The National Assembly on 20 November 2019 passed the new Labour Code with 17 chapters and 220 articles. The new Labour Code will come into effect from 1 January 2021 and replace the current Labour Code. Here are some highlights:

Labour Contracts

• No more short-term seasonal contracts. Rather, all short terms contracts are classified into fixed term labour contracts. This may bear impacts on mandatory insurance obligations, where all short term workers will be obliged to pay mandatory insurance.
• Broader definition of labour contracts. A contract, regardless of its title, is considered a labour contract if it sets out a scope of work, wage, management, administration and supervision by one side over another. Again, this may bear impacts on mandatory insurance obligations where more types of workers will be obliged to pay mandatory insurance.
• Labour contracts made in electronic form are recognised.
• The maximum probationary period can be up to 180 days for managers as defined in the Law on Enterprises, including the company general director. Currently, the maximum probationary period is only 60 days.
• Employers now have more rights to unilaterally terminate labour contracts, e.g. with employees who provided false information when entering into the labour contract.
• It is possible to enter into multiple fixed-term labour contracts with foreign employees. This creates more flexibility for employers.

Salary

• The new Labour Code removes the requirement that salary scales and tables be registered with the labour authority.
  Working hours and overtime

Working hours and overtime

• Yearly maximum overtime remains unchanged, i.e. 200 hours per year in normal cases and up to 300 hours per year in special cases. However, the permitted maximum overtime for a month increases from 30 hours to 40 hours.
• One more public holiday (the day preceding or following Independence Day – 2 September) is added.

Work permits

• A work permit for foreign employee can be extended only one time, for a further maximum two years. Accordingly, a new application process must be conducted if an employer wishes to continue to employ such foreign individual.

Labour discipline
Internal Labour Rules (“ILR”) must now include the following contents (in addition to the currently required ones):

• Prevention of sexual harassment in the workplace; and the procedures for dealing with sexual harassment in the workplace. This act may result in dismissal.
• Cases where an employer can temporarily transfer an employee to work in a field that is different from what agreed to in the labour contract.
• Persons authorised to impose disciplinary penalties.

Transitional provisions
Prior signed labour contracts and collective labour agreements whose contents are not contrary to, or provide more favourable rights and conditions to employees than, the provisions of the new Labour Code will continue to be valid, except where the parties wish to amend to comply with the new Labour Code.
The Government is supposed to issue decrees to provide guidance for implementing the new Labour Code.

The above contents are for informational and reference purposes only and do not constitute professional advice. For specific advice, please consult your professional advisors.