Labor policy principles serve as the guiding framework for all labor management and utilization activities, ensuring the lawful rights and interests of employees as well as the sustainable development of enterprises. The following article by NPLaw clarifies the importance of labor policy principles, relevant legal regulations, and addresses common questions, thereby assisting enterprises in developing appropriate policies, ensuring legal compliance, and establishing a competitive advantage in the labor market.

I. Importance of labor policy principles

In the modern business environment, building a fair, transparent, and law-compliant working environment is a main factor in attracting and retaining talent, enhancing labor productivity, and strengthening corporate reputation.

Compliance with labor policy principles not only helps enterprises mitigate legal risks but also enhances credibility, attracts skilled workers, and fosters a professional working environment. For employees, these principles safeguard their rights to wages, benefits, occupational safety, and career development opportunities, thereby contributing to the promotion of social equity.

II. Legal regulations relating to labor policy principles

1. What are labor policy principles?

Although the law does not provide a specific definition, labor policy principles may be identified through the provisions of the Labor Code 2019. These principles include:

  • Ensuring fundamental rights of employees: Freedom to choose employment and enter into labor contracts, the right to work in a safe environment, the right to fair wages, rest periods, and participation in employee representative organizations (Article 5 of the Labor Code 2019).
  • Encouraging dialogue, negotiation, and agreement: Creating conditions for employees and employers to engage in dialogue, negotiation, and agreement on working conditions in order to build harmonious and stable labor relations (Articles 63, 64, 65, 66, and 67 of the Labor Code 2019).
  • Equality and non-discrimination: Ensuring equality among employees and prohibiting discrimination based on gender, age, religion, ethnicity, or disability (Article 8 of the Labor Code 2019).
  • Special protection for certain groups: Providing special protection and policies for female employees, underage employees, employees with disabilities, and elderly employees (Chapters X and XI of the Labor Code 2019).
  • International integration: Promoting the application of international labor standards and harmonizing Vietnamese labor law with ones of other countries in the region and worldwide.

2. How are labor policy principles prescribed by the State?

The State stipulates labor policy principles through the Constitution, the Labor Code, and relevant legal documents, as evidenced in the following aspects:

  • The Constitution 2013:It affirms that the State guarantees the right to work, the freedom to choose occupations, employment, and workplaces; protects employees; builds harmonious, stable, and progressive labor relations; and strictly prohibits discrimination, forced labor, and the unlawful use of child labor (Article 35).
  • The Labor Code 2019: 
  • Respecting and protecting freedom and voluntariness of employees and employers: Parties are free to agree on employment, working conditions, wages, and other benefits, provided that such agreements comply with the law and collective labor agreements.
  • Ensuring equality and non-discrimination: All employees are equal before the law and must not be discriminated against based on gender, ethnicity, religion, belief, marital status, or disability.
  • Encouraging dialogue and collective bargaining: The State encourages employees and employers to engage in dialogue and negotiation to resolve labor-related issues, establish collective labor agreements, and reach other mutually beneficial arrangements.
  • Protecting vulnerable employees: The State provides policies prioritizing the protection of female employees, underage employees, employees with disabilities, elderly employees, and other disadvantaged labor groups.
  • Promoting sustainable employment and labor productivity: The State encourages enterprises to invest in new technologies, improve employees’ skills, and provide favorable working conditions to enhance productivity and efficiency.
  • Ensuring occupational safety and hygiene: The State supports enterprises in improving working conditions, preventing occupational accidents and diseases, and safeguarding employees’ right to work in a safe environment.
  • Encouraging activities to protect employees’ rights and interests: The State promotes the participation of trade unions, employer representative organizations, and other social organizations in protecting the lawful rights and interests of employees.

3. The role of labor policy principles in protecting employees’ rights 

Labor policy principles play an important role in protecting employees’ rights:

  • They serve as the foundation for law-making: These principles promote the development and improvement of the labor law system, ensuring fairness, transparency, and effective protection of employees’ rights.
  • They guide the interpretation and application of the law: State authorities, employers, and employees must rely on these principles when interpreting and applying labor laws to ensure optimal protection of employees’ rights.
  • They constitute criteria for assessing the legality: The conduct of employers and employees must comply with these principles to be deemed lawful.

