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4 In order to create favourable conditions for workers to find work or be self-employed, the
Government shall formulate policies and measures to provide training and retraining, production
and business guideline, and low interest loans from the National Employment Fund; it shall also
provide financial assistance to localities or branches which have high underemployment or
unemployment rates due to structural or technological changes.
Article 18*
1. Job introducing agencies shall have the duty to provide consultancy services and introduce jobs to
workers; to supply and recruit labour by requirements of employers; to collect and supply information
on the labour market; and to perform other duties in accordance with provisions of the law.
The Government shall stipulate conditions and procedures for the establishment and operation of job
introducing agencies.
1 The job introducing agencies shall permitted to charge fees, be considered for tax reduction or
exemption, and to organize trade training classes in accordance with the provisions of Chapter III
of this Code.
2 The Ministry of Labour, Invalids and Social Affairs shall carry out the State administration of the
activities of job introducing agencies.
Article 19
Any conduct of enticement, false promises and advertisements to deceive workers or to use the
employment service as a means to achieve unlawful purposes, is prohibited.
Chapter III VOCATIONAL TRAINING
Article 20
1 Any person shall have the right to choose freely an occupation and a place to learn that
occupation in accordance with his employment requirements.
2 An enterprise, organization or individual satisfying the conditions stipulated by law
shall be permitted to set up training facilities. The Government shall promulgate regulations on
the establishment of training facilities.
Article 21
1 A training establishment must be registered and operated in accordance with regulations on
vocational training. It shall be permitted to collect fees and must pay tax in accordance with the
provisions of the law.
2 Training establishments which cater for war invalids, injured military personnel, the disabled and
ethnic minorities or are located in areas with high rate of underemployment or unemployment,
traditional vocation centre and tutoring in factories or at home shall be considered for tax
reduction and exemption.
Article 22
Trainees in training establishments must be at least 13 years of age except in the case of trades in respect
of which the Ministry of Labour, Invalids and Social Affairs determines otherwise. Trainees must be in
good health so as to meet the requirements of the trade concerned.
Article 23
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1 An enterprise is responsible for carrying out programs to improve the occupational skills of its
employees and for re-training employees before transferring them to other jobs within the
enterprise.
2 An enterprise, which recruits trainees or apprentices for subsequent employment in the enterprise
for a period, specified in the training or apprenticeship contract shall not be required to register
but shall not be allowed to collect fees for such training. The training or apprenticeship period
shall be counted as a period of service with the enterprise. Where a trainee or an apprentice
directly engages or participates in production during the training or apprenticeship period, he shall
be paid a wage at a rate agreed between the two parties.
Article 24*
1 All vocational training must be accompanied by a written of oral contract entered into between
the trainee and the trainer or person representing the training establishment. Where the contract is
in writing, it must be done in duplicate, one for each party.
2 The main content, of a trade training contract must include the objectives and place of training,
the amount of fees, the period of training and the amount of compensation for breach of contract.
3 Where an enterprise recruits trainees for subsequent employment, the training contract must
include a commitment on the term of subsequent employment and must guarantee the signing of a
labour contract upon the completion of training. If, after the completion of training, the trainee
refuses to work for the enterprise as stipulated in the contract, he must pay compensation for the
training costs.
4. Where the training contract is terminated before the expiration date due to reasons of force majeure,
neither party shall be liable for payment of compensation.
Article 25
All enterprises, organizations and individuals are strictly prohibited from making use of apprenticeship
and training for profit and for the exploitation of labour, or to entice or compel trainees and apprentices
to engage in unlawful activities.
Chapter IV LABOUR CONTRACT
Article 26
A labour contract is an agreement between the employee and the employer specifying remunerated
employment, conditions ofwork and the rights and obligations of each party in the labour relationship.
Article 27*
1. A labour contract shall be concluded in any one of the following forms:
a) A contract with an indefinite term.
A contract with an indefinite term is the one in which both parties did not define a time limit or a date to
terminate the effect of the contract;
b) A contract with a definite term.
A contract with a definite term is the one in which both parties defined a time limit or a date to terminate
the effect of the contract within the duration from full 12 months to 36 months;
c) A contract for seasonal work or a specific task with a term of less than 12 months.
