Consolidated Document number 4753/VBHN-BLDTBXH Decree detailing and guiding the implementation of certain contents of the Labor Code

MINISTRY OF LABOR - INVALIDS AND SOCIAL AFFAIRS -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 4753/VBHN-BLDTBX	Hanoi, November 12, 2018

DECREE

DETAILING AND GUIDING THE IMPLEMENTATION OF CERTAIN PROVISIONS OF THE LABOR CODE

Decree No. 05/2015/ND-CP dated January 12, 2015 of the Government detailing and guiding the implementation of certain provisions of the Labor Code, which took effect from March 1, 2015, was amended and supplemented by:

Decree No. 148/2018/ND-CP dated October 24, 2018 of the Government amending and supplementing some articles of Decree No. 05/2015/ND-CP dated January 12, 2015 of the Government detailing and guiding the implementation of certain provisions of the Labor Code, which took effect from December 15, 2018.

Based on the Law on the Organization of the Government dated December 25, 2001;

Pursuant to the Labor Code dated June 18, 2012;

Pursuant to the opinions of the Standing Committee of the National Assembly in Document No. 716/UBTVQH13-CVĐXH dated August 13, 2014 on guiding the implementation of certain articles and clauses of the Labor Code;

Decree No. 07/2021/NĐ-CP

The Government promulgates this Decree detailing and guiding the implementation of certain provisions of the Labor Code,

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the rights and responsibilities of employers, employees, organizations representing employee groups, agencies, organizations, and individuals related to the implementation of certain provisions of the Labor Code regarding labor contracts, collective bargaining, collective labor agreements, wages, disciplinary actions, material responsibility, and resolution of labor disputes.

Article 2. Applicability

Employees; employers; other agencies, organizations, and individuals directly related to labor relations as provided for in Article 2 of the Labor Code.

Chapter II

LABOR CONTRACTS

Section 1: CONCLUSION OF LABOR CONTRACTS

Article 3. Parties to a labor contract

1. The party to a labor contract on the employer's side shall be one of the following persons:

a) A person authorized under the charter of the enterprise or cooperative;

b) The head of an agency, unit, or organization with legal personality as prescribed by law;

c) A person authorized by members of a household, a group cooperation, or another organization without legal personality to act as a representative as prescribed by law;

d) An individual directly using labor;

e) A person authorized in writing by the legal representative specified in Point a or the head of an agency, unit, or organization specified in Point b of this Clause to conclude a labor contract.

2. The party to a labor contract on the employee's side shall be one of the following persons:

a) An employee who has reached eighteen years of age or older;

b) An underage employee who has reached fifteen years of age but is under eighteen years of age and has the written consent of the legal representative of the employee;

c) The legal representative of an employee under fifteen years of age and the consent of the employee under fifteen years of age;

d) An employee authorized by a group of employees to conclude a labor contract.

3. The person authorized to conclude a labor contract as prescribed in Clause 1 and Clause 2 of this Article shall not further authorize another person to conclude a labor contract.

Article 4. Contents of a labor contract

The main contents of a labor contract at Clause 1, Article 23 of the Labor Code are prescribed as follows:

1. Name and address of the employer are prescribed as follows:

a) The name of the enterprise, agency, organization, cooperative, or household leasing or employing labor under a labor contract according to the business registration certificate, cooperative registration certificate, or investment certificate, or decision establishing the agency or organization; in case of an individual leasing or employing labor, the full name of the employer according to the identity card or passport issued shall be recorded;

b) The address of the enterprise, agency, organization, cooperative, household, or individual leasing or employing labor according to the business registration certificate, cooperative registration certificate, or investment certificate, or decision establishing the agency or organization as prescribed by law;

c) Full name, date of birth, identity card number or passport number, place of residence, position in the enterprise, organization, cooperative, or household leasing or employing labor of the party concluding the labor contract on the employer's side as prescribed in Clause 1, Article 3 of this Decree.

2. Identity card number or other lawful document of the employee is prescribed as follows:

a) The identity card number or passport number issued by the competent authority of the employee;

b) Work permit number, date of issue, and issuing authority of the work permit for foreign workers working in Vietnam;

c) Written agreement on the conclusion of a labor contract by the legal representative of an employee aged fifteen to under eighteen years old;

d) Full name, date of birth, gender, place of residence, identity card number or passport number of the legal representative of an employee under fifteen years old;

e) Written consent of an employee under fifteen years old for their legal representative to conclude a labor contract.

a) Job: the tasks that the worker must perform;

a) Job: The job that the employee must perform;

b) Place of work of the employee: Scope and location where the employee performs the agreed job; in case the employee works at multiple locations, the main locations where the employee works shall be recorded.

4. Duration of the labor contract: Time period for implementing the labor contract (number of months or days), start and end dates of the labor contract (for fixed-term or seasonal or specific job labor contracts); start date of the labor contract (for indefinite-term labor contracts).

5. Wage level, wage payment form, wage payment period, allowances, and other supplementary benefits are prescribed as follows:

a) Wage level, allowances, and other supplementary benefits are determined according to Clause 1, Article 21 of this Decree;

b) Wage payment form is determined according to Article 94 of the Labor Code;

c) Wage payment period is determined by both parties according to Article 95 of the Labor Code.

63. System for promotion and salary increase: in accordance with the agreement between both parties on conditions, time, and post-promotion salary level, or implemented according to the employer's regulations, collective labor agreement.

74. Working hours and rest periods: in accordance with the agreement between both parties or implemented according to the internal labor rules, employer's regulations, collective labor agreement, and as prescribed by law.

85. Provision of occupational safety equipment for workers: in accordance with the internal labor rules, employer's regulations, collective labor agreement, and as prescribed by law on occupational safety and health.

