Understand the laws governing work hours and overtime in Laos
Laos adheres to a regulated workweek as defined by the Labor Law (Amended) 2006. This legal framework establishes limitations on the number of hours an employee can work within a specific timeframe.
The Laotian workweek adheres to a maximum of 48 hours, as outlined in Section 41 of the Labor Law. This translates to a standard workday of no more than eight hours per day for a six-day workweek.
The law acknowledges potential risks associated with specific job functions. Section 41 of the Labor Law dictates a reduced workweek for employees engaged in hazardous or dangerous sectors. In these circumstances, the maximum permissible hours are capped at 36 hours per week, translating to a maximum of six hours per workday.
In accordance with the Lao Labor Law (Article 51), there are specific regulations and compensation requirements for overtime work in Laos.
Rules for Overtime Work
Overtime Compensation
The Lao Labor Law mandates increased pay for overtime work, with the rate depending on the day and time the overtime is performed.
Laotian labor law guarantees rest periods and breaks for workers, ensuring they have time to recuperate and maintain productivity. Here's a breakdown of these entitlements:
Workers are entitled to at least one day of rest per week. The specific rest day can be Sunday or any other day agreed upon between the employer and employee.
While the Laotian labor law doesn't prescribe specific break durations, it acknowledges the need for breaks within the workday. The maximum daily working hours are 8 hours, and the maximum weekly working hours are 48 hours or 6 days a week. This implies that employers should structure work schedules to allow for reasonable breaks within these limitations.
Employment contracts can specify break durations if mutually agreed upon by the employer and employee. Regulations for specific industries or for work deemed hazardous might include mandated break times.
In Laos, labor law has specific regulations for night shift and weekend work to ensure fair treatment and compensation for employees.
Regarding night shift work, Laotian law doesn't provide a specific timeframe for "night shift." However, regulations regarding night shift premium pay apply to work hours between 10:00 pm and 6:00 am. Employers must pay a premium for night shift work amounting to no less than 15% of the regular hourly wage for each hour worked.
As for weekend work, Lao labor law mandates a weekly rest day for all employees. There's no specific designation of which day constitutes the rest day, allowing flexibility for employers and employees to agree upon a suitable schedule. Work performed on a designated weekly rest day is considered overtime and must be compensated at a rate of 250% of the regular hourly wage. An additional premium applies to overtime work during specific hours within the rest day: between 4:00 pm and 8:00 pm, the rate is 300% of the regular hourly wage, and between 10:00 pm and 6:00 am, it's 350% of the regular hourly wage.
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