Overtime Work Laws for Vietnamese Employees Might Change Next Year

December 20, 20168:37 am2250 views

According to a proposal from the Ministry of Labour, Invalids and Social Affairs (MoLISA), average Vietnamese employees may work a maximum of 600 extra hours per year. Currently, the employees in Vietnam work maximum of 30 extra hours per month and 200 extra hours per year, according to Article 106 of Vietnam’s Labour Code.

However going forward, some specific areas and industries such as garments and textiles, leather, aquaculture processing, water and power supplies, telecommunication, the overtime will be capped at 300 hours per year.

MoLISA has been considering two proposed plans regards overtime. One being, the working time of an employee will be no more than 12 hours per day and less than five continuous days of 12 hours working each overtime period. The other is the same but limited to a maximum of 600 hours per year, Vietnam Net reports.

This move comes amidst the proposal by private firms, particularly foreign enterprises and also to meet the demand of large group of labourers who want to work extra hours to increase their income. This is also expected to improve the competitiveness of Vietnamese workers in comparison with other countries in the region.

overtime-hours-in-vietnam

Source: Talentnet Corporation, December 2016.

The maximum number of overtime hours allowed in Vietnam is currently much less than other Southeast Asian countries. It is now 1,872 hours per year in Thailand, 1,456 hours per year in South Korea, 1,248 hours per year in Malaysia, 865 hours per year in Singapore, 728 hours per year in Indonesia, 540 hours per year in Laos and no limit in Cambodia and the Philippines.

“We would like to remind that Vietnam’s overtime cap is much stricter than anywhere else in the region,” said Mr. Colin Blackwell, Vietnam Business Forum (VBF)’s Head of labor sub-committee who is also a senior consultant at Talentnet Corporation.

See: Recruitment Trends in Vietnam for Q4 2016 and 2017

The extra working time in Vietnam does not meet some factors of work requirements of different enterprises such as the high and low periods, according to Mr Ryu Hang Ha, Chairman of Overseas Korean Trader Association. The association suggested that the enterprises could increase the overtime in the peak time to meet production demands and vice versa.

Mr. Taiji Yanai, President of Japan Business Association (JBA) believed that the current limit of overtime working hours should be changed flexibly. “It seems that the current regulation which stipulates same limitation of overtime working would not be appropriate, not only for the various industries who wish to have flexible working practice but also the workers who wish to seek more payment and deepen the specialties on their jobs.”

Blackwell believes that once the overtime regulations are changed, it will help all business regardless of size and multitude of operations to be more flexible and competitive. Prime Minister Nguyen Xuan Phuc asked relevant ministries and agencies to consider adjusting the overtime limit following recommendations, with the aim to meet the market demand and international rule. The regulation to be implemented can be diversified based on each industry situation.

Also read: 86% Textile, Clothing and Footwear Workers in Vietnam are at Risk to Automation

Image credit: vietnamnet.vn

(Visited 1 times, 1 visits today)