Vietnam’s National Assembly passed a resolution on March 23 to increase overtime working hours from the current 40 hours to 60 hours per month. However, the total number of overtime jobs cannot exceed 300 hours per year.
The new regulations are published in Resolution 17/2022 / UBTVQH15 (Resolution 17), effective April 1 to December 31, 2022. The development follows a proposal by the Ministry of Labor, Illegal and Social Affairs (MoLISA) to try to recover the economy from overtime caps, insufficient labor at production sites and business and country epidemics.
There are two reasons for this:
Mai Quoc Hung, associate of Dezan Shira & Associates, HR and Payroll, Ho Chi Minh City Office, noted that this is a positive development for employers and employees in the short term, especially in the manufacturing sector, however, if employees are involved, there is a risk of overwork. Is done
Nevertheless, consent from employees is required before employers are allowed to work overtime.
Employers should keep in mind that working overtime does not include:
Traders have complained that labor shortages have increased significantly since the epidemic. Some businesses that had more than 1,000 employees before the epidemic now have about 500 and thus have resorted to temporary solutions to maintain production.
While Resolution 17 will help businesses and employees in the short term, governments and employers need to come up with effective long-term strategies to meet demand. This will take some time, as businesses and employees re-adjust to the post-epidemic recovery and Vietnam’s economy continues to expand.
Incentives must be provided to survive in a competitive business, such as extra food and fuel allowances (as fuel prices have risen sharply), daily stipends, additional benefits such as paid travel, supplementary health insurance, family-centered benefit packages and continuing education. Develop skills among others.
Over the past decade, the annual overtime cap has grown by almost 50 percent to meet demand.
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