Labour Code yet to get to work

But, putting the new laws into reality will be no less challenging.

A conference entitled “Introduction of the Labour Code and Trade Union Law: Opportunities and Challenges” was held in Hanoi on September 24 by the National Assembly’s Social Committee, Ministry of Labour, Invalids & Social Affairs (MOLISA), Vietnam General Confederation of Labour (VGCL) and the International Labour Organisation (ILO) in Vietnam to give social partners and the public an insight into the significant changes created by the amended laws.

According to National Assembly’s Social Affairs Committee chairwoman Truong Thi Mai, the new Labour Code and Trade Union Law, that come into effect in May and January 2013, respectively, were adapted to the new reality of the labour market and industrial relations.  

Deputy MOLISA Minister Pham Minh Huan said: “The 2012 Labour Code is a leap forward in simplifying red tapes and an important tool to improve state management in labour issues.”

Meanwhile, VGCL vice president Mai Duc Chinh said that the revised Trade Union Law corrects the weakness of the 1990 version and helped develop sound industrial relations, which would result in better socio-economic development.

One of the major changes in the two laws requires the government to develop a more active role in facilitating and supporting collective bargaining between employers and trade unions as the real representative of workers.

Once real collective bargaining begins to take place, it was expected to reduce wild-cat strikes in Vietnam, allowing disputes to follow the procedures provided by the law.

This will also benefit business, including foreign investors, who will find stable industrial relations provide enabling environment for productivity growth and predictability.

Other key amendments that will have strong positive impact on industrial relations include the establishment of the National Wage Council as the main body to fix minimum wages, the introduction of labour sub-leasing as a new employment arrangement and the protection of part-time workers and domestic workers.  

The revised Labour Code also creates the possibility for recognising employment relationship between an employer and a worker on the basis of actual relationship, even if a former labour contract is not signed between them.

Changes aimed at eliminating forced labour and child labour, and measures to bring the protection of young workers closer in line with international labour standards are also introduced in the revised Labour Code.

“I have no doubt that the revised Labour Code and Trade Union Law will equip the Vietnamese government and social partners with the tools needed to address some of the important changes as the country prepares for market economy status in 2016. The challenge now lies in how effectively these changes are actually put into practice,” said Sandra Polaski, executive director of the ILO’s Social Dialogue Sector.