Understand the laws governing work hours and overtime in Vietnam
Vietnamese labor law outlines regulations regarding standard working hours to ensure fair treatment and prevent employee burnout. Here are the key points:
In Vietnam, overtime work is defined as any work performed that surpasses the standard working hours as agreed upon between the employer and employee.
Employers are legally obligated to compensate employees for overtime work at a higher rate than standard wages. For overtime work during regular working days, the compensation must be at least 30% higher than the normal wage rate. If the overtime work is performed on rest days, the compensation must be at least 200% higher than the normal wage rate.
The maximum monthly overtime limit is 40 hours, with an annual cap of 200 hours. However, in specific industries with high seasonal demands, this annual limit can be extended to 300 hours upon agreement between employer and employee.
It's important to note that employees aged 15 to under 18 cannot be assigned overtime work exceeding the standard working hours.
For example, if an employee's regular wage is 20,000 VND per hour, and they work 5 hours of overtime on a regular workday, their overtime compensation would be calculated as follows:
Overtime pay = 20,000 VND/hour x 30% = 6,000 VND/hour Total overtime compensation = 5 hours x (20,000 VND/hour + 6,000 VND/hour) = 130,000 VND.
Vietnamese labor law mandates rest periods and breaks to ensure employee well-being and improve productivity. Here's a breakdown of these entitlements according to the Labor Code 2019:
Daily Rest Breaks
Employees working at least 6 hours a day are entitled to a minimum rest break of 30 consecutive minutes. This break is considered part of the working hours and is compensated accordingly.
Weekly Rest Days
Every employee is entitled to at least 24 consecutive hours of rest each week. This typically translates to one full day off per week.
Exceptions and Alternatives
In some industries with continuous production cycles, it might be impossible to grant a full 24-hour rest day every week. In such cases, the employer must ensure employees receive an average of at least 4 days off per month.
Additional Considerations
Employees cannot be forced to work on their designated rest days unless they explicitly agree. If an employee agrees to work on their rest day, they are entitled to receive additional compensation.
Vietnamese labor law acknowledges the demanding nature of night shifts and weekend work, implementing specific regulations to protect employee well-being.
Night work is defined as any work performed between 10 PM and 6 AM. Night work qualifies for overtime pay even if it falls within the employee's regular working hours. Employees receive an additional 30% on top of their regular wage for night shift work.
Every employee is entitled to at least 24 consecutive hours of rest each week, typically translating to one full day off. Certain industries with continuous production cycles might find it challenging to provide a full 24-hour rest day every week. In such scenarios, the employer must ensure employees receive an average of at least 4 days off per month.
Employees cannot be forced to work on their designated rest days, including weekends. If an employee agrees to work on a weekend, they are entitled to receive additional compensation.
Employers are obligated to provide suitable working conditions for night shifts, including proper lighting and ventilation. Employers should also consider the potential health risks associated with night shift work and implement measures to mitigate them.
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