04 notes for entering labor contracts with elderly employees

Currently, despite reaching retirement age, many elderly employees still wish to continue working to earn income or simply because they are passionate about devoting themselves to society. How can enterprises sign labor contracts with those elderly employees? BLawyers Vietnam will answer this question through this article.

elderly employees

I. Subjects are the elderly employees

Elderly employees are those who continue to work after the age of 60 years and 03 months for male employees and 55 years and 04 months for female employees. However, the age will not be fixed but increased. Accordingly, every year this retirement age will be increased by 03 months for male employees until they reach the age of 62 in 2028 and 04 months for female employees until they reach 60 years of age in 2035.

II. 04 notes for entering labor contracts with elderly employees

1. Type of labor contracts

The employers may enter labor contracts with the elderly employees if those employees agree to sign the contract. Besides, the two parties can agree to enter definite-term labor contracts or sign indefinite-term contracts depending on the needs of the parties.

Of note, for elderly employees who are foreigners, due to the limitation of the term of the work permit, the employers can only sign the definite-term labor contract with these people.

If elderly employees are foreigners, see some notes on 31 FQAs about expats working in Vietnam.

2. Type of work

Enterprises need to pay attention that the employers cannot use the elderly employees to do laborious, toxic, or dangerous works that adversely affect the health of elderly employees. However, when safe working conditions are ensured, the enterprises may still be allowed to employ elderly employees to do these jobs. In case of failing to ensure safe conditions and allowing the elderly employee to perform the laborious, toxic, or dangerous works, the employers may be fined from VND10-15 million/ violation.

3. Issues related to social insurance

In case the elderly employees have received retirement pension entered a new labor contract, they shall receive salary and other benefits prescribed by law and the employment contract in addition to the benefits to which they can get under the pension scheme. At the same time, if the employees have received a monthly pension, the employers will not have to pay compulsory social insurance, occupational accident insurance, unemployment insurance, and health insurance. In this case, the employers are for paying the elderly employee an amount equal to the premium for these types of insurance.

In case the elderly employees have not yet received the monthly pension but are working under a labor contract for a full 01 month or more, the employers must still pay compulsory social insurance, health insurance, accident insurance, and unemployment insurance for them.

4. Health care responsibilities towards elderly employees

Taking care of employees’ health in the workplace is a fundamental responsibility of employers, especially for elderly employees. Specifically, the employers organize periodical health check-ups for elderly employees, arrange suitable jobs for their health, and create reasonable rest conditions when the elderly employees join the workforce.

In short, enterprises can still sign labor contracts with elderly employees, but the signing and implementation need to comply with the provisions of labor laws and relevant documents.

Should you have any questions about the above contents, please revert to BLawyers Vietnam at consult@blawyersvn.com. We are more than happy to hear from you!

Date: 03 January 2022

Writer: Tuyen Pham

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