III. Questions on labor policy principles 

1. Which labor policy principle takes priority in labor relations?

In labor relations, the principle of ensuring the fundamental rights of employees is always given a priority. Accordingly, employees have the right to freely choose employment, work for any employer, and work at any location not prohibited by law (Article 5 of the Labor Code 2019).

Such a principle ensures that employees are not forced to work, may freely negotiate working conditions, and are treated fairly and equally.

2. What are enterprises’ responsibilities in implementing labor policy principles?

To implement labor policy principles, enterprises are responsible for:

  • Formulating and implementing internal rules and regulations in compliance with labor laws, ensuring that such regulations do not infringe upon the lawful rights and interests of employees (Article 118 of the Labor Code 2019).
  • Entering into labor contracts: Executing written labor contracts with employees for work with a duration of one month or more (Article 14 of the Labor Code 2019).
  • Paying wages fully, timely, and fairly: Ensuring wages are not lower than the regional minimum wage and are paid on time as agreed (Articles 90, 94, and 95 of the Labor Code 2019).
  • Ensuring occupational safety and hygiene: Providing a safe working environment, adequate personal protective equipment, and implementing measures to prevent occupational accidents and diseases (Chapter IX of the Labor Code 2019).
  • Fulfilling obligations relating to social insurance, health insurance, and unemployment insurance: Ensuring employees’ insurance entitlements in accordance with social insurance laws (Law on Social Insurance 2014, Law on Health Insurance 2008 as amended in 2014, and Law on Employment 2013).
  • Respecting employees’ rights: Prohibiting discrimination, coercion, or infringement upon employees’ physical integrity, honor, or dignity (Article 8 of the Labor Code 2019).

3. Which authorities are responsible for supervising the implementation of labor policy principles in enterprises?

Supervision of the implementation of labor policy principles in enterprises falls under the responsibility of the following authorities:

  • Departments of Labor, Invalids and Social Affairs: Exercising state management over labor, wages, occupational safety, and labor dispute resolution at the provincial and centrally governed municipal levels.
  • Inspectorates of the Departments of Labor, Invalids and Social Affairs: Conducting inspections and examinations of enterprises’ compliance with labor laws and handling violations.
  • Provincial and municipal federations of labor: Representing employees in protecting their lawful rights and interests, participating in the formulation of labor policies, and supervising labor law compliance in enterprises.
  • Grassroots trade unions: Acting as employee representative organizations at enterprises, entitled to engage in negotiation and dialogue with employers to protect employees’ rights.

4. Why is compliance with labor policy principles necessary in recruitment and labor utilization?

Compliance with labor policy principles in recruitment and labor utilization, as follows:

  • Attracting and retaining talent employees: Creating a fair, transparent working environment with development opportunities attracts skilled employees and encourages long-term commitment.
  • Enhancing productivity and efficiency: Employees who work in a respectful environment where their rights are protected are more motivated, thereby improving productivity and work performance.
  • Minimizing legal risks: It helps avoid labor disputes and administrative sanctions arising from labor law violations.
  • Enhancing brand reputation: Enterprises that comply with the law and demonstrate social responsibility are highly regarded by customers, partners, and the community.

5. Do labor policy principles apply to foreign employees working in Vietnam?

Labor policy principles prescribed under the Labor Code 2019 apply equally to both Vietnamese employees and foreign employees lawfully working in Vietnam (Clause 3, Article 2 of the Labor Code 2019).

Vietnamese law does not discriminate between domestic and foreign employees with respect to fundamental labor rights.

IV. Legal consulting services on labor policy principles

NPLaw provides professional legal consulting services on labor policy principles, assisting enterprises in:

  • Assessing legal risks associated with labor policies and labor management activities.
  • Developing a labor management system that complies with the law and aligns with the enterprise’s business characteristics.
  • Drafting legal documents (labor contracts, collective labor agreements, internal labor regulations, etc.) that are comprehensive, clear, and protective of the lawful rights and interests of both employees and employers.
  • Representing enterprises in resolving labor disputes efficiently and minimizing potential losses.
  • Organizing training and workshops for managerial staff on labor laws to enhance management capacity and legal compliance.

Please contact NPLaw via hotline or website today to receive in-depth consultation and build a fair, harmonious, and sustainable working environment.