Updated vietnam regulations on employee overtime limits

Overtime work is always a top concern for both employees and businesses. Understanding legal regulations not only helps employees protect their legitimate rights but also helps businesses operate legally, avoiding unnecessary legal risks.

In this article, Thuan Thien will summarize and analyze in detail the regulations on overtime work according to the 2019 Labor Code and the latest guiding documents to give you a comprehensive and accurate overview.

Legal basis:

• Labor Code No. 45/2019/QH14, Article 107 on overtime hours
• Decree 12/2022/ND-CP on administrative penalties for labor and social insurance violations
• Decree 145/2020/ND-CP guiding the Labor Code
• Circular 23/2021/TT-BLDTBXH detailing overtime hours

I. General Regulations on Overtime

Overtime (or OT) refers to the period of work performed beyond normal working hours as agreed upon by the parties in the labor contract, collective bargaining agreement, or internal regulations of the enterprise.

Organizing overtime must strictly adhere to the basic principles stipulated in the 2019 Labor Code, specifically:

Employee consent is required: Enterprises are only permitted to require employees to work overtime with their voluntary consent regarding the time, location, and specific tasks, except in certain emergency cases as stipulated in Article 108 of the Labor Code.

Ensuring the health and safety of employees: Enterprises must arrange suitable work, not force employees to work excessively long hours, and comply with labor protection regulations.
 

Revised overtime compensation rules under labor legislation

Not applicable to certain special groups: Overtime is not permitted for pregnant female workers from the 7th month of pregnancy (or from the 6th month if performing strenuous or hazardous work), and those raising children under 12 months old.

II. Overtime (OT) Limits

To protect the health of workers, the law has clearly stipulated limits on the number of overtime hours in Article 107 of the 2019 Labor Code. Businesses and workers need to pay special attention to the following timeframes:

Daily limit: The number of overtime hours must not exceed 50% of the normal working hours in a day. The total normal working time and overtime must not exceed 12 hours/day.

Monthly limit: The total number of overtime hours must not exceed 40 hours/month.

Annual limit: The total number of overtime hours must not exceed 200 hours/year.

However, some specific industries and jobs, such as textiles, footwear, agricultural and aquatic product processing, electricity supply, telecommunications, oil refining, water supply and drainage, etc., will be allowed to work overtime for a maximum of 300 hours/year as stipulated by the Government.

III. Conditions for Businesses to Organize Overtime Work

According to Article 107 of the 2019 Labor Code, when there is a need to organize overtime work, the employer must meet the following conditions:

Must have the consent of the employee: This is a prerequisite. The agreement can be made in a separate document or as an addendum to the contract, clearly stating the contents regarding time, location, and work.

Comply with overtime hour limits: Businesses must ensure that the number of overtime hours does not exceed the limits stated in section II.

Ensure safe working conditions: Businesses are responsible for arranging work suitable to the health of employees and ensuring occupational safety and hygiene throughout the overtime period.
 

Working hours compliance for industrial recruitment operations

IV. Detailed Guide on Calculating Overtime Pay

Overtime pay is an important benefit that employees need to understand. The calculation method is specifically regulated in Article 98 of the 2019 Labor Code and Article 55 of Decree 145/2020/ND-CP.

1. Overtime Pay Rates for Daytime Work

Overtime on normal working days: Paid at least 150% of the actual hourly wage for the work being performed.
Overtime on weekly rest days: Paid at least 200% of the actual hourly wage.
Overtime on public holidays, Tet (Lunar New Year), and paid days off: Paid at least 300% of the actual hourly wage, not including the employee's regular day off pay.

2. Overtime Pay for Night Shifts

In the case of employees working overtime at night (from 10 PM to 6 AM the following morning), in addition to the above-mentioned pay rates, employees are entitled to:

At least 30% of their regular hourly wage or salary.

3. Calculation Formula and Illustrative Example

The general formula for calculating overtime pay is as follows:

Overtime pay = Actual hourly wage × Corresponding percentage × Number of overtime hours

Example: An employee has an actual hourly wage of 100,000 VND/hour.

If they work 1 hour overtime on a regular day, the salary received is: 100,000 × 150% = 150,000 VND.

If working an extra hour at night on a weekday, the salary received is: (100,000 × 150%) + (100,000 × 30%) = 180,000 VND.

V. Special Cases Allowed for Overtime

The law also stipulates several special cases where employers have the right to request employees to work overtime on any day without being limited by the number of overtime hours, and employees cannot refuse. These cases include:

Executing mobilization orders to ensure national defense and security.

Performing tasks aimed at protecting human lives and property of agencies, organizations, and individuals in preventing and combating natural disasters, fires, and dangerous epidemics.

In short, overtime work is an agreement between the employee and the employer, based on voluntary participation and strict adherence to legal regulations. Understanding time limits, organizational conditions, and wage calculation methods not only helps you, as an employee, protect your rights but also helps businesses build a fair and transparent work environment. Faro Vietnam hopes the above information has been helpful.

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