Law Amending and Supplementing Certain Provisions of the Labour Code No. 35/2002/QH10

LAW

OF THE NATIONAL ASSEMBLY NO. 35/2002/QH10 ON APRIL 2, 2002
AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE LABOUR CODE

Pursuant to the Constitution of the Socialist Republic of Vietnam in 1992, amended and supplemented by Resolution No. 51/2001/QH10 dated December 25, 2001 of the National Assembly, tenth session;

This Law amends and supplements certain provisions of the Labour Code which was adopted at the fifth session of the Ninth National Assembly on June 23, 1994.

Article 1

Amending and supplementing the Preamble and certain Articles of the Labour Code:

1. The last part of the Preamble is amended and supplemented as follows:

"The Labour Code protects the right to work, interests, and other rights of workers, while also protecting the legitimate rights and interests of employers, creating conditions for harmonious and stable labour relations, contributing to the development of creativity and talent of intellectual and manual workers, and managers, aiming to achieve productivity, quality, and social progress in labor, production, services, efficiency in the use and management of labor, and contributing to industrialization and modernization of the country towards the goal of a wealthy people, a strong nation, a fair, democratic, and civilized society."

2. Article 18 is amended and supplemented as follows:

"Article 18

1. Employment service organizations have the duty to provide counseling and job placement for workers; supply and recruit labor according to the requirements of employers; collect and provide information about the labor market and perform other tasks as prescribed by law.

The Government shall stipulate the conditions, procedures for establishment and operation of employment service organizations.

2. Employment service organizations are entitled to charge fees, be eligible for tax reduction or exemption, and organize vocational training as provided for in Chapter III of this Code.

3. The Ministry of Labor, Invalids and Social Affairs shall implement state management over employment service organizations."

3. Article 27 is amended and supplemented as follows:

"Article 27

1. Employment contracts must be concluded under one of the following types:

a) Indefinite-term employment contract.

An indefinite-term employment contract is a contract where both parties do not specify the term or the date of termination of the contract.

b) Fixed-term employment contract.

A fixed-term employment contract is a contract where both parties specify the term or the date of termination of the contract within a period from twelve months to thirty-six months.

c) Seasonal or project-based employment contract with a term of less than twelve months.

2. When the employment contracts specified in points b and c of Clause 1 of this Article expire but the worker continues working, within thirty days from the expiration date of the contract, both parties must sign a new employment contract; if they do not sign a new contract, the previously signed contract becomes an indefinite-term employment contract. In case both parties sign a new fixed-term contract, it can only be extended once, and if the worker continues working thereafter, a new indefinite-term employment contract must be signed.

3. It is not allowed to conclude a seasonal or project-based employment contract with a term of less than twelve months for regular work lasting twelve months or more, except in cases where it is necessary to temporarily replace workers who are performing military service, taking maternity leave, or engaging in other temporary work."

4. Clause 3 of Article 29 is amended and supplemented as follows:

"3. In case of discovering that the employment contract contains provisions as stipulated in Clause 2 of this Article, the Labour Inspectorate shall guide and require the parties to amend and supplement the contract accordingly. If the parties do not amend and supplement the contract, the Labour Inspectorate has the authority to compel the removal of such provisions; the rights, obligations, and interests of the parties shall be resolved in accordance with the law."

5. Article 31 is amended and supplemented as follows:

"Article 31

In cases of merger, consolidation, division, separation of enterprises, transfer of ownership, management, or use rights of enterprise assets, the subsequent employer must bear responsibility for continuing to fulfill the employment contract with the worker. In cases where all existing workers cannot be retained, a plan for using labor in accordance with the law must be established.

Workers must terminate their employment contract in accordance with this provision and receive unemployment assistance as stipulated in Clause 1 of Article 17 of this Code."

"Article 33. After being approved by the Chairman of the Marking Board, the Director of the Department of Examinations and Quality Assurance in Education shall be responsible for announcing the official examination results and issuing certificates to students who have won awards in the national excellent student selection examination for Grade 12 of secondary schools, to be completed before May 31 of the year the examination takes place. Certificates will only be issued once. In case of loss of certificates, they will not be reissued but only confirmed in the student's application form."

"Article 33

1. The employment contract takes effect from the date of conclusion or from the date agreed upon by both parties or from the date the worker starts working.

