DECREE Detailing and guiding the implementation of a number of articles of the Labor Code regarding working conditions and industrial relations Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and Law on Organization of Local Administration; Pursuant to the November 20, 2019 Labor Code; Pursuant to the June 17, 2020 Law on Investment; Pursuant to the June 17, 2020 Law on Enterprises; At the proposal of the Minister of Labor, Invalids and Social Affairs, The Government promulgates the Decree detailing and guiding the implementation of a number of articles of the Labor Code regarding working conditions and industrial relations. Chapter I GENERAL PROVISIONS Article 1 . Scope of regulation This Decree details and guides the implementation of a number of provisions on working conditions and industrial relations in the following articles and clauses of the Labor Code: 1. Labor management referred to in Clause 3, Article 12. 2. Labor contracts referred to in Clause 4, Article 21; Point d, Clause 1, Article 35; Point d, Clause 2, Article 36; Clause 4, Article 46; Clause 4, Article 47; and Clause 3, Article 51. 3. Labor lease referred to in Clause 2, Article 54. 4. Organization of dialogues and implementation of regulations on grassroots democracy in the workplace referred to in Clause 4, Article 63. 5. Wages referred to in Clause 3, Article 92; Clause 3, Article 96; and Clause 4, Article 98. 6. Working time and rest time referred to in Clause 5, Article 107; Clause 7, Article 113; and Article 116. 7. Labor discipline and material responsibility referred to in Clause 5, Article 118; Clause 6, Article 122; Clause 2, Article 130; and Article 131. 8. Female employees and assurance of gender equality referred to in Clause 6, Article 135. 9. Domestic workers referred to in Clause 2, Article 161. 10. Settlement of labor disputes referred to in Clause 2, Article 184; Clause 6, Article 185; Clause 2, Article 209; and Clause 2, Article 210. Article 2. Subjects of application 1. Employees, apprentices and on-the-job trainees referred to in Clause 1, Article 2 of the Labor Code. 2. Employers referred to in Clause 2, Article 2 of the Labor Code. 3. Other agencies, organizations and individuals involved in the implementation of this Decree. Chapter II LABOR MANAGEMENT Article 3. Employee management books The making, update, management and use of employee management books referred to in Clause 1, Article 12 of the Labor Code are specified as follows: 1. Within 30 days from the date of operation commencement, an employer shall make employee management books at the places where its/his/her head office, branches and representative offices are located. 2. An employee management book shall be made in paper or electronic form but must have essential information about an employee, including full name; gender; date of birth; citizenship; place of residence; serial number of citizen identity card or people’s identity card or passport; technical professional qualifications; level of occupational qualifications and skills; working position; type of labor contract; time when he/she starts working; participation in social insurance; wages; wage rank promotion and wage raise; number of day-offs in the year; number of overtime working hours; apprenticeship or training and improvement of occupational knowledge and skills; labor discipline and material responsibility; occupational accidents and diseases; and time of termination of the labor contract and reason(s) therefor. 3. Employers shall record and update the information specified in Clause 2 of this Article from the date an employee starts working; and manage, use and produce employee management books to state management agencies in charge of labor and related agencies upon request in accordance with law. Article 4. Reporting on labor employment The declaration of labor employment and regular reporting on labor-related changes referred to in Clause 2, Article 12 of the Labor Code are specified as follows: 1. Employers shall declare the employment of labor in accordance with the Government’s Decree No. 122/2020/ND-CP of October 15, 2020, providing coordination and interconnectivity in performance of procedures for registration of establishment of enterprises and their branches and representative offices, declaration of labor employment, issuance of identification numbers for units participating in social insurance, and registration of use of invoices of enterprises. 