Maximize the agreement framework on overtime, increase retirement age

Extending the framework for maximum overtime agreements

The current Labor Code stipulates that the maximum number of overtime hours for employees is no more than 50% of normal working hours/day, 30 hours/month and the total is no more than 200 hours/year. In special cases as prescribed by the Government, overtime may not exceed 300 hours/year.

However, in order to meet the demand for labor and increase flexibility in the arrangement of production and business of enterprises; to meet the needs of a group of employees who want to increase the limit of overtime hours to have conditions to increase income and improve their lives, the Drafting Committee finds that expanding the maximum overtime agreement framework is necessary and applicable in some special cases, for certain production and business sectors.

In the draft, the Drafting Committee proposed that the overtime agreement framework in these special cases would be expanded by 100 hours/year compared to the current level: from a maximum of 300 hours/year to 400 hours/year.

And to overcome the negative impacts of overtime and ensure the immediate and long-term health of workers, the draft stipulates: In all cases of mobilizing overtime, employers must reach an agreement with workers. Overtime can only be mobilized when the workers agree. Workers working in shifts are entitled to at least 12 hours of rest before moving to another shift...

Adjusting the retirement age

Thoroughly grasping the spirit of Resolution No. 28-NQ/TW and specifying the content of the Social Insurance Policy Reform Project of the Government Party Committee, to ensure that the increase in retirement age is consistent with the scale, structure, quality, health status and life expectancy of Vietnamese workers, avoiding sudden adjustments to too high a level in the future, ensuring contribution to socio-political stability, the draft proposes 2 options for increasing the retirement age as follows:

Option 1:

From January 1, 2021, the retirement age of employees in normal working conditions is 60 years and 3 months for men and 55 years and 4 months for women; then, each year it increases by 3 months for men and 4 months for women until men are 62 years old and women are 60 years old.

Option 2:

From January 1, 2021, the retirement age of employees in normal working conditions is 60 years and 4 months for men and 55 years and 6 months for women; then, each year it increases by 4 months for men and 6 months for women until men are 62 years old and women are 60 years old.

The Ministry of Labor, War Invalids and Social Affairs said that through survey, assessment and consultation with the parties during the drafting process, the majority of opinions proposed to choose Option 1. Both options stipulated in the draft have a slow increase roadmap, however, Option 01 is the option with more advantages, better prevention of risks when adjusting age for the labor market, avoiding shock to the labor market, maintaining social stability and in line with international practices.

Add 01 holiday: War Invalids and Martyrs Day July 27

The draft proposes to add a public holiday, War Invalids and Martyrs Day (July 27). The Ministry of Labor, War Invalids and Social Affairs believes that this proposal is consistent with the tradition, culture and morality of the nation, and the aspirations of the people. Having a day off for the entire Party, people and army to express gratitude not only to those who have sacrificed their blood and bones to protect and build the Fatherland, but also to express gratitude to those who have contributed to the cause of innovation and building a prosperous country from now on. Choosing July 27 as a public holiday will elevate War Invalids and Martyrs Day, with the meaning of gratitude to all those who have contributed to the country, to the revolution, to predecessors, to parents, to those who gave birth, raised and honored Vietnamese cultural values.

Regarding the Lunar New Year holiday, the Ministry of Labor, War Invalids and Social Affairs said that the Lunar New Year holiday regulations in the 2012 Labor Code have been implemented since May 1, 2013 and have been supported by the majority of the people. However, there are opinions that Vietnam's Lunar New Year holiday is longer than some countries in the region, which can disrupt the production and business plans of enterprises processing products and goods for export, and work efficiency is not high after returning to work after a long Tet holiday.

Implementing the Resolution of the Government's regular meeting in January 2019, assigning "the Ministry of Labor, War Invalids and Social Affairs to study and propose a new way to celebrate Lunar New Year, ensuring joy, warmth, practicality and efficiency", the Drafting Committee proposed 2 options for Lunar New Year holiday time:

Option 1 (keep current):Employees are entitled to 5 days off for Lunar New Year; if a Lunar New Year holiday coincides with a weekly day off, they will be compensated with the following day off.".

Option 2:Employees are entitled to 5 days off for Lunar New Year; if a Lunar New Year holiday coincides with a weekly day off, they will not be entitled to compensatory leave"

During the discussion and consultation process with experts, the majority of opinions expressed consensus with option 1.

Thanh Quang