2. During the performance of the employment contract, if either party requests to change the content of the contract, they must notify the other party at least three days in advance. Changes to the content of the employment contract are carried out by amending and supplementing the concluded contract or concluding a new employment contract. In case the two parties cannot agree on amending and supplementing or concluding a new contract, the concluded contract will continue to be performed or terminated in accordance with Clause 3 of Article 36 of this Code."

7. Clause 37 shall be amended and supplemented as follows:

"Article 37

1. Workers employed under a fixed-term employment contract from twelve months to thirty-six months, or a seasonal or project-based employment contract with a term of less than twelve months, have the right to unilaterally terminate the contract before its expiration in the following circumstances:

a) Not being assigned to the agreed job or workplace or not being guaranteed the agreed working conditions in the contract;

b) Not receiving full compensation or timely payment of compensation as agreed in the contract;

c) Being mistreated or forced labor;

d) Having genuine difficult circumstances that prevent them from continuing to fulfill the contract;

đ) Being elected to serve in specialized positions in representative bodies or appointed to hold positions in the state apparatus;

e) Female workers must take leave due to pregnancy as directed by a physician;

g) Workers suffer illness or injury and have been treated for three consecutive months for those working under a fixed-term employment contract from twelve months to thirty-six months, and one quarter of the contract term for those working under a seasonal or project-based employment contract with a term of less than twelve months, and their ability to work has not recovered.

2- When unilaterally terminating a labor contract as provided for in Clause 1 of this Article, the worker must notify the employer at least:

a) For the cases stipulated in Points a, b, c, and g: at least three days;

b) For the cases stipulated in Points d and đ: at least thirty days if it is a fixed-term labor contract from twelve to thirty-six months; at least three days if it is a seasonal or specific task labor contract with a term under twelve months;

c) For the case stipulated in Point e: according to the time limit prescribed in Article 112 of this Code.

3- Workers who work under an indefinite-term labor contract have the right to unilaterally terminate their labor contract but must notify the employer at least forty-five days in advance; workers who are sick and have been treated continuously for six months must notify at least three days in advance.

8. Article 38 is amended and supplemented as follows:

Article 38

1- The employer has the right to unilaterally terminate a labor contract in the following cases:

a) The worker frequently fails to complete tasks as specified in the contract;

b) The worker is dismissed according to the provisions of Article 85 of this Code; from state budget funds under its management. Appropriate disciplinary measures shall be taken against individuals and units seriously violating the implementation of management, payment, and use of project management costs.

c) A worker working under an indefinite-term labor contract who has been sick and treated continuously for twelve months, a worker working under a fixed-term labor contract from twelve to thirty-six months who has been sick and treated continuously for six months, and a worker working under a seasonal or specific task labor contract with a term under twelve months who has been sick and treated for more than half the term of the labor contract, and whose ability to work has not recovered. When the health of the worker recovers, they will be considered for re-contracting a labor contract;

d) Due to natural disasters, fires, or other force majeure circumstances as defined by the Government, where the employer has taken all measures to remedy but still must reduce production and decrease job positions;

đ) Enterprises, agencies, organizations cease operations.

2- Before unilaterally terminating a labor contract as provided for in Points a, b, and c of Clause 1 of this Article, the employer must discuss and reach agreement with the Trade Union Committee of the workplace. In case of disagreement, both parties must report to the competent authority. After thirty days from the date of notification to the local labor administration agency, the employer may decide and bear responsibility for their decision. If there is disagreement with the employer's decision, the Trade Union Committee and the worker have the right to request resolution of the labor dispute according to the procedures prescribed by law.

3- When unilaterally terminating a labor contract, except for the case stipulated in Point b of Clause 1 of this Article, the employer must notify the worker at least:

a) Forty-five days for an indefinite-term labor contract;

b) Thirty days for a fixed-term labor contract from twelve to thirty-six months;

c) Three days for a seasonal or specific task labor contract with a term under twelve months.

9. Article 41 is amended and supplemented as follows:

Article 41

1- In the event that the employer unilaterally terminates a labor contract contrary to the law, they must accept the worker back to perform the work as specified in the signed contract and must compensate an amount corresponding to the salary and allowances (if any) for the days the worker was unable to work, plus at least two months' salary and allowances (if any).

In the event that the worker does not want to return to work, in addition to the compensation amount stipulated in Paragraph 1 of this Clause, the worker shall also receive assistance according to the provisions of Article 42 of this Code.

