NEW RESOLUTION LOOSENING EMPLOYEES’ OVERTIME CAP
To support enterprises to deal with the labor shortage during the Covid-19 pandemic, on 23 March 2022, the Standing Committee of the National Assembly of Vietnam passed Resolution 17 to loosen the overtime limit of employees as compared to the Labor Code 2019 (Resolution 17/2022).
Annual overtime hours
Under Article 107.2(c) of the Labor Code 2019 and Article 61 of Decree 145/2020, the overtime hours of employees is capped at 200 hours per year, except for certain specific cases where the employees can work overtime up to 300 hours/year. Exceptional cases are limited to some production industries, or certain circumstances (e.g. to resolve tasks requiring high expertise or technical skills where the labour market cannot satisfy, or in emergency situations), or other cases allowed by the Government.