96. Social insurance, unemployment insurance, and health insurance: as prescribed by laws on labor, social insurance, unemployment insurance, and health insurance.

10. Training, development, and improvement of vocational skills of workers during the performance of the contract: Rights and obligations of the employer and worker in ensuring training time and funding for training, development, and improvement of vocational skills.

11. Other contents related to the implementation of the agreed terms by both parties.

Article 5. Amendment of the term of the labor contract through an annex to the labor contract

The term of the labor contract may only be amended once through an annex to the labor contract and shall not change the type of contract already concluded, except in cases where the term of the labor contract is extended for older workers and non-professional trade union officers as stipulated in Clause 6, Article 192 of the Labor Code.

Article 6. Labor contract with older workers

1. When the employer has a need and the older worker is found to have sufficient health, as concluded by a medical establishment operating under the provisions of the law, both parties may agree to extend the term of the labor contract or conclude a new labor contract.

27. When the employer does not have a need or the older worker does not have sufficient health, both parties may agree to terminate the labor contract.

Article 7. Notification of results of probationary work

1. Within three days before the end of the probationary period for workers performing jobs with a probationary period as specified in Clause 1 and 2, Article 27 of the Labor Code, the employer must notify the worker of the results of the probationary work performed; if the probationary work meets the requirements, upon completion of the probationary period, the employer must immediately conclude a labor contract with the worker.

2. Upon completion of the probationary period for workers performing jobs with a probationary period as specified in Clause 3, Article 27 of the Labor Code, the employer must notify the worker of the results of the probationary work performed; if the probationary work meets the requirements, the employer must immediately conclude a labor contract with the worker.

Section 2: IMPLEMENTATION OF LABOR CONTRACTS

Article 8. Temporary transfer of workers to other jobs

The employer temporarily transferring workers to other jobs different from those specified in Clause 1, Article 31 of the Labor Code is regulated as follows:

1. The employer has the right to temporarily transfer workers to other jobs different from those specified in the labor contract in the following cases:

a) Natural disasters, fires, epidemics;

b) Implementation of measures to prevent and mitigate workplace accidents and occupational diseases;

c) Power outages, water supply disruptions;

d) Due to production and business needs.

2. The employer specifies in the enterprise's internal rules the cases where due to production and business needs, the employer can temporarily transfer workers to other jobs different from those specified in the labor contract.

3. If the employer has temporarily transferred workers to other jobs different from those specified in the labor contract for a cumulative total of sixty working days within one year, and it is necessary to continue such temporary transfers, the employer must obtain the worker's written consent.

4. If the worker does not agree to temporarily perform other jobs different from those specified in the labor contract as provided in Clause 3 of this Article and must stop work, the employer must pay the worker停工待命工资，按照《劳动法》第98条第1款的规定执行。

Article 9. Agreement to temporarily suspend labor contracts when appointed or designated as state capital representative

1. The employer and employees in a limited liability company wholly owned by the State, a limited liability company wholly owned by the parent company of a state economic group, state corporation, or parent company operating under a parent company-subcompany model may agree to temporarily suspend labor contracts in the following cases:

a) Employees are appointed by the competent authority to be members of the Board of Directors or Chairman of the company, Supervisor, General Director (Director), Deputy General Director (Deputy Director), Chief Accountant;

b) Employees are designated by the competent authority to represent state capital or the parent company's capital and work at enterprises with state or parent company capital contributions operating under a parent company-subcompany model.

2. The period of temporary suspension of the labor contract is the duration during which the employee is appointed or designated to represent capital and works at an enterprise with state or parent company capital contributions operating under a parent company-subcompany model.

Article 10. Receiving Employees Back After the Suspension Period of Labor Contracts Ends

The process of receiving employees back after the suspension period of labor contracts ends according to Article 33 of the Labor Code is stipulated as follows:

1. Within fifteen days from the end date of the suspended labor contract, the employee must be present at the workplace, and the employer must resume the employee’s work. If the employee cannot be present at the workplace within the prescribed time limit, the employee must negotiate with the employer regarding the presence date.

2. The employer has the responsibility to assign the employee to perform the job specified in the labor contract; if it is not possible to assign the job specified in the labor contract, both parties shall negotiate a new job and amend or supplement the existing labor contract or conclude a new labor contract.

Section 3: AMENDMENT, SUPPLEMENTATION, TERMINATION OF LABOR CONTRACTS

Article 11. Unilateral Termination of Labor Contracts by Employees

1. Employees have the right to unilaterally terminate labor contracts under Point c Clause 1 Article 37 of the Labor Code in cases where they are assaulted or subjected to verbal abuse, humiliating behavior, actions affecting their health, dignity, reputation, or forced labor by the employer; or are sexually harassed at the workplace.

2. Employees have the right to unilaterally terminate labor contracts under Point d Clause 1 Article 37 of the Labor Code in the following cases:

a) Must take leave to care for a spouse, father, mother, father-in-law, mother-in-law, husband-in-law, wife-in-law, or child who is ill or injured;

b) When moving abroad to live or work;

c) When the family encounters difficulties due to natural disasters, fires, enemy attacks, epidemics, or relocation, and the employee has taken all measures but cannot continue to fulfill the labor contract.

Article 12. Unilateral Termination of Labor Contracts by Employers

The unilateral right of employers to terminate labor contracts under Points a and c Clause 1 Article 38 of the Labor Code is stipulated as follows:

1. The employer must clearly define criteria for evaluating job performance in the enterprise regulations, serving as a basis for assessing employees who consistently fail to complete tasks as stipulated in the labor contract. The evaluation regulation on job performance is issued by the employer after consulting the representative organization of the workforce at the workplace.

