MOLISA Publishes Draft New Employment Law

Last month, the Ministry of Labour, Invalids, and Social Affairs (“MOLISA”) published a draft of the amended Law on Employment. Slated for discussion in the October session of the National Assembly, the draft will – once implemented – update the 2013 law with important changes for both business leaders and staff.

First, the draft proposes three new groups of workers who would be required to participate in unemployment insurance. The first group is people with a labour contract of at least one month. The second group is part-time workers earning at least the wage used to calculate mandatory social insurance. The third group includes managers of companies, cooperatives, and unions (among others).

Meanwhile, workers still in their probation period, those eligible for or receiving a pension or certain other benefits, and domestic workers will not be required to contribute to unemployment insurance. 

Second, the draft amendment to the 2013 law removes the requirement for companies and their staff to contribute the equivalent of one per cent of the worker’s wage each month as an insurance premium. This rate is removed in the draft, which instead proposes a cap of one per cent from both companies and workers rather than mandating that percentage. 

Third, the draft proposes giving additional benefits to workers contributing to unemployment insurance. These would include training to improve their professional skills and qualifications, with costs coming out of the unemployment fund.

The draft text of the law is set to be debated in the National Assembly in October. APFL Partners will monitor this legislation as it moves through the parliament, and keep our clients updated about its possible impact on their companies and commercial activities.

For more information about employment law in Vietnam, just contact our team on:

Disclaimer: This article and its content are for information only and are not given as legal or professional advice. they do not necessarily reflect all relevant legal provisions with respect to the subject matter. Readers should seek legal or professional advice before taking or refraining to take any action.

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