The Labor Code No. 45/2019/QH14, will take effect on 1st January, 2021

The Labor Code No. 45/2019/QH14 (“the Labor Code 2019”) is ratified by the 14^th National Assembly of Socialist Republic of Vietnam during its 8^th session on November 20th, 2019. It shall enter into force as of 1^st of January 2021.

The promulgation of this Labor Code is necessary and appropriate because the practice still has many shortcomings. According to the new code has some notable changes in the employment of foreign workers in Vietnam.

Notable points include:

1. Regarding the conditions for the foreign workers to work in Vietnam, there have been adjustments and supplements to the relevant requirements for the foreign workers such as: age, qualification, work experience, health and identity of the foreign worker.
2. Regarding the duration of a foreign employee’s employment contract in Vietnam. Although, this code is not allowed to exceed the term of the Work Permit, both parties may negotiate conclusion of multiple fixed-term employment contracts.
3. To add  the subjects that are not required to have the work permit. Especially, the case is “Foreigner gets married with a Vietnamese citizen and resides in Vietnam.”
4. The duration of the work permit remains the same as the old regulation is 02 years, but the new code allows to be extended once.

DNC stated that:

• The Labor Code 2019 stipulates the duration of the employment contract signed with the foreign workers, but it allows the parties to be negotiated conclusion of multiple fixed-term employment contracts.
• Foreigner who is married to Vietnamese citizen and living in the territory of Vietnam have a lot of the opportunities to find a job without a Work Permit.
• Authorizing the renewal of the Work Permit is progression, because the old regulations did not allow the renewal of the Work Permit.

DNC hopes that enterprises employing foreign workers need to pay attention to this adjustment, especially, the agreements in the employment contract with foreign workers.

DNC hopes to have the opportunities to continue to support customers in the employment of foreign workers in Vietnam.