In the event that the employer does not want to accept the worker back to work and the worker agrees, in addition to the compensation amount stipulated in Paragraph 1 of this Clause and assistance stipulated in Article 42 of this Code, both parties shall agree on additional compensation for the worker to terminate the labor contract.

2- In the event that the worker unilaterally terminates a labor contract contrary to the law, they shall not receive termination benefits and must compensate the employer half a month's salary and allowances (if any).

3- In the event that the worker unilaterally terminates a labor contract, they must compensate for training costs (if any) as prescribed by the Government.

4- In the event of unilateral termination of a labor contract, if the prior notice period is violated, the party in violation must compensate the other party an amount corresponding to the salary of the worker for the days without prior notice.

10. Clause 1 of Article 45 is amended and supplemented as follows:

"1- Representatives negotiating collective agreements of both sides include:

a) On the side of the trade union, the Trade Union Committee of the workplace or the Temporary Trade Union Committee;

b) On the side of the employer, the General Director of the enterprise or a person authorized according to the enterprise's organizational charter or with a power of attorney from the General Director of the enterprise.

The number of representatives negotiating collective agreements of each side is agreed upon by both sides.

11. Article 47 is amended and supplemented as follows:

Article 47

1- A signed collective agreement must be made in four copies, including:

a) One copy kept by the employer;

b) One copy kept by the Trade Union Committee of the workplace;

c) One copy sent by the Trade Union Committee of the workplace to the higher-level trade union;

d) One copy sent by the employer to register with the provincial or municipal labor administration agency where the enterprise's main office is located within ten days from the signing date.

2- A collective agreement becomes effective from the date agreed upon by both parties in the agreement, and if no such date is agreed upon, it becomes effective from the date of signing.

12. Article 48 is amended and supplemented as follows:

Article 48

1- A collective agreement is deemed partially void when one or several clauses in the agreement contravene the provisions of the law.

2- A collective agreement is deemed entirely void in any of the following cases:

a) The entire content of the agreement contravenes the law;

b) The signatories do not have the appropriate authority;

c) It is not conducted in accordance with the prescribed procedures for signing.

Article 3 - The provincial state management agency on labor, directly under the central government, has the right to declare collective agreements void in part or entirely according to the provisions of Clause 1 and Clause 2 of this Article. For collective agreements in cases stipulated at Point b and Point c of Clause 2 of this Article, if the signed content is beneficial to workers, the provincial state management agency on labor, directly under the central government, shall guide the parties to redo within ten days from the date of receiving guidance; if not redone, they will be declared void. Rights, obligations, and benefits of the parties recorded in the voided collective agreement shall be resolved according to the provisions of the law.

Article 52, Clause 1 is amended and supplemented as follows:

"1- In cases of merger, consolidation, division, separation of enterprises, transfer of ownership, management rights, or usage rights of enterprise assets, the employer and the Trade Union Branch Committee shall base on the labor utilization plan to consider continuing implementation, amending, supplementing, or signing new collective agreements."

Article 57 is amended and supplemented as follows:

Article 57

After consulting with the Vietnam General Confederation of Labor and representatives of employers, the Government shall prescribe principles for building wage scales, salary tables, and labor norms for employers to establish and apply in accordance with the production and business conditions of the enterprise; prescribe wage scales and salary tables for state-owned enterprises.

When establishing wage scales, salary tables, and labor norms, employers must consult the opinions of the Trade Union Branch Committee; the wage scale and salary table must be registered with the provincial state management agency on labor, directly under the central government, where the employer's main office is located, and publicly announced within the enterprise. the state management of labor in the province or centrally governed city where the employer's main office is located and publicly announced within the enterprise."

15. Article 61 is amended and supplemented as follows:

Article 61

1- Workers who work overtime shall be paid wages based on the hourly wage rate or the wage rate of the job being performed as follows:

a) On regular days, at least 150%.

b) On weekly rest days, at least 200%;

c) On holidays or rest days with pay, at least 300%.

If working overtime during nighttime, additional payment shall be made according to the provisions of Clause 2 of this Article.

If workers are granted compensatory leave for overtime hours worked, then the employer only needs to pay the difference in money compared to the wage calculated based on the hourly wage rate or the wage rate of the job being performed on a regular working day.

2- Workers who work during nighttime as prescribed in Article 70 of this Code shall be paid an additional amount of at least 30% of the wage calculated based on the hourly wage rate or the wage rate of the job being performed during daytime.

