Company Name Change: Re-signing Employment Contract - Will Work Seniority Be Recalculated?

I have been working at a garment company for 4 years under an indefinite-term contract. However, recently, when the company changed its name, all employees were required to sign new fixed-term labor contracts starting from February 21, 2021, according to the new company name. Does this mean that my 4 years of seniority will no longer be recognized? I heard that working for 5 years will grant additional leave days, is that correct?

Based on the provisions of Clause 1, Article 113 of the Labor Code 2019:

Employees who have worked for a full 12 months for an employer are entitled to annual leave, fully paid according to the labor contract as follows:

- 12 working days for employees working under normal conditions;

- 14 working days for juvenile employees, employees with disabilities, employees doing heavy, hazardous, or dangerous jobs;

- 16 working days for employees doing especially heavy, hazardous, or dangerous jobs.

At the same time, Article 114 of this Code also stipulates:

For every 05 full years of service with an employer, the number of annual leave days of the employee as prescribed in Clause 1, Article 113 of this Code shall be increased by 01 day.

According to the information you provided, your company changed its name and therefore requires employees to sign labor contracts again based on the current signing date. However, in essence, from the previous labor contract signing to this one, you have been continuously working for the same employer, not two different companies.

Therefore, the seniority to determine your benefits under the Labor Code 2019 is still applied from the first labor contract signing and is not lost due to the company name change.

Respectfully!

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