2. Before June 5 and December 5 every year, employers shall send reports on labor-related changes, made according to Form No. 01/PLI provided in Appendix I to this Decree, to provincial-level Departments of Labor, Invalids and Social Affairs via the National Public Service Portal, and notify such to district-level social insurance agencies of localities where their head offices, branches and representative offices are located. If unable to send reports on labor-related changes via the National Public Service Portal, employers shall send paper reports, made according to Form No. 01/PLI provided in Appendix I to this Decree, to provincial-level Departments of Labor, Invalids and Social Affairs, and notify such to district-level social insurance agencies of localities where their head offices, branches and representative offices are located. Provincial-level Departments of Labor, Invalids and Social Affairs shall summarize information on labor-related changes, in case employers send paper reports, for fully updating information in reports made according to Form No. 02/PLI provided in Appendix I to this Decree. 3. Before June 15 and December 15 every year, provincial-level Departments of Labor, Invalids and Social Affairs shall send to the Ministry of Labor, Invalids and Social Affairs reports on labor employment in localities, made according to Form No. 02/PLI provided in Appendix I to this Decree, via the National Public Service Portal. If unable to send reports on labor employment via the National Public Service Portal, provincial-level Departments of Labor, Invalids and Social Affairs shall send paper reports, made according to Form No. 02/PLI provided in Appendix I to this Decree, to the Ministry of Labor, Invalids and Social Affairs. Chapter III LABOR CONTRACTS Section 1 CONTENTS OF LABOR CONTRACTS FOR EMPLOYEES HIRED TO WORK AS DIRECTORS OF STATE CAPITAL-INVESTED ENTERPRISES Article 5. Contents of labor contracts for employees hired to work as directors of enterprises in which the State holds 100% of charter capital or enterprises in which the State holds over 50% of charter capital or total voting shares A labor contract for an employee hired to work as the director of an enterprise in which the State holds 100% of charter capital or an enterprise in which the State holds over 50% of charter capital or total voting shares referred to in Clause 4, Article 21 of the Labor Code must have the following principal contents: 1. Name and head office address of the enterprise as stated in the enterprise registration certificate; full name, date of birth, serial number of citizen identity card or people’s identity card or passport, telephone number, and contact address of the Chairperson of the Members’ Council or Company President or Chairperson of the Board of Directors. 2. Full name, date of birth, gender, citizenship, professional qualifications, address of the place of residence in Vietnam and address of the place of residence overseas (for foreign workers), serial number of citizen identity card or people’s identity card or passport, telephone number and contact address, serial number of work permit issued by a competent state agency or a written certification that the employee is exempt from work permit, and other papers as required by the employer (for foreign workers), if any, of the employee hired to work as the director. 3. Jobs permitted and jobs not permitted to be performed, and obligations combined with task performance of the employee. 4. Workplace of the employee hired to work as the director. 5. Term of the labor contract as agreed upon by the two parties, which must not exceed 36 months. For foreign workers hired to work as directors of enterprises, the term of their labor contracts must not exceed the term of their work permits issued by competent state agencies. 6. Contents, duration, and responsibility of the employee hired to work as the director to protect business secrets and technological know-how of the enterprise, and handling of violations. 7. Rights and obligations of the employer, including: a/ To provide information to the employee hired to work as the director for his/her task performance; b/ To examine, supervise and evaluate task performance by the employee hired to work as the director; c/ Rights and obligations provided by law; d/ To issue a working regulation applicable to the director; dd/ To fulfill obligations toward the employee hired to work as the director regarding payment of wages and bonuses; payment of social insurance, health insurance and unemployment insurance premiums; furnishing of working means and assurance of travel, meal and accommodation conditions; provision of training; e/ Other rights and obligations as agreed upon by the two parties. 8. Rights and obligations of the employee hired to work as the director, including: a/ To perform the jobs stated in the labor contract; b/ To report and propose solutions to address difficulties and problems in the course of performance of jobs stated in the labor contract; c/ To report on management and use of capital, assets, labor and other resources; d/ To be entitled to wages and bonuses; working time and rest time; furnishing of working means and assurance of travel, meal and accommodation conditions; social insurance, health insurance and unemployment insurance; and training; and other regimes as agreed upon by the two parties; dd/ Other rights and obligations as agreed upon by the two parties. 