regulations on signing labor contracts with elderly employees in Vietnam, signing labor contracts with elderly employees in Vietnam, signing labor contracts with elderly employees , elderly employees in Vietnam,

Regulations on signing labor contracts with elderly employees in Vietnam

It is not uncommon for elderly employees to reach retirement age but still want to continue working to earn extra income in Vietnam. In fact, most security positions in enterprises in Vietnam today are held by elderly employees. So, what are the regulations on signing labor contracts with elderly employees in Vietnam?

According to Article 148 of the Labor Code 2019, an elderly person is a person who continues to work after the retirement age corresponding to their gender.

When they reach retirement age but still want to continue working, elderly employees can enter into many indefinite-term labor contracts with their employers.

Therefore, even while receiving a pension from the social insurance system, an employee can continue to work and receive a monthly salary from the enterprise, equivalent to 2 payments per month.

In particular, as elderly employees are no longer subject to social insurance contributions, the employer will be responsible for paying them an amount equivalent to the employee’s contribution to the social insurance fund according to their salary (10.5%).

However, when employing elderly employees, because of the nature and status of elderly employees in general, enterprises need to be careful when assigning tasks to them. If necessary, elderly employees can apply for shortened daily working hours or part-time work.

Obviously, when using these regimes, the working time and accordingly the salary they receive will also be changed to create fairness with other employees.

Notes when signing labor contracts with elderly employees

The State of Vietnam always encourages employees to be able to continue working after reaching retirement age and at the same time encourages employers to hire elderly employees to work, provided that the jobs for elderly employees must be suitable for their health conditions.

Clause 3, Article 149 of the Labor Code 2019 stipulates that enterprises employing elderly employees must not employ elderly employees to do heavy, hazardous, dangerous or particularly heavy, hazardous, dangerous jobs that adversely affect the health of elderly employees, except in the case of ensuring safe working conditions.

Conversely, when elderly employees are assigned to do heavy, hazardous or dangerous work or especially heavy, hazardous or dangerous work that adversely affects their health, they will also have the right to refuse to do so.

If an enterprise forces an elderly employee to perform heavy, hazardous or dangerous work or particularly heavy, hazardous or dangerous work that adversely affects the health of the elderly employee, according to Clause 2 Article 31 Decree 12/2022/ND-CP, enterprises will be fined from 10,000,000 VND to 15,000,000 VND.

This penalty applies to individuals. For organizations, the fine will be 2 times.

In addition, it should be noted that in case an employee is working at an enterprise under an indefinite term labor contract and reaches retirement age but still wishes to continue working at the enterprise, the enterprise needs to sign a new definite-term labor contract.

If the labor contract before the employee reaches retirement age is a definite-term labor contract, the enterprise may extend the term of the labor contract or create a new definite-term labor contract.

ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.


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