Decree No. 27/2014/ND-CP dated April 07, 2014 of the Government guiding some regulations of the Labor Code on domestic servants

DECREE

Detailing a number of articles of the Labor Code regarding domestic employees[1]

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 18, 2012 Labor Code;

At the proposal of the Minister of Labor, War Invalids and Social Affairs;

The Government promulgates the Decree detailing a number of articles of the Labor Code regarding domestic employees.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree provides a number of rights, obligations and responsibilities of employers, domestic employees and related agencies, organizations and individuals in the performance of labor contracts, implementation of policies on wages, social insurance and health insurance, working time and rest time, labor safety and hygiene, labor discipline and material responsibility, and settlement of labor disputes in accordance with the Labor Code.

Article 2. Subjects of application

1. Domestic employees defined in Clause 1, Article 179 of the Labor Code.

2. Employers who hire or employ domestic employees under labor contracts.

3. Agencies, organizations and individuals involved in the implementation of this Decree.

This Decree does not apply to Vietnamese domestic employees working overseas.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Domestic employees defined in Clause 1, Article 179 of the Labor Code (below referred to as employees) include employees who live or do not live together with employers’ families.

2. Other housework not related to commercial activities defined in Clause 1, Article 179 of the Labor Code includes cooking for household members but not providing catering services; planting vegetables, fruits and ornamental trees and raising domestic animals or poultry to meet household members’ needs but not for sale or exchange; cleaning houses and gardens or safeguarding houses and property other than workshops, shops, offices or production and business establishments; dropping off and picking up household members who are not engaged in production or business activities and transporting households’ furnishings or assets other than goods, raw materials or supplies for production and business activities; tutoring household members; washing household members’ clothes and bedding but neither providing laundering services nor washing protective clothing for those who are hired by households to conduct production and business activities; and other works serving everyday-life activities of households and household members which neither directly generate, nor contribute to the generation of, income for households or household members.

3. Regularly doing housework means doing works stated in labor contracts in a repeated manner on an hourly, daily, weekly or monthly basis.

4. Employer means a household or a group of households hiring or employing domestic employees under labor contracts.

Chapter II

LABOR CONTRACTS

Article 4. Signatories to labor contracts

1. For an employer, the signatory to a labor contract may be:

a/ The household owner;

b/ The person authorized lawfully by the household owner(s); or,

c/ The person authorized lawfully by members of the household(s).

2. For an employee, the signatory to a labor contract may be:

a/ The employee, provided he/she is aged full 18 years or older; or,

b/ The employee who is aged between full 15 years and under 18 years, provided his/her at-law representative has made a written consent.

Article 5. Signing of labor contracts

1. When signing a labor contract with an illiterate employee, an employer must read aloud the labor contract so that the employee may hear and agree to the labor contract before signing it. When necessary, the employee may request the employer to invite a third person who is not a household member to witness.

2.  In case an employer hires or employs more than one domestic employee, the employer shall sign a labor contract with each domestic employee.

3. A labor contract shall be made in at least two copies, the employer and employee each keeps one copy.

4. Within 10 days from the date of signing a labor contract, the employer shall notify the employment of the domestic employee to the People’s Committee of the commune, ward or township where the employee works.

Article 6. Provision of information before singing a labor contract

1. The employer must provide the employee with the following essential information:

a/ The information provided in Clause 1, Article 19 of the Labor Code;

b/ The employee’s living conditions, household members’ personalities and daily routines.

2. The employee must provide the employer with the following essential information:

a/ The information provided in Clause 2, Article 19 of the Labor Code;

b/ The serial number and date and place of issuance of his/her identity card, place of permanent residence registration and family circumstances; and his/her emergency contacts.

Article 7. Contents of a labor contract

A labor contract has the following principal contents:

1. The contents provided in Clause 1, Article 23 of the Labor Code;

2. The employee’s living conditions (if any);

3. Allowances for the employee to travel back to his/her home upon termination of the labor contract on schedule;

4. The time and financial support for the employee to attend school or vocational training (if any);

5. The employee’s responsibility to pay compensation if causing damage to tools and equipment or committing other acts causing damage to property of the employer;

6. Other prohibited acts for each party.

Article 8. Probation

1. The employer and employee may reach agreement on probation and rights and obligations of both parties during and upon the expiration of the probation period as prescribed in Articles 26, 28 and 29 of the Labor Code.

2. The probation period must not exceed 6 working days.

Article 9. Suspension of a labor contract

1. The employer and employee may reach agreement on suspension of the labor contract as prescribed in Clauses 4 and 5, Article 32 of the Labor Code.

2. Upon the expiration of the suspension duration, the employee must be present at the workplace, unless otherwise agreed by both parties, and the employer must re-employ the employee.

3. Upon the expiration of the suspension duration agreed by both parties under Clause 2 of this Article, if the employee is not present, the employer may unilaterally terminate the labor contract.