9. Conditions, process and procedures for modification and supplementation of the labor contract, or unilateral termination of the labor contract. 10. Rights and obligations of the employer and employee hired to work as the director upon termination of the labor contract. 11. Labor discipline, material responsibility, and settlement of labor disputes and complaints. 12. Other contents as agreed upon by the two parties. Article 6. Contents of labor contracts for employees hired to work as directors of enterprises in which the State holds up to 50% of charter capital or total voting shares Contents of labor contracts for employees hired to work as directors of enterprises in which the State holds up to 50% of charter capital or total voting shares must comply with Clause 1, Article 21 of the Labor Code. Section 2 TERMINATION OF LABOR CONTRACTS Article 7. Period of prior notification upon unilateral termination of labor contracts for special occupations, professions and jobs Special occupations, professions and jobs and period of prior notification upon unilateral termination of labor contracts referred to at Point d, Clause 1, Article 35 and Point d, Clause 2, Article 36 of the Labor Code are specified as follows: 1. Special occupations, professions and jobs include: a/ Aircrew; aircraft maintenance technicians and aviation repairmen specialists; and flight dispatchers; b/ Enterprise managers as defined in the Law on Enterprises and Law on Management and Use of State Capital Invested in Production and Business at Enterprises; c/ Crewmen working on board Vietnamese ships that currently operate overseas; and crewmen leased by Vietnamese enterprises and working on board foreign ships; d/ Other cases specified by law. 2. When an employee who performs the occupation(s), profession(s) or job(s) specified in Clause 1 of this Article unilaterally terminates his/her labor contract or the employer unilaterally terminates the labor contract with such employee, the period of prior notification must be: a/ At least 120 days, for indefinite-term labor contracts or labor contracts of a term of at least 12 months; b/ At least equal to one-fourth of the term of the labor contract, for labor contracts of a term of under 12 months. Article 8. Severance allowance, job loss allowance 1. An employer shall pay severance allowance under Article 46 of the Labor Code to the employee who has regularly worked for it/him/her for at least 12 months by the time of termination of the labor contract as specified in Clause 1, 2, 3, 4, 6, 7, 9 or 10, Article 34 of the Labor Code, except the following cases: a/ The employee fully satisfies the conditions for enjoying pension as specified in Article 169 of the Labor Code and the law on social insurance; b/ The employee has given up work at his/her own discretion without a plausible reason for 5 or more consecutive days as specified at Point e, Clause 1, Article 36 of the Labor Code. Cases in which an employee is regarded as having a plausible reason are specified in Clause 4, Article 125 of the Labor Code. 2. An employer shall pay job loss allowance under Article 47 of the Labor Code to the employee who has regularly worked for it/him/her for at least 12 months and is laid off under Clause 11, Article 34 of the Labor Code. In case the employee has regularly worked for the employer for at least 12 months and is laid off while the working period used for calculation of job loss allowance specified in Clause 3 of this Article is shorter than 24 months, the employer shall pay to the employee a job loss allowance amount at least equal to the latter’s 2 months’ wage. 3. The working period used for calculation of severance allowance or job loss allowance is the total period in which an employee has actually worked for an employer minus the period in which he/she has paid unemployment insurance premiums under the law on unemployment insurance and the working period in which he/she has received severance allowance or job loss allowance from the employer, of which: a/ The total period in which the employee has actually worked for the employer includes the period in which the employee has worked; probation period; period in which he/she is sent by the employer for training; period in which he/she takes sickness leave or maternity leave under the law on social insurance; period in which he/she takes paid leave for medical treatment or functional rehabilitation after suffering an occupational accident or disease under the law on occupational safety and health; period in which he/she takes paid leave to perform civic obligations in accordance with law; work cessation period while the cessation is not due to employee’s fault; weekly breaks referred to in Article 111 and fully paid leaves referred to in Articles 112, 113 and 114, and Clause 1, Article 115; period for performance of tasks of employees’ representative organizations referred to in Clauses 2 and 3, Article 