Article 64 is amended and supplemented as follows:

Article 64

Based on the annual production and business results of the enterprise and the degree of completion of tasks by workers, the employer shall award bonuses to workers employed in the enterprise.

The bonus regulations shall be decided by the employer after consulting the opinions of the Trade Union Branch Committee.

Article 66 is amended and supplemented as follows:

Article 66

In cases of merger, consolidation, division, separation of enterprises, transfer of ownership, management rights, or usage rights of enterprise assets, the subsequent employer must bear responsibility for paying wages and other benefits to workers transferred from the old enterprise. In the case of enterprise bankruptcy, the wages, termination allowances, social insurance, and other benefits of workers according to collective agreements and labor contracts already signed are the first priority debts in the order of repayment.

Article 69 is amended and supplemented as follows:

Article 69

Employers and workers may agree to work overtime, but not exceeding four hours in a day, 200 hours in a year, except for some special cases allowed to work overtime up to 300 hours in a year as prescribed by the Government after consulting the opinions of the Vietnam General Confederation of Labor and representatives of employers.

Article 84, Clause 1 is amended and supplemented as follows:

"1- Workers violating labor discipline, depending on the level of fault, shall be handled in one of the following forms:

a) Reprimand;

b) Extending the wage increase period not exceeding six months or transferring to another job with a lower wage for a maximum period of six months or demotion;

c) Dismissal."

Article 85 is amended and supplemented as follows:

Article 85

1- The form of disciplinary action dismissal can only be applied in the following cases:

a) Workers committing theft, embezzlement, leaking technological, business secrets, or other actions causing serious damage to the property or interests of the enterprise;

b) Workers who have been subject to disciplinary action of extending the wage increase period or transferring to another job and reoffend during the period before the disciplinary record is removed, or who have been subject to disciplinary action of demotion and reoffend;

c) Workers voluntarily leaving their jobs for five consecutive days in a month or twenty consecutive days in a year without a valid reason.

2- After dismissing a worker, the employer must inform the provincial state management agency on labor, directly under the central government.

Article 88 is amended and supplemented as follows:

Article 88

1- A person who is reprimanded shall automatically have their disciplinary record removed three months after the disciplinary action, and a person who is subject to disciplinary action of extending the wage increase period or transferring to another job shall automatically have their disciplinary record removed six months after the disciplinary action, provided that they do not reoffend.

2- A person who is subject to disciplinary action of extending the wage increase period or transferring to another job and has shown improvement halfway through the disciplinary period, may have their disciplinary period reduced upon review by the employer.

Article 96, Clause 2 is amended and supplemented as follows:

"2- Production, use, storage, transportation of various types of machinery, equipment, materials, energy, electricity, chemicals, plant protection products, changes in technology, and importation of new technology must be carried out in accordance with occupational safety and health standards. Machinery, equipment, materials, substances with strict requirements for occupational safety and health must be registered and inspected according to the regulations of the Government."

Article 107, Clause 3 is amended and supplemented as follows:

"3- The employer shall be responsible for compensating at least thirty months' salary and wage allowances (if any) to employees whose ability to work has been reduced by 81% or more, or to the relatives of deceased employees due to workplace accidents or occupational diseases not caused by the fault of the employee. In cases where the accident or occupational disease is caused by the fault of the employee, they shall still be entitled to a compensation amounting to at least twelve months' salary and wage allowances (if any)."

The Government shall specify the responsibilities of employers and the level of compensation for workplace accidents and occupational diseases for employees whose ability to work has been reduced from 5% to less than 81%.

24. Clause 3 of Article 111 shall be amended and supplemented as follows:

"3- The employer shall not terminate the employment contract unilaterally or dismiss female employees on the grounds of marriage, pregnancy, maternity leave, or caring for children under 12 months old, except in the case of business cessation."

During pregnancy, maternity leave, or caring for children under 12 months old, female employees shall be temporarily exempted from unilateral termination of the employment contract and the statute of limitations for disciplinary actions shall be extended, except in the case of business cessation.

25. Article 121 shall be amended and supplemented as follows:

"Article 121"

Employers may only employ underage workers in jobs suitable to their health to ensure physical, intellectual, and personality development, and shall have the responsibility to care for and support underage workers in terms of labor conditions, wages, health, and education during the working process.

It is prohibited to employ underage workers in heavy, dangerous jobs, or those involving toxic substances, or in workplaces and jobs that negatively affect their personalities according to the list issued by the Ministry of Labor, Invalids and Social Affairs and the Ministry of Health.

