Legal News

[Labor] Draft amendment to the Employment Act submitted to the Diet

2024/11/15

On November 9, 2024, Vietnam’s Ministry of Labor, Invalids, and Social Affairs submitted a draft amendment to the Employment Law (hereinafter referred to as the “amendment”) to the 8th National Assembly. As previously reported in the newsletter issued on March 21, 2024,

the submitted draft amendment continues to include proposals regarding the expansion of eligibility for unemployment insurance and the flexibilization of contribution rates. This news article introduces two new points of note in the draft amendment.

1) Provisions on Unemployment Benefits
Under the current law, even if an employee is dismissed, they may receive unemployment benefits if certain conditions are met. However, the revised bill tightens the eligibility criteria for unemployment benefits and strengthens measures to prevent fraudulent claims by revising and adding provisions related to the management of unemployment insurance. Specifically, a new provision has been added stating that employees who are dismissed for disciplinary reasons are ineligible to receive unemployment benefits.

2) Part-time Work Hour Limits for Students
The amendment introduces a new restriction on part-time work hours for students aged 15 or older who are enrolled in regular educational programs, limiting their work hours to no more than 24 hours per week during the academic term. Such a provision does not currently exist under the current law, making this a significant change for companies that employ students on a part-time basis. Employers will need to pay attention to future shift adjustments and compliance checks.

Currently, the revised Employment Act draft is under review, with plans to be passed at the 9th Diet session in May 2025. We will update this information in our newsletter as new details are announced by the government.

References:
• 2013 Employment Act
• Revised Employment Act Draft (3rd Edition)