If an employee is forced to sign a employment contract in Vietnam, is the contract considered invalid?

If an employee is forced to sign a employment contract in Vietnam, is the contract considered invalid?

Pursuant to Article 49 of the Labor Code in 2019 stipulating invalid employment contracts as follows:

1. An employment contract shall be completely invalid in the following cases:

a) The entire contents of the employment contract are illegal;

b) A person concludes the employment contract ultra vires or against the rules for employment contract conclusion specified in Clause 1 Article 15 of this Labor Code;

c) The work described in the employment contract is prohibited by law;

2. An employment contract shall be partially invalid when part of its contents is illegal but does not affect its remaining contents.

Pursuant to Article 15 of the Labor Code in 2019 stipulating principles for conclusion of an employment contract as follows:

1. Voluntariness, equality, good faith, cooperation and honesty.

2. Freedom to enter into an employment contract which is not contrary to the law, the collective bargaining agreement and social ethics.

According to the current regulations, in the case of being forced to sign a contract, you have the right to file a lawsuit and request the declaration of your employment contract as invalid.

If an employee is forced to sign a employment contract in Vietnam, is the contract considered invalid? - image from internet

How to settle the fully invalidated employment contract that is not re-concluded in Vietnam?

Pursuant to Article 10 of the Decree 145/2020/ND-CP stipulating settlement of fully invalidated employment contracts that are concluded ultra vires or against regulations on employment contract conclusion as follows:

1. When an employment contract is fully invalidated, the employer and the employee shall re-conclude the employment contract in accordance with regulations of law.

2. Rights, obligations and interests of both parties during the period from first day on which the employee works under the fully invalidated employment contract to the day on which the contract is re-concluded shall be settled as follows:

a) If the rights and interests of the parties to the invalidated employment contract are not less beneficial than those prescribed by law or effective collective bargaining agreement, the former shall apply.

b) If the content about rights, obligations and interests of each party of the employment contract is not conformable with law does not affect other parts of the contracts, regulations of Clause 2 Article 9 of this Decree shall apply;

c) The work period under the invalidated employment contract shall be included in the actual work period as the basis for provision of benefits as prescribed by law.

3. In case the fully invalidated employment contract is not re-concluded:

a) The employment contract will be terminated;

b) Rights, obligations and interests of the employee during the period from first day on which the employee works under the invalidated employment contract to the day on which the contract is terminated shall be settled in accordance with Clause 2 of this Article;

c) Severance allowance shall be provided in accordance with Article 8 of this Decree.

4. Other issues relevant to employment contracts that are fully invalidated because they are concluded ultra vires or against regulations on employment contract conclusion shall be settled by court in accordance with the Civil Procedure Code.

Above are settlement of the fully invalidated employment contract that is not re-concluded in Vietnam.

Best regards!