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What content should an employment contract contain in Vietnam?

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After passing interviews for a job, the employer and employee have to enter into a labor contract. The contract gives legal grounds for the parties to get involved in the labor relation legally. However, not everyone understands well regarding employment agreements. So, in this article, LSX legal firm would like to give you: “What content should an employment contract contain in Vietnam?”

  • Labor Code 2019
  • Civil Code 2015

Employment contract/Labor contract

Article 13 of the 2019 Labor Code stipulates that an employment contract means an agreement between a worker and employer about remunerated work, wages, working conditions, and the rights and obligations of each party to the labor relations.

A labor contract is one of the legal forms to recruit workers, so it is applicable to certain objects. According to regulations, the scope of the subject matter of the labor contract applies to all employees working in units, organizations, enterprises, and individuals qualified and have the need to hire and use employees, except for the following subjects:

  • The persons subject to the regulation of the Law on Cadres and Civil Servants, and the Law on Public Officials (civil servants and public employees can still enter into an employment contract relationship if the law does not prohibit their work).
  • National Assembly deputies, People’s Council deputies at all levels, people holding positions in agencies of the National Assembly, the Government, People’s Committees at all levels, the People’s Court, and the People’s Procuracy authorized by the National Assembly, or People’s Councils at all levels elected or elected by term;
  • Persons appointed by a competent authority to hold the position of General Director, Deputy General Director, Director, Deputy Director, or Chief Accountant in a State-owned enterprise;
  • Member of the Board of Directors of an enterprise;
  • Persons belonging to political organizations, socio-political organizations operating under the Regulations of such organizations;
  • Officials in charge of party work, trade unions, and youth in enterprises but do not receive salaries from enterprises;
  • Cooperative members according to the Law on Cooperatives do not enjoy salary or wages;
  • Officers, non-commissioned officers, soldiers, professional soldiers, and public employees in the People’s Army and People’s Public Security Forces.

Content of an employment contract

The law regulates the content of a labor contract in Article 23 of the Labor Code 2019:

  1. ​An employment contract must include the following primary contents:
    a) The name and address of the employer, and the name and position of the person entering into the employment contract from the employer’s side.
    b) The full name, date of birth, sex, residential address, identity card number, or passport of the person entering into the contract from the workers’ side.
    c) The work to be undertaken and the place of work.
    d) The duration of the employment contract.
    dd) The work-based or position-based wage, form of wage payment, date of payment, allowances, and other terms.
    e) Policies for wage step upgrade and wage increase.
    g) The working time and rest periods.
    h) Personal protective equipment for the worker.
    i) Social insurance, health insurance, and unemployment insurance.
    k) Training, developing, and enhancing occupational knowledge and skills.
  2. ​When a worker performs work that is directly related to a business or technological secret as stipulated by law, the employer has the right to sign a written agreement with the worker on the contents and duration of protecting the business or technological secret, including benefits and compensation in the case of violations.
  3. ​Where worker works in the agriculture, forestry, fishery, or salt production sectors, depending on the type of work, the two parties may exclude some contents of the employment contract and agree on supplementary contents on settling cases where the execution of the contract is affected by a natural disaster, fire or weather.
  4. ​The Government shall stipulate the contents of employment contracts with workers hired as directors of a State-Owned Enterprise.
  5. ​The Minister of Labour-Invalids and Social Affairs shall stipulate the details of Clauses 1, 2, and 3 of this Article.

Name and address of the employer

  • Name of businesses, agencies, organizations, cooperatives, and households, who hire, use the employers under employment contracts, as shown in the Certificate of Enterprise Registration, Certificate of cooperative registration, or investment certificate or decision on the establishment of agencies and organizations; if individuals hire or use the employees, the full names of such individuals as shown in their identity cards or passports are required.
  • Address of businesses, agencies, organizations, cooperatives, households, and individuals, who hire and use the employees, as shown in the Certificate of Enterprise registration, Certificate of cooperative registration, or investment certificate or decision on the establishment of agencies and organizations in accordance with the law.
  • Full name, date of birth, ID or passport number, residence address, the title of the employer’s authorized signatory at businesses, organizations, cooperatives, and households hiring and using the employees under the provisions of Clause 1 of Article 3 Decree 05/2015/ND-CP.
  • The employee’s ID or passport number granted by the competent authorities.
  • Number, issuance date, and place of work permits granted by the competent authorities to foreign employees working in Vietnam.
  • The written consent to the conclusion of the employment contract that the legal representative of the employees from 15 years of age to under 18 years of age keeps.
  • Full name, date of birth, gender, place of residence, ID or passport number of the legal representative of the person under 15 years of age.
  • The written consent of under-15-years-old persons to their legal representatives’ conclusion of their employment contracts.

