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

by NguyenThiThuTrang

Today, LSX Lawfirm will give you an article about: “The term of the labor contract is in accordance with Vietnamese law”, as follows:

Labor Code 2019

How many types of employment contracts are there?

Article 20 of the Labor Code 2019 clearly states that, now, there are two types of labor contracts as follows:

Labor contract with the indefinite term: A contract in which the two parties do not determine the term and the time of termination of the contract’s validity;

– Fixed-term labor contract:  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.

So, when entering into a contract, an employee and an employer can only sign definite-term or indefinite-term labor contracts.

How many times can a fixed-term labor contract sign?

Pursuant to Clause 2, Article 20 of the Labor Code 2019, the labor contract expires but the employee still works. Then, the two parties must sign a new contract within 30 days from the date the signed contract expires.

When expiry of the above term without signing a new contract. A definite-term contract signed by the parties previously will become an indefinite term contract.

– Sign a new contract within the prescribed time limit: To sign an additional labor contract with a definite term. After that, if the employee continues to work, he/she must sign an indefinite-term labor contract, except for some cases.

Thus, it shows that an indefinite term labor contract usually only signs a maximum of 02 times.

However, according to point c, clause 2 of this Article, in the following cases, the parties may sign a definite-term labor contract many times:

– Persons hired as directors in state-owned enterprises;

– Employing elderly workers;

– Employing foreign workers to work in Vietnam;

– Extension of the signed labor contract until the end of the term for employees who are members of the leadership of the employee representative organization at the grassroots in the term of which the labor contract expires.

Term of labor contract for foreign workers

According to the provisions of Clause 2, Article 151 of the Labor Code:

The term of the labor contract for foreign workers working in Vietnam mustn’t exceed the term of the work permit.

When foreign workers work in Vietnam, the two parties agree to enter into many labor contracts with definite terms.

Thus, in case the foreign worker had a work permit. The term of the contract must match the term of the work permit.

According to the provisions of Clause 3, Article 11 of Decree No. 152/2020/ND-CP dated December 30, 2020 the Government regulates foreign workers working in Vietnam and recruiting and managing Vietnamese workers. Humans working for foreign organizations and individuals in Vietnam. Humans working for foreign organizations and individuals in Vietnam. In case a foreign worker works under a labor contract when having a work permit. The employer and the foreign worker must sign a written labor contract in accordance with the provisions of Vietnamese law. The signing-time is before the expected working date of the foreign worker.

According to the provisions of Clause 3, Article 156 of the Labor Code. A work permit expires when the content of the labor contract is different from the content of the previous one.

Related articles:

Procedures for terminating labor contracts with foreigners

Dossier for registration of collective labor agreements in Vietnam

Related questions:

Penalties for signing a definite-term contract more than a specified number of times

Enterprises that intentionally violate the above provisions may be administratively sanctioned according to Clause 1, Article 8 of Decree 28/2020/ND-CP for the fault of not entering into the correct type of labor contract with the employee.

Can an employee unilaterally terminate a labor contract ahead of time?

According to current regulations of law, the employee has the right to unilaterally terminate the contract without reason, but must give notice within a definite period of time to the employer. Therefore, the Employee can unilaterally terminate the labor contract ahead of time

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Finally, hope this article is useful for you to answer the question about: “The term of the labor contract is in accordance with Vietnamese law. If you need any further information, please contact LSX Law firm+84846175333 or Email: hoangson@lsx.vn

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