The new labour code makes numerous improvements which can bring benefits to workers and employers. (Photo: VNA) “Thenew code will put Vietnam on an accelerated track for decent work for allworking women and men,” said ILO Vietnam Director Chang-Hee Lee.
“Thenew Labour Code makes numerous improvements which can bring benefits forworkers and employers. But they will become a reality only when all are awareof their new rights and actively use them,” he said.
Key improvements
Accordingto ILO, the first important change is the expanded coverage of theLabour Code to those who work but without written employment contracts. Certainlegal protections under the new code can be applied to about 55 million people,instead of the current coverage of about 20 million workers with employmentrelations.
Secondly, the code has strengthened protectionsagainst gender discrimination and sexual harassment at work. Employers are nowrequired to “ensure equal pay for work of equal value without discriminationbased on sex” and provide maternity protection. Meanwhile, sexual harassmenthas been legally defined for the first time, and employers have an obligationto develop internal regulations and implement solutions to prevent sexualharassment in the workplace.
Theretirement age will be gradually increased to 62 years for men (by threeadditional months per year) and 60 years for women (by adding four more monthsannually). It reduces gender gaps from five to two years while making thepension system more financially sustainable and responding to the demographicchallenge of rapid ageing.
Thirdly,in line with modern labour laws of advanced countries, the code has createdlegal provisions for workers and employers to decide wages and working conditionsthrough dialogue and negotiation, with the role of the State limited todefining legal minimum standards such as minimum wages and overtime caps. Forexample, employers no longer have to register their salary scales and tablesbut are required to consult with workers’ representative organisations.
Fourthly, the code allows workers to establishand join a workers’ representative organisation of their own choosing, whichmay or may not be affiliated with the Vietnam General Confederation of Labour (VGCL).Workers’ organisations, which are not affiliated with VGCL, can be organised atthe enterprise level and will have the same industrial relations rights andobligations equal to grassroots trade unions under the VGCL.
Thecode also ensures the protection of employers’ organisations and workers’organisations against any acts of interference by each other, and that workersenjoy adequate protection against anti-union discrimination. Employers nowhave clearer obligations to avoid acts of anti-union discrimination andinterference in the functions and activities of workers’ representativeorganisations before and after registration. Managerial employees cannotparticipate in the same workers’ organisations as rank-and-file workers. Thiswill gradually end the prevailing situation where senior or middle managersdominate workers’ representative organisations at the enterprise level.
Underthe new law, the mechanism for resolving labour disputes has been streamlined.If mediation fails to resolve a dispute, workers can choose whether to goto lawful strike or arbitration. Previously, more steps were required beforeworkers could lawfully strike.
“Thechanges will create a solid foundation for the Government, workers’ andemployers’ representative organisations to get on a more sustainable pathtowards shared prosperity, avoiding the middle-income trap. It will acceleratesocial and economic upgrading of Vietnam,” Lee said.
New challenges and opportunities ahead
TheGovernment has issued Implementation Decree 135 on retirement age and newDecree 145 on employment conditions and industrial relations, giving effect totheir related provisions. However, the Government has yet to issue a decree onthe registration of workers’ representative organisations and another decree oncollective bargaining. Without them, workers and employers cannot enjoybenefits of new rights created by the 2019 Labour Code.
“TheGovernment should adopt the decrees on registration of workers’ representativeorganisations and collective bargaining as early as possible, to enable workersand employers to exercise their rights,” said ILO’s chief of the Freedom ofAssociation Branch, Karen Curtis.
“Alllegal tools must be available to ensure that workers who take initiatives toexercise the newly created rights under the new code are fully protected,including from any forms of retaliation," she added
Accordingto the ILO Vietnam Director, labour inspection alone cannot guarantee thefull compliance of the Labour Code.
“Ultimately,it is responsibilities of all, not only the Government, workers’ and employers’representative organisations but also media, non-governmental organisations andcourts to make all members of society enjoy the full benefits of the new LabourCode,” he said./.
VNA
