Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

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Implementation of State Management in Industrial Parks

New Regulation or Official Guidance

Authors: Tran Thi Kim Luyen, Senior Associate, and Bernadette Fahy, Special Counsel – APFL & Partners Legal Vietnam LLC

On December 29, 2023, the Ministry of Labor, War Invalids and Social Affairs (MOLISA) issued Circular 17/2023/TT-BLDTBXH guiding the authorization for implementation of State management in respect of labor in industrial parks and economic parks (Circular 17). Circular 17 provides that management boards of industrial parks are authorized by provincial People’s Committees to carry out certain responsibilities for State management of employment within industrial parks.

In practical terms, this means that if a company located within an industrial park decides to dismiss an employee, the company will now be required to send a notice of dismissal to the management board of the industrial park, instead of to the relevant provincial People’s Committee.

Circular 17 takes effect as of March 1, 2024.

Amendment to List of Laborious, Toxic and Dangerous Occupations

New Regulation or Official Guidance

Authors: Tran Thi Kim Luyen, Senior Associate, and Bernadette Fahy, Special Counsel – APFL & Partners Legal Vietnam LLC

On December 29, 2023, MOLISA issued Circular 19/2023/TT-BLDTBXH (Circular 19) supplementing a number of occupations to the list of laborious, toxic and dangerous occupations and the list of highly laborious, toxic and dangerous occupations. Accordingly, there are additional occupations in three fields supplemented to the list, including the various occupations in the fields of construction, carriage, war-invalids and social affairs (such as clearance of bombs, mines, explosives; consulting at the national children protection hotline 111, etc.).

The details covering these occupations and their characteristics of working conditions are incorporated in the table in the annexes attached to Circular 19.

Circular 19 takes effect as of February 15, 2024.

Indexation Rate of Employees’ Income and Monthly Salary after Social Insurance Contributions

New Regulation or Official Guidance

Authors: Tran Thi Kim Luyen, Senior Associate, and Bernadette Fahy, Special Counsel – APFL & Partners Legal Vietnam LLC

On December 29, 2023, MOLISA issued Circular 20/2023/TT-BLDTBXH (Circular 20) prescribing the indexation rate of the monthly salary and income of employees after payment of social insurance contributions. Circular 20 provides a detailed prescribed form incorporating the corresponding applicable indexation rate.

Circular 20 takes effect as of January 1, 2024, and replaces MOLISA’s Circular 01/2023/TT-BLDTBXH dated January 3, 2023.

Amended Circular on the Law on Vietnamese Guest Workers

New Regulation or Official Guidance

Authors: Tran Thi Kim Luyen, Senior Associate, and Bernadette Fahy, Special Counsel – APFL & Partners Legal Vietnam LLC

MOLISA issued Circular No. 02/2024/TT-BLDTBXH on February 23, 2023. Circular 02 amends articles of Circular No. 21/2021/TT-BLDTBXH, which provides details on the implementation of the law on Vietnamese guest workers.

Circular 02 details the documents to be included in the application to supply Vietnamese employees for jobs overseas; evidence that the legal requirements for sending Vietnamese guest workers overseas have been met; and amendments to the mandatory contents of the labor supply contracts. The appendices issued in conjunction with Circular 02 replace the templates provided in Circular 21.

Circular 02 takes effect on May 15, 2024.

Salary for Employees and Company Managers Working in 100% State-owned Single Member LLC

New Order or Decree

Authors: Tran Thi Kim Luyen, Senior Associate, and Bernadette Fahy, Special Counsel – APFL & Partners Legal Vietnam LLC

On February 23, 2024, the Government issued Decree No. 21/2024/ND-CP, which amends and supplements various decrees that regulate salaries, remuneration, and bonuses for employees and managers of single-member limited liability companies owned by the State. According to Decree 21, companies are responsible for establishing their own salary scale, payroll, and allowances, which will be used to calculate and pay salaries and other allowances to employees. The Members Councils or the Chairman of the company will determine the pay bands for managers. The company is allowed to decide salary levels in its salary scale, payroll and allowances provided the salary fund does not exceed the payroll budget. Companies must consult with trade unions and organize dialogue when establishing or amending salary scales, payroll, and allowances. Companies must also report to the owner’s representative agencies (i.e., the State Capital Management Committee, Ministries, Ministry-level agencies, and government agencies as the case may be) for comments or approval and be publicized at the company before implementation.

Decree 21 takes effect on April 10, 2024.