1. RESOLUTION 17/2022/UBTVQH15
Adding circumstances where employees may work overtime for up to 300 hours per year and maximum 60 hours per month
Resolution 17/2022/UBTVQH15 (the “Resolution 17”) issued by the Standing Committee of the National Assembly on 23 March 2022 in relation to annual and monthly overtime hours of employees in the context of COVID-19 prevention and control, socio-economic recovery and development, takes effect as of 01 April 2020, except for Clause 1 Article 1 of this Resolution as of 01 January 2022.
Accordingly, since 01 January 2022, if it is agreed upon by both sides, the employers are permitted to assign their employees to work overtime for over 200 but no more than 300 hours per year, except for the following special cases: employees aged between 15 and under 18; employees doing arduous, hazardous, dangerous works or extremely arduous, hazardous or dangerous works; female employees nursing children under 12 months; etc
However, the regulations above-mentioned are not applied in these particular jobs or specific cases below:
- Manufacturing, processing of textile, garment, footwear, electric, electronic products, processing of agricultural, forestry, aquaculture products, salt production;
- Generation and supply of electricity, telecommunications, refinery operation; water supply and drainage;
- Works that require highly skilled workers that are not available on the labor market at the time;
- Urgent works that cannot be delayed due to seasonal reasons or availability of materials or products, or due to unexpected causes, bad weather, natural disasters, fire, hostility, shortage of power or raw materials, or technical issue of the production line.
Besides, since 01 April 2022, employers that are permitted to assign their employees to work overtime for up to 300 hours per year may assign their employees to work overtime for more than 40 hours but not exceeding 60 hours per month if this is agreed upon by both the employer and the employees.
Thereby, it is believed that Resolution 17 is necessary for the post-pandemic situation to solve the issue of labor shortage and stabilize the people’s incomes after a long lockdown. The policy of increasing the permitted overtime working hours supports the economic benefits of the enterprises, the society as well as the long-term benefits of employees’ health.
According to Guidance No. 1312/LDTBXH-ATLD of the Ministry of Labour, War Invalids and Social Affairs, regulations of Resolution 17 are implemented until the end of 31 December 2022, except for the case that the National Assembly decides to extend the implementation period.
2. DECREE 31/2022/ND-CP
2% per year interest subsidies for loans of enterprises, cooperatives, and household businesses
Decree 31/2022/ND-CP (“Decree 31”) was issued by the Government on 20 May 2022 to prescribe the interest subsidies from the State budget for loans of enterprises, cooperatives and households business, and comes into force from the day of signing.
Accordingly, enterprises, cooperatives, and household businesses are entitled to receive interest subsidies when belonging to one of the below circumstances:
- For the purpose of using loans in any of the particular sectors, including aviation, transport and storage (H), tourism (N79), accommodation, food and beverage services (I), education and training (P), agriculture, forestry, and fishery (A), processing and manufacturing industries (C), software publishing (J582), computer coding and relevant activities (J-62), information service activities (J-63); including construction activities serving the aforementioned economic sectors but excluding construction activities serving real estate trading mentioned under code (L) according to Decision No. 27/2018/QD-TTg;
- For the purpose of using loans to execute projects for construction of social housing, worker houses, renovation of old apartment buildings in lists of projects consolidated and announced by the Ministry of Construction.
The rate of interest subsidies shall be 2% per year of the outstanding debt, and loans benefiting from interest rate subsidies must be granted during the periods mentioned.
The period of interest rate subsidies shall start from the date on which the loan is disbursed to the date on which the borrowers have paid all principal loans and/or interest, but no later than 31 December 2023. Commercial banks shall cease to provide interest subsidies after 31 December 2023 or until the funding (interest subsidy quota) runs out that is announced by the State Bank, whichever comes first.
Thus, this Decree prescribes interest subsidies for loans for borrowers which are enterprises, cooperatives, and household businesses that are necessary for the post-COVID situation to recover the economy, support enterprises to overcome challenges and strengthen, especially business activities affected by the epidemic.
