20[1]. Law on Labour (2006) Eng

Translation Endorsed by the Law Committee of the National Assembly of the Lao PDR LAO PEOPLE’S DEMOCRATIC REPUBLIC PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY ________________ President’s Office No. 05/PO DECREE of the PRESIDENT of the LAO PEOPLE'S DEMOCRATIC REPUBLIC On the Promulgation of the Amended Labour Law Pursuant to Chapter 6, Article 67, point 1 of the Constitution of the Lao People's Democratic Republic; Pursuant to Resolution No. 06/NA, dated 27th December 2006, of the National Assembly on the adoption of the Amended Labour Law; and Pursuant to Proposal No. 05/NASC, dated 10 January 2007, of the National Assembly Standing Committee. The President of the Lao People's Democratic Republic Decrees That: Article 1. The Amended Labour Law is hereby promulgated. Article 2. This decree is effective from the date it is signed. Vientiane, 16 January 2007 President of the Lao People’s Democratic Republic [Seal and Signature] Choumaly XAYASONE Translation Endorsed by the Law Committee of the National Assembly of the Lao PDR LAO PEOPLE'S DEMOCRATIC REPUBLIC PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY ________________ National Assembly No. 06/NA 27 December 2006 LABOUR LAW (Amended) Chapter 1 General Provisions Article 1. Objectives The objectives of the Labour Law are to determine principles, regulations and measures on labour1, building and development of worker skills, job placement2, use of labour, adjustment of labour relationships, and administration of labour in order to increase the quality and productivity of the workforce in the society to ensure the transformation to modern industry, contributing to national socio-economic development and regional and international integration to improve the living conditions of the multi-ethnic people. Article 2. Interpretation of Terms The terms used in this law shall have the following meanings: 1. Labour means the physical and intellectual abilities, and skilful expertise of human beings; 2. Building of labour skills means providing the basic professional training to workers who have not previously been trained to build their capacity for work; 3. Development of labour skills means the professional upgrading of workers who already have basic labour skills to supply the demands of the labour market that are expanding in each period; 1 In Lao, this law uses a single root word for “work” and its related ideas “those who perform work” and “those who use others’ work”. The translators have translated that word according to context. For example, in the context of an employment relationship, the translators have used the words “employee” and “employment”. Other variants include “work” and “labour”. Readers should note that these English words are all translations of the same Lao root word. 2 The literal translation of this term is “arrangement of jobs, work and employment”. 1 Translation Endorsed by the Law Committee of the National Assembly of the Lao PDR 4. Employee means a person working under the supervision of an employer while receiving compensation for work through salary or wages, benefits or other policies as regulated by laws, regulations and the employment contract; 5. Employer means a person or organisation using employees for its activities by paying salary or wages, and providing benefits and other policies to the employees as regulated by laws, regulations and the employment contract; 6. Using labour by force means the use of labour where the employee does not voluntarily accept the work assigned, which is inconsistent with the employment contract; 7. Labour unit means the production, business or service units of the economic and social sectors; 8. Labour market means the demand and supply of labour in the society. Article 3. Principles Relating to Labour Principles relating to labour are as follow: 1. Work must be conducted under an employment contract between the employee and the employer; 2. Work shall ensure that the employer and employees receive mutual benefit, without discrimination as to race, nationality, gender, age, religion, beliefs, and socio-economic status; 3. Employers must use labour in accordance with the abilities of employees; 4. Employers must ensure safe labour conditions, payment of salary or fair compensation and implement social security for employees; 5. Employers must use Lao workers[;] if it is necessary to use foreign workers, approval from the labour administration authority must be obtained; 6. Employers must acknowledge and facilitate employees to participate as members of lawful mass organisations, and other social organisations within its labour unit; 7. Employees that wish to go abroad shall receive training in the necessary general knowledge and obtain permission from the labour administration authority; 8. Employees shall observe rules of work and strictly comply with labour regulations; 9. Labour disputes between employees and employer shall ensure fairness in accordance with the employment contract, laws and regulations; 10. It is prohibited to use the labour by any form of force; 11. The use of labour shall simultaneously build and develop labour skills; 12. Building and development of labor skills shall be consistent with the socio-economic plan and the demands of the labour market. 2 Translation Endorsed by the Law Committee of the National Assembly of the Lao PDR Article 4. Policy Towards Labour The State has a policy to promote research, the use of science and technology, the building and development of labour skills, innovation, competitive labour skills, and the supply of labour information to increase the capacity and discipline of workers, aiming to promote jobs for employees, to supply labour to the local market and abroad, and to increase the methods for the management and protection of legitimate interests of employees and employers. Article 5. Role of Trade Unions The trade unions have the role as workers' representatives and have the duties to[:] promote solidarity, educate, train and encourage workers to have labour discipline, and to successfully perform work in accordance with production plans; to protect and promote legitimate interests of workers; to encourage the employer and employees to implement the Labour Law and employment