176, and work suspension period referred to in Article 128 of the Labor Code. b/ The period in which the employee has paid unemployment insurance premiums includes the period in which he/she has paid unemployment insurance premiums in accordance with law and period in which he/she is not required by law to pay unemployment insurance premiums but he/she has received, together with his/her wage from the employer, an amount equal to the amount of unemployment insurance premiums paid by the employer for him/her in accordance with the laws on labor and unemployment insurance. c/ The working period used for calculation of severance allowance or job loss allowance of an employee shall be calculated in year (full 12 months). An odd period of up to 6 months shall be regarded as a half year of working while an odd period of over 6 months shall be regarded as 1 full year of working. 4. Determination of the period in which an employee has actually worked for an employer as specified at Point a, Clause 3 of this Article in some special cases: a/ For a wholly state-owned enterprise or an equitized state enterprise, when terminating the labor contract with the employee who used to work at agencies, organizations, units or enterprises in the state sector and moved to work at such enterprise prior to January 1, 1995, while not yet having received severance allowance or job loss allowance or lump-sum allowance when being demobilized from armed forces, or demobilization or movement allowance, the employer shall calculate the period in which the employee has actually worked for it/him/her and the period in which he/she had actually worked in such state sector. The period in which the employee had actually worked at agencies, organizations, units or enterprises in the state sector prior to January 1, 1995, includes the period in which he/she had actually worked in state agencies, public non-business units, political organizations, socio-political organizations, and armed forces units and received salary from the state budget; and the period in which he/she had worked at state enterprises. b/ In case the employee had worked for the employer under different successive labor contracts as referred to in Clause 2, Article 20 of the Labor Code but not yet received severance allowance or job loss allowance upon termination of each labor contract, the period in which he/she had actually worked for the employer is the total working period under such labor contracts minus the actual working period under the labor contract which is declared to be wholly null and void as all contents of the contract are illegal or the job agreed in the contract is prohibited by law, the labor contract under which the employee is disciplined in the form of dismissal, and the labor contract which the employee unilaterally terminated illegally (if any). c/ In case the employee continues working at the enterprise or cooperative under the labor utilization plan referred to in Clause 1, Article 44 of the Labor Code after such enterprise or cooperative is divided, split up, consolidated or merged; sold, leased or transformed; or transfers property ownership or use rights, the employer shall determine the period in which the employee had actually worked for it/him/her for calculating and paying severance allowance or job loss allowance as follows: c1/ In case the labor contract is terminated under Clause 1, 2, 3, 4, 6, 7, 9 or 10, Article 34 of the Labor Code, the period in which the employee had actually worked for the employer and which is used for calculation and payment of severance allowance is the total actual working period under labor contracts signed with the employer before and after the division, splitting, consolidation or merger; sale, lease or transformation; or transfer of property ownership or use rights. c2/ In case the labor contract is terminated under Clause 11, Article 34 of the Labor Code, the period in which the employee had actually worked for the employer and which is used for calculation and payment of job loss allowance is the total actual working period under labor contracts signed with the employer after the division, splitting, consolidation or merger; sale, lease or transformation; or transfer of property ownership or use rights. The period in which the employee had actually worked for the employer and which is used for calculation and payment of severance allowance is the actual working period under labor contracts signed with the employer before the division, splitting, consolidation or merger; sale, lease or transformation; or transfer of property ownership or use rights. c3/ The employer shall pay severance allowance both for the period in which the employee had worked in the state sector who was recruited to the enterprise prior to January 1, 1995, before the enterprise is divided, split, consolidated or merged; sold, leased or transformed; or transfers property ownership or

Decree 145/2020/ND-CP