On 24/10/2018, the Government promulgated Decree No. 148/2018/ND-CP amending, supplementing Decree No. 05/2015/ND-CP detailing and guiding implementation of Labor Code. According to this Decree, many regulations on labour contract shall be amended, supplemented as below:

- Contents stated in a labour contract regarding rank promotion and wage raise; working time and rest time; personal protective equipment for employees; social insurance, unemployment insurance, health insurance may be as agreed by the 2 parties as currently or implemented under labour internal regulation, collective labour agreement and legal regulations.

- The wage used as a basis for wage payment to employees on annual leave is the wage stated on the labour contract at the time for determination for payment, not is the wage stated on the labour contract of the preceding month as before.

- Probation period and period of apprenticeship and on-the-job training shall not be included in the actual working period used for the calculation of severance allowance and job-loss allowance.

- Adding regulation that the wage used as a basis for compensation in case of illegal labour contract termination is the wage stated on the labour contract at the time of illegal labour contract termination.

- Specially, employers should pay attention to the following new regulation on order of imposing labour discipline:

+ When discovering the employee’s action violating labour discipline at the time of violation, the employer must make a minute on violation and notice to hold the meeting on labour discipline.

+ If discovering the employee’s violation action after the time of violation, the employer must send a written notice to parties to participate in the meeting. During 03 days, all invited parties must confirm. If they do not confirm or has already confirmed but are absent, the meeting shall be held. As currently, in case the employer has already sent a written notice 3 time but one of the invited parties is still absent, the employer may hold the meeting.

- The persons entering into labour contracts on the employer side are competent to issue decisions on labour discipline. As currently, the person authorized to sign labour contracts are only competent to impose labour discipline in the form of reprimand.

Le Thang