Internal labor regulations and things to note

Internal labor regulations and things to note
Internal labor regulations and things to note

In addition to the Labor Contract and the Collective Labor Agreement, Internal Labor Regulations (ILR) are considered the most important documents to detail the contents that enterprises require employees to comply with. However, the reality shows that some enterprises, when drafting the ILR, have omitted a few important provisions or regulations that are sketchy and not feasible when applied in practice. In the following article, we would like to share some points that businesses need to pay attention to in the process of preparing the ILR with the hope that the ILR will be close to the reality of the business but also in accordance with the provisions of the law, ensuring the practical application.

Required Contents

The content of the ILR must not contravene the labor law and relevant provisions of law. The ILRL includes the following main contents:

  • Working hours and rest periods;
  • Order at the workplace;
  • Occupational safety and health;
  • Actions against sexual harassment in the workplace;
  • Protection of the assets and technological and business secrets and intellectual property of the employer;
  • Cases in which reassignment of employees are permitted;
  • Violations against labor regulations and disciplinary measures;
  • Material responsibility;
  • The person having the competence to take disciplinary measures.

The above are the mandatory and basic contents that the ILR must be regulated, depending on the individual policies of each enterprise, other provisions may be added that are not contrary to the labor law.

Register for internal labor regulations

Employers must issue an ILR, whereby:

  • If employing 10 or more workers, the ILR must be in writing and must be registered at the specialized labor agency under the Provincial People’s Committee (“Department of Labor”).
  • If employing less than 10 employees, ILR is not mandatory to issue a written, but the employer must agree on the content of labor discipline and material responsibility in the labor contract.

Before promulgating or amending and supplementing the ILR, the enterprise must consult with the representative organization of employees at the establishment for the place where there is a representative organization of employees at the establishment.

After being issued, the ILR must be sent to each employee representative organization at the facility (if any) and notified to all employees, and at the same time post the main content in necessary places at the workplace.

Effectiveness of internal labor regulations

The validity of the ILR will depend on each type of rule as analyzed above, specifically:

  • For ILR that must be registered and approved by the Department of Labor, effective 15 days after approval.
  • For ILR that is not required to be registered (less than 10 employees) and is issued in writing, the validity is determined by the employer in the ILR.

Representative organization of employees

Employee representative organization at the enterprise level is an organization established on a voluntary basis by employees at an employer for the purpose of protecting the lawful and legitimate rights and interests of employees in labor relations through collective bargaining or other forms as prescribed by labor law.

Representative organization of employees includes:

  • Grassroots trade union; and
  • Internal employee organizations.

Points to note

  • Enterprises with branches, units, production and business establishments located in different locations, shall send the registered ILR to the Department of Labor where the branch, unit, production or business establishment is located.
  • ILR is an important basis for enterprises to determine violations, compensation levels and discipline employees.

Failure to register the ILR in accordance with regulations may result in administrative penalties being considered.

The article is based on applicable law at the time noted as above and may no longer be appropriate at the time the reader approaches this article as the applicable law has changed and the specific case that the reader wishes to apply. Therefore, the article is only for reference.