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Revised Labor Code to Bring Reform - Vietnam Briefing News

Jul. 28 – Vietnam is due to submit a draft of the revised labor code for approval by the National Assembly next year that is expected to bring major changes.

Vietnam’s labor code is due for an overhaul despite amendments made in 2002, 2006 and 2007. The current version has not made changes to reflect Vietnam’s membership to the World Trade Organization and the influx of foreign firms setting up in the country.

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“Vietnam’s labor law has been amended three times, but in the next time, more comprehensive and deeper reform is expected in the new context when the country achieves certain progress in economy and integration into the global community,” Dang Duc San, director of the legal department at the Ministry of Labor, said during a seminar held by the Hong Kong Business Association in Vietnam.

San said most workers now work in private and FDI companies rather than state-owned companies and there needs to be more suitable legal framework for improving the labor quality with skilled and professional workers.

The draft of the revised labor code will make administration procedures simpler.  Some of the changes will involve not requiring a labor contract for the probationary period or doing away with the quota that requires employers to hire disabled workers.The other changes proposed will affect wages, working hours, hiring women, labor disputes and strikes.