How many days does an employee work in a probationary contract? Are employees signing probationary contracts required to pay social insurance contributions?

Main Content

• How many days does an employee work in a probationary contract?
• Are employees signing probationary contracts required to pay social insurance contributions?
• Can an employee working under probationary contracts receive full holiday pay?

How many days does an employee work in a probationary contract?

Pursuant to Article 25 of the Labor Code 2019 of Vietnam on probationary period:

“Article 25. Probationary period

The probationary period shall be negotiated by the parties on the basis of the nature and complexity of the job. Only one probationary period is allowed for a job and the probation shall not exceed:

1. 180 days for the position of enterprise executive prescribed by the Law on Enterprises, the Law on management and use of state investment in enterprises;

2. 60 days for positions that require a junior college degree or above;

3. 30 days for positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees;

4. 06 working days for other jobs.”

Thus, in order to know exactly if your probationary period is lawful, it is necessary to compare with this regulation, consider the position, requirements of the professional qualifications of the job.

How many days does an employee work in a probationary contract? Are employees signing probationary contracts required to pay social insurance contributions?

Are employees signing probationary contracts required to pay social insurance contributions?

Pursuant to Clause 1, Clause 2 Article 2 of the Law on Social Insurance 2014 of Vietnam on subjects participating compulsory social insurance:

“Article 2. Subjects of application

1. Employees being Vietnamese citizens shall be covered by compulsory social insurance, including:

a/ Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full 3 months and under 12 months, including also labor contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labor law;

b/ Persons working under labor contracts with a term of between full 1 month and under 3 months;

c/ Cadres, civil servants and public employees;

d/ Defense workers, public security workers and persons doing other jobs in cipher organizations;

dd/ Officers and professional army men of the people's army; officers and professional non-commissioned officers and officers and technical non- commissioned officers of the people's public security; and persons engaged in cipher work and enjoying salaries like army men;

e/ Non-commissioned officers and soldiers of the people’s army; non- commissioned officers and soldiers on definite-term service in the people’s public security; army, public security and cipher cadets who are entitled to cost- of-living allowance;

g/ Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;

h/ Salaried managers of enterprises and cooperatives;

i/ Part-time staffs in communes, wards and townships.

2. Employees who are foreign citizens working in Vietnam with work permits or practice certificates or practice licences granted by competent Vietnamese agencies shall be covered by compulsory social insurance under the Government’s regulations.”

Thus, employees signing probationary contracts are not in the subjects participating compulsory social insurance. Therefore, they are not required to pay social insurance contributions.

Can an employee working under probationary contracts receive full holiday pay?

Pursuant to Article 112 of the Labor Code 2019 of Vietnam on public holidays:

“Article 112. Public holidays

1. Employees shall be entitled to fully paid days off on the following public holidays:

a) Gregorian Calendar New Year Holiday: 01 day (the 1st of January of the Gregorian calendar);

b) Lunar New Year Holidays: 05 days;

c) Victory Day: 01 day (the 30th of April of the Gregorian calendar);

d) International Labor Day: 01 day (the 1st of May of the Gregorian calendar);

dd) National Day: 02 days (the 2nd of September of the Gregorian calendar and the previous or next day);

e) Hung Kings Commemoration Day: 01 day (the 10th of the third month of the Lunar calendar).

2. Foreign employees in Vietnam are entitled to 01 traditional public holiday and 01 National Day of their country, in addition to the public holidays stipulated in Clause 1 of this Article.

3. The Prime Minister shall decide the specific public holidays mentioned in Point b and Point dd Clause 1 of this Article on an annual basis.”

The law does not stipulate whether employees working under probationary contracts are entitled to full holiday pay. However, according to the definition of employees in Clause 1 Article 3 of the Labor Code 2019 of Vietnam:

“Article 3. Definitions

1. “employee” means a person who works for an employer under an agreement, is paid, managed and supervised by the employer.

The legal working age is 15, except for the cases specified in Section 1 Chapter XI of this Labor Code.”

Employees in probationary period also work under an agreement recorded on probationary contracts, is paid, managed and supervised by the employer. Therefore, employees in probationary period are also entitled to full holiday pay.