Vietnam: If the employee continues to work when the contract expires, is he forced to sign a new labor contract?
If the employee continues to work when the contract expires, is he forced to sign a new labor contract in Vietnam?
Pursuant to Clause 1, Article 20 of the Labor Code 2019 stipulates as follows:
Article 20. 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.
According to the above provisions, there will currently be 02 types of labor contracts: indefinite-term labor contracts and definite-term labor contracts (with a maximum term of 36 months).
Therefore, the expiration of a labor contract only occurs when the employee and the employer enter into a definite-term labor contract.
In addition, Clause 2, Article 20 of the Labor Code 2019 stipulates as follows:
Article 20. Types of employment contracts
…
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.
Accordingly, within 30 days from the date the labor contract expires, the employee and the employer must sign a new labor contract. If the term is exceeded without signing a new labor contract, the previously signed definite-term labor contract (expired labor contract) will be converted into an indefinite-term labor contract.
In case the two parties sign a new labor contract but it is a definite-term labor contract, it must not be signed more than 02 times for this type of contract.
Thus, when the labor contract expires, it is not mandatory for the employer and the employee to sign a new contract.
Vietnam: If the employee continues to work when the contract expires, is he forced to sign a new labor contract?
What benefits will employees have when waiting for a new labor contract to be signed in Vietnam?
Pursuant to Point a, Clause 2, Article 20 of the Labor Code 2019 stipulates as follows:
Article 20. Types of employment contracts
…
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;
Accordingly, in case the labor contract expires, the employee who is waiting to sign a new labor contract will still enjoy the same rights and benefits as agreed upon by the two parties under the previously signed labor contract (expired labor contract).
This means that, although the labor contract has expired, the employee still enjoys the benefits recognized in the old contract. Among them, the following issues can be mentioned:
- Be paid in full salary as agreed in the contract corresponding to the working time.
- Annual leave, public holiday, Tet holiday as prescribed.
- To pay social insurance, health insurance, unemployment insurance, labor accident insurance, and occupational diseases.
Along with many other benefits as noted in the old contract.
What is the content of the labor contract in Vietnam?
Pursuant to Article 21 of the Labor Code 2019, the following provisions:
Article 21. 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, the labor contract is required to contain key information such as the name and address of the employer; personal information of employees; work and place of work; the duration of the contract;... as per the above.
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