In the following article, LSX will give you an answer on “Is it possible to extend the term of a labor contract with an addendum?”.
- 2019 Labor Code
How long is a fixed-term employment contract?
Accordingly, a labor contract is an agreement between an employee and an employer on paid jobs, wages, working conditions, rights, and obligations of each party in the labor relationship. In case two parties agree by a different name; but with contents showing paid employment, salary, and the management, administration, and supervision of one party; it shall be an employment contract.
Hence the current regulations, labor contracts have into two types: labor contracts of the indefinite term; and contracts of a definite term. In which, point b, clause 1, Article 20 of the Labor Code 2019 defines a term contract as follows:
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 a period not exceeding 36 months from the effective date of the contract.
Is it possible to extend the term of a labor contract with an addendum?
Previously, Article 5 of Decree 05/2015/ND-CP (which expires on February 1, 2021) allowed the parties to amend the contract term by means of an appendix to the labor contract; with the following contents:
“The term of a labor contract may only modified once by the appendix of the labor contract; must not change the type of contract entered into; except in the case of prolonging the term of the labor contract with the elderly and employees who are part-time trade union officials specified in Clause 6, Article 192 of the Labor Code.”
Accordingly, the parties can sign an addendum to extend the term of the labor contract; but it can only be amended once and guaranteed not to change the type of labor contract signed. Instead, Clause 2, Article 22 of the Labor Code 2019 provides:
“The labor contract appendix details, amends, and supplements a number of articles and clauses of the labor contract but must not modify the term of the labor contract.
In case the labor contract appendix details a number of articles and clauses of the labor contract; which leads to a different interpretation from the labor contract, the contents of the labor contract shall prevail. In case the labor contract appendix amends or supplements a number of articles and clauses of the labor contract; it must clearly state the content of the amended and supplemented article and clause and the effective time.
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International legal documents do not use the term “foreign workers” but only use the equivalent legal term “migrant workers”. According to the International Labor Organization (ILO), a migrant worker is a concept that refers to a person who migrates from one country to another to work for his or her own benefit.
A work permit is a document that allows a foreigner to work legally in Vietnam. The permit clearly states the entrusting company, position, and work for foreigners, so it is important for the legal protection of foreigners when working.
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