1 When a labour contract as indicated in sub clauses b and c of clause 1 of this Article is expired
and the worker continues to work, both parties shall have to conclude a new contract within 30
days from the date of the contract expiration; if there is no conclusion of a new labour contract,
the signed contract shall become a contract with indefinite term. Where both parties conclude new
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contract, which is a contract with a definite term, they shall only be permitted to conclude for
such one more time limit, after that if the worker still continues his /her work, a labour contract
with indefinite term must be signed.
2 Parties are prohibited from signing labour contracts for seasonal work or a specific task with a
term of less than 12 months to carry out work of a regular nature for more than 12 months, except
in the case of the temporary replacement of a worker who is called up for military service, are on
maternity leave or on other temporary leave.
Article 28
A labour contract shall be entered into in writing and must be made in duplicate with each party retaining
one copy. An oral agreement may be entered into in respect of certain temporary works, which have
duration of less than three months, and in the case of domestic helps. In the case of an oral agreement,
the parties are deemed to abide by the provisions of labour laws.
Article 29*
1 A labour contract must include the following main provisions: the nature of work, time of work,
time of rest, the amount of pay, the place of work, the duration of the contract, conditions
regarding occupational safety and hygienic and social insurance for the employee.
2 When a labour contract provides for conditions that in the whole or partly less favourable than
those stipulated by the labour legislation and the collective labour agreements or by the existing
work rules of the enterprise concerned or when it restricts other rights of the employees, the
whole contract or the relevant part must be amended or supplemented accordingly.
3 When a contract containing terms such as referred to in clause 2 of this Article comes to light, the
labour inspector shall provide guideline and require parties to amend or supplement the contract.
Where the parties refuse to amend or supplement the contract, the labour inspector has the right to
compel the deletion of such terms in the labour contract; the rights, obligations and interests of
the parties thereafter shall be settled in accordance with the provisions of the laws.
Article 30
1 The labour contract shall be entered into directly between the employee and the employer.
2 A labour contract may be signed between the employer and a person duly authorized to represent
a group of workers. In this case, the contract shall carry effect as if it were entered directly with
each employee
3 An employee may enter into one or several labour contracts with one or several employers on
condition that he is able to perform fully into the contracts entered.
4 The work stipulated in the labour contract must be carried out directly by the contracting worker
who shall not assign such work to another person without the consent of the employer.
Article 31*
In cases where an enterprise mergers, unifies, divides, separates or transfers the ownership, the right to
management, or to the use of property of the enterprise, the new employer shall be responsible for the
continued implementation of the contract entered into with the employees.
In the case of insufficient employment for all existing employees, there shall be a proposal on
appropriate measures for the utilization of the labour force in accordance with the provisions of the law.
The worker who had to terminate the labour contract as pursuant to the stipulations of this Article shall
be entitled to the allowance for loss of work in accordance with the provisions of clause 1 of Article 17
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of this Code.
Article 32
The employer and the employee shall agree on probation work, the duration of the probation period, and
the rights and obligations of the parties thereof. The wage of the worker during such probation period
must be at least equal to 70 per cent of the normal wage for the work in question. The probation period
shall not exceed 60 days in respect of highly specialized technical work, or 30 days in respect of other
work.
During a probation period, each party shall be entitled to terminate the probation work agreement without
giving advance notice and shall not be obliged to pay compensation if the work performed does not meet
the agreed requirements. If the work performed meets the agreed requirements, the employer must accept
the worker for regular employment as previously agreed.
Article 33*
1 The labour contract takes effect upon the date of its conclusion or, the date agreed upon by the
contracting parties or the date the worker started his/her job.
2 During the time of implementing the labour contract, any party who wishes to modify the
contents thereof shall give notice of its intention to the other party at least three days in advance.
The modification of the labour contract may be effected by way of amendments to the existing
labour contract or by the conclusion of a new labour contract. Where both parties fail to agree on
the amendments to existing labour contract or to the conclusion of a new labour contract, they
shall have to continue to implement the concluded labour contract or they shall terminate the
contract in accordance with the provisions of clause 3 of Article 36 of this Code.
