary to law.

Article 220 Circumstances in which strikes are prohibited

1. A strike is prohibited at any enterprise employing workers engaged in essential activities for the
national economy and where a strike could threaten national defence and security, or public health
and order in accordance with the list issued by the Government.

2. State administrative bodies must periodically hold sessions to hear [collect] the opinions of labour
collectives and of employers in order to promptly assist and resolve legitimate demands of labour
collectives.

Article 221 Decision staying or suspending a strike

If it is considered that a strike poses a danger of serious infringement to the national economy or public
interest, the chairman of the provincial people's committee may issue a decision staying or suspending the
strike and shall assign an authorized State body or [other authorized] organization to resolve the matter.

The Government shall provide regulations on staying or suspending strikes and on resolving the interests of
labour collectives.

Article 222 Dealing with a strike which does not comply with sequence and procedures

1. If the organization of and leading a strike fails to comply with the provisions in articles 212 and 213 of
this Code, the chairman of the provincial people's committee shall issue a decision declaring the
strike to be in breach of [stipulated] sequence and procedures and shall immediately notify the
chairman of the district people's committee.

2. The chairman of the district people's committee shall, within twelve (12) hours of receipt of
notification from the chairman of the provincial people's committee, co-ordinate with the same level
State authority for labour and with the same level trade union and other agencies and organizations
concerned to directly meet the employer and the executive committee of the grassroots trade union
or the superior level trade union, in order to hear their opinions and assist the parties to find a way of
resolving the matter and normalizing production and business activities.

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Section 5

Strikes and Resolution of Strikes

Article 223 Petitioning a court to consider legality of a strike

1. Either party has the right to petition a court to consider [hear] the legality of a strike during the
process of the strike or within a period of three (3) months from the end of a strike.

2. A petition must contain the following main particulars:

(a) The date of the petition;

(b) The name of the court to receive the petition;

(c) The name and address of the applicant;

(d) The names and addresses of the organizers and leaders of the strike;

(dd) The name and address of the employer where the labour collective is or was on strike;

(e) The issues which the court is requested to resolve;

(g) Other information which the applicant considers essential for resolution of the matter.

3. The applicant must enclose with the petition a copy of the decision to strike, of the decision or
minutes regarding conciliation prepared by the agency or organization authorized to resolve the
collective labour dispute, and other data and evidence relevant to a consideration of the legality of
the strike.

Article 224 Procedures for lodging a petition with a court to consider legality of a strike

The procedures for lodging a petition, accepting jurisdiction, the obligations to provide data and evidence
for a court to hear and decide the legality of a strike shall be implemented the same as the procedures for
lodging petitions, accepting jurisdiction, and the obligations to provide data and evidence at courts as
regulated in the Civil Procedure Code.

Article 225 Authority to consider legality of a strike

1. The provincial people's court in the location where a strike occurs [or occurred] has authority
[jurisdiction] to hear the legality of the strike.

2. The People's Supreme Court has authority [jurisdiction] to resolve any complaint about a decision on
the legality of a strike.

Article 226 Composition of Council of Adjudicators to consider legality of a strike

1. The Council of Adjudicators to consider the legality of a strike shall be composed of three judges.

2. The Council of Adjudicators to resolve a complaint about a decision on the legality of a strike shall be
composed of three judges as appointed by the Chief Judge of the People's Supreme Court.

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3. The procedures set out in the Civil Proceedings Code shall apply to any change of judges being
members of the Council of Adjudicators appointed to hear the legality of a strike.

Article 227 Procedures for resolution of a petition to consider [hear] legality of a strike

1. The Chief Judge of the Provincial People's Court shall, immediately after receipt of a petition, appoint
a Council of Adjudicators to hear the legality of the strike, and shall allocate one judge to preside
over resolution of the petition.

2. Within five (5) working days of the date of receipt of the petition, the judge allocated to preside over
resolution of the petition must issue a decision placing the case in the list for hearing, and the
decision opening a session to hear the legality of the strike must be sent to the executive committee
of the trade union, to the employer, and to other agencies and organizations concerned.

3. Within five (5) working days of the date of issuing a decision to consider the legality of a strike, the
Council of Adjudicators must open a session to consider the legality of the strike.

Article 228 Staying consideration of legality of a strike

The Court shall only stay consideration [hearing] of the legality of a strike in the following circumstances:

1. The applicant withdraws its petition.

2. The two parties reach agreement on resolution of the strike and lodge a petition requesting the Court
not to resolve the matter.

