Amend the duration of the labor contract by an appendix to the contract?

I started working at the company in 2016. In October 2017, I signed my second labor contract with the company for a duration of 1 year. Currently, the company is extending my labor contract for an additional year through a contract appendix without signing a new contract. Is the company acting in accordance with regulations?

Lawyer Thai Thi Phuong, YouMe Law Co., Ltd. answers:

Article 22 of the Labor Code 2012 stipulates the types of labor contracts as follows:

  1. Labor contracts must be concluded in one of the following types:

a) Indefinite-term labor contract;

b) Definite-term labor contract;

A definite-term labor contract is a contract in which both parties determine the term and the time for termination of the contract within a period ranging from 12 months to 36 months.

c) Seasonal or job-specific labor contract with a term of less than 12 months.

  1. When the labor contract specified at points b and c, Clause 1 of this Article expires but the employee continues to work, within 30 days from the expiry date of the labor contract, both parties must sign a new labor contract; if no new labor contract is signed, the contract concluded as specified at point b, Clause 1 of this Article becomes an indefinite-term labor contract and the contract concluded as specified at point c, Clause 1 of this Article becomes a definite-term labor contract with a term of 24 months.

In case both parties sign a new definite-term labor contract, it can only be signed once more; thereafter, if the employee continues to work, an indefinite-term labor contract must be signed.

Modification of the term of a labor contract by an appendix is stipulated in Article 5 of Decree 05/2015/ND-CP of the Government of Vietnam detailing and guiding the implementation of certain contents of the Labor Code as follows:

The term of a labor contract can only be modified once by an appendix and must not change the type of contract concluded, except in cases of extending the term of a labor contract with elderly employees and employees who are part-time union officials in the term of their union office when the labor contract expires may have the concluded contract extended until the end of the term.

Thus, the company can modify the term of the current labor contract by an appendix once and must not change the type of contract concluded.

After this contract expires, if you continue to work, both parties must sign an indefinite-term labor contract.

According to Labor Newspaper

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