2. Other force majeure reasons falling under one of the following situations:

a) Due to enemy attacks, epidemics;

b) Relocation or reduction of production and business sites as required by the competent state authority.

Article 13. Changes in structure, technology, and economic reasons

1. Changes in structure and technology under Clause 1, Article 44 of the Labor Code include the following cases:

a) Changes in organizational structure, reorganization of labor;

b) Changes in products, product structure;

c) Changes in production and business processes, technology, machinery, and equipment related to the industry or profession of the employer.

2. Economic reasons under Clause 2, Article 44 of the Labor Code include one of the following cases:

a) Economic crisis or recession;

b) Implementation of state policies for economic restructuring or international commitments.

3. In cases where changes in structure, technology, or economic reasons affect employment or pose a risk of job loss, resulting in termination of employment for two or more workers, the employer must fulfill obligations as prescribed in Article 44 of the Labor Code.

48. The notification to the provincial labor management agency as stipulated in Clause 3, Article 44 of the Labor Code must be in writing and contain the following main contents:

a) Name and address of the employer and the legal representative of the employer;

b) Total number of workers; number of workers to be terminated;

c) Reason for worker termination;

d) Date of worker termination;

đ) Amount of severance pay due.

Article 14. Severance Pay and Unemployment Compensation

1. The employer has the responsibility to pay severance pay as prescribed in Article 48 of the Labor Code to workers who have worked continuously for at least twelve months when the labor contract terminates according to the provisions of Clauses 1, 2, 3, 5, 6, 7, and 9 of Article 36 and when the employer unilaterally terminates the labor contract as prescribed in Article 38 of the Labor Code.

2. The employer has the responsibility to pay unemployment compensation as prescribed in Article 49 of the Labor Code to workers who have worked continuously for at least twelve months and lose their jobs due to changes in structure, technology, or economic reasons, or due to mergers, consolidations, divisions, or splits of enterprises or cooperatives as prescribed in Clause 10, Article 36, Article 44, and Article 45 of the Labor Code.

39. The period of work for calculating severance pay and unemployment compensation is the total actual working time of the worker for the employer minus the time the worker has participated in unemployment insurance as prescribed by law and the time of work for which the employer has already paid severance pay or unemployment compensation (if any). Among them:

a) Actual working time of the worker for the employer includes: actual working time of the worker for the employer under the labor contract; time the employer sends the worker to study; time off for illness or maternity leave as prescribed by law on social insurance; time off for treatment and recovery of work capacity due to occupational accidents or occupational diseases and paid by the employer as prescribed by law on labor safety and hygiene; weekly rest time as prescribed in Article 110, paid leave as prescribed in Articles 111, 112, 115, and Clause 1, Article 116 of the Labor Code; time off for trade union activities as prescribed by law on trade unions; time off for performing civic duties as prescribed by law and paid by the employer; time off due to cessation of work not due to the fault of the worker; time temporarily suspended from work as prescribed in Article 129 of the Labor Code.

b) Time the worker has participated in unemployment insurance includes: time the employer has paid unemployment insurance premiums, time counted as participation in unemployment insurance as prescribed by law on unemployment insurance, time the employer has simultaneously paid a sum equivalent to the unemployment insurance premium as prescribed by law on labor and unemployment insurance with the worker's salary period;

c) The period of work for calculating severance pay and unemployment compensation of the worker is calculated in years (at least 12 months); if there is a partial month, from one month to less than six months is counted as half a year; from six months or more is counted as one year of work.

4. Severance pay and unemployment compensation in certain special cases are prescribed as follows:

a) In cases where a worker has worked continuously for at least twelve months and loses their job but the period of work for calculating unemployment compensation is less than eighteen months, the employer has the responsibility to pay unemployment compensation to the worker for at least two months' salary;

b) In cases where, after mergers, consolidations, divisions, or splits of enterprises or cooperatives, the worker terminates the labor contract, the employer has the responsibility to pay severance pay or unemployment compensation for the period the worker has worked for the employer and the period the worker has worked for the employer before the merger, consolidation, division, or split of the enterprise or cooperative.

510. (Repealed)

511. The funds for paying severance pay and unemployment compensation are accounted for as production and business costs or operating expenses of the employer.

Article 14a. Time limit for payment of benefits between employers and employees upon termination of labor contracts

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Within seven working days from the date of termination of the labor contract, employers and employees shall be responsible for fully settling all amounts related to the benefits of each party. In special cases, the payment period may be extended but shall not exceed thirty days from the date of termination of the labor contract, under one of the following circumstances:

1. The employer is not an individual ceasing operations;

2. The employer or employee encounters natural disasters, fires, enemy attacks, or dangerous infectious diseases;

3. The employer changes its organizational structure, technology, or economic reasons as stipulated in Article 44 of the Labor Code, or merges, consolidates, splits, or transfers ownership or right to use assets of enterprises or cooperatives as stipulated in Article 45 of the Labor Code.

Article 15. Obligation to establish a plan for labor utilization and calculate severance pay and unemployment assistance for employers when transferring ownership or right to use assets of an enterprise

1. When transferring ownership or right to use assets of an enterprise, the previous employer shall be responsible for establishing a labor utilization plan in accordance with Article 46 of the Labor Code.

2. If an employee must terminate their labor contract according to the labor utilization plan specified in Clause 1 of this Article, the employer shall be responsible for calculating and paying unemployment assistance in accordance with Article 49 of the Labor Code.