26. Clause 2 of Article 129 shall be amended and supplemented as follows:

"2- Employees shall enjoy rights and obligations related to inventions, utility models, industrial designs, and other industrial property objects created individually or jointly during the performance of the employment contract in accordance with the laws on industrial property, consistent with the signed contract."

27. Article 132 shall be amended and supplemented as follows:

"Article 132"

1- Foreign-invested enterprises may directly recruit Vietnamese workers or through job placement organizations and must report the list of recruited workers to the local state management agency for labor.

For high-skilled jobs or managerial positions that Vietnamese workers cannot yet meet, enterprises may recruit a certain proportion of foreign workers for a specified period but must have training programs and plans to enable Vietnamese workers to perform these jobs and replace them within the stipulated timeframe as prescribed by the Government.

2- International organizations or foreign entities, and foreign individuals residing in Vietnam may recruit Vietnamese and foreign workers in accordance with the regulations of the Government.

3- The minimum wage for Vietnamese workers in the cases provided for in Article 131 of this Code shall be determined and announced by the Government after consulting the Vietnam General Confederation of Labor and representatives of employers.

4- Working hours, rest periods, labor safety, hygiene, social insurance, and the resolution of labor disputes in enterprises and organizations, and other cases provided for in Article 131 shall be implemented in accordance with this Code and other relevant laws.

28. Clause 1 of Article 133 shall be amended and supplemented as follows:

"1- Foreign workers who work continuously for three months or more for enterprises, organizations, or individuals in Vietnam must have a work permit issued by the provincial or centrally-administered city state management agency for labor; the validity of the work permit shall be in accordance with the duration of the employment contract, but shall not exceed 36 months and may be extended upon the request of the employer."

29. Article 134 shall be amended and supplemented as follows:

"Article 134"

1- The State encourages enterprises, agencies, organizations, and individuals to seek and expand labor markets to create overseas employment opportunities for Vietnamese workers in accordance with Vietnamese law, consistent with the laws of the host country and international treaties to which Vietnam is a party.

2- Vietnamese citizens aged 18 or older, capable of working, willing, and meeting all other legal requirements of Vietnam, consistent with the laws and requirements of the foreign party, may go to work abroad."

30. Article 134a shall be added as follows:

"Article 134a"

Forms of sending Vietnamese workers to work abroad include:

1- Supplying workers through contracts signed with foreign parties;

2- Sending workers to work abroad under contracts for overseas project subcontracting;

3- Sending workers to work abroad under overseas investment projects;

4- Other forms as prescribed by law."

31. Article 135 shall be amended and supplemented as follows:

"Article 135"

1- Enterprises engaged in labor export must have a license from the competent state management agency for labor.

2- Enterprises engaged in labor export shall have the following rights and obligations:

a) Must register labor export contracts with the competent state management agency for labor;

b) Exploit the market and sign contracts with foreign parties;

c) Publicly announce the standards and conditions for selection, benefits, and obligations of workers;

d) Directly select workers and shall not charge recruitment fees from workers;

đ) Organize pre-departure training and orientation for workers before going to work abroad in accordance with the law;

e) Sign contracts for workers to work abroad; organize the departure and return of workers in accordance with the signed contract and the law;

g) Directly collect labor export fees and pay into the labor export support fund as prescribed by the Government;

h) Manage and protect the rights of workers during their employment abroad in accordance with Vietnamese and host country laws.

i) Compensate workers for damages caused by the enterprise's breach of contract;

k) Initiate litigation to claim compensation for damages caused by the worker's breach of contract;

l) Lodge complaints with competent state agencies regarding violations of laws in the field of labor export;

3- Enterprises sending Vietnamese workers abroad to fulfill contracts for taking on projects and investment works must register the contracts with the competent state management agency and comply with the provisions set out in points c, d, đ, e, h, i, k, and l of Clause 2 of this Article;

4- The Government shall specify the regulations concerning workers who go abroad under contracts without going through enterprises;

32. Supplement Article 135 as follows:

"Article 135a

1- Workers going abroad to work have the following rights and obligations:

a) To be provided with information related to policies, laws on labor, recruitment conditions, rights and obligations of workers working abroad;

b) To receive pre-departure training and orientation before going to work abroad;

c) To sign and strictly implement the contract;

d) To ensure their benefits as stipulated in the signed contract according to Vietnamese law and the host country's law;