3. DECREE 38/2022/NĐ-CP
Beginning on 01 July 2022, the hourly minimum wages come into force
Decree 38/2022/ND-CP was issued by Government to prescribe the minimum wages paid to employees working under labor contracts (“Decree 38”), and comes into force from 01 July 2022
Decree 38 supplements hourly and monthly wages based on regions I, II, III, and IV respectively in addition to increase the monthly minimum wage, specifically as follows:
REGION | Monthly minimum wage(Unit: VND/month) | Hourly minimum wage(Unit: VND/hour) |
REGION I | from 4,420,000 to 4,680,000 | 22,500 |
REGION II | from 3,920,000 to 4,160,000 | 20,000 |
REGION III | from 3,430,000 to 3,640,000 | 17,500 |
REGION IV | from 3,070,000 to 3,250,000 | 15,600 |
Thus, from 01 July 2022, the monthly minimum wages increase from VND180,000 to VND260,000, of which region I witnessed the highest increase and region IV saw the lowest one. Furthermore, employers have to comply with regulations on the hourly minimum wages for hourly-paid employees.
In addition, the area where the regional minimum wage is applied has also changed. Decree 38 amendments a number of areas in regions I, II, III, and IV as follows:
- Region I: Adding Thu Duc City (due to the merger of District 2, District 9 and Thu Duc District in Ho Chi Minh City).
- The localities were moved from region II to region I: Ha Long City in Quang Ninh Province, and Xuan Loc District in Dong Nai Province.
- Localities moving from region III to region II:
- Quang Yen Town, and Dong Trieu Town in Quang Ninh Province;
- Hoa Binh City and Luong Son District in Hoa Binh Province;
- Vinh City, Cua Lo Town, Nghi Loc District, Hung Nguyen District in Nghe An Province;
- Hoa Thanh Town in Tay Ninh Province;
- Vinh Long City, and Binh Minh Town in Vinh Long Province;
- Bac Lieu City in Bac Lieu Province
- The localities transferred from region IV to region III:
- Van Don District, Tien Yen District, Hai Ha District, and Dam Ha District in Quang Ninh Province;
- Quynh Luu District, Dien Chau District, Nam Dan District, Nghia Dan District, Yen Thanh District, Do Luong District, Thai Hoa Town and Hoang Mai Town in Nghe An Province;
- Mang Thit District in Vinh Long Province;
- Hoa Binh District in Bac Lieu Province.
4. CIRCULAR 06/2022/TT-BKHDT
Prioritizing assignment funding for small and medium-sized enterprises (“SMEs”) owned by women, and/or SMEs employing a high number of female labors
Circular 06/2022/TT-BKHDT (the “Circular 06”) issued by the Ministry of Planning and Investment on 10 May 2022 to guide several articles of Decree 80/2021/ND-CP dated 26 August 2021 elaborating Law on Provision of Assistance for SMEs (the “Decree 80”), and comes into force from 25 June 2022.
The scope of Circular 06 guides the provision of assistance for SMEs regarding technical assistance; counseling; human resource development; business startup; assistance for SMEs in participating in the value chain and cluster of manufacturing and processing; and management of assistance activities for SMEs.
Circular 06 clearly prescribes that agencies and organizations providing assistance for SMEs shall prioritize funding for SMEs owned by women, SMEs employing a high number of female labors, and SMEs which are social enterprises. Which relies on criteria stipulated in Article 5 of Decree 80 for identifying micro, small, and medium enterprises in order to provide the most beneficial assistance for SMEs.
Besides, based on the new regulation, policies in relation to providing assistance for SMEs owned by women or/and employing a lot of female workers are clearly and comprehensively shown.
Thus, if previous regulations related to support for SMEs were separately shown in Circular No. 05/2019/TT-BKHDT (guiding on providing assistance in human resource development) and Circular No. 06/2019/TT-BKHDT (guiding on supporting SMEs through a network of consultants), the issuance of Circular 06 has shown the focus, synchronization, and generality of key issues in relation to support SMEs provisions; towards the goal of improving the effectiveness of Decree 80 in practice.