3. The applicant has been validly summonsed twice but is still absent without a legitimate reason.

Article 229 Persons [required to] participate in a session hearing legality of a strike

[The following persons shall participate in a session hearing legality of a strike:]

1. The Council of Adjudicators with the judge allocated [pursuant to article 227.1] acting as presiding
judge; and the secretary of the Court to record minutes of the session.

2. Representatives of the labour collective and of the employer.

3. Representatives of other agencies and organizations as requested by the court.

Article 230 Stay of a session hearing legality of a strike

1. The Judge allocated to preside over a session hearing the legality of a strike or the Council of
Adjudicators may stay the session in the same circumstances as the law on civil proceedings permits
the stay of a court session.

2. The duration of stay of a court session hearing the legality of a strike shall not exceed three (3)
working days.

Article 231 Procedures for a session hearing legality of a strike

1. The presiding judge of the session hearing the legality of the strike shall read out the decision
opening the session to hear the legality of the strike and shall summarize the contents of the petition.

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2. Representatives of the labour collective and of the employer shall explain their opinions.

3. The presiding judge of the session hearing the legality of the strike may request representatives of
any agency or organization participating in the session to explain their opinions.

4. The Council of Adjudicators shall debate the issues and reach a majority decision.

Article 232 Decision on legality of a strike

1. The decision of the Court on legality of a strike must specify the reasons and the grounds for
concluding that the strike is lawful.

The decision of the Court on legality of a strike must be publicly announced at court and immediately
sent to the executive committee of the trade union and to the employer, and also to the same level
People's Procuracy. The labour collective and the employer are responsible to implement the
decision of the Court but have the right to lodge a complaint in accordance with the procedures
stipulated in this Code.

2. After the decision of a Court ruling that a strike is unlawful is announced, employees participating in
the strike must immediately cease striking and return to work.

Article 233 Dealing with breaches

1. If the decision of the Court rules that a strike is unlawful but the employees fail to stop striking and fail
to return to work, then depending on the seriousness of the breach, such employees may be subject
to a labour disciplinary penalty in accordance with the law on labour.

If an unlawful strike causes loss and damage to the employer, then the trade union organization
which led the strike must pay compensation for loss and damage in accordance with law.

2. Any person taking advantage of a strike in order to cause public disorder or to damage machinery,
equipment or assets of the employer; any person who interferes with exercise of the right to strike, or
who incites, embroils or coerces employees to strike; or any person committing an act of revenge or
victimizing another person participating in or leading a strike may, depending on the seriousness of
the breach, be subject to an administrative penalty or criminal prosecution; and if such offender
causes loss and damage, he or she must pay compensation in accordance with law.

Article 234 Sequence and procedures for resolving a complaint about a decision on legality of a strike

1. Within fifteen (15) days from the date of receipt of a decision on legality of a strike [ruling that the
strike was lawful or unlawful], the executive committee of the trade union and the employer have the
right to lodge a complaint about such decision with the People's Supreme Court.

2. Immediately on receipt of a complaint petition about the decision ruling that the strike was lawful [or
unlawful], the People's Supreme Court shall make a written request to the lower court which
considered the legality of the strike to transfer the file on the case to the People's Supreme Court to
hear and resolve the matter.

3. Within three (3) working days from receipt of the written request from the People's Supreme Court,
the lower court which considered the legality of the strike shall transfer the file on the case to the
People's Supreme Court to hear and resolve the matter.

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4. Within five (5) working days from the date of receipt of the file from the lower court, a Council [of the
People's Supreme Court] shall resolve the complaint about the decision on whether a strike is lawful
or unlawful

The decision of the People's Supreme Court on the legality [or illegality] of a strike shall be final.

CHAPTER 15

State Administration of Labour

Article 235 Contents of State administration of labour

State administration of labour comprises the following main contents:

1. Promulgating and arranging implementation of legal instruments on labour.

2. Monitoring, maintaining statistics on, and supplying information about labour supply and demand and
changes in such market; making decisions on policies, master planning and plans on manpower, on
providing occupational training, on development of technical skills, on formulation of national general
trade and occupation standards, and on allocation and employment of labour in all sections of
society. Regulating a list of trades and occupations in which only employees who have already
passed training courses or who have national trade certificates are permitted to be employed.

3. Organizing and conducting scientific research on labour, and collecting statistics and information on
labour and the labour market and on the living standards and income levels of workers.

