Update Regulations On Overtime And Housing Rent Support For Employees

1.Overtime in 01 year, 01 month of employees

On 23rd March 2022, the National Assembly Standing Committee passed the Resolution No. 17/2022/UBTVQH15 on the number of overtime hours worked in 01 year, in 01 month of employees in the context of COVID-19 pandemic prevention and control and socio-economic recovery and development (“Resolution”).

Accordingly, the Resolution regulates the number of overtime hours in 01 year and 01 month as follows:

a. Number of overtime hours in 01 year:

In case the employer (“Employer”) needs and has the consent of the employee (“Employee”), may use the employee to work overtime for more than 200 hours but not more than 300 hours in a year, except for the following cases:

• Employees from full 15 years old to under 18 years old;
• The employee is a mildly disabled person with a working capacity decrease of 51% or more, a severe disability or a particularly severe disability;
• Employees doing heavy, hazardous or dangerous occupations or jobs or particularly heavy, hazardous or dangerous jobs;
• Female employees who are pregnant from the 7th month or from the 6th month if working in highland, remote, border or island areas;
• Female employees who are raising children under 12 months old.

The above provisions do not apply to the cases specified in Clause 3, Article 10711 of the Labor Code

Thus, regarding the use of employees to work overtime for more than 200 hours/year but not exceeding 300 hours/year, please note:

• If enterprise falls into the case specified in Clause 3, Article 107 of the Labor Code, Article 612 of Decree 145/2020/ND-CP dated December 14, 2020 of the Government detailing and guiding the implementation of a Articles of the Labor Code on labor conditions and labor relations (“Decree 145”), the enterprise should apply the provisions of Clause 3, Article 107 of the Labor Code and Article 612 of Decree 145.
• If enterprise does not fall into the case specified in Clause 3, Article 107 of the Labor Code, Article 61 of Decree 145, the enterprise can apply the above provisions of the Resolution; however note the exclusions.

This provision of the Resolution takes effect from 1st January 2022.

b. Number of overtime hours in 01 month:

Where the employer is allowed to use the employee to work overtime for a maximum of 300 hours in a year, upon demand and with the agreement of the employee, the employer may use the employee to work overtime for more than 40 hours but not more than 60 hours in a month.

Thus, according to the above regulations, in cases where an employer is allowed to use an employee to work overtime for a maximum of 300 hours in a year, the employer may use an employee to work overtime for more than 40 hours but not more than 60 hours/month with the agreement of the employer.

This provision of the Resolution takes effect from April 1, 2022.

2. Housing rent support for employees

On 28th March 2022, the Prime Minister issued the Decision 08/2022/QD-TTg regulating the implementation of the policy of housing rental support for employees (“the Decision 08”).

Accordingly, the Government provides housing rent support for (i) employees working in enterprises; and (ii) Employees return to the labor market, specifically as follows:

2.1 Employees are working in the enterprise

a. Objects and conditions of support:

Employees working in enterprises in industrial parks, export processing zones or key economic areas3 are supported when fully having the following conditions:

• Renting, staying in a motel during the period from 1st February 2022 to 30th June 2022.
• Having an indefinite-term labor contract (“Labour Contract”) or a definite-term labor contract of 01 month or more entered and commenced before 1st April 2022.
• Participating in compulsory social insurance (“social insurance”) in the prior month when the enterprise makes a list of employees requesting housing rent support.

In case the employee is not eligible to participate in social insurance as prescribed in the Clause 4, Article 2 of Decree No. 115/2015/ND-CP dated 11th November 2015 of the Government detailing a number of articles of the Law on Social Insurance Regarding social insurance, the employee’s name must be on the salary payment list of the enterprise of the prior month when the enterprise makes a list of employees requesting housing rent support.

b. Level, support period and payment method:

• Support level: 500,000 VND/person/month.
• Support period: Up to 3 months.
• Payment method: Monthly.

2.2. Employees return to the labor market

a. Objects and conditions of support:

Employees who are working in enterprises, cooperatives, business households with business registration in industrial parks, export processing zones or key economic zones are supported when fully having the following conditions:

• Renting, staying in a motel during the period from 1st April 2022 to 30th June 2022.
• Having an indefinite-term labor contract or a definite-term labor contract of 01 month or more entered into and performed during the period from 1st April 2022 to 30th June 2022, except for the continuing labor contract of the labor contract has been signed and performed before.
• Being participating in social insurance in the prior month when the employer makes a list of employees requesting housing rent support.

In case the employee is not eligible to participate in social insurance as prescribed in the Clause 4, Article 2 of Decree No. 115/2015/ND-CP dated 11th November 2015 of the Government detailing a number of articles of the Law on Social Insurance Regarding social insurance, newly recruited employees who have entered into labor contracts but are not on the list of participating in social insurance of the social insurance agency must be on the list of salary payments of the employer of the prior month when the employer makes the list requesting housing rent support.

b. Level, support period and payment method:

• Support level: 1,000,000 VND/person/month.
• Support period: Up to 3 months.
• Payment method: Monthly.

The Decision 08 takes effect from 28th March 2022.

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1. Employers may require employees to work overtime for no more than 300 hours in a year in a number of industries, occupations, jobs or in the following cases:

1. Producing, processing and exporting textile, garment, leather, shoe, electrical and electronic products, processing agro-forestry, salt-based and aquatic products;
2. Production, supply of electricity, telecommunications, oil refining; water supply and drainage;
3. In case of solving jobs requiring highly qualified professional and technical workers but the labor market cannot supply them adequately and promptly;
4. In case of urgent work that cannot be delayed due to the seasonality and timing of raw materials and products, or to deal with problems arising due to unforeseen objective factors or consequences. consequences of weather, natural disasters, fires, enemy sabotage, electricity shortages, lack of raw materials, technical problems of production lines.

2. Apart from the cases specified at Points a, b, c, and d, Clause 3, Article 107 of the Labor Code, the following cases are permitted to work overtime from over 200 hours to 300 hours a year:

1. Cases in which urgent work must be resolved that cannot be delayed arise from objective factors directly related to official-duty activities in state agencies and units, except for the cases specified in the Article 108 of the Labor Code;
2. Provision of public services; medical examination and treatment services; education and vocational education services;
3. Direct production and business jobs at enterprises shall have normal working hours not exceeding 44 hours in a week.

3. Key economic areas:

1. An economic zone is established under the conditions, order and procedures specified in the Government’s Decree No. 82/2018/ND-CP dated 22nd May 2018 on management of industrial parks and economic zones;
2. 24 provinces and centrally-run cities in 04 key economic regions are planned and established under the Prime Minister’s Decision (including the following provinces and cities: Hanoi, Hai Phong, Quang Ninh, Hai Phong) Duong, Hung Yen, Vinh Phuc, Bac Ninh, Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Ho Chi Minh City, Binh Phuoc, Tay Ninh, Binh Duong, Dong Nai, Ba Ria – Vung Tau , Long An, Tien Giang, Can Tho, Ca Mau, An Giang and Kien Giang).