The economy of Vietnam is currently undergoing a recovery phase, meaning that all businesses need to work at their maximum capacity to meet the demands of the market and the overall trend of society. However, due to legal limitations, businesses might not be able to do this even if they want to. Accordingly, the Government has just issued Resolution 17/2022/UBTVQH15 to increase the maximum overtime working hours of employees in order to assist the businesses. So, what are the important notes about updating overtime working hours in Vietnam?
Resolution 17/2022/UBTVQH15 was issued to increase the speedy recovery of the economy of Vietnam, in the context of the Covid-19 pandemic that has been ravaging the country for the last 2 years. Effective from April 1, 2022, Resolution 17/2022/UBTVQH15 has increased the maximum overtime working hours for employees so that they can work extra time to earn more income to provide for their families. At the same time, businesses can also accelerate their production to fill in the missing parts during the lockdown. The increase in the overtime working hours is large compared to the provisions of the Labor Code 2019 in order to meet the demand of production and business in the context of the Covid-19 pandemic. However, because of the complexity of the wordings in the provisions, there are still many businesses and employees confused about what is the actual change coming in April 2022. Therefore, the Official Letter 1312/LDTBXH-ATLD guiding the implementation of Resolution 17/2022/UBTVQH15 has been issued to help businesses and employees to clarify the meaning of the Resolution. The Official Dispatch 1312/LDTBXH-ATLD was issued on April 26, 2022.
Important notes about the changes in the overtime working hours in Vietnam
In Resolution 17/2022/UBTVQH15, there are mainly 5 contents that businesses and employees should take extra cautious:
- Cases, where an employer is allowed to employ employees to work overtime for a maximum of 300 hours in a year, are the cases specified in Clause 1, Article 1 of Resolution 17, and Clause 3, Article 107 of the Labor Code 2019.
- All cases of working overtime for a maximum of 300 hours in a year are entitled to work overtime from over 40 hours to 60 hours in a month.
- When the business implements regulations on overtime hours under Resolution 17, they still have to fully comply with other regulations on overtime working in the Labor Code and guiding documents of the Labor Code.
- When organizing overtime work from over 200 hours to 300 hours in a year as prescribed in Clause 1, Article 1 of Resolution 17, the employer must notify the Department of Labor – Invalids and Society.
- Resolution 17 is formulated and promulgated based on Resolution 30. Therefore, the provisions of Resolution 17 will be implemented until the end of December 31, 2022, unless the National Assembly decides to extend the implementation period.