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- 09 / 12 / 2018 -
New guiding on a number of regulations of Labor Code

On 24, October 2018, The Government issued Decree No.148/2018/ND-CP amending, supplementing a number of regulations of Decree No.05/2015/ND-CP detailing and guiding the implementation of some contents of Labor Code. This Decree takes effect on 15, December 2018.
Accordingly, Decree No. 148/2018/ND-CP contains the following new highlights:
1. Supplement the subject of the labor contract is the person who is representative at law or the head of the agency, unit or organization as authorized by letter to sign the contract.
2. The probation period is no longer counted as severance allowance
Compared with the previous regulations, the probation period is no longer counted as the working time to receive severance allowance, job-loss allowance. This period only includes the time the employee has worked in practice; Length of time the employer sent the student; Duration of leave for sickness, maternity leave…
3. Within 07 (seven) working days from the date of termination of the labor contract, the labor user and laborer must fully pay the amounts related to the interests of each party.
The above-mentioned duration may be extended to 30 days in special cases such as Non-personal employers terminate their operation; Employers or workers suffering from natural disasters, fires or epidemics; Employer restructuring, technology or merger, consolidation …
4. The salary for holidays is not based on the preceding month’s salary
According to this Decree, wages as a basis for payment to employees during the annual leave, public holidays, new year holidays and paid holidays are calculated as follows:
Salary in the labor contract: the number of ordinary working days in the month x number of days the employee off.
5. Supplementing the stipulations on salary as a basis for compensation when illegal terminating of the labor contract
The latest Labor Code guideline also adds provisions on salary as the basis for compensation when unilateral termination of the labor contract is illegal. Accordingly, this is the labor contract wage at the time the employer or employee unilaterally terminates the labor contract.
It can be seen that, with detailed and specific guidance, Decree No. 148/2018/ND-CP is expected to contribute to remedy shortcomings existing in the implementation of the Labor Code 2012, in accordance with the changes of social life, ensuring the rights and legitimate interests of workers as well as employers.