Does the new employment contract need to be signed if the previous one has expired but the employee continues working?

At the end of this June, my labor contract will expire. If I continue to work for the company for another year, do I need to sign a new contract? Or is it automatically renewed?

According to Clause 2, Article 20 of the 2019 Labor Code, the regulations regarding types of employment contracts are as follows:

When a definite-term employment contract expires and the employee continues to work, the following should be implemented:

- Within 30 days from the date the employment contract expires, both parties must sign a new employment contract; during the period before the new employment contract is signed, the rights, obligations, and benefits of both parties shall follow the previously signed contract;

- If after the 30-day period from the date the employment contract expires and both parties do not sign a new employment contract, the previously signed contract, as stipulated in point b, clause 1 of this Article, will become an indefinite-term employment contract;

- In the case where both parties sign a new employment contract which is a definite-term contract, it can only be signed one more time; after that, if the employee continues to work, an indefinite-term employment contract must be signed, except for the employment contract with a person hired to be a director in a state-funded enterprise and the cases stipulated in clause 1, Article 149, clause 2, Article 151, and clause 4, Article 177 of this Code.

Accordingly, based on the above regulations, within 30 days from the expiration date of the employment contract, the company and you must sign a new employment contract. If both parties do not sign a new employment contract in the specified period and you continue to work, an indefinite-term employment contract will be established.

Since you only want to work at the company for an additional year, you should sign a definite-term employment contract to protect your rights and benefits.

Yours sincerely!

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