3. If an employee continues to be employed, is sent for retraining to continue being employed, or is transferred to work part-time at the enterprise after the transfer of ownership or right to use assets according to the labor utilization plan specified in Clause 1 of this Article, upon termination of the labor contract, the subsequent employer shall be responsible for calculating and paying severance pay in accordance with Article 48 or unemployment assistance in accordance with Article 49 of the Labor Code for the actual time the employee worked for them, and severance pay for the actual time the employee worked at the enterprise before the transfer of ownership or right to use assets, including the time worked in the state sector recruited into the enterprise transferring ownership or right to use assets before January 1, 1995.

4. If the employer of the enterprise continues to implement the transfer of ownership or right to use assets of part or all of the enterprise after the transfer of ownership or right to use assets of the enterprise, then the previous and subsequent employers shall be responsible for implementing the provisions of Clauses 1, 2, and 3 of this Article.

Chapter III

COLLECTIVE BARGAINING AND COLLECTIVE LABOR AGREEMENTS

Article 16. Periodic collective bargaining

Periodic collective bargaining as prescribed in Clause 2 of Article 67 of the Labor Code shall be conducted at least once a year. The timing of periodic collective bargaining shall be agreed upon by both parties.

Article 17. Responsibilities of trade unions, organizations representing employers, and state management agencies on labor matters in attending collective bargaining sessions

1. Upon receiving a written request from either party to the collective bargaining process, the Vietnam General Confederation of Labor, provincial or municipal Federation of Labor Unions, superior-level trade unions directly overseeing grassroots units, central and local organizations representing employers, the Ministry of Labor - Invalids and Social Affairs, provincial or district People's Committees shall be responsible for dispatching officials to attend collective bargaining sessions.

2. Officials dispatched by agencies or organizations to attend collective bargaining sessions shall be responsible for providing information related to the negotiation content and guiding labor laws to participants in collective bargaining.

Article 18. Parties signing the enterprise collective labor agreement

1. The parties signing the enterprise collective labor agreement as stipulated in Clause 1, Article 83 of the Labor Code are defined as follows:

a) The collective labor side is the Chairman of the grassroots trade union or the Chairman of the superior-level trade union directly overseeing grassroots units where no grassroots trade union has been established;

b) The employer side is the legal representative as prescribed in the charter of the enterprise or cooperative, the head of the agency or organization, or an individual using labor under a labor contract.

2. In cases where the parties signing the collective labor agreement as stipulated in Clause 1 of this Article do not directly sign the collective labor agreement, they shall authorize another person in writing to sign the collective labor agreement. The authorized person may not further delegate authority to another person to sign the collective labor agreement.

Article 19. Responsibilities of state management agencies on labor matters in accepting collective labor agreements

The responsibilities of state management agencies on labor matters when accepting collective labor agreements are as follows:

1. Establish a registry to manage collective labor agreements according to a model prescribed by the Ministry of Labor - Invalids and Social Affairs.

2. Within fifteen days from the date of receipt of the collective labor agreement, if it is found that the collective labor agreement contains content contrary to the law or was signed beyond the authority, the state management agency shall issue a document requesting the People's Court to declare the collective labor agreement void, and simultaneously send the document to both parties signing the collective labor agreement.

If the collective labor agreement has not yet taken effect, the state management agency shall issue a document requesting both parties to negotiate amendments and supplements to the collective labor agreement and submit it to the state management agency as prescribed.

Article 20. Recommendations for declaring a collective labor agreement void

When inspecting or handling complaints and grievances regarding labor, if it is discovered that the collective labor agreement falls under any of the circumstances specified in Article 78 of the Labor Code, the Head of the Inspection Team or independent labor inspector or the person assigned to conduct specialized inspections shall prepare a record of the invalidity of the collective labor agreement, and simultaneously issue a document requesting the People's Court to declare the collective labor agreement void.

Chapter IV

WAGES

Article 21. Wages

Wages under Clause 1 and Clause 2 of Article 90 of the Labor Code are defined as follows:

1. The wage recorded in the labor contract agreed upon between the employee and the employer to perform specific work includes:

a) The wage level based on job or position is the wage level within the wage scale established by the employer in accordance with Article 93 of the Labor Code. The lowest wage level for the simplest work under normal working conditions (excluding additional payments for overtime work or night shifts) shall not be lower than the minimum regional wage set by the Government;

b) Wage supplements are amounts paid to compensate for factors such as working conditions, complexity of the job, living conditions, and the attractiveness of the job that have not been fully considered or adequately included in the wage level based on job or position;

c) Other supplementary amounts are additional sums beyond the wage and wage supplements related to the performance of the job or position specified in the labor contract, excluding bonuses, meal allowances during work hours, and other support or subsidies provided by the employer that are unrelated to the job or position in the labor contract.

2. The wages paid to employees are based on the wages recorded in the labor contract, labor productivity, quantity and quality of work performed by the employee.

3. The wages recorded in the labor contract and the wages paid to employees are stipulated in Vietnamese Dong, except in cases where wages and wage supplements are paid to non-residents or foreign residents according to the provisions of the law on foreign exchange.

Article 22. Forms of Wage Payment

The form of wage payment under Clause 1 of Article 94 of the Labor Code is defined as follows:

1. Time-based wages are paid to employees based on actual working time per month, week, day, or hour, specifically:

a) Monthly wages are paid for a month's work based on the labor contract;

b) Weekly wages are paid for a week's work calculated from the monthly wage multiplied by 12 months and divided by 52 weeks;

c) Daily wages are paid for a day's work based on the monthly wage divided by the number of regular working days in a month as prescribed by law and chosen by the enterprise;

d) Hourly wages are paid for an hour's work based on the daily wage divided by the number of regular working hours in a day as stipulated in Article 104 of the Labor Code.

