DECREE 85 IMPLEMENTING THE LABOUR CODE ON POLICIES APPLICABLE TO FEMALE EMPLOYEES 1 October 2015 CONTENTS Article 1 Governing scope ...............................................................................................................2 Article 2 Applicable entities ..............................................................................................................2 Article 3 Definitions ..........................................................................................................................2 Article 4 Representative of female employees .................................................................................3 Article 5 Women's right to work on a basis of equality with men ......................................................3 Article 6 Improving working conditions of female employees ...........................................................4 Article 7 Health care for female employees .....................................................................................4 Article 8 Right of a pregnant employee to unilaterally terminate or postpone performance of her labour contract .......................................................................................................................................4 Article 9 Assistance and support by employers in constructing crèches and kindergartens or in providing a part of the expenses incurred by female employees for their children in crèches and kindergartens .........................................................................................................................................5 Article 10 Arranging crèches and kindergartens at places with many female workers .......................5 Article 11 Policies assisting employers ..............................................................................................5 Article 12 Organization of implementation .........................................................................................6 Article 13 Effectiveness .....................................................................................................................6 Article 14 Responsibility for implementation ......................................................................................6 Allens - Vietnam Laws Online Database on www.vietnamlaws.com 1 GOVERNMENT SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness No. 85-2015-ND-CP Ha Noi, 1 October 2015 DECREE IMPLEMENTING THE LABOUR CODE ON POLICIES APPLICABLE TO FEMALE EMPLOYEES Pursuant to the Law on Organization of the Government dated 25 December 2001; Pursuant to the Labour Code dated 18 June 2012; On the proposal of the Minister of Labour; The Government hereby issues a Decree with detailed regulations for implementation of the Labour Code regarding policies applicable to female employees. CHAPTER 1 General Provisions Article 1 Governing scope This Decree provides detailed regulations for implementation of the Labour Code regarding policies applicable to female employees, namely who is the representative of female employees; women's right to work on a basis of equality with men; improving working conditions and health care for female employees; the right of a pregnant employee to unilaterally terminate or postpone performance of her labour contract; assistance and support to be provided by employers for construction of crèches and kindergartens or for a part of the expenses incurred by female employees for their children in crèches or kindergartens; organizing crèches and kindergartens at places with many female workers; and policies assisting employers. Article 2 Applicable entities 1. Female employees. 2. Employers employing female employees. 3. Other agencies, organizations and individuals involved. Article 3 Definitions 1. An employer employing many female employees means: (a) Employing from 10 to under 100 female employees, with the total number of female employees being 50% or more of the total number of employees; (b) Employing from above 100 to under 1,000 female employees, with the total number of female employees being 30% or more of the total number of employees; Allens - Vietnam Laws Online Database on www.vietnamlaws.com 2 (c) Employing 1,000 or more female employees. 2. A place with many female workers means: (a) An industrial zone, industrial cluster, export processing zone, economic zone or high-tech zone (all abbreviated to industrial zone) where there are 5,000 or more female workers currently working in enterprises and paying social insurance premiums within the geographical area of such industrial zone; (b) A commune, ward or township where there are 3,000 or more female workers who have registered either permanent household residence or temporary residence in such commune, ward or township. 3. A room for extracting and storing breast milk means a reserved area with a minimum 6m2 area with a fresh water supply, power, which ensures hygiene, and has a refrigerator, seating and a table; and with paper or cloth towels, a milk suction machine, and pasteurizing apparatus (if possible). Article 4 Representative of female employees The representative of female employees referred to in article 154.2 of the Labour Code is determined as follows: 1. If a trade union has been established, then the representative of female employees is the grassroots [enterprise's] trade union; 2. If there is not a trade union, the representative of female employees is the directly higher level trade union if the female employees' collective so requests. If there is no such request, then the employer shall take opinions from more than 50% of the female employees in the enterprise; 3. The grassroots trade union referred to in clause 1 and the directly higher level trade union referred to in clause 2 above shall exercise rights and discharge responsibilities in collating and reporting the opinion of female employees on matters relevant to their rights and interests when the employer seeks such opinions. Article 5 Women's right to work on a basis of equality with men 1. Women's right to work on a basis of equality with men as prescribed in article 153.1 of the Labour Code means: (a) Employers are responsible to ensure equality of men and women during recruitment, employment, training, wages, rewards, promotion, labour remuneration; social, medical health and unemployment [job loss] insurance schemes; labour conditions, labour safety, working hours and rest breaks, and other welfare regimes in both material and spiritual aspects; (b) The State assures equality in the sectors mentioned in sub-clause (a) above during the labour relationship, and equality in incentive policies and when considering tax reductions. 2. The State encourages employers: (a) To prioritize recruitment and employment of females for jobs for which they satisfy the conditions and working criteria which are applicable to both men and women; (b) To implement policies applicable to female employers at a higher level than that prescribed in provisions of law. Allens - Vietnam Laws Online Database on www.vietnamlaws.com 3 CHAPTER 2 Specific Provisions Article 6 Improving working conditions of female employees 1. Enterprises must ensure they have adequate shower facilities and toilets appropriate for their workplace in accordance with regulations of the Ministry of Health. 2. Employers are encouraged to co-ordinate with the trade union to prepare a plan on, and to implement solutions so that female employees have regular work and are permitted to work pursuant to a flexible working timetable, and can work part-time or at home as appropriate for their reasonable expectations. Article 7 Health care for female employees 1. During their periodical health check, female employees must be given a specialized gynaecological examination in accordance with the list of specialized gynaecological examinations issued by the Ministry of Health. 