Article 34
1 In cases of force majeure or due to business production demand, an employer has the right to
temporarily transfer an employee to another work different from the latter's occupation provided
that the period of assignment does not exceed 60 days in one year.
2 When temporarily transferring a employee to work different from the latter's occupation, an
employer must give the employee at least three days notice and indicate the duration of the
temporary transfer, and must assign temporary work that is suitable to the health and gender of
the employee.
3 While being transferred temporarily to another work as stipulated in clause 1 of this Article, an
employee shall be paid a wage at a rate appropriate to the new work. If the wage for the new work
is less than the former wage the employee shall be entitled to keep the previous wage for a period
of 30 working days. The new wage shall be equal to at least 70 per cent of the previous wage but
not less than the minimum wage stipulated by the State.
Article 35
0 1. The labour contract shall be temporarily suspended in the following cases:
a) The employee is called up for military service or for other civic obligations as stipulated by the law;
b) The employee is under temporary arrest or detainment;
c) Other circumstances agreed upon by both sides.
2 Where a labour contract is temporarily suspended in the cases stipulated in sub- clauses a and c of
clause 1 of this Article, the employer must re-employ the employee at the end of that suspension
period.
3 Where a labour contract is suspended due to the employee being temporarily arrested
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or detained, the re-employment of the employee at the end of the suspension period shall be
determined by the Government.
Article 36
A labour contract shall be terminated in the following circumstances:
1 The contract expires;
2 The tasks stated in the contract have been completed;
3 Both parties agree to terminate the contract;
4 The employee is sentenced to imprisonment or is prohibited from resuming the former
employment in accordance with a decision of the Court;
5 The employee dies or is declared missing by the Court.
Article 37*
1. An employee employed under a labour contract with a definite term of full 12 months to 36 months,
or a contract for seasonal work or a specific task of less than 12 months, shall be entitled to unilaterally
terminate the contract prior to expiry in any one of the following circumstances:
a) The employee is not assigned to the work or workplace or is not provided with the work conditions
agreed to in the contract;
b) The employee is not paid in full or in time agreed the wage due pursuant to the contract;
c) The employee is subject to maltreatment or to forced labour;
d) The employee can not carry out the contract further due to averred personal or family difficulties;
e) The employee is elected to full-time function in a representative public office or is appointed to an
office in the State apparatus;
f) A female employee is pregnant and must stop working by doctor's orders;
g) The employee is ill or is victim of an accident and no recovery of working ability after having
received treatment for 3 consecutive months in respect of a labour contract with a definite term of full 12
months to 36 months, or for a quarter of the term of the contract in respect of a contract for seasonal
work or a specific task of less than 12 months.
1 Where a labour contract is unilaterally terminated in accordance with the provisions of
clause 1 of this Article, the employee must give notice to the employer:
a) In the cases stipulated in sub-clauses a, b, c and g: at least three days notice;
b) In the cases stipulated in sub-clauses d and e: at least 30 days in respect of a contract
with a definite term of full 12 months to 36 months; at least three days in respect of a contract for
sensational work or a specific task of less than 12 months;
c) In the case stipulated in sub-clause f: a period of notice as stipulated in Article 112 of
this Code.
2 An employee who works under a labour contract with an indefinite term, shall have the right to
unilaterally terminate the contract, provided that he gives the employer at least 45 days notice; the
employee is ill or victim of an accident and having received treatment for 6 consecutive months
must give at least three day notice.
Article 38*
l. The employer has the right to unilaterally terminate the labour contract in any of the
following circumstances:
a) The employee regularly fails to fulfill the task assigned by contract;
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b) An employee is disciplined and dismissed according to the provisions of Article 85 of this Code;
c) An employee is ill and no recovery of working ability is in sight after having received treatment for 12
consecutive months in respect of a labour contract with an indefinite term, or for 6 consecutive months in
respect of a contract with a definite term of full 12 months to 36 months, or for more than half the
duration of the contract in respect of a contract for seasonal work or a specific task of less than 12
months. Upon the recovery of the employee, the consideration shall be given to resuming the labour
contract;
d) In case of natural disasters, fire or other cases of force majeure defined by the Government, when the
employer has made every effort to overcome difficulties but is nevertheless compelled to make cuts in
production and workforce;
e) The enterprise, body or organization ceases activities.
