I. OBJECTS OF APPLICATION

Laborers being aged full 15 years at least, having working capacity and having signed labor contracts or labor agreements with farm owners, include:

1. Rural laborers (agricultural, forestrial and fishery) being unemployed or under-employed;

2. Free laborers;

3. Laborers being in work-waiting or work-stoppage period, etc.

II. SOME SPECIFIC REGIMES

1. The labor recruitment shall comply with the following provisions:

a/ The farm owners may recruit labor in unlimited number and regardless of the laborers’ residence localities.

b/ The State encourages the farm owners to recruit labor among peasant households, under-employed people, poor people, female laborers, first of all laborers in their respective localities.

c/ The farm owners may directly recruit labor or through recommendation of employment service centers.

2. Labor contracts shall comply with the following provisions:

a/ Form and duration of labor contracts:

For seasonal and irregular jobs which last for less than 1 year, the two parties may sign written contracts or make oral agreements.

For stable and regular jobs which last for 1 year or more, the two parties shall agree on concrete duration and sign written contracts.

The written labor contracts shall be drafted by the farm owners according to set form.

b/ Contents of labor contracts: When signing labor contracts, the two parties shall negotiate for inscription in the labor contracts the following contents:

- Duration, starting and ending time of the labor contracts,

- Jobs to be done by the laborers,

- Wages paid to the laborers according to their work and social insurance premiums to fall under the farm owners’ responsibilities,

- Working time and rest time,

- Labor safety devices if the work so requires,

- Other agreements in favor of the laborers.

c/ Postponing the performance of labor contracts:

- The performance of labor contracts shall be postponed in cases where the laborers are called for military service or other civic obligations prescribed by law.

- The two parties agree to postpone the labor contract performance in cases where the laborers meet with unexpected difficulties or harvest crops for their families, who, however, must notify the farm owners thereof 5 to 10 days in advance.

d/ Labor contracts shall be terminated in the following cases:

- The terms of the contracts expire;

- The contractual work has been completed;

- Other cases agreed upon by the two parties.

3. Wage and social insurance:

a/ Wage levels:

The farm owners and the laborers shall agree on the package wage paid according to work or product volumes; or time wage paid by day, week, month and according branch and technical complexity of the work. If wage is paid on the monthly basis for simple work with normal labor conditions, it must not be lower than the common minimum wage level prescribed by the Government. The minimum wage level of VND 180,000/month has been applied since January 1st, 2000 until the Government announces any adjustment thereof.

Apart from the above-mentioned wage, the farm owners shall have to add to wage of the laborers 15% for social insurance and 2% for medical insurance (calculated on the wage level already agreed upon), so that the laborers shall take part in voluntary insurance or be self-insured.

b/ Modes of wage payment:

- In cases of day wage, the laborers shall be paid by day; if they are hired weekly, they shall be paid by the week they work.

- In cases of monthly wage, the laborers shall be paid once every 15 days.

- In cases where wage is paid according to work or product volumes, if the completion duration spreads for under 15 days, the laborers shall be paid after completing the work or product volumes. If the completion duration spreads for 15 days or more, the laborers shall receive advance payment once every 15 days (except otherwise agreed upon by the two parties). The level of advance payment shall be agreed upon by the two parties.

4. Working time and rest time:

a/ In cases of work package according to work volumes or product volumes, the laborers themselves shall arrange working time and rest time, but they must complete their work by the deadlines committed by the two parties.

b/ In cases where the farm owners manage working time for wage payment, the working time shall be agreed on by the two parties, but it must not exceed 8 hours per day. When there is a need to overcome natural disasters, settle difficulties to catch up with the cropping seasons, the two parties shall negotiate to extend the working time, but the extra time shall not exceed 4 hours/day. The wage and allowance for overtime work shall be agreed upon by the two parties.

c/ In cases of 30 working days per month, after every 6 working days, the laborers shall have a rest day, but the rest day shall not necessarily be Sunday, it shall be agreed upon by the two parties.

d/ In cases where the laborers have been working for one consecutive year or more, they shall have a paid-leave of 12 days for each working year. If there are any odd months, the laborers shall enjoy 1 day more for each odd month. The particular time for annual leaves shall be agreed upon by the two parties. The two parties may also negotiate so that the laborers shall receive payment instead of annual leaves.

5. Labor safety protection:

- Farm owners and the laborers shall have to implement measures to prevent labor accidents and occupational diseases.

- For jobs involving dangerous and/or hazardous factors stipulated in Decision No. 955/1998/QD-BLDTBXH of September 22, 1998 of the Minister of Labor, War Invalids and Social Affairs, during the working time, the farm owners shall have to equip the laborers with personal protection devices (safety boots, head-gears, safety gloves, gauze masks, soaps...) in conformity with each type of job.

- When the laborers get labor accidents while working and have to take a leave for treatment at medical establishments (including communes’ dispensaries), the farm owners shall have to pay all medical expenses as well as wages for the accident victims from the stage of first aid, emergency until their injury is completely cured.

- When labor accidents occur, the farm owners shall inform the People’s Committees of communes or wards and the district-level Labor, War Invalids and Social Affairs Bureaus thereof. The People’s Committees of communes or wards shall have to recommend the laborers for medical assessment according to dossiers of labor accidents.

- The farm owners shall have to compensate 30 months’ wages for the laborers who have lost their working capacity by 81% or more, or for relatives of those who die due to labor accidents or occupational diseases, if the laborers are not at fault. If the laborers are at fault, they shall be entitled to an allowance equal to 12 months’ wages according to the labor contracts.

6. Some other issues:

Apart from the contents mentioned at Points 1, 2, 3, 4 and 5 of the above-said Part II, the farm owners and the laborers may agree on the implementation of some other contents in favor of the laborers, such as:

- When the laborers have demand for accommodation and food, the farm owners may provide support for their meals and arrange accommodation for the laborers, thus ensuring hygiene as well social order and safety.

- When the laborers meet with risks, sickness or unexpected difficulties, the farm owners are encouraged to pay visits (for funeral or marriage), provide financial support for purchase of medicines, pay wage in advance and provide allowance for the laborers in accordance with their capability.

- When the laborers complete their assigned works in an excellent manner, or on public holidays and New Year festivals, the farm owners should provide bonus to the laborers.

III. IMPLEMENTATION ORGANIZATION

1. The provincial/municipal Labor, War Invalids and Social Affairs Services shall coordinate with the provincial/municipal Agriculture and Rural Development Services in propagating and providing the farm owners as well as cadres at communes and districts with relevant labor legislation and this Circular.

2. The district-level labor offices shall coordinate with the peasants’ associations and People’s Committees at the commune level in using mass media to disseminate and thoroughly grasp the situation in order to detect and correct mistakes in time, encourage and promote good fine models on the implementation of policies for farm economy in their respective localities.

3. The farm owners shall have to organize the implementation of all provisions of this Circular; register the employment of labor with the district-level labor offices.

4. This Circular takes effect 15 days after its signing.

In the course of implementation, any arising problems must be promptly reported to the Ministry of Labor, War Invalids and Social Affairs for study and settlement.

Minister of Labor, War Invalids and Social Affairs
NGUYEN THI HANG