In today's dynamic and competitive business landscape, companies in Vietnam often face increased work demands, necessitating overtime from their employees to meet deadlines and operational requirements. However, it is crucial to recognize that overtime for workers in Vietnam is subject to specific regulations.
Whether you are an existing company seeking to expand your operations or exploring business opportunities in Vietnam, a comprehensive understanding of the country's overtime regulations is crucial for maintaining legal compliance and fostering a productive work environment.
In this article, we seek to shed light on the fundamental aspects of overtime regulations in Vietnam, focusing on the requirements for requesting employees to work overtime, the standard duration for overtime, and the prohibitions related to overtime work. This knowledge will provide you with a comprehensive overview of the key principles that govern overtime for workers in Vietnam.
As per Labor Code 45/2019/QH14 (hereinafter referred to as "the Labor Code"), the term "overtime work" refers to any work performed outside of the normal working hours established by the law, collective bargaining agreements, or internal labor regulations of an employer (Art. 107).
Before your company requests an employee to work overtime, certain conditions must be met. The employee must willingly agree to work overtime, and the duration of overtime work must comply with the standards outlined in the subsequent section.
Furthermore, employers should compensate employees for overtime work by paying them an amount respectively equal to 150% (on normal days), 200% (on weekly days off) or 300% (on public holidays) of their regular wages. Additionally, if overtime occurs during nighttime hours, a supplementary 20% must be added to the employee's overtime salary (Art. 98).
Standard Time for Overtime Work:
While meeting the aforementioned conditions is crucial, you must adhere to additional regulations concerning the maximum allowable overtime hours.
According to the Labor Code, the number of overtime working hours of the employee mustn’t exceed 50% of the normal working hours in one day. In the case of weekly work, the total of normal working hours plus overtime working hours shall not exceed 12 hours in one day and 40 hours in one month. In additional, the standard limit of total overtime working hours shall not exceed 200 hours within 1 year (Art. 107).
However, employers are allowed to request employees to work overtime below 300 hours in a year within specific industries, jobs, and circumstances. This exception applies to fields such as manufacturing, textile and garment processing and footwear production, as well as in situations where highly skilled workers are scarce in the labor market or when urgent works cannot be delayed due to special reasons.
Prohibited Overtime Work:
Vietnamese labor laws prioritize the well-being and protection of certain employee groups and explicitly prohibit them from engaging in overtime work.
These groups include employees with a work capacity reduction of at least 51% (Art. 160), as well as those with serious or very serious disabilities. Minor employees under the age of 15 are strictly prohibited from working more than 4 hours per day or 20 hours per week and must not engage in overtime or night work.
Employees from the age of 15 to under the age of 18 may engage in overtime or night work only in specific jobs as determined by the Minister of Labor, War Invalids, and Social Affairs (Art 146).
Additionally, it also restricts employers from requesting female employees to work at night, engage in overtime work, or undertake long-distance working trips under certain circumstances. For instance, such restrictions apply when a female employee reaches her seventh month of pregnancy or her sixth month of pregnancy while working in upland, remote, border, or island areas. Moreover, restrictions are applicable when the employee is caring for a child under 12 months of age unless otherwise agreed upon by the female employee (Art. 137).
In conclusion, a comprehensive understanding of overtime regulations is crucial for businesses operating in Vietnam. By diligently adhering to stipulated requirements and being mindful of prohibitions, companies can ensure not only legal compliance but also foster a harmonious and conducive working environment that prioritizes the well-being and rights of their valued employees. Given the complexity of these issues, seeking guidance from a legal advisor becomes paramount to navigate the legal framework effectively and ensure seamless compliance with overtime work plans for employees.
The above content is provided for informational purposes only. The provision of this article does not create an attorney-client relationship between D'Andrea & Partners and the reader and does not constitute legal advice. Legal advice must be tailored to the specific circumstances of each case, and the contents of this article are not a substitute for legal counsel.