VietNamNet Bridge – In response to employers’ complaints about legal restrictions on extra work, the Ministry of Labor, Invalids and Social Affairs has proposed amending the Labor Code in a way that would double or remove the overtime cap.

Garment factory employees are at work in this file photo. The Ministry of Labor, Invalids and Social Affairs has proposed amending the Labor Code in a way that would double or remove the overtime cap - Photo: SGT

Article 106 of the current Labor Code specifies the amount of time workers can work beyond normal hours is 30 hours a month, 200 hours a year or under special circumstances, 300 hours a year.

However, many enterprises have suggested raising the limits to meet big seasonal orders from customers and satisfy the demand of large numbers of laborers who want to do more extra work to increase their incomes.

The Ministry of Labor, Invalids and Social Affairs has floated two options. One is that the amount of time for normal and overtime work of an employee would not exceed 12 hours a day, and five consecutive days for each overtime period. However, the total amount of time for extra work would not exceed 600 hours a year. The other is the same but the number of hours for extra work within a year should not be limited.

According to the ministry, the proposed overtime rule change would help companies like Canon to make the most of their current workforce. In fact, workers of companies that make goods for export would work harder and longer to fulfill big orders in certain periods of year while they would not have to work overtime in other periods, said Dao Thi Thu Huyen, senior manager of the Canon Vietnam general director’s office.

Given the current rules, many firms will have to hire extra staff to carry out when orders surge, causing an unnecessary waste of money, time and resources.

Huyen noted overtime work does not mean that workers are overexploited since certain employees want to work overtime.

Employers said more overtime hours would make Vietnam’s labor market more competitive. The maximum amount of time for overtime work in Vietnam is far lower than in other Southeast Asian countries. For instance, the overtime limit is 104 hours per month in Malaysia and 72 hours per month in Singapore while there is no cap in Cambodia and the Philippines.

Nguyen Xuan Duong, chairman of Hung Yen Garment Joint Stock Company in Hung Yen Province, said many workers in his firm need to work more hours as overtime pay would double their monthly incomes to VND8 million (US$351).

Truc Diem

Source: SGT