5. CIRCULAR NO. 23/2022/TT-BCA
Shorten the time limit for sending the Decision on verification of the complaint contents in the People’s Public Security
Circular No. 23/2022/TT-BCA (“Circular 23”) issued on 16 May 2022 by the Minister of Public Security stipulating the authority, order and procedures for complaint settlement in the People’s Public Security, which takes effect as of 30 June 2022.
The formulation and promulgation of Circular 23 aim to specify Decree No. 124/2020/ND-CP, to adjust and remove several difficulties and obstacles in the implementation of the Law on Complaints as well as replace Circular No. 11/2015/TT-BCA (“Circular 11”). Here are some prominent new points of Circular 23:
Firstly, the time limit for sending the Decision on verification of complaint contents to the complainant and related agencies, organizations and individuals is shortened from 10 days under Circular 11 to 07 working days under Circular 23, calculated from the date of issuance of the Decision on verification of the complaint contents.
Secondly, regarding the suspension of complaint settlement, in case the complainant withdraws the whole complaint contents, the complaint settler shall issue the Decision on suspension of the complaint settlement, if only some parts of the claims are withdrawn, the complaint settler must continue to consider and settle the claims that the complainant does not withdraw. The abovementioned regulations on partial or total withdrawal of claims are more progressive and effective than the previous ones.
Thirdly, Circular 23 supplements the regulation on the deadline extension for complaint settlement in case the time limit for complaint settlement expires but the verification has not been completed.
Fourthly, regarding the authority to settle complaints, Circular 23 supplements the authority to settle complaints of the Head of the Commune-level Police; Director of the professional training and retraining center under the Police Department of Management of Prison, Compulsory Re-education Center and Reformatory; Director of professional training and retraining center, Heads of Delegations under the Mobile Police Command; Battalion Commander of the Battalion under the Mobile Police Command; supplements the authority of the Head of Police of City under Central-Government City.
It can be seen that Circular 23 affirms the efforts of the Party Committee and leaders of the Ministry of Public Security in promptly answering problems related to complaint settlement work of the People’s Public Security, thereby greatly contributing to the remedy against law violations and exceeding authority.
6. CIRCULAR NO. 02/2022/TT-BKHDT
Supplement cases of unexpected inspection of foreign investment activities in Vietnam
Circular No. 02/2022/TT-BKHDT (“Circular 02”) issued on 14 February 2022 by the Ministry of Planning and Investment guiding the supervision and assessment of foreign investment activities in Vietnam, which takes effect as of 1 April 2022.
Accordingly, the provisions of Circular 02 are structured to focus on two (02) core activities, namely supervision and assessment of foreign investment activities, in which the supervision content includes monitoring and inspection; although there is not much difference from the previous regulations, the new layout helps clarify the purpose of the entire regulations and is more accessible to those responsible for implementation.
Compared with the previous regulations in Circular No. 09/2016/TT-BKHDT, Circular 02 supplements a case of unexpected inspection of foreign investment activities in Vietnam, namely, when “there are signs of violations in foreign investment activities of foreign-invested capital entities and foreign-invested capital projects”.
In addition, the inspection method is simplified, focusing on only three (03) methods instead of six (06) methods as before, specifically, depending on the content and actual situation, the authority shall carry out the inspection in the following ways:
- Through the National Investment Information System;
- Through reporting;
- Through the organization of inspection teams and delegations.
Regarding the time limit for reporting inspection results, Circular 02 extends the time for summarizing and reporting inspection results by the head of the inspection team or the unit in charge of the inspection to within twenty (20) working days from the end of the inspection, instead of ten (10) working days as stipulated in the previous provision.
It can be seen that the promulgation of Circular 02 has rendered the legal corridor in the investment field become clearer, more transparent and synchronized with the legal regulations in other fields; not only helps state agencies manage and supervise foreign investment activities more closely and effectively, but also promotes and creates motivation to attract foreign investment to Vietnam.