LEGAL UPDATE 02/2022

CREATED BY VIETVALUE LAW FIRM

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LABOR

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• Do not publicly announce at the workplace before implementation: salary scale, salary table; level of labor; bonus regulations;
• Do not consult the employee's representative organization at the grassroots level, for the place where there is a representative organization of employees at the grassroots, when making the salary scale and salary table; labor norms; bonus regulations;
• Do not make salary scale, salary table or labor norms.

Fine from 5 to 10 millions (currently from 2 to 5 millions)

• Do not apply trial labor norms before official issuance;
• Do not notify the salary statement or do notify it employees but not in accordance with regulations;
• Do not pay equal wages or having the sexism for employees doing works of the equal value.

Fine from 5 to 10 millions is newly regulated as bellow:

Failing to reach a written agreement with the leadership of the employer's representative organization at the grassroots when:

• Unilateral termination of labor contracts,
• Move to the another job or
• Disciplinary dismissal of employees who are members of the leadership of the employer's representative organization at the grassroots, but not to the extent of criminal prosecution, unless the two parties cannot reach an agreement.

Fine of between 10 millions and 20 millions for the following acts

Employers commit acts of falsifying or falsifying the contents of dossiers for social insurance or unemployment insurance benefits to seek profits from social insurance and unemployment insurance benefits but not to the extent of criminal prosecution for each incorrect dossier but not more than 75,000,000 VND

1. Decree No. 12/2022/ND-CP stipulating penalties for administrative violations in the field of labor, social insurance and Vietnamese workers working abroad under contracts

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Issue date: January 17^th, 2022

Effective date: January 17^th , 2022

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2. Circular No. 18/2021/TT-BLDTBXH stipulating working time and rest time for employees doing seasonal production jobs and processing jobs according to orders.

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Limit daily standard working hours and overtime hours of employees:

• In a day no more than 12 hours;
• In a week no more than 72 hours;
• In a month, do not exceed 40 hours;
• The total number of overtime hours in a year for each employee must not exceed 300 hours.

Time off:

• Employees are entitled to at least one day off (24 consecutive hours) per week.
• For seasonal months or when it is urgent to process export goods according to orders, if it is not possible to take a weekly break, it is necessary to ensure that employees have at least 04 days off every month.

Employers make plans to determine the number of standard working hours per day for employees:

• The standard working day is 8 hours;
• A working day has standard working hours more than 8 hours but not more than 12 hours;
• Take a full day off.

Issuance date:December 15^th, 2021

Effective date: February 1^st, 2022

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3. Circular 21/2021/TT-BLDTBXH stipulating a number of articles of the Law on Vietnamese employees working in foreign countries under contract

• Remuneration ceiling according to brokerage contract

• According to the agreement between the service enterprise and the intermediary organization or individual;

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• But must not exceed 0.5 months of the employee's salary under the contract for every 12 working months;

All occupations in the Japanese market are 0 VND;

Crew members of offshore fishing vessels, transport ships in the Taiwan (China) and Korean markets are 0 VND;

Domestic workers in the Malaysian, Bruneian market and the countries of West Asia‘s market: 0 VND

• Remuneration ceiling according to brokerage contracts for a number of specific markets, industries, professions and jobs:

Issuance date: December 15^th, 2021

Effective date: February 1^st, 2022

• In case the labor contract has a working term of 36 months or more, the ceiling of remuneration under the brokerage contract shall not exceed 1.5 months of the employee's salary under the contract.

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4. Circular No. 36/2021/ TT-BLDTBXH stipulating the adjustment of monthly salary and income for which social insurance premiums have been paid

• The adjustment of the salary for which social insurance has been paid for the corresponding year is made according to the following table:

Issue date: December 31^st, 2021

Effective date: February 20^th , 2022

• The formula for calculating the monthly salary on which social insurance premiums are based after adjustment for each year:

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Monthly salary on which social insurance premiums are based, after adjustment of each year = Total salary on which social insurance premiums are based x Adjustment of salary for which social insurance premiums have been paid in the corresponding year.

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5. Decision No. 59/QD-NHNN on lending interest rates for implementation of social housing policy at credit institutions designated by the State

Customers borrowing capital to implement the social housing policy is 4.8% per year applied in the following loan cases:

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• Borrow capital to build new social houses.
• Borrow capital to renovate and repair houses for social housing.

Issue date: January 20^th , 2022

Effective date: January 20^th, 2022

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