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In brief

On 14 December 2020, the Vietnamese government issued Decree No. 145/2020/ND-CP detailing and guiding the implementation of the Labor Code on working conditions and labor relations.


This 126-page decree covers various important labor matters, including:

  • employers’ responsibilities in managing employees
  • contents, termination, and invalidity of labor contracts
  • labor outsourcing
  • dialogue and democracy policy at the workplace
  • salary payment and calculation
  • working time and rest time
  • labor discipline and material responsibility
  • female employees
  • settlement of labor disputes

Decree No. 145 will take effect from 1 February 2021 and replace several decrees under the current Labor Code.

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We will share with you our summary of significant provisions and comments on the changes under this decree, so keep an eye out for our next alert.

In the meantime, if you have any immediate queries or concerns, please do not hesitate to contact us.

Author

Thuy Hang Nguyen is a partner in Baker McKenzie's Ho Chi Minh office and the head of the Employment and Labor practice in Vietnam. She joined the Firm in 2006 and has been involved in a wide range of practice areas in various investment projects. She has extensive experience in employment and labor law, and has advised on corporate and regulatory compliance issues in Vietnam, including mergers and acquisitions, foreign investment licensing, corporate and commercial matters. Ms. Nguyen is a leading authority and frequent speaker on employment and labor law in Vietnam and the Asia Pacific region.

Author

Tri Trung Pham is a special counsel in Baker McKenzie Hanoi. Mr. Pham has 15 years experience in advising on foreign investments and has been involved in company and project establishments in various industry sectors including services, distribution, production and banking. He also has extensive experience working in equity award plans for employees.

Author

Van Trung Khuat joined Baker McKenzie in Ho Chi Minh City in April 2012, and specialises in areas of employment and dispute resolution. He is an accredited mediator at the Center for Effective Dispute Resolution (CEDR) in London and at the Vietnam International Commercial Mediation Center, and frequently publishes articles and leads seminars on both advisory and contentious labor and employment law issues in Vietnam. During his time in Vietnam, Trung has also worked in the Firm's Hanoi and Chicago offices. He also previously served as vice-chair of the Human Resources and Training Committee of the European Chamber of Commerce in Vietnam.