đ) To comply with Vietnamese law, the host country's law, and respect local customs and traditions;

e) To enjoy consular and judicial protection;

g) To pay fees for labor export;

h) To lodge complaints, file accusations, and initiate litigation with competent authorities of the Vietnamese State or the host country regarding breaches by labor exporting enterprises and foreign employers;

i) To compensate for damages caused by breaching the contract;

k) To receive compensation for damages caused by the enterprise's breach of contract;

2- Workers going abroad under the cases specified in Clause 3 of Article 135 have the rights and obligations as stipulated in points a, b, c, d, đ, e, h, i, and k of Clause 1 of this Article;"

33. Supplement Article 135b as follows:

"Article 135b

The Government shall specify detailed regulations on vocational training for labor export; organizing and managing overseas workers, and establishing, managing, and utilizing the Overseas Labor Support Fund;"

34. Supplement Article 135c as follows:

"Article 135c

1- Strictly prohibit recruiting and sending workers abroad to work in violation of the law;

2- Enterprises, organizations, or individuals exploiting labor export to recruit, train, and organize sending workers abroad in violation of the law shall be subject to legal sanctions, and if causing damage, they must compensate the workers;

3- Workers exploiting their work abroad to achieve other purposes shall be subject to legal sanctions, and if causing damage, they must compensate;"

35. Clause 1 of Article 140 is amended and supplemented as follows:

"1- The State shall formulate social insurance policies aimed at gradually expanding and improving material guarantees, care, health recovery, and contributing to stabilizing the lives of workers and their families in cases of illness, maternity, retirement, death, occupational accidents, occupational diseases, unemployment, risks, or other difficulties.

The Government shall specify detailed regulations on retraining for unemployed workers, the rate of unemployment insurance contributions, conditions and levels of unemployment assistance, and the establishment, management, and utilization of the Unemployment Insurance Fund;"

36. Article 141 is amended and supplemented as follows:

"Article 141

1- Compulsory social insurance schemes shall apply to enterprises, agencies, and organizations employing workers under fixed-term contracts of three months or more and indefinite-term contracts. In these enterprises, agencies, and organizations, employers and workers must contribute to social insurance according to the provisions of Article 149 of this Code, and workers shall enjoy sickness, occupational accident, occupational disease, maternity, retirement, and survivorship benefits.

2- For workers under fixed-term contracts of less than three months, social insurance contributions shall be included in the wages paid by employers according to the Government's regulations, allowing workers to participate in voluntary social insurance or self-provision for insurance. When the labor contract expires and the worker continues working or enters into a new contract, the compulsory social insurance scheme shall apply according to the provisions of Clause 1 of this Article;"

37. Article 144 is amended and supplemented as follows:

"Article 144

1- During the maternity leave period as stipulated in Article 114 of this Code, female workers who have contributed to social insurance shall receive social insurance benefits equal to 100% of their salary and an additional month's salary.

2- Other benefits for female workers shall be applied according to the provisions of Article 117 of this Code;"

38. Supplement Clause 1a to Article 145 as follows:

"1a- Female workers aged 55 and having contributed to social insurance for 25 years, and male workers aged 60 and having contributed to social insurance for 30 years shall receive the maximum monthly pension rate as prescribed by the Government;" 39. Article 148 is amended and supplemented as follows: "Article 148

Agricultural, forestry, fisheries, and salt industry enterprises shall be responsible for participating in various types of social insurance suitable for production characteristics and labor use in each sector according to the Government's regulations;"

40. Article 149 is amended and supplemented as follows:

"Article 149

1- The Social Insurance Fund shall be formed from the following sources:

a) Employers' contribution at 15% of the total payroll;

b) Workers' contribution at 5% of their salary;

c) State contributions and additional support to ensure the implementation of social insurance benefits for workers;

d) Interest income from the fund;

đ) Other sources.

2- The Social Insurance Fund shall be managed uniformly, democratically, and transparently according to the state financial system, independently accounted for, and protected by the State. The Social Insurance Fund shall implement measures to preserve value and growth as prescribed by the Government;"

41. Clause 2 of Article 151 is amended and supplemented as follows:

"2- Disputes over social insurance:

a) Disputes between workers and employers shall be resolved according to the provisions of Chapter XIV of this Code;

"2- Disputes regarding social insurance:"

a) Disputes between employees and employers shall be resolved in accordance with the provisions of Chapter XIV of this Code;

b) Disputes between workers who have retired according to regulations and employers or social insurance agencies, and disputes between employers and social insurance agencies arising from mutual agreement; if no agreement can be reached, such disputes shall be resolved by the People's Court.

