DRAFT DECREES AMENDING DECREE 5/2015 AND 95/2013 RELATED TO LABOUR CODE

The 2 Draft Decrees provide changes on calculation of the severance allowance, disciplinary proceedings, disciplinary measures, and higher fines in case of administrative violations.

24 May 2018

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LEGAL UPDATE

A Draft Decree amending and supplementing Decree 05/2015/ND-CP dated 12 January 2015 and a Draft Decree amending 95/2013/ND-CP dated 22 August 2013 related to the Labour Code have been issued. It is not known yet what the intended date of entering into force is of both Drafts.

We set out the key points of the Draft Decrees below.

1. Severance allowance

Pursuant to the Draft Decree, the time to calculate the severance allowance will no longer include:

- the probation and apprenticeship period; and

- the leave period that is are covered by the provisions of the Law on Social Insurance[1].

2. Disciplinary procedure

According to the Labour Code, a disciplinary meeting can be held when all required attendees are present at the meeting, or when the employer has informed the required attendees 3 times, but they fail to attend the meeting.

Pursuant to the Draft Decree the employer can hold a disciplinary meeting after notifying the required attendees 1 time in case the employer would like to dismiss an employee who is absent from work for a total of 5 days in a month or 20 days in a year without proper reasons.

Furthermore, the employer does not have to wait until the end of the month or the year to hold the disciplinary procedure, the employer may start disciplinary proceedings once the employee has been absent from work for a total of 5 days in a month or 20 days in a year without proper reasons.

3. Authorised person handling disciplinary measures

Currently, only the legal representative can make a decision on any form of disciplinary proceedings. Someone who is authorised by the legal representative is entitled to handle the disciplinary proceedings only in the form of a reprimand.

However, pursuant to the Draft Decree, the authorised person will be entitled to handle any form of disciplinary measure.

4. Higher fines

The Draft Decree on penalties for administrative violations of regulations on labour, social insurance, and overseas manpower supply has been issued. The most significant point of this Draft Decree is that the fine for each violation is expected to be increased.

For more information, please contact:

Mark Oakley / Managing Partner

mark.oakley@acsvlegal.com

Hieu Pham / Special Counsel

hieu.pham@acsvlegal.com

© 2018 ACS Legal Vietnam Company Limited – All rights reserved

This legal update is not an advice and should not be treated as such.

Open in pdf: Update on Draft Decrees amending Decree 5/2015 and 95/2013 on Labour Code


[1] For example: maternity leave, sick leave, retirement.

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