Vietnam: Overtime laws could change soon

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Vietnam has one of the strictest overtime caps in the world, making the country less attractive for investors. Normal working time in Vietnam is limited to 8 hours per day and 48 hours per week. Overtime cannot exceed 200 hours per year.

“We would like to remind you that Vietnam’s overtime cap is much stricter than anywhere else in the region,” said Mr. Colin Blackwell, Vietnam Business Forum (VBF)’s Head of labor sub-committee who is also a judge of the Vietnam HR Awards 2016.

The Ministry of Labor, Invalids and Social Affairs (MoLISA) propose that Vietnamese employees ought to be permitted to work a maximum of 600 extra hours per year. Two plans have been considered. The first is that the working time of an employee will be no more than 12 hours per day and less than five continuous days. The other is the same but limited to a maximum of 600 hours per year.It is expected to improve the competitiveness of Vietnamese workers with other countries in the region.

Mr. Colin Blackwell believes that once the overtime cap is changed, it would help all foreign and domestic businesses to be more flexible and competitive. Prime Minister Nguyen Xuan Phuc asked ministries and agencies to consider adjusting the overtime limit trying to meet the market demand and international rules.

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Text, photo: Mr. Colin Blackwell

 

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