1 Prior to the unilateral termination of a labour contract in accordance with sub-clauses a, b and c of
clause I of this Article, the employer must discuss and reach an agreement with the Executive
Committee of the enterprise trade union. In case of disagreement, both parties must submit a
report to the competent body or organization. Only after a period of 30 days as from the date of
giving notice to the local labour authority, the employer shall have the right to make a decision
and be responsible for such a decision. In case of continued disagreement with the decision of the
employer, both the Executive Committee of the enterprise trade union and the employee shall
have the right to request the settlement of a labour dispute in accordance with the procedure
stipulated by the law.
2 When unilaterally terminating a labour contract, with the exception of the case stipulated in sub-
clause b of clause 1 of this Article, the employer must give notice to the employee: a) At least 45
days in respect of a labour contract with an indefinite term; b) At least 30 days in respect of a
labour contract with a definite term of full 12 months to 36 months; c) At least 3 days in respect
of a labour contract for seasonal work or a specific task of less than 12 months.
Article 39
The employer shall not unilaterally terminate a labour contract in the following cases:
1 The employee is under treatment or care as prescribed by doctors for sickness, work accident or
occupational disease, except the cases stipulated in sub clause c and e of clause I of Article 38 of
this Code;
2 The employee is on annual leave, personal leave of absence, or any other type of leave permitted
by the employer;
3 The female employee in cases referred to in clause 3 Article 111 of this Code.
Article 40
Each party may renounce its intention of unilateral termination of a labour contract before the notice
period has expired. Upon the expiration of the notice period, either party shall have the right to terminate
the contract.
Article 41*
1. When unilaterally terminating a labour contract in infringement of the law, the employer must re-
employ the employee to the work as agreed upon in the contract and pay a compensation equal to the
amount of wage and additional payment to wage (if any), corresponding to the period the worker was not
allowed to work, and an addition of at least two month wages plus allowances, (if any).
A worker not wishing to return to work shall receive, in addition to such compensation stipulated in the
first section of this paragraph, a severance allowance in accordance with the provisions of clause 1 of
Article 42 of this Code.
In the case the employer does not want to re-employ the employee and the employee also agrees with
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such a decision, both parties can negotiate upon the additional compensation apart from sums indicated in
the first section of this clause as well as in the provisions of Article 42 of this Code in order to terminate
the labour contract.
1 When unilaterally terminating a labour contract in infringement of the law, the worker is not
entitled to the above mentioned severance allowance and shall pay the employer a compensation
equal to the amount of a half of his/her monthly wage rate plus salary allowance, if any.
2 When unilaterally terminating a labour contract, the employee shall be liable to payment of
compensation for costs of training, if any, in accordance with Government regulations.
3 Any party unilaterally terminating a labour contract and not observing the provisions on giving
notice must pay the other party a compensation equal to the amount of wage corresponding to the
days of notice not given.
Article 42*
1 When terminating the labour contract of an employee who has been regularly employed in an
enterprise, office or organization for full and more than 12 months, the employer must pay such
employee a severance allowance at the rate of half a month's salary plus salary allowance, if any,
for each year of service.
2 When a labour contract is terminated as provided for sub-clauses a and b, clause 1 of Article 85 of
this Code, the employee shall not be entitled to any severance allowance.
Article 43
Within seven days from the date of termination of the labour contract, the two parties are responsible for
settling all questions relating to the rights and interests of each party. In exceptional circumstances, this
period may be extended but is not exceed 30 days.
In the case of bankruptcy of the enterprise, questions relating to the rights and interests of the
employees shall be settled in accordance with the provisions of the Law on Business Bankruptcy.
The employer shall state in writing the reasons for the termination of the labour contract in the worker's
labour book and shall be responsible for returning the labour book to the employee. Except what is
stipulated in the labour book, the employer shall not make any additional remark detrimental to the
worker in finding new employment.
