Labor contract in accordance with Vietnamese law

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Legal grounds:

Decree 28/2020/ND-CP

Labor Code 2019

How many types of current labor contracts?

According to current legal regulations, labor contracts are divided into two types, namely, labor contracts with an indefinite term and labor contracts with a definite term.

In which, an indefinite term labor contract is a contract in which the two parties do not determine the term and the time of termination of the contract’s validity;

A definite-term labor contract is a contract in which the two parties determine the term and the time of termination of the contract’s validity within 36 months from the effective date of the contract.

As can be seen, labor contracts are classified based on the duration of the contract, from which it is classified into definite or indefinite. In particular, with the type of labor contract with a term, the maximum agreed-upon term is 36 months, equivalent to 3 years.

Form of labor contract

According to the provisions of Article 14 of the Labor Code 2019, an employment contract can be entered into in the following three forms:

– Agreement in writing;

– Committing through electronic means in the form of data messages;

– To enter into verbal labor contracts for contracts with a term of less than 1 month.

Contents of labor contract

A lawful labor contract is a contract that must have the following principal contents: Name and address of the employer and the full name and title of the person entering into the labor contract on the employer’s side;

• Full name, date of birth, gender, place of residence, number of citizen identification card, identity card or passport of the person entering into the labor contract on the employee’s side;

• Work and place of work;

• Term of the labor contract;

• Salary according to job or title, form of salary payment, salary payment term, salary allowance and other additional payments;

• Mode for raising grades and raising wages;

• Working time, rest time;

• Labor protection equipment for employees;

• Social insurance, health insurance and unemployment insurance;

• Training, fostering and improving professional qualifications and skills.

Other contents in the contract the two parties agreed but not contrary to the provisions of law.

How to change the type of labor contract?

The change of contract type, the employee and the employer will carry out in the following cases:

Case 1: Agreement to change the contract term

According to Vietnamese law, when there is an agreement to amend and supplement the labor contract, the parties can proceed by signing an appendix to the labor contract or entering into a new contract. At the same time, the law also stipulates that if the parties sign an appendix to the labor contract, the parties are not allowed to modify the term of the labor contract. Therefore, if the parties want to change the type of contract, the parties must sign a new labor contract.

Case 2: The labor contract expires but the employee continues to work

According to Clause 2, Article 20 of the Labor Code 2019, if a labor contract with a fixed term expires but the employee continues to work, then:

– Within 30 days after the contract expires: Must sign a new labor contract.

+ When a new contract did not sign. The rights, obligations and interests of both parties still perform according to the signed contract

+ If you sign a new contract, you can only sign one more time of a fixed-term labor contract. After that, if the employee continues to work, he/she must sign an indefinite-term labor contract, except in the case of signing a contract with:

• Employees employed as directors in state-owned enterprises.

• Elderly workers.

• Foreign workers working in Vietnam.

• The employee is a member of the management board of the employee representative organization at the grassroots during the term that the contract expires.

Expiry of the above 30 days without signing a new contract: The signed contract becomes an indefinite term labor contract.

Related articles:

The term of the labor contract is in accordance with Vietnamese law

New points on labor contracts with foreigners in Labor Code 2019

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