Is it mandatory to clearly state the duration of the employment contract in the content of the employment contracts in Vietnam?

Is it mandatory to clearly state the duration of the employment contract in the content of the employment contracts in Vietnam? L.T.T - Quang Binh.

Is it mandatory to clearly state the duration of the employment contract in the contents of employment contracts in Vietnam?

Pursuant to the provisions in Point d, Clause 1, Article 21 of the 2019 Labor Code, the regulations are as follows:

Contents of employment contracts
1. An employment contract shall have the following major contents:
a) The employer’s name, address; full name and position of the person who concludes the contract on the employer’s side;
b) Full name, date of birth, gender, residence, identity card number or passport number of the person who concludes the contract on the employee’s side;
c) The job and workplace;
d) Duration of the employment contract;
dd) Job- or position-based salary, form of salary payment, due date for payment of salary, allowances and other additional payments;
e) Regimes for promotion and pay rise;
g) Working hours, rest periods;
h) Personal protective equipment for the employee;
i) Social insurance, health insurance and unemployment insurance;
k) Basic training and advanced training, occupational skill development.
2. If the employees’ job is directly related to the business secret, technological know-how as prescribed by law, the employer has the rights to sign a written agreement with the employee on the content and duration of the protection of the business secret, technology know-how, and on the benefit and the compensation obligation in case of violation by the employee.
3. If the employee works in agriculture, forestry, fishery, or salt production, both parties may exclude some of the aforementioned contents and negotiate additional agreements on settlement in the case when the contract execution is affected by natural disaster, fire or weather.
4. The contents of the employment contract with an employee who is recruited to work as the director of a state-invested enterprise shall be stipulated by the Government.
5. The Minister of Labor, War Invalids and Social Affairs elaborate Clauses 1, 2 and 3 of this Article.

Thus, based on the above regulations, the term of the employment contract is one of the main contents of the employment contract. Therefore, the contract content must clearly state the term of the employment contract.

Is it mandatory to clearly state the duration of the employment contract in the content of the employment contracts in Vietnam?

How many types of employment contracts in Vietnam are there?

Pursuant to the provisions of Clause 1, Article 20 of the 2019 Labor Code, the regulations are as follows:

Types of employment contracts
1. An employment contract shall be concluded in one of the following types:
a) An indefinite-term employment contract is a contract in which the two parties neither fix the term nor the time of termination of the contract;
b) A fixed-term employment contract is a contract in which the two parties fix the term of the contract for a duration of up to 36 months from the date of its conclusion.
2. If an employee keeps working when an employment contract mentioned in Point b Clause 1 of this Article expires:
a) Within 30 days from the expiration date of the employment contract, both parties shall conclude a new employment contract. Before such a new employment contract is concluded, the parties’ rights, obligations and interests specified in the old employment contract shall remain effective;
b) If a new employment contract is not concluded after the 30-day period, the existing employment contract mentioned in Point b Clause 1 of this Article shall become an employment contract of indefinite term;
c) The parties may enter into 01 more fixed-term employment contract. If the employee keeps working upon expiration of this second fixed-term employment contract, the third employment contract shall be of indefinite term, except for employment contracts with directors of state-invested enterprises and the cases specified in Clause 1 Article 149, Clause 2 Article 151 and Clause 4 Article 177 of this Labor Code.

Thus, according to the above regulations, An employment contract shall be concluded in one of the following types:

- Indefinite-term employment contract.

- Fixed-term employment contract.

How much is the fine for the act of failing to state the duration of the employment contract in the content of the employment contracts in Vietnam?

Pursuant to the provisions of Clause 1, Article 9, Decree 12/2022/ND-CP stipulates as follows:

Violations against regulations on conclusion of employment contracts
1. The following fines shall be imposed upon an employer for commission of one of the following violations: failing to enter into written employment contracts with employees who do jobs with a term of full 01 month or longer; failing to enter into a written employment contract with the authorized representative of the group of employees aged 18 or older to do seasonal works or certain jobs with a term of less than 12 months as prescribed in Clause 2 Article 18 of the Labour Code; failing to enter into the right type of employment contract with employees; entering into employment contracts that do not contain primary information as prescribed by law:
a) A fine ranging from VND 2.000.000 to VND 5.000.000 shall be imposed if the violation involves 01 - 10 employees;
b) A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed if the violation involves 11 - 50 employees;
c) A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed if the violation involves 51 - 100 employees;
d) A fine ranging from VND 15.000.000 to VND 20.000.000 shall be imposed if the violation involves 101 - 300 employees;
dd) A fine ranging from VND 20.000.000 to VND 25.000.000 shall be imposed if the violation involves 301 employees or more.

Thus, based on the above regulations, depending on the number of employees involved in violation, the employer will be fined as follows:

- A fine ranging from VND 2.000.000 to VND 5.000.000 shall be imposed if the violation involves 01 - 10 employees;

- A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed if the violation involves 11 - 50 employees;

- A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed if the violation involves 51 - 100 employees;

- A fine ranging from VND 15.000.000 to VND 20.000.000 shall be imposed if the violation involves 101 - 300 employees;

- A fine ranging from VND 20.000.000 to VND 25.000.000 shall be imposed if the violation involves 301 employees or more

*Note: The violating organization that incurs a fine which is twice as much as that imposed upon a violating individual (as prescribed in Clause 1, Article 6 of Decree 12/2022/ND-CP.

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