2. Piece-rate wages are paid based on the completion of the quantity and quality of products according to the labor quota and product unit price assigned.

3. Contracted wages are paid based on the volume, quality of work, and time required to complete it.

Article 23. Payment Period for Monthly Wage Recipients

1. Employees receiving monthly wages are paid once a month or twice a month.

2. The payment date is agreed upon by both parties and fixed at a certain point in the month.

Article 24. Principles of Wage Payment

1. Employees must be paid directly, fully, and on time.

2. In exceptional cases due to natural disasters, fires, or other force majeure reasons, if the employer has taken all possible measures but cannot pay wages on time as agreed in the labor contract, the delay shall not exceed one month. The additional amount the employer must pay to the employee for late payment is as follows:

a) If the late payment period is less than 15 days, no additional payment is required;

b) If the late payment period is 15 days or more, an additional amount equal to at least the delayed payment multiplied by the ceiling deposit interest rate for a one-month term announced by the State Bank of Vietnam at the time of payment shall be paid. When the State Bank of Vietnam does not specify a ceiling interest rate, it shall be calculated based on the deposit interest rate for a one-month term of a commercial bank where the enterprise or agency maintains its transaction account at the time of payment.

Article 25. Overtime Pay and Night Shift Pay

1. Workers shall be paid overtime pay as stipulated in Clause 1 of Article 97 of the Labor Code, as follows:

a) Workers who are paid based on time shall be compensated for overtime work when they work outside regular working hours as defined by the employer according to the provisions of Article 104 of the Labor Code;

b) Workers who are paid based on production shall be compensated for overtime work when they produce additional quantities or volumes of products or tasks beyond the quota set by labor standards agreed upon with the employer.

2. The overtime pay as stipulated in Clause 1 of this Article shall be calculated based on the hourly wage rate or actual wages paid for ongoing work as follows:

a) On regular days, at least 150%.

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

c) On public holidays, festivals, or days off with pay, it shall be at least 300%, excluding holiday, festival, or day-off wages as prescribed by the Labor Code for workers paid daily.

3. Workers who work night shifts as stipulated in Clause 2 of Article 97 of the Labor Code shall be compensated at least 30% more than their regular hourly wage rate or actual wages paid for ongoing work during normal working days.

4. Workers who work overtime during night shifts as stipulated in Clause 3 of Article 97 of the Labor Code shall, in addition to the compensation provided under Clauses 2 and 3 of this Article, also receive an additional 20% of their regular hourly wage rate or actual wages paid for ongoing work during daytime of normal working days or weekly rest days or holidays.

5. Workers who work overtime on public holidays or festivals that coincide with weekly rest days as stipulated in Article 110 of the Labor Code shall be paid overtime wages on those holidays. Workers who work overtime on compensatory rest days when public holidays or festivals fall on weekly rest days as stipulated in Clause 3 of Article 115 of the Labor Code shall be paid overtime wages on those weekly rest days.

6. The wages paid to workers for overtime and night shift work as stipulated in Clauses 2, 3, 4, and 5 of this Article shall be calculated in accordance with the wage payment methods prescribed in Clause 1 of Article 22 of this Decree.

Article 26. Wages as Basis for Payment During Work Stoppage, Annual Leave, Holidays, Personal Leave with Pay, Advance Wages, and Deduction from Wages

1. The wages serving as the basis for payment to workers during work stoppages as stipulated in Clause 1 of Article 98 of the Labor Code are the wages recorded in the labor contract when the worker must cease work and shall be calculated in accordance with the wage payment methods prescribed in Clause 1 of Article 22 of this Decree.

213. The wages serving as the basis for payment to workers during annual leave as stipulated in Article 111; additional annual leave based on years of service as stipulated in Article 112; holidays and festivals as stipulated in Article 115; and personal leave with pay as stipulated in Clause 1 of Article 116 of the Labor Code are the monthly wages specified in the labor contract divided by the number of regular working days in a month as defined by the employer, multiplied by the number of days the worker takes for annual leave, additional annual leave based on years of service, holidays, and personal leave with pay.

3. The wages serving as the basis for payment to workers during unutilized annual leave or uncompleted annual leave as stipulated in Article 114 of the Labor Code are as follows:

a) For workers who have worked for at least six months, it is the average wage based on the labor contract for the six consecutive months immediately preceding the termination of employment or loss of job. For workers who have not taken annual leave or have not completed their annual leave due to other reasons, it is the average wage based on the labor contract for the six consecutive months immediately preceding the calculation of the employer's payment for unutilized annual leave;

b) For workers who have worked less than six months, it is the average wage based on the labor contract for the entire period of employment.

4. The wages paid to workers during unutilized annual leave or uncompleted annual leave are the wages stipulated in Clause 3 of this Article divided by the number of regular working days as defined by the employer in the month immediately preceding the calculation date, multiplied by the number of unutilized or uncompleted annual leave days.

5. The wages serving as the basis for advance payment to workers during temporary leave for civic duties as stipulated in Clause 2 of Article 100 or suspension of work as stipulated in Article 129 of the Labor Code are the wages specified in the labor contract for the month immediately preceding the temporary leave or suspension of work and shall be calculated in accordance with the wage payment methods prescribed in Clause 1 of Article 22 of this Decree.

6. The wages serving as the basis for deduction from wages of workers to compensate for damage caused by the destruction of tools or equipment as stipulated in Clause 1 of Article 130 of the Labor Code are the actual monthly wages received by the worker after deducting mandatory social insurance contributions, health insurance, unemployment insurance, and individual income tax (if applicable) as prescribed.

