Is it mandatory to renew the labor contract when the employee takes leave on account of illness in Vietnam?
According to regulations, employees who takes leave on account of illness are entitled to the sickness benefit on the list of long-term illnesses. During this period of leaving on account of illness, the employee expires the definite term labor contract. So does the company have to renew the labor contract in Vietnam for this employee?
Is it mandatory to renew the labor contract when the employee takes leave on account of illness in Vietnam?
In Clause 3, Article 137 of the Labor Code 2019, it is stipulated:
3. The employer must not dismiss an employee or unilaterally terminate the employment contract with an employee due to his/her marriage, pregnancy, maternity leave, or nursing a child under 12 months of age, except for cases where the employer that is a natural person dies or is declared incapacitated, missing or dead by the court, or the employer that is not a natural person ceases its business operation, declared by a provincial business registration authority that it does not have a legal representative or a person authorized to perform the legal representative’s rights and obligations.
Upon expiration of the employment contract with female employee who is pregnant or nursing a child under 12 months of age, conclusion of a new employment contract shall be given priority.
Thus, according to the above-mentioned regulations, the employee who is enjoying the sickness regime on the list of diseases subject to long-term sickness treatment when his/her labor contract expires does not require the company to renew in Vietnam. The extension or non-renewal depends on the needs of the work and the agreement of the parties.
How many times is the labor contract extended for a definite term in Vietnam?
At Point c, Clause 2, Article 20 of the Labor Code 2019, there is a provision on the extension of the labor contract as follows:
2. If an employee keeps working when an employment contract mentioned in Point b Clause 1 of this Article expires:
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.
Thus, according to the above-mentioned regulations, if signing the labor contract for the first time, the labor contract will be extended 1 more time. For the second time onwards, it is necessary to sign an indefinite term contract in Vietnam.
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