2. A female employee is entitled to the following breaks during her menstruation: (a) Thirty (30) minutes each day on a minimum of three days per month; (b) During such breaks the female employee shall still receive the full wage pursuant to her labour contract; (c) The specific duration of breaks shall be as agreed between the employer and the female employees, consistent with actual conditions at the workplace and the requirements of the female employees. 3. A female employee is entitled to the following breaks during the period she nurses a child under 12 months: (a) While working, sixty (60) minutes each day in order to feed the baby and store breast milk; (b) During such breaks the female employee shall still receive the full wage pursuant to her labour contract. 4. An employer must establish a room for extracting and storing breast milk, appropriate for the actual conditions at the working location, and consistent with the requirements of the female employees and the capability of the employer. 5. Employers are encouraged to create favourable conditions for female employees nursing children of 12 months or older to be able to extract and store breast milk at working locations. Employers should reach agreement with their employees on the duration of rest breaks. Article 8 Right of a pregnant employee to unilaterally terminate or postpone performance of her labour contract 1. A female employee who is pregnant and has a certificate from a competent medical consulting or treating establishment ["medical establishment"] certifying that continued employment would adversely affect her foetus, has the right to unilaterally terminate or postpone implementation of her labour contract, but must provide advance notice to her employer enclosing the opinion from such medical establishment that continued employment would adversely affect the foetus. 2. The time-limit for providing advance notice in order to unilaterally terminate or postpone performance of the labour contract shall be the period of time [for the female employee to rest] designated by the competent medical establishment. Allens - Vietnam Laws Online Database on www.vietnamlaws.com 4 3. The duration of postponement of performance of a labour contract shall be as agreed between the employer and employee, but shall at least equal the period of time for which the medical establishment recommends rest. If the medical establishment does not designate a period of time for rest, then the duration of the postponement of performance of the labour contract shall be as agreed between the parties. Article 9 Assistance and support by employers in constructing crèches and kindergartens or in providing a part of the expenses incurred by female employees for their children in crèches and kindergartens 1. An employer shall, depending on its specific conditions, formulate plans on assisting and providing support for construction of a crèche or kindergarten or to provide a part of the expenses incurred by female employees for their children in crèches and kindergartens, such assistance and support to be provided in cash or in kind. The employer and the representative of the female employees shall reach agreement on the specific level and duration of such assistance. 2. Employers are encouraged to arrange and/or construct crèches and kindergartens. Article 10 Arranging crèches and kindergartens at places with many female workers The people's committee of any province or city under central authority ["provincial people's committee"] is responsible to direct and commence arranging or constructing crèches and kindergartens at places with many female workers as follows: 1. It must include planning on construction of crèches and kindergartens when preparing master planning for or establishing an industrial zone in accordance with law. In the case of an industrial zone which has already been established but which does not yet have planning on crèches and kindergartens, such planning must be supplemented in order to construct crèches and kindergartens; 2. Crèches and kindergartens must be constructed in compliance with the requirements [need] for sending infants and children to them; 3. The operation of crèches and kindergartens must be managed in accordance with provisions of law; 4. There shall be policies encouraging individuals and organizations to invest in construction of crèches and kindergartens. Article 11 1. Policies assisting employers Any employer which constructs a crèche, kindergarten, health establishment, culture house or other welfare buildings and which satisfies the conditions on scale and criteria set out in regulations of the Prime Minister, shall be entitled to the policies encouraging socialization in accordance with current State regulations on policies encouraging socialization of activities in the sectors of education, occupational training, medical health, culture, sport and environment. Any employer which invests in construction of residential housing for employees shall be entitled to the incentives prescribed in the Law on Residential Housing. 2. The State assists any employer employing many female employees as follows: (a) Entitlement to a reduction of corporate income tax [CIT] in accordance with the law on CIT; (b) Additional expenses paid to female employees are permitted to be included in deductible expenses when determining taxable income for corporate income tax purposes in accordance with regulations of the Ministry of Finance. Allens - Vietnam Laws Online Database on www.vietnamlaws.com 5 CHAPTER 3 Organization of Implementation Article 12 Organization of implementation 1. The Ministry of Labour is responsible for the following: (a) To preside over co-ordination with other relevant agencies in disseminating and popularizing the policies applicable to female employees; (b) To check and inspect implementation of the provisions of this Decree. 2. The Ministry of Finance shall co-ordinate with relevant ministries and branches in guiding provincial people's committees to implement the provisions in article 10 of this Decree. 3. The Ministry of Education and Training shall co-ordinate with relevant ministries and branches in guiding provincial people's committees to implement the provisions in article 10 of this Decree. 4. The Ministry of Health is responsible: (a) To provide guidelines on the specifications of shower facilities and toilets as referred to in article 6.1 of this Decree; (b) To issue the list of specialized gynaecological examinations as referred to in article 7.1 of this Decree; (c) To provide guidelines on specifications of rooms for extracting and storing breast milk as referred to in article 4.7 of this Decree. 5. Other ministries and branches are responsible, within the scope of their respective responsibilities, to co-ordinate with the Ministry of Education and Training to guide provincial people's committees in implementing article 10 of this Decree. 6. Provincial people's committees are responsible: (a) To disseminate the policies applicable to female employees prescribed in this Decree, and to check and inspect implementation; (b) To review and determine places with many female workers and to organize implementation of the provisions in article 10 of this Decree. Article 13 Effectiveness 1. This Decree is of full force and effect as from 15 November 2015. 2. As from the effective date of this Decree, Decree 23-CP of the Government dated 18 April 1996 regulating the Labour Code provisions applicable to women shall no longer be effective. Article 14 Responsibility for implementation Ministers, heads of ministerial equivalent and Government agencies, chairmen of provincial people's committees and other entities involved are responsible for implementation of this Decree. For the Government Prime Minister NGUYEN TAN DUNG Allens - Vietnam Laws Online Database on www.vietnamlaws.com 6