4. Formulating regimes including assistant regimes for the development of the labour relationship on a
harmonious, stable and progressive basis.

5. Inspecting, conducting checks and resolving complaints and denunciations, and dealing with
breaches of the law and labour; resolving labour disputes in accordance with law.

6. Conducting international co-operation on labour.

Article 236 Authority for State administration of labour

1. The Government shall uniformly carry out State administration of labour throughout the entire country.

2. The Ministry of Labour, War Invalids and Social Affairs is responsible before the Government to carry
out State administration of labour.

Ministries and ministerial equivalent bodies are responsible, within the scope of their respective
duties and powers, to implement and co-ordinate with the Ministry of Labour, War Invalids and Social
Affairs in implementing State administration of labour.

2. People's committees at all levels shall carry out State administration of labour within their respective
localities.

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CHAPTER 16

State Inspection of Labour and Dealing with Breaches of the Law on Labour

Article 237 Duties of State Labour Inspectorates

The Inspectorate of the Ministry of Labour, War Invalids and Social Affairs has the following main duties:

1. To inspect compliance with provisions of the law on labour.

2. To investigate work-related accidents and breaches of occupational safety and hygiene [regulations].

3. To participate in guiding application of the systems of standards and technical specifications on


labour conditions, occupational safety and hygiene.

4. To resolve complaints and denunciations relating to labour in accordance with law.

5. To deal with breaches of the law on labour or make recommendations to other competent agenices
to deal with them.

Article 238 Labour Inspectorates

1. The Inspectorate of the Ministry of Labour, War Invalids and Social Affairs, and Inspectorates of
Departments of Labour, War Invalids and Social Affairs exercise the function of specialized State
labour inspection agencies.

2. The inspection of occupational safety and hygiene in the sectors of radioactive materials; exploration
and exploitation of oil and gas; means of transportation by rail, inland waterway, road and air; in units
of the armed forces shall be carried out by the State administrative agency for the relevant sector in
coordination with the specialized State labour inspection agencies.

Article 239 Dealing with breaches in the labour sector

Any person whose conduct breaches the provisions of this Code shall, depending on the seriousness of the
breach, be disciplined, be subject to an administrative penalty, or be prosecuted for criminal liability; and if
such conduct causes loss and damage, then the offender must pay compensation in accordance with law.

CHAPTER 17

Implementing Provisions
Article 240 Effectiveness

1. This Code shall be of full force and effect as from 1 May 2013.

As from the effective date of this Code, the following shall no longer be effective: the Labour Code
dated 23 June 1994, Law 35-2002-QH10 amending the Labour Code, Law 74-2006-QH11 amending
the Labour Code, and Law 84-2007-QH11 of year 2007 amending the Labour Code.

2. As from the effective date of this Code:

(a) Labour contracts, collective labour agreements and other lawful agreements which have
already been entered into, and agreements with more greater [more favourable] benefits for

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employees than those stipulated in this Code shall continue to be implemented; agreements
inconsistent with the provisions in this Code must be amended and/or supplemented;

(b) Provisions on the period of entitlement to the maternity regime prescribed in the Law 71-2006-
QH11 on Social Insurance shall be implemented in accordance with the provisions in this
Code.

In the case of female employees on maternity leave prior to the effective date of this Code but
who as at 1 May 2013 are still on maternity leave pursuant to the provisions of the Law on
Social Insurance, the period of entitlement to the maternity regime shall be implemented in
accordance with the provisions in this Code.

3. The labour regimes applicable to State employees, to members of the people's army and of the
people's security forces, to employees of other social organizations and cooperatives which are
regulated by other legal instruments, shall be governed by the provisions in this Code applicable to
such entities. The Government shall issue specific wage policies for application to State employees,
members of the people's army and members of the people's security forces.

Article 241 Effectiveness in the case of locations employing less than ten employees

Employers employing less than ten (10) employees must implement the provisions in this Code, but shall
be subject to reduction and exemption of a number of criteria and procedures as stipulated in Government
regulations.

Article 242 Detailed regulations and guidelines on implementation

The Government and other competent agencies shall provide detailed regulations and guidelines for
implementation of articles and clauses in this Code.

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This Code was passed by Legislature XIII of the National Assembly of the Socialist Republic of Viet Nam in
its 3rd session on 18 June 2012.

Chairman of the National Assembly


NGUYEN SINH HUNG

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