contract correctly and to participate in the settlement of labour disputes. A trade union shall be established in all labour units. Where there is no trade union, workers' representatives3 shall be established. The employers shall properly facilitate the trade unions or worker's representatives to enable them to carry out their activities in accordance with their roles. Article 6. Scope of Application of Labour Law This Labour Law applies to all employees and employers who carry out activities in the labour units. This law shall also apply to persons working under written contracts for employment of three months or more. This Labour Law shall not apply to civil servants, military and police personnel employed in Party or State organisations, the Lao Front for National Construction and mass organisations. Article 7. International Cooperation The State widely promotes international cooperation at various levels and forms in the labour sector, such as: building and development of labour skills, job placement, administration of labour, implementation of international conventions relating to labour, exchange, assistance and other cooperation. 3 The term “workers representatives” has the connotation of a committee or group of persons representing the workers rather than an individual. 3 Translation Endorsed by the Law Committee of the National Assembly of the Lao PDR Chapter 2 Building and Development of Labour Skills Article 8. Form of Building and Development of Labour Skills The building and development of labour skills are conducted in various forms: learning in the schools, training in labour skills development centres, on-the-job training, study tours, exchanging lessons and other activities in the promotion of labour skills. Article 9. The Agency Responsible for Building and Development of Labour Skills The labour administration agency has the responsibility to build and develop labour skills while encouraging and coordinating with different concerned sectors, including State and private sectors throughout society, in the building and development of labour skills. Article 10. Obligations Relating to Building and Development of Labour Skills Employers have the direct obligation4 to train, upgrade the professional qualifications and skills of workers under their responsibility in order that they gradually become skilled workers and workers with specialised skills, and, at the same time, workers also have the responsibility to learn and to develop their work skills in order to upgrade their capacities and professional skills. All labour units shall establish and implement a plan under which they set aside an annual dedicated fund of 1% from the annual salary or wages reserve fund of the employees to cover expenses for training and upgrading of professional qualifications both within the country and abroad for workers under their responsibility. In the event that a labour unit cannot itself implement the building and development of labour skills, such labour unit shall transfer such fund to the national fund for the building and development of labour skills. Article 11. National Fund for Building and Development of Labour Skills The Sate has a policy to create a fund for the building and development of labour skills. The sources of such fund are: • The State budget, by deducting 1.5% of the annual salary tax of the employees; • Funds of labour units that are not able to build and develop labour skills by themselves[;] such labour units shall contribute 1% of the annual salary or wages reserve fund of the employees[;] such fund 4 This connotes that the duty is not delegable. 4 Translation Endorsed by the Law Committee of the National Assembly of the Lao PDR is a direct fund of the labour unit and shall not be deducted from the salary or wages of the employees; • Other funds mobilised from domestic and foreign sources. The management and use of such fund for building and development of labour skills is determined by specific regulations. Article 12. Standard of Labour Skills The standard of labour skills refers to the [level of] quality determined, tested and adopted in the building and development of labour skills, and to the level of skills of employees in each professional sector.5 The State shall determine the standard of labour skills by assigning the responsibility to the committee on the standard of labour skills. The employer shall acknowledge the level of labour skills that has been tested and certified by relevant State organisations in determining the position, salary or wages of the employees. Article 13. Information on Labour The labour administration agency, labour units and other concerned sectors have the duty to exchange information on labour. Labour units shall regularly report information on labour to the labour administration agency. The labour administration agency shall provide information on labour to the employees. Persons6 requiring work shall register with the labour administration agency or with lawfully approved job placement enterprises. Article 14. Labour Market The State and relevant sectors shall pay attention to conducting research on the labour market within the country and abroad to build and develop labour skills that are consistent with the requirements of the labour market in each period. The State and society shall from time to time widely expand the labour market by increasing investment in production, business and services to create work for employees, and to build and develop better labour skills. 5 The translators are unable to definitively resolve whether the standard is defined here as an aspirational standard to be attained by employees generally or as the actual level of achievement of specific employees. 6 The literal translation is “employees”. 