Article 26a. Wages as the basis for compensation when unilaterally terminating a labor contract in violation of the law

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The wages serving as the basis for compensation when unilaterally terminating a labor contract in violation of the law, as stipulated in Clause 5, Article 42 or Clause 2, Article 43 of the Labor Code, shall be the wages under the labor contract at the time when the employer or employee unilaterally terminates the labor contract in violation of the law.

Chapter V

PART III: DISCIPLINARY MEASURES AND MATERIAL LIABILITY

Section 1: DISCIPLINARY MEASURES

Article 27. Contents of the internal regulations on labor

The main contents of the internal regulations on labor, as prescribed in Clause 2, Article 119 of the Labor Code, are as follows:

1. Working hours and rest periods: Regulations on normal working hours in one day, in one week; shifts; start and end times of shifts; overtime work (if any); special cases of overtime work; short breaks outside regular break times; shift change rest; weekly rest days; annual leave, personal leave, unpaid leave.

2. Order at the workplace: Regulations on the scope of work and movement during working hours; cultural behavior, attire; compliance with assignments and dispatches from the employer (except in cases where there is a clear risk of occupational accidents, occupational diseases, and serious threats to life and health).

3. Occupational safety and hygiene at the workplace: Responsibility for being familiar with regulations on occupational safety and hygiene, fire prevention; compliance with measures to ensure occupational safety and hygiene, prevent occupational accidents and occupational diseases; adherence to internal rules, procedures, standards, and norms on occupational safety and hygiene; use and maintenance of personal protective equipment; cleaning, detoxification, and disinfection at the workplace.

4. Protection of property, technological secrets, business secrets, and intellectual property rights of the employer: List of assets, documents, technological secrets, business secrets, and intellectual property rights that must be protected within the scope of assigned responsibilities.

5. Violations of labor discipline, forms of disciplinary action, and material liability: List of violations, corresponding levels of severity with various forms of disciplinary actions; extent of damage, responsibility for compensating damages.

Article 28. Registration of internal regulations on labor and effectiveness of internal regulations on labor

1. Within ten days from the date of issuance of the internal regulations on labor, the employer must submit the registration dossier of the internal regulations on labor to the provincial-level state management agency on labor at the place of business registration.

215. Upon receiving a complete registration dossier of the internal regulations on labor, the provincial-level state management agency on labor confirms the date, month, and year of receipt of the registration dossier of the internal regulations on labor submitted by the employer.

316. Within seven working days from the date of receipt of the registration dossier of the internal regulations on labor, if the internal regulations on labor contain provisions contrary to the law, the provincial-level state management agency on labor will notify the employer and guide the employer to amend and supplement the internal regulations on labor and re-register them.

4. Upon receiving the notification that the internal regulations on labor contain provisions contrary to the law, the employer amends and supplements the internal regulations on labor, consults with the representative organization of the workforce at the workplace, and re-registers the internal regulations on labor.

5. In cases of amending and supplementing existing effective internal regulations on labor, the employer must consult with the representative organization of the workforce at the workplace and re-register the internal regulations on labor.

6. The registration dossier of the amended and supplemented internal regulations on labor as stipulated in Clause 4 and Clause 5 of this Article shall be processed in the same manner as the initial registration of the internal regulations on labor.

7. The internal regulations on labor become effective fifteen days after the provincial-level state management agency on labor receives the registration dossier or the registration dossier of the amended and supplemented internal regulations on labor.

8. Employers with branches, units, production and business establishments located in multiple provinces or centrally-administered cities have the responsibility to send the internal regulations on labor after they become effective to the provincial-level state management agency on labor at the location of the branches, units, production and business establishments.

9. Employers employing fewer than ten workers are not required to register the internal regulations on labor.

Article 29. Disciplinary Measures for Employees Caring for Children under 12 Months Old

1. Employers shall not impose disciplinary measures on employees who are the biological father, biological mother, or legally adopted father or mother caring for children under 12 months old.

2. When the period of caring for children under 12 months old has ended, if the statute of limitations for disciplinary measures has expired, the statute of limitations for disciplinary measures may be extended, but not exceeding 60 days from the date the period of caring for children under 12 months old ends.

Article 30. Procedure for Imposing Disciplinary Measures

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The procedure for imposing disciplinary measures as stipulated in Article 123 of the Labor Code is as follows:

1. Upon discovering that an employee has violated labor discipline at the time of the violation, the employer shall prepare a violation report, notify the representative organization of the workforce at the workplace; and the parent or legal guardian in case the employee is under 18 years old to convene a meeting to impose disciplinary measures.

2. In cases where the employer discovers a violation of labor discipline after the occurrence of the violation, with sufficient evidence proving the employee's fault and within the statute of limitations for disciplinary measures, the following actions shall be taken:

a) The employer shall notify the content, time, and place of the meeting to impose disciplinary measures to the participants specified in Points b and c of Clause 1 of Article 123 of the Labor Code, ensuring these participants receive the notification before the meeting takes place and conducting the meeting to impose disciplinary measures with the participation of the notified participants.

b) Upon receiving the notification from the employer, the participants specified in Points b and c of Clause 1 of Article 123 of the Labor Code must confirm their attendance at the meeting within a maximum of three working days from the date of receipt of the notification. If they do not attend, they must inform the employer and provide a valid reason.

If one of the participants specified in Points b and c of Clause 1 of Article 123 of the Labor Code does not confirm their attendance at the meeting, provides an invalid reason, or confirms attendance but fails to attend the meeting, the employer shall still proceed with imposing disciplinary measures.

3. The meeting to impose disciplinary measures must be recorded in a minutes document and approved by the attending members before the end of the meeting. The minutes must contain signatures of all attending members. If one of the members who attended the meeting does not sign the minutes, the reason must be clearly stated.