Chapter V: COLLECTIVE LABOUR AGREEMENT
Article 44
0 1. A collective labour agreement (hereinafter referred to in short as collective agreement) is a
written agreement concluded between the workers' collective and the employer concerning
conditions of work and employment, and the rights and interests of each party to the labour
relationship. A collective agreement is negotiated and signed by the representative of the
worker collective and the employer on the principles of voluntariness, equality and publicity.
2 The terms and conditions of the collective agreement shall not be contrary to the
provisions of labour laws, and other laws. The State encourages the conclusion of collective
agreements laying down provisions more favourable to the workers than those stipulated in labour
laws.
Article 45*
1 The representatives of the parties to the collective bargaining shall be:
a) The Executive Committee of the enterprises trade union or a provisional trade union Executive
Committee, on the side of the labour collective;
b) On the employer side, the Director of the enterprise, or a person so authorized by the enterprise
works rules or by the Director of the enterprise, in writing. The number of representatives of each
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party to the collective bargaining shall be determined by mutual agreement.
2 The representative who signs the collective agreement on behalf of the worker collective shall be
the Chairman of the Executive Committee of the trade union of the enterprise or a person so
authorized in writing by the Executive Committee. The representative who signs on behalf of the
employer shall be the Director of the enterprise or a person so authorized by him in writing.
3 A collective agreement shall only be signed if the negotiated contents of such agreement are
approved by more than 50 per cent of the members of the labour collective in the enterprise.
Article 46
1 Each party shall have the right to request the signing of a collective agreement and propose its
terms and conditions. No later than 20 days after receiving the request, the receiving party must
accept to bargain and agree on a date to start bargaining.
2 The main provisions of the collective agreement shall include commitments in respect of
employment and guarantee of employment; time of work and time of rest; wages, bonuses and
allowances; working norms; occupational safety and hygienic; and social insurance for the
employees.
Article 47*
1. The signed collective agreement must be made in four copies:
a) One for the employer;
b) One for the Executive Committee of the trade union of the enterprise;
c) One to be sent to the upper echelon trade union by the Executive Committee of the enterprise's
trade union;
d) One to be sent by the employer for registration to the labour authority of the province or the city
coming directly under the central administration where the enterprise's head office is located,
within 10 days from the date of signing.
2. The collective agreement shall become effective as from the agreed date specified in collective
agreement, or from the date of signing of the agreement if there is no specification by both parties.
Article 48*
1 The collective agreement shall be partially void if one or a number of provisions in the agreement
are in infringement of the laws.
2 The collective agreement shall be void in its entirety in the following circumstances:
a) The terms and conditions of the agreement are contrary to the laws;
b) The person signing the agreement is not duly authorized;
c) The proper procedure is not strictly observed.
3. The labour authority of the province or the city coming directly under the central administration shall
have the right to declare a collective agreement partially or wholly void as stipulated in clause 1 and 2 of
this Article. In respect of collective agreements stipulated in sub-clause b and c of clause 2 of this
Article, and where the terms of the agreement are beneficial to the workers, the labour authority of the
province or the city coming directly under the central administration shall instruct the parties to proceed
again in conformity with legal requirements within 10 days from the date of being instructed; or shall
declare the agreement null and void if the parties fail to carry out such instructions. As such, the rights,
obligations and interests of the parties shall be settled hereafter in accordance with the provisions of the
laws.
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Article 49
1 On taking effect, the collective agreement must be brought by the employer to the notice of all
workers in the enterprise. All personnel including persons engaged after the agreement was
concluded shall be responsible for the full implementation of the agreement.
2 Where rights and interests of the employees as stipulated in labour contracts are less favourable to
the employees than provided for in the collective agreement, the corresponding provisions of the
collective agreement must be implemented. All provisions of the work rule must be amended in
accordance with the provisions of the collective agreement.
3 When a party considers that the other party fails to fully implement, or breaches the provisions of
the collective agreement, it shall have the right to demand full compliance with the agreement and
both parties must together examine and settle the matter. If no settlement is reached, each party
shall have the right to apply for settlement of the collective labour dispute under the procedure
stipulated by the law.
Article 50
A signed collective agreement shall be for duration of one to three years. Where a collective agreement
is concluded for the first time in an enterprise, it may be concluded for duration of less than one year.