Work description and work places

  • Work description: The details of work that the employee must perform.
  • Workplace of employees: Scope of agreed work and location where the employees work; if the employees work in many different places, the main workplace shall be provided.

The term of the employment contract

The term of the employment contract shall include: The number of months and days of employment contract execution , time of the employment contract commencement and termination (for fixed-term employment contracts or casual employment contract or piece work); time of the employment contract commencement (for indefinite term employment contract).

Salary rate, form of payment, payment duration, allowances and other additional payment

  •  Salary rate, allowances, and other additional payments shall be determined under the provisions of Clause 1 of Article 21, Decree 60/2015/ND-CP.
  • The form of payment shall be determined in accordance with the provisions of Article 94 of the Labor Code.
  • Payment duration shall be determined by both parties in accordance with the provisions of Article 95 of the Labor Code.

Promotion and wage raise regulations

Requirements, schedule, specific time, salary rate agreed under the mutual agreement

Working time, rest time

  • Working hours per day and week; shift; start or end of a working day, week, or shift; working days per week; overtime and overtime-related provisions; 
  • Start and end of break time; weekly, annual days off, holidays, personal leaves, unpaid leaves

Social insurance, unemployment insurance and medical insurance

  • Percentage of the monthly salary shall be paid for social insurance, unemployment insurance, and medical insurance by employers and employees as prescribed in the law on social insurance, unemployment insurance, and medical insurance.
  • Methods time of payments for social insurance, unemployment insurance, and medical insurance, made by employers and employees.

Personal protective equipment provided for employees

Specific quantity, type, quality, and service life of each type of personal protective equipment as prescribed by the employers.

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  • Legal advice related to new regulations;
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Contact LSX

Finally, hope this article is useful for you to answer the question about “What content should an employment contract contain in Vietnam?”. If you need any further information, please contact  LSX Law firm+84846175333 or Email: [email protected]

Recruitment and employment of public employees in Vietnam

Procedures to establish employment services company in Vietnam

When can you sign indefinite term contract in Vietnam?

Employees’ rights when signing an indefinite term contract?

– Employees can unilaterally terminate the contract without reason to find another suitable job.
– There is no compensation or loss of any fee when unilaterally terminating the contract without reason.
– Receive severance allowance despite of leaving work for any reason.

Does employee have the right to unilaterally terminate the contract without prior notice?

When having reasons listed below, the employee has the right to unilaterally terminate the labor contract without prior notice:
Firstly, not assigned to the work or workplace or not provided with the working conditions as agreed in the employment contract, except for the cases specified in Article 29 of the Labor Code.
Secondly, not paid adequately or on schedule, except for the case specified in Clause 4 Article 97 of the Code.
Maltreated, assaulted, physically or verbally insulted by the employer in a manner that affects the employee’s health, dignity, or honor; forced to work against his/her will.
Sexually harassed in the workplace.
Pregnant and has to stop working in accordance with Clause 1 Article 138 of the Labor Code.
Reaches the retirement age specified in Article 169 of the Labor Code, unless otherwise agreed by the parties.
Finds that the employer fails to provide truthful information in accordance with Clause 1 Article 16 of the Labor Code in a manner that affects the performance of the employment contract.

Responsibility of employers when terminating labor contracts with indefinite term?

Complete the procedures for verification of duration of participation in social insurance and unemployment insurance, return them and original copies of the employee’s other documents (if any);
Provide copies of the documents relevant to the employee’s work if requested by the employee. The employer shall pay the cost of copying and sending the documents.

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