4. The party entering into the labor contract on behalf of the employer is authorized to issue a decision on disciplinary measures against the employee.

5. The decision on disciplinary measures must be issued within the statute of limitations for disciplinary measures or the extended statute of limitations for disciplinary measures as stipulated in Article 124 of the Labor Code. The decision on disciplinary measures must be sent to the employee, the parent or legal guardian of the employee under 18 years old, and the representative organization of the workforce at the workplace.

Article 31. Dismissal Discipline for Employees Who Quit Work Without Just Cause

118. The employer shall apply the dismissal disciplinary measure in cases where an employee quits work without just cause as stipulated in Clause 3 of Article 126 of the Labor Code as follows:

a) Five consecutive working days within a maximum period of one month (30 days), starting from the first day of unauthorized absence;

b) Twenty consecutive working days within a maximum period of one year (365 days), starting from the first day of unauthorized absence.

2. An employee may take leave for justifiable reasons in the following cases:

a) Due to natural disasters or fire;

b) The employee, father, mother, adoptive father, adoptive mother, husband's father, husband's mother, wife's father, wife's mother, spouse, or legitimate child is ill, with a confirmation certificate from a medical facility established and operating in accordance with the law;

c) Other cases prescribed in the internal regulations of the workplace.

Section 2: MATERIAL LIABILITY

Article 32. Compensation for Damage

Compensation for damage as prescribed in Article 130 of the Labor Code shall be regulated as follows:

1. The employee must compensate up to three months' salary recorded in the labor contract of the month immediately preceding the damage caused, deducted monthly from wages according to Clause 3 of Article 101 of the Labor Code due to negligence resulting in damage to tools and equipment with actual loss not exceeding ten times the minimum wage applicable at the place of work published by the Government.

2. The employee must compensate for partial or full damage according to market value when falling under any of the following circumstances:

a) Due to negligence causing damage to tools and equipment with actual loss not less than ten times the minimum wage applicable at the place of work published by the Government;

b) Causing loss of tools, equipment, or property of the employer or other property entrusted by the employer;

c) Exceeding the permitted quota of material consumption set by the employer.

3. In cases where the employee causes damage to the employer as stipulated in Clause 2 of this Article and has a responsibility contract with the employer, compensation shall be made according to the terms of that contract.

4. In cases where damage is caused by natural disasters, fire, enemy action, epidemic, catastrophe, or unforeseeable and unavoidable events despite the employer's application of all necessary measures within their capacity, the employee shall not be required to compensate.

5. The procedures, formalities, and time limits for handling compensation for damage shall be applied according to the procedures, formalities, and time limits for handling disciplinary actions against employees.

Article 33. Complaints about Disciplinary Actions and Material Liability

1. An employee subject to disciplinary action, temporary suspension of work, or required to compensate under the material liability system may file a complaint with the employer or competent authority as provided by law, or request resolution of individual labor disputes according to the procedure stipulated in Article 201 of the Labor Code if they consider it inappropriate.

2. The employer must revoke or issue a replacement decision and notify the employee within the enterprise when the competent state agency concludes differently from the content of the disciplinary action decision, temporary suspension of work decision, or compensation decision under the material liability system issued by the employer.

3. The employer must restore the rights and interests of the employee violated by the disciplinary action decision, temporary suspension of work decision, or compensation decision of the employer. If the disciplinary action involves wrongful termination, the employer shall fulfill the provisions of Clauses 1, 2, 3, and 4 of Article 42 of the Labor Code.

Chapter VI

SETTLEMENT OF LABOR DISPUTES

Article 34. Labor Arbitration Council

1. The Labor Arbitration Council as prescribed in Article 199 of the Labor Code consists of the following members:

a) The Chairman of the Council is the head of the provincial-level state management agency on labor affairs;

b) Secretary of the Council;

c) Members of the Council are representatives of the provincial-level trade union organization and the provincial-level organization representing employers.

2. The Chairman and members of the Council work on a part-time basis, with a term of five years.

3. The Secretary of the Council belongs to the staff of the Department of Labor, Invalids, and Social Affairs, works on a full-time basis, and receives a duty allowance equivalent to the position allowance of a department head.

4. The Chairman of the Labor Arbitration Council shall establish the operational regulations of the Council.

Article 35. Handling of illegal strikes

The handling of strikes not in accordance with procedures and formalities as stipulated in Article 222 of the Labor Code is regulated as follows:

1. Declaration of an illegal strike by the Chairman of the Provincial People's Committee shall be made according to the following provisions:

a) When it is found that the organization and leadership of the strike do not comply with the provisions of Articles 212 and 213 of the Labor Code, the employer shall immediately notify the Chairman of the District People's Committee and the Trade Union of the district, town, city under provincial administration, or the trade union of the industrial park, export processing zone, economic zone, high-tech park where the strike occurs;

b) Upon receiving the notification from the employer, the Chairman of the District People's Committee shall direct the Department of Labor - Invalids and Social Affairs to cooperate with the Trade Union of the district, town, city under provincial administration, or the trade union of the industrial park, export processing zone, economic zone, high-tech park where the strike occurs to inspect the matter. Within 24 hours from receiving the directive, the Department of Labor - Invalids and Social Affairs shall report to the Chairman of the District People's Committee on the inspection results;

c) In case of an illegal strike, within 12 hours after receiving the report from the Department of Labor - Invalids and Social Affairs, the Chairman of the District People's Committee shall issue a document requesting the Chairman of the Provincial People's Committee to decide to declare the strike as violating procedures and formalities;

d) Within 12 hours after receiving the request from the Chairman of the District People's Committee, the Chairman of the Provincial People's Committee shall issue a decision declaring the strike as violating procedures and formalities and immediately notify the Chairman of the District People's Committee.

