Client note – new labor code 2019

Hogan Lovells
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After much consultation and heated debate, Vietnam adopted a new Labor Code on 20 November 2019 ("Labor Code"), which will come into effect on 1 January 2021, and replace the current law which dates from 2012. While Vietnam's labor legislation has always been seen as employee-friendly and highly regulated, a motivation for adopting the Labor Code was the need to ramp up certain employee protections in order to meet labor standards commitments given by Vietnam in recent new-generation free trade deals such as the EU-Vietnam Free Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Conversely, the views of employers were canvassed during the law's public consultation process, and as a result some aspects of the Labor Code have been shaped in a more employer-friendly manner.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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