Each party shall be entitled to ask for an amendment and supplementation to the collective agreement
only after three months of implementation as from the date of its taking effect, in respect of a collective
agreement concluded for a period of less than one year, and after six months of implementation in
respect of an agreement concluded for a period of one to three years. The procedure for amendment and
supplementation to the collective agreement shall be the same as for its conclusion.
Article 51
Prior to the expiry of a collective agreement, both parties may bargain for the extension of the duration
of the agreement or for a new agreement. Where the collective agreement expires during the bargaining
process, it shall nevertheless continue to be effective and binding. If the bargaining remains inconclusive
three months after the expiration of the agreement, it shall tacitly cease effect.
Article 52*
1 In the case of a merger, unification, division or separation of the enterprise, of a transfer of
ownership, of the right to management, or to the use of property of the enterprise, the new
employer and the Executive Committee of the trade union shall consider the possibility of
continuing to implement the collective agreement, of amending, modifying it or of concluding a
new collective agreement, on the basis of the proposal on appropriate measures for the utilization
of the labour force.
2 In case the collective agreement becomes void due to the enterprise ceasing its activities, the
workers' rights and interests shall be settled according to Article 66 of this Code.
Article 53
Any expenses incurred in bargaining and in signing, registering, amending and supplementing to, as well
as publishing collective agreements shall be borne by the employer.
The representatives of the workers' collective who are employed by the enterprise shall be entitled to
payment of wage during the time of their participation in negotiating and signing of the collective
agreement.
Article 54
The provisions of this Chapter shall govern to the bargaining for and signing of collective agreements at
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the industry level.
Chapter VI: WAGES
Article 55
The wage of an employee shall be agreed upon between the parties in the labour contract and paid
according to the productivity, quality and efficiency of the work performed. The wage of an employee
must not be lower than the minimum wage rates stipulated by the State.
Article 56
The minimum wage is fixed on the basic of the cost of living to ensure that an employee performing the
most elementary work in normal working conditions recuperates his/her basic work capacity and partly
accumulates reserves for regenerating enhanced capacity. The minimum wage serves as a reference for
calculation of the wage rates for other categories of work.
The Government shall decide and promulgate for each period a general minimum wage rate, minimum
wage rates for different areas and for various branches of trades, after having sought the views of the
Vietnam General Confederation of Labour and of representatives of employers. When the cost of living
index increases, entailing a reduction in the workers' real wages, the Government shall readjust the
minimum wage rates accordingly to safeguard the workers' real wages.
Article 57*
After consultation with Vietnam General Confederation of Labour and the representatives of the
employers, the Government shall stipulate the principles for developing wage scales, wage tables and
labour norms for employers to use in developing and applying them suitably to production and business
conditions of enterprises; the Government shall determine wage scales and wage tables for state-owned
enterprises. When developing wage scales, wage tables, and labour norms, the' employers have to consult
the Executives Committees of enterprise trade union; the wage scales and wage tables shall have to be
registered with the labour authority of the province or the city coming directly under the central
administration where the employer's head office is located, and shall be made public in the enterprise.
Article 58
1 The employer shall have the right to select the method of payment: on a time basis (hourly, daily,
weekly, or monthly), on a piece-work basis, or by the job, provided that the method of payment
adopted is regularly maintained over a given period and must be notified to the employee.
2 An employee whose wage is calculated by reference to hours, days, or weeks shall be paid right
after completion of the hour, day, or week of work in question or be paid accumulated wages as
agreed by the parties, but at least once every 15 days.
3 An employee whose wage is calculated by reference to months shall be paid monthly or half-
monthly.
4 An employee whose wage is calculated on the basis of products produced shall be paid as agreed
by the two parties; if the work extends over several months, the advance shall be paid each month
to the employee corresponding to the volume of work completed within the month.
Article 59
1 Wages shall be paid to employee directly, in full, at the due time and at the workplace. In special
case where payment of wage has to be delayed, such delay must not exceed one month, and the
employer must pay to the workers compensation at least equal to the interest accruing from the
amount due by application of the interest rate for saving deposits announced by the State Bank at
the time when the wage was due.
2 Wages shall be paid in cash. The employer and the employee may agree on payment of wage
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