42. Article 153 is amended and supplemented as follows:

"Article 153

1- In enterprises that are currently operating but have not yet established trade unions, within six months from the date this Law amending and supplementing certain provisions of the Labor Code takes effect, and in newly established enterprises within six months from the date they commence operations, local trade unions or industry-level trade unions shall be responsible for establishing trade union organizations in these enterprises to represent and protect the lawful rights and interests of workers and worker collectives.

Employers shall create favorable conditions for the early establishment of trade union organizations. During the period when such establishments have not been formed, the local trade union or industry-level trade union may designate a temporary trade union executive board to represent and protect the lawful rights and interests of workers and worker collectives.

Any acts hindering the establishment and operation of trade unions in enterprises are strictly prohibited.

2- The Government shall guide the implementation of Clause 1 of this Article after reaching consensus with the Vietnam General Confederation of Labor.

43. Article 163 is amended and supplemented as follows:

"Article 163

1- The grassroots labor mediation council must be established in enterprises with grassroots trade unions or a temporary trade union executive board, consisting of an equal number of representatives from both the workers' side and the employers' side. The number of members of the council shall be agreed upon by both sides.

2- The term of office of the grassroots labor mediation council is two years. Representatives from each side shall take turns serving as Chairperson and Secretary of the council. The grassroots labor mediation council operates on the principle of agreement and consensus.

3- Employers shall ensure necessary conditions for the activities of the grassroots labor mediation council.

44. Clause 3 of Article 164 is amended and supplemented as follows:

"3- In cases where mediation fails or one party to the dispute is absent for the second time without a valid reason despite being summoned properly, the grassroots labor mediation council shall prepare a record of unsuccessful mediation. A copy of the record must be sent to both parties to the dispute within three days from the date of unsuccessful mediation. Each party to the dispute has the right to request the People's Court to resolve the dispute. The court file submitted to the People's Court must include the record of unsuccessful mediation.

45. Clause 1 of Article 165 is amended and supplemented as follows:

"1- Labor mediators shall conduct mediation proceedings in accordance with the procedures prescribed in Article 164 of this Code for individual labor disputes occurring in places where grassroots labor mediation councils have not been established, disputes regarding the implementation of vocational training contracts and vocational training costs.

46. Article 166 is amended and supplemented as follows:

"Article 166

1- The People's Court shall resolve individual labor disputes that grassroots labor mediation councils or labor mediators fail to mediate successfully or fail to resolve within the prescribed time limit.

2- The People's Court shall resolve the following individual labor disputes without necessarily going through mediation at the grassroots level:

a) Disputes concerning disciplinary actions leading to dismissal or unilateral termination of employment contracts;

b) Disputes concerning compensation for damages and severance payments;

c) Disputes between domestic workers and employers;

d) Disputes concerning social insurance as stipulated in point b, Clause 2, Article 151 of this Code;

đ) Disputes concerning compensation for damages between workers and labor export enterprises.

3- Workers are exempted from court fees in litigation activities to claim wages, unemployment benefits, termination benefits, social insurance, compensation for work-related accidents and occupational diseases, and to resolve issues of compensation or wrongful dismissal and termination of employment contracts.

4- When adjudicating, if the People's Court finds that the employment contract contravenes collective agreements or labor laws; collective agreements contravene labor laws, it shall declare the employment contract or collective agreement void in part or in whole.

The rights, obligations, and interests of the parties recorded in the employment contract or collective agreement declared void shall be resolved in accordance with the provisions of the law.

5- The Government shall specify the handling of consequences for cases where employment contracts or collective agreements are declared void as provided in Clause 3, Article 29, Clause 3, Article 48, and Clause 4 of this Article.

47. Article 167 is amended and supplemented as follows:

"Article 167

1- The statute of limitations for requesting resolution of individual labor disputes, from the date each party to the dispute believes their rights and interests have been violated, is as follows:

a) One year, for disputes as specified in points a, b and c Clause 2, Article 166;

b) One year, for disputes as specified in point d Clause 2, Article 166;

c) Three years, for disputes as specified in point đ Clause 2, Article 166;

d) Six months, for other types of labor disputes.