2. Within 12 hours from receiving the decision declaring the strike as violating procedures and formalities from the Chairman of the Provincial People's Committee, the Chairman of the District People's Committee shall direct the Department of Labor - Invalids and Social Affairs to take the lead in coordinating with the Trade Union of the district, town, city under provincial administration, or the trade union of the industrial park, export processing zone, economic zone, high-tech park where the strike occurs, and directly related agencies and organizations to meet with the employer, the Executive Board of the grassroots trade union or the higher-level trade union directly supervising the grassroots trade union where no grassroots trade union has been established, to hear opinions and support the parties in resolving issues.

3. Participants in an illegal strike shall not be entitled to wages and other benefits prescribed by law during their participation in the strike. Workers who do not participate in the strike but are forced to stop work due to the strike shall be entitled to wages for stopped work as stipulated in Clause 2, Article 98 of the Labor Code and other benefits prescribed by labor laws.

Article 36. Compensation for damages in cases of illegal strikes

The compensation for damages in cases of illegal strikes as stipulated in Clause 1, Article 233 of the Labor Code is regulated as follows:

1. The employer shall determine the value of the damage caused by the illegal strike, including:

a) Damage to machinery, equipment, raw materials, semi-finished products, finished products, after deducting the value recovered from liquidation or recycling (if any);

b) Costs to remedy the consequences caused by the illegal strike, including: Operating machinery and equipment according to technological requirements; repairing or replacing damaged machinery and equipment; recycling raw materials, semi-finished products, and finished products that have been damaged; preserving raw materials, semi-finished products, and finished products during the period of the strike; environmental sanitation; compensating customers or penalties for breach of contract due to the strike.

2. The employer shall issue a document requesting the leading trade union organization of the illegal strike to compensate for the damage. The document requesting compensation shall include the following main contents:

a) The value of the damage caused by the illegal strike as stipulated in Clause 1 of this Article;

b) The value of the compensation requested;

c) The deadline for compensation.

3. Based on the content of the document requesting compensation for damages from the employer, the representative of the trade union organization directly leading the strike shall be responsible for implementing the compensation for damages in accordance with the regulations.

If they disagree with the value of the damage, the value of the compensation, or the deadline for compensation as requested by the employer, within five working days from receiving the request document, the representative of the trade union organization directly leading the strike shall issue a document requesting the employer to organize negotiations on the contents not agreed upon.

After negotiation, if both parties agree, they shall be responsible for implementing the agreed contents. If there is no agreement, either party may request the court to resolve the matter in accordance with the law.

Chapter VII

IMPLEMENTING PROVISIONS

Article 37. Effective Date

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1. This Decree takes effect from March 1, 2015.

2. The Government Decree No. 196/CP dated December 31, 1994 on detailed regulations and guidance on implementation of certain articles of the Labor Code regarding collective labor agreements; the Government Decree No. 93/2002/NĐ-CP dated November 11, 2002 amending and supplementing certain articles of the Government Decree No. 196/CP dated December 31, 1994 on detailed regulations and guidance on implementation of certain articles of the Labor Code regarding collective labor agreements; the Government Decree No. 41/CP dated July 6, 1995 on detailed regulations and guidance on implementation of certain articles of the Labor Code regarding labor discipline and material responsibility; the Government Decree No. 33/2003/NĐ-CP dated April 2, 2003 amending and supplementing certain articles of the Government Decree No. 41/CP dated July 6, 1995 on detailed regulations and guidance on implementation of certain articles of the Labor Code regarding labor discipline and material responsibility; the Government Decree No. 11/2008/NĐ-CP dated January 30, 2008 on compensation for damages in cases where illegal strikes cause damage to employers and previous regulations contrary to the provisions of this Decree shall cease to be effective from the date this Decree takes effect.

Article 38. Transitional Provisions

1. Labour contracts, collective labour agreements, internal regulations on labour, and other regulations of employers that were signed or issued before this Decree comes into effect shall be reviewed, amended, supplemented, and implemented according to the provisions of this Decree.

2. For state-owned enterprises with 100% state capital or joint-stock enterprises transformed from state-owned enterprises when terminating labour contracts with workers who have worked at state agencies, organizations, units, and enterprises and transferred to work at such enterprises before January 1, 1995 but have not yet received severance pay or unemployment benefits, the employer shall be responsible for paying severance pay or unemployment benefits for the time the worker has worked for them and severance pay for the time the worker has worked for state agencies, organizations, units, and enterprises prior to that.

3. Workers currently employed in a single-member limited liability company owned by the State who are appointed by competent authorities to serve as members of the Board of Members, Chairman of the Company, General Director (Director), Deputy General Director (Deputy Director), Supervisor, Chief Accountant, or designated as representatives of contributed capital and working at another enterprise before this Decree comes into effect shall have their temporary suspension of labour contracts under Article 9 of this Decree calculated from the date of appointment or designation as representatives of contributed capital.

Article 39. Responsibility for Implementation

1. The Minister of Labor, Invalids, and Social Affairs shall be responsible for guiding the implementation of this Decree.

2. The Minister, Heads of Ministries, Heads of Government Agencies, Chairmen of Provincial People's Committees, centrally governed cities, and related agencies, organizations, enterprises, and individuals are responsible for implementing this Decree.

Place of Receipt: - Minister (for reporting); - Office of the Government (for posting on the Government’s information website); - Official Gazette (for publication); - Ministry of Labor, Invalids, and Social Affairs’ electronic information portal (for publication); - To be filed: VT, VP of the Department.

CERTIFIED CONSOLIDATED DOCUMENT THE MINISTER Dao Ngoc Dung