Article 10. Cases of termination of a labor contract

1. The labor contract expires.

2. The contractual works have been completed.

3. Both parties agree to terminate the labor contract.

4. The employee dies.

5. The employer, who is a natural person, dies.

6. The employer or employee unilaterally terminates the labor contract.

Article 11. Time for employees to make advance notification upon unilateral termination of labor contracts

1. When unilaterally terminating the labor contract, an employee shall notify his/her employer 15 days in advance, except the cases provided in Clauses 2 and 3 of this Article.

2. The employee shall notify the employer at least 3 days in advance when unilaterally terminating the labor contract in the following cases:

a/ He/she is not assigned to the right works or workplace as agreed in the labor contract;

b/ He/she is not paid fully or on time as agreed in the labor contract, unless otherwise agreed by both parties;

c/ He/she is not provided with clean and hygienic living conditions as stated in the labor contract;

d/ He/she is sick or has an accident, thus becoming unable to work.

3. The employee is not required to make advance notification when  unilaterally terminate the labor contract in the following cases:

a/ The employer or another household member maltreats, offends the honor or dignity of, sexually harass, uses violence against, or imposes forced labor on, the employee;

b/ The employee has notified the employer of the fact that labor accidents are likely to occur due to working conditions, threatening his/her safety and health, but the employer still fails to take remedial measures;

c/ The employee cannot further perform the labor contract due natural disasters, fires or other force majeure events although he/she has taken every remedial measure.

Article 12. Time for employers to make advance notification upon unilateral termination of labor contracts 

1. When unilaterally terminating the labor contract, an employer shall notify the employee 15 days in advance, except the cases provided in Clauses 2 and 3 of this Article.

2. The employer shall notify the employee at least 3 days in advance when unilaterally terminating the labor contract in the following cases:

a/ The employee commits the prohibited acts stated in the labor contract, except the case provided at Point a, Clause 3 of this Article;

b/ The employee is sick or has an accident and has been treated for 30 consecutive days.

3. The employer is not required to make advance notification when unilaterally terminating the labor contract in the following cases:

a/ The employee commits theft or gambling, intentionally causes injuries to household members or other employees or uses habit-forming drugs or prostitutes;

b/ The employee mistreats, offends the honor or dignity of, sexually harasses, uses violence against, the employer or another household member;

c/ The employer cannot further perform the labor contract due to natural disasters, fires or other force majeure events though he/she has taken every remedial measure.

Article 13. Responsibilities of the employer and employee upon termination of a labor contract

1. In case of terminating the labor contract under Article 10 of this Decree, the employer and employee shall fulfill all payment obligations related to each party’s benefits stated in the labor contract. In special cases, the time limit for fulfillment of payment obligations may be agreed by the two parties but must not exceed 7 working days after the date of terminating the labor contract.

2. In case of terminating the labor contract under Clause 1, 2, 3, 4 or 5, Article 10 or cases of unilaterally terminating the labor contract under Article 11, and Clause 1, Point b of Clause 2, Point c of Clause 3 of Article 12, of this Decree, the employer shall pay a severance allowance to the employee as provided in Article 48 of the Labor Code.

3. Within 10 days after the date of terminating the labor contract, the employer shall notify such termination to the People’s Committee of the commune, ward or township where the employee works.

Article 14. Education and vocational training for employees

1. Employers shall arrange time for employees to attend school or vocational training when so requested by employees.

2. The specific time periods for employees to attend school or vocational training shall be agreed by both parties in labor contracts.

Chapter III

WAGES, SOCIAL INSURANCE AND
HEALTH INSURANCE

Article 15. Wages, forms of wage payment, and deadline for wage payment

1. Wage levels shall be agreed upon by both parties and stated in labor contracts. Wage levels (including also meals and lodging expenses in case employees live together with employers’ families, if any) must not be lower than the region-based minimum wage level prescribed by the Government. Employers and employees shall agree on monthly meals and lodging expenses (if any) which must not exceed 50% of the wage level specified in labor contracts.

2. Forms of wage payment and deadline for wage payment shall be agreed upon by both parties. In case wages are paid via bank, employers shall create conditions for employees to open their bank accounts. Charges related to the opening and maintenance of such accounts shall be agreed upon by both parties. Employers may not deduct charges for via-bank payment of wages from employees’ accounts.

3. In case an employer requires his/her employee to work overtime or work on public or New Year holidays or paid leave days, they must pay wages for overtime works as prescribed in Article 97 of the Labor Code.

Article 16. Wage in case of work suspension

1. In case employees have to stop working due to employer fault, employers shall fully pay wages to employees, unless otherwise agreed by both parties.

2. In case employees have to stop working while the employers are not at fault, the employers are not required to fully pay wages to employees, unless otherwise agreed by both parties.

Article 17. Wage deduction

1. An employer may only make deductions from the wage of an employee for compensation for damage of tools and equipment of the employer or for loss of property according to the labor contract.

2. The monthly deduction level shall be agreed upon by both parties but must not exceed 30% of the monthly wage level, in case the employee does not live together with the employer’s family, or 60% of the monthly wage after being subtracted with meals and lodging expenses (if any), in case the employee lives together with the employer’s family.

