Vietnam: Is it possible if the company does not sign an employment contract with the employee? In what forms must the employment contract be concluded?
Is it possible if the company does not sign an employment contract with the employee?
Pursuant to Article 13 of the 2019 Labor Code of Vietnam stipulating as follows:
Employment contract in Vietnam
1. An employment contract is an agreement between an employee and an employer on a paid job, salary, working conditions, and the rights and obligations of each party in the labor relations.
A document with a different name is also considered an employment contract if it contains the agreement on the paid job, salary, management and supervision of a party.
2. Before recruiting an employee, the employer shall enter into an employment contract with such employee.
According to the above provisions, an employment contract is an agreement between an employee and an employer on a paid job, salary, working conditions, and the rights and obligations of each party in the labor relations.
Therefore, before hiring the employee, the employer needs to enter into an employment contract with the employee.
Vietnam: Is it possible if the company does not sign an employment contract with the employee? In what forms must the employment contract be concluded?
In what forms must the employment contract be concluded?
Pursuant to the provisions of Article 14 of the 2019 Labor Code of Vietnam as follows:
Forms of employment contract in Vietnam
1. An employment contract shall be concluded in writing and made into two copies, one of which will be kept by the employee, the other by the employer, except for the case specified in Clause 2 of this Article.
An employment contract in the form of electronic data conformable with electronic transaction laws shall have the same value as that of a physical contract.
2. Both parties may conclude an oral contract with a term of less than 01 month, except for the cases specified in Clause 2 Article 18, Point a Clause 1 Article 145 and Clause 1 Article 162 of this Labor Code.
According to the above provisions, the employment contract must be concluded in writing.
At the same time, an employment contract in the form of electronic data conformable with electronic transaction laws shall have the same value as that of a physical contract.
A verbal employment contract may be concluded for a contract with a term of less than 1 month, however, except for the case specified in Clause 2, Article 18 of the 2019 Labor Code of Vietnam, Point a, Clause 1, Article 145 of the 2019 Labor Code of Vietnam and Clause 1, Article 162 of the 2019 Labor Code of Vietnam.
What is the penalty for failing to enter into written employment contracts with employees who do jobs with a term of full 01 month or longer?
Pursuant to the provisions of Clause 1, Article 9 of Decree No. 12/2022/ND-CP 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.
According to the above regulations, the company failing to enter into written employment contracts with employees who do jobs with a term of full 01 month or longer may be subject to an administrative penalty of from VND 2,000,000 to VND 25,000,000.
Note that this is the fine level applied to the employer who is an individual violating, in case of an organization, the fine will be doubled (Clause 1, Article 6 of Decree No. 12/2022/ND-CP).
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