Question: We are a FDI company and would like to know the regulation on Annual leave under Labour Code of Vietnam.
Now, under the regulation of our company, the firm applies an annual leave policy of 20 days for the employees who sign labor contracts with a term of 1 year or more, this policy is consistent with the provisions of the Labor Code of Vietnam or not.
Answer: As your request, we would like to advise as follows:
At Article 113 and Article 114 of Labour Code of Vietnam stipulates annual leave of employees as follows:
– Any employee who has been working for an employer for 12 months is entitled to fully-paid annual leave of 12 working days.
– An employee who has been working for an employer for less than 12 months will have a number of paid leave days proportional to the number of working months.
– The annual leave of an employee shall increase by 01 day for every 05 years of employment with the same employer.
According to the information provided by your firm, we understand that, your firm applies an annual leave policy of 20 days for the employees who sign labor contracts with a term of 1 year or more.
It is noted that, Labor Code of Vietnam always encourages businesses/organizations to apply beneficial welfare policy for the employees. Accordingly, this policy is consistent with the provisions of the Labor Code of Vietnam.
The number of annual leave day does not affect the increase of annual leave day by seniority.
Therefore, the increase of annual leave day by seniority of the employee working at your company will apply provisions of Article 114 of the Labor Code of Vietnam: “The annual leave of an employee shall increase by 01 day for every 05 years of employment”.
According to the above Article 14 of Labour Code of Vietnam, It is assumed that, the employees starts to work from 01 February 1997 to 01 February 2021, they shall be increased additional 04 annual leave days. Accordingly, their total annual leave days will be 24 days.
Regarding arrangement for timetable of annual leaves: According to Clause 4 Article 114 of Labour Code of Vietnam, the company has the responsibility to regulate the timetable for annual leaves after consultation with the employees and must give prior notice to the employees.
An employee may reach an agreement with your company on taking annual leave in instalements or combining annual leave over a maximum period of up to 03 years. Your company has right to approve or not approve this request from employees.
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