2- The statute of limitations for requesting resolution of collective labor disputes is one year, from the date each party believes its rights and interests have been violated.

48. Article 181 is amended and supplemented as follows:

"Article 181

1- The Government shall uniformly manage labor affairs nationwide.

The Ministry of Labor, Invalids and Social Affairs shall be responsible before the Government for implementing state management over labor affairs.

Ministries and ministerial-level agencies shall cooperate with the Ministry of Labor, Invalids and Social Affairs to implement unified state management over labor affairs.

2- People's Committees at all levels shall manage labor affairs within their respective jurisdictions. Local labor administrative bodies shall assist the People's Committees at the same level in managing labor affairs according to the delegation of the Ministry of Labor, Invalids and Social Affairs.

3- The Vietnam General Confederation of Labor and trade unions at all levels shall participate in supervising state management over labor affairs in accordance with the provisions of the law.

4. The representative of the employer and the employer shall participate in providing opinions to state agencies on policies, laws, and issues related to labor relations in accordance with the provisions of the Government.

49. Article 182 is amended and supplemented as follows:

"Article 182

Within thirty days from the date the enterprise begins operations, the employer must report on the use of labor and during the course of operation, must report changes in workforce to the local state labor management agency in accordance with the regulations of the Ministry of Labor, War Invalids and Social Affairs. Within thirty days from the date the enterprise ceases operations, the employer must report to the local state labor management agency about the cessation of labor use.

The employer must establish labor books, wage books, and social insurance books.

50. Article 183 is amended and supplemented as follows:

"Article 183

Workers shall be issued labor books and social insurance books in accordance with the provisions of the law.

51. Article 184 is amended and supplemented as follows:

"Article 184

1. The Ministry of Labor, War Invalids and Social Affairs shall uniformly manage state affairs regarding the export of labor.

2. The People's Committee of provinces and centrally governed cities shall implement state management over the export of labor within their respective jurisdictions.

3. The provincial and centrally governed city state labor management agencies shall issue work permits for foreigners entering Vietnam to work, in accordance with Clause 1 of Article 133 of this Code.

52. Article 185 is amended and supplemented as follows:

"Article 185

State labor inspection has the function of inspecting labor policies, occupational safety, and hygiene.

The Ministry of Labor, War Invalids and Social Affairs and local state labor management agencies shall conduct state labor inspections.

53. Article 186 is amended and supplemented as follows:

"Article 186

State labor inspection has the main tasks as follows:

1. Inspecting compliance with labor regulations, occupational safety, and hygiene;

2. Investigating workplace accidents and violations of hygiene standards;

3. Participating in building and guiding the application of standards, procedures, and norms on occupational safety and hygiene;

4. Resolving complaints and reports on labor matters in accordance with the law;

5. Handling within their authority and recommending competent authorities to handle violations of labor laws.

54. Clause 2 of Article 191 is amended and supplemented as follows:

"2. The Ministry of Labor, War Invalids and Social Affairs shall be responsible for establishing the organizational system of state labor inspection; stipulating selection criteria, appointment, transfer, dismissal, and removal of inspectors; issuing inspector cards; and prescribing regular and extraordinary reporting systems and other necessary systems and procedures.

55. Add Section V in Chapter XI:

"Vietnamese Labor Working Abroad" including Articles 134, 134a, 135, 135a, 135b, and 135c.

56. Amend and supplement terminology in some articles as follows:

a) The term "employment service" in Articles 10, 15, and 16 is amended to "job introduction".

b) The phrase "one year or more" in Article 17 and Article 42 is amended to "twelve months or more".

c) The phrase "training fee" in Clause 3 of Article 24 is amended to "training cost".

d) Rename Section V of Chapter XI to "Labor for Foreign Organizations and Individuals in Vietnam, Foreigners Working in Vietnam".

đ) The phrase "Clause 1, Clause 2, Clause 3 of this Article" in Clause 4 of Article 145 is amended to "Clause 1, Clause 1a, Clause 2, Clause 3 of this Article".

e) The phrases "local labor agency" and "provincial labor agency" in Articles 17, 82, 162, and 169 are amended to "local state labor management agency" and "provincial and centrally governed city state labor management agency".

Article 2

This Law shall take effect from January 1, 2003.

Article 3

The Government shall provide detailed implementation of this Law.

This Law was passed by the National Assembly of the Socialist Republic of Vietnam, Session 11, 10th Term, on April 2, 2002.