3. When deducting the employee’s wages, the employer must notify him/her thereof.

Article 18. Bonuses

Annually, employers shall pay bonuses to employees based on the level of work performance by the employees and the employers’ economic capacity.

Article 19. Social insurance and health insurance

Employers shall, by the time of paying wages to employees, pay an amount equaling the compulsory social insurance and health insurance premiums to be paid by employers in accordance with the laws on social insurance and health insurance for the employees to arrange insurance for themselves.

Article 20. Employers’ responsibilities when employees get sick or suffer from diseases

1. In case an employee who lives together with his/her employer’s family gets sick or suffers from diseases, the employer shall create conditions for the employee to take rest and receive medical examination and treatment. Expenses for such medical examination and treatment shall be paid by the employee, unless otherwise agreed upon by both parties.

2. Employers are not required to pay wages for employees’ sick days.

Chapter IV

WORKING TIME AND REST TIME

Article 21. Working time and rest time for employees living together with employers’ families

1. Working time and rest time shall be agreed upon by both parties but the employees must have a break of at least 8 hours, including 6 consecutive hours, in 24 consecutive hours.

2. For minor employees aged between full 15 years and under 18 years, the working time complies with Clause 2, Article 163 of the Labor Code.

Article 22. Weekly breaks

Every week, an employee is entitled to a break of at least 24 consecutive hours. In case it is impossible for an employee to have a weekly break, the employer shall ensure the employee has at least 4 days off on average in a month. Both parties shall agree to schedule weekly breaks.

Article 23. Annual leaves, and public and New Year holidays

1. An employee who has been working for an employer for full 12 months is entitled a fully paid annual leave of 12 days. The leave schedule shall be agreed upon by both parties. The employee may reach an agreement with the employer on taking annual leave in installments or combining annual leaves of maximum every three years.

2. An employee is entitled to fully paid days off on the public and New Year holidays stipulated in Article 115 of the Labor Code.

3. When taking annual leave, an employee is entitled to an advance payment at least equal to the wage to be paid for leave days.

Chapter V

LABOR SAFETY AND HYGIENE

Article 24. Labor safety and hygiene

1. Employers shall guide employees on how to use equipment, machines and utensils related to the employee’s works, on fire and explosion prevention and fighting measures, and provide them with personal protective equipment.

2. Employees must properly observe use instructions of equipment, machines and utensils, and fire and explosion prevention and fighting instructions; and comply with environmental hygiene requirements set by the households and residential quarters where they reside.

3. Annually, employers shall arrange a periodical health checks-up for employees. When necessary, employers may request employees to take health checks-up. Expenses for health checks-up shall be paid by employers, unless otherwise agreed by both parties.

Article 25. Employers’ responsibilities when employees have labor accidents

1. When an employee has a labor accident, his/her employer has the following responsibilities:

a/ To give the employee first aid and careful treatment;

b/ To notify to the employee’s relatives of the accident;

c/ To perform the responsibilities of employers specified in Article 144 of the Labor Code;

d/ To report to and coordinate with competent functional agencies in investigating into the labor accident in accordance with law.

2. The employer may not unilaterally terminate the labor contract with employee during his/her treatment for labor accident, except the case specified in Point b, Clause 2, Article 12 of this Decree.

Chapter VI

LABOR DISCIPLINE, MATERIAL RESPONSIBILITY AND SETTLEMENT OF LABOR DISPUTES

Article 26. Labor discipline, and material responsibility

1. When an employee breaks his/her labor contract but does not fall into the cases specified in Clauses 2 and 3, Article 12 of this Decree, the employer may handle him/her for violation of labor discipline in form of reprimand; in case the employee commits recidivism, depending on the severity of his/her violation, the employer may terminate the labor contract under Clause 1, Article 12 of this Decree.

2. An employee who causes damage to tools and equipment or commits other acts causing damage to the employer’s property shall pay compensation as prescribed in Article 130 of the Labor Code, unless otherwise agreed upon by both parties.

Article 27. Settlement of labor disputes

Labor disputes between an employer and an employee or between an employee and a household member must be negotiated and jointly settled by the employer and employee. In case both parties cannot reach an agreement, they may request a labor conciliator or a court to settle individual labor disputes under Article 201 of the Labor Code.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 28. Effect

1. This Decree takes effect on May 25, 2014.

2. The contents which are not prescribed in this Decree must comply with the Labor Code and other guiding documents.

3. Employers who have hired or employed domestic employees before the effective date of this Decree shall, based on the provisions of this Decree, negotiate with employees to modify  and supplement labor contracts or sign new ones and notify such to the People’s Committees of communes, wards or townships where the employees are working under this Decree.

Article 29. Implementation responsibility

1. This Minister of Labor, War Invalids and Social Affairs shall guide the implementation of this Decree.

2. People’s Committees of communes, wards, and townships shall receive notification of employment of domestic employees and termination of labor contracts; assist the settlement of labor disputes at the request of employers or employees; receive and settle employees’ denunciations when employers commit maltreatment, sexual harassment or forced labor or other violations of law; and summarize and report on the implementation of the labor law toward domestic employees in their localities.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and related agencies, organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG