Sourcing Vietnam: improving labour rights

Some of the most significant developments include:

• One Extended coverage of the Labour Code, which will now apply to 35 million workersof the informal market which do notwritten employment contract;
• Better Protection against discrimination and sexual harassment: The employer is required to put in place a system of internal prevention and punishment of sexual harassment which may include dismissal of the harasser. In addition, the rule « equal pay for equal work » must be applied in all enterprises;
• Lincrease in retirement age and the reduction of the gender gap: the retirement age will gradually increase from 55 to 60 years in 2035 for women, and from 60 to 62 years in 2028 for men;
• The right of workers and employers to decide on wages and working conditions dialogue and negotiation with workers' representativesThe role of the State is limited to defining minimum legal standards (minimum salary, overtime ceiling);
• The possibility for workers to set up or join at company level a representative organization of their choice;
• A mechanism of improved labour dispute resolution with the possibility for workers, if mediation fails to resolve a conflict, to choose between legal strike and arbitration.

While some implementing decrees had already been issued, the Government had yet to issue a decree on the registration of organizations representing workers, and another on collective bargaining.

Without this, workers and employers will still have to wait until they can legally enjoy the new rights created by the 2019 Labour Code.

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