5 Translation Endorsed by the Law Committee of the National Assembly of the Lao PDR Sending Lao labour to work abroad and importing foreign labour shall be selective, comply with regulations relating to labour and be authorised by the labour administration agency. The operations of job placement enterprises to supply labour to the domestic and foreign labour market shall be authorised by the labour administration agency. Chapter 3 Rules of Work Article 15. Contents of Rules of Work The rules of work are legal documents7 binding on employees and employers. The contents of the rules of work consist of the rights and obligations of employees and employers as specified under the internal regulations of the labour unit and the employment contract. The internal regulations of a labour unit must be in conformity with the Labour Law of the Lao PDR and must first be approved by the labour administration agency before taking effect. The internal regulations of a labour unit must be disseminated to all workers and posted openly so that everybody is informed. The employees and employers have the obligation to strictly implement the rules of work. Article 16. Hours of Work The hours of work of an employee in any labour unit shall be six days per week. Work should not exceed eight hours per day or forty-eight hours per week, irrespective of the type of salary or wages paid. Hours of work must not exceed six hours per day or thirty-six hours per week in respect of employees whose occupations are in sectors that involve: • Direct exposure to radiation or to dangerous communicable diseases; • Direct exposure to vapour [or] smoke which is dangerous to health; • Direct exposure to dangerous chemicals, such as explosives; • Working in pits, or in underground tunnels, under water or in the air; 7 The Lao word translated here as “legal documents” is the same word as that translated in other contexts as “legislative acts”. In this case, because the primary labour units are from the State sector, the law may have used this word to describe documents issued by them even though such documents are not legislative statutes in the more technical sense. 6 Translation Endorsed by the Law Committee of the National Assembly of the Lao PDR • Working in an abnormally hot or cold place; • Working directly with constantly vibrating equipment. Article 17. Time Counted as Hours of Work The following types of time lost shall be calculated as part of daily hours worked: • Time spent on technical preparation at the start and end of work; • Hourly breaks not exceeding 15 minutes, in certain sectors in which work is divided into different periods for different tasks or which operate on the basis of shifts; • A 45-minute meal break per shift in respect of shift workers. The employer must establish an appropriate production schedule so as to enable workers to rest at least for five to ten minutes after having worked for two hours. Should a necessity arise for any technical or mechanical reason, work by rotation must be organised so that workers can rest appropriately. Time lost that is counted as daily hours of work should be specified in the internal regulations of work of the labour unit. Article 18. Overtime An employer may request employees to work overtime if necessary, subject to the prior consent of the trade union or worker's representatives and of the employees. Overtime shall not exceed forty-five hours per month or three hours per day, but it is prohibited to work overtime continuously every day, except in the case of an emergency such as combating natural disaster or an accident that would cause great damage to its labour unit. When necessary, before the employer gets the employees to work overtime, the employer must, in each case, first consult the trade union or worker's representatives and notify the employees in the labour unit concerned explaining the necessity of overtime work, and shall fully pay them fair compensation for overtime as provided by laws and regulations. Where overtime is necessary for more than forty-five hours in any one month, the employer must first request authorisation from the labour administration agency which is responsible for its labour unit and approval from the trade union or workers' representatives in its labour unit. 7 Translation Endorsed by the Law Committee of the National Assembly of the Lao PDR Article 19. Weekly Rest and Public Holidays Workers have the right to at least one day’s rest within a week, which may be Sunday or any other day as agreed between the workers and the employer. Public holidays shall be determined by the government. Article 20. Sick Leave Upon presentation of a medical certificate, workers that are remunerated on a monthly basis shall be entitled to sick leave with full pay for not more than thirty days per year. For the workers who work on a daily or hourly paid basis, per unit of production basis or on the basis of specific work contracts, they will be entitled to payment during sick leave in accordance with the social security policy only if they have worked for more than ninety days. The provisions8 of this article shall not apply to labour accidents or occupational diseases. Article 21. Annual Leave Workers employed under an employment contract made for an indefinite period or for a period of more than one year who have worked for one full year shall be entitled to fifteen days of annual leave. Workers in sectors involving heavy work or work which is hazardous to their health, as specified in Article 16 of this Labour Law, shall be entitled to eighteen days of annual leave with full pay at the normal rate. Weekly rest days and public holidays shall not be counted in annual leave. Article 22. Violation of Rules of Work The main violations of rules of work are: • Ruining9 [the labour unit], destroying property of the labour unit; • Theft, fraud or embezzlement of assets of the labour unit; • Recklessness, negligence or carelessness towards one’s duties; • Non-compliance with the internal regulations of the labour unit and the employment contract. 8 The literal translation is “contents”. 9 Both Lao words have the connotation of “destroy”. The first, however, is not restricted to physical damage whereas the second is. 8 Translation Endorsed by the Law Committee of the National Assembly of the Lao PDR Chapter 4 Employment Contracts and Termination of Employment Contracts Article 23. Employment Contracts An employment contract is an agreement made between employee and employer or their representatives. Employees and employers must strictly comply with employment-related contractual obligations: employees must perform their duties according to their specialisation and experience, employers must assign employees to work or positions that are stipulated in the empl