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Change the type of labor contract in Vietnam

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Previously, the Labor Code 2012 stipulates that there are 03 types of labor contracts: definite-term labor contracts, indefinite-term labor contracts and seasonal labor contracts or for a certain job with a term of less than 12 months. The Labor Code in 2019 no longer has seasonal labor contracts as before. LSX Lawfirm will give you an article about: “Change the type of labor contract in Vietnam”, as follows:

Labor Code 2019

The latest types of labor contracts in Vietnam

From January 1, 2021, a labor contract can only entered into under one of two types of labor contract with indefinite term or labor contract with definite term.

Pursuant to the provisions of the Labor Code 2019, from January 1, 2021; a labor contract must entered into in one of the following two types:

(1) 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;

(2) Fixed-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. copper.

Service for setting up branches and representative offices in Vietnam

Procedures for changing the legal representative of Vietnam

Representative office – points to note according to Vietnamese law

When a labor contract with a definite term expires, but the employee continues to work; the following procedures followed:

– Within 30 days from the date of expiration of the labor contract; the two parties must sign a new labor contract; during the time when a new labor contract has not signed; the rights, obligations and interests of the two parties shall performed according to the signed contract;

– If 30 days after the expiration of the labor contract, but the two parties; do not sign a new labor contract, the signed definite-term labor contract becomes an indefinite-term labor contract. ;

– In case the two parties sign a new labor contract which is a definite-term labor contract; it only allowed to sign one more time, after that, if the employee continues to work; he must sign an indefinite labor contract; time limit, except for the following cases:

  • Labor contract for the person hired to act as a director in a state-owned enterprise
  • Labor contract for elderly employees as prescribed in Clause 1, Article 149 of the Labor Code 2019.
  • Then Labor contract for foreign employees working in Vietnam under the work permit as; prescribed in Clause 2, Article 151 of the Labor Code 2019.
  • In case the signed labor contract must extended to the end of the term for an employee; who is a member of the leadership team of the employee representative organization at the grassroots level; during the term but the labor contract expires as prescribed in Clause 1 of this Article. 4 Article 177 of this Code.

How to change the type of labor contract?

The change of contract type shall carried out by the employee and the employer in the following cases:

  • Agreement to change contract term:

Pursuant to Article 33 of the Labor Code 2019, 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.

However, if signing an appendix to the labor contract, the parties not allowed to amend the term of the labor contract (according to Clause 2, Article 22 of the Labor Code 2019).

Therefore, if the parties want to change the type of contract, the parties must sign a new labor contract.

  • 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.

  • During the time when a new contract has not signed, the rights; obligations and interests of the two parties shall performed 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 hired 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 questions

What is an employment contract?

A labor contract is an agreement between an employee and an employer on paid employment, wages, working conditions, rights and obligations of the parties in the labor relationship.

Principles of entering into labor contracts?

Voluntary, equal, goodwill, cooperative and honest.
Freedom to enter into labor contracts but not against the law, collective labor agreement and social ethic

When will the fixed-term labor contract end?

– The expiration of the labor contract will terminate the labor relationship
– If the employee continues to work after the contract expires:
Must sign a new labor contract within 30 days
If the contract is not renewed within 30 days, the old contract will become an indefinite term labor contract

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