Is it possible to revise labor contracts by signing an annex to employment contract in Vietnam?
Is it possible to revise employment contracts by signing an annex to employment contract in Vietnam? What are obligations of the employer to employees in case of changes in structure, technology or changes due to economic reasons in Vietnam? What are regulations on noticing termination of employment contracts in Vietnam?
Hello. I am currently working at the company and also signed an employment contract, but then there were some other agreements between me and the company, so the company's human resources side said that it would supplement the revise employment contract by signing an appendix to the employment contract, is that possible?
Please advice. Thankyou
1. Is it possible to revise employment contracts by signing an annex to employment contract in Vietnam?
In Article 33 of the Labor Code 2019 revisions to employment contracts, according to which:
1. During the performance of an employment contract, any party who wishes to revise the employment contract shall notify the other party of the revisions at least 03 working days in advance.
2. In case where an agreement is reached between the parties, the revisions shall be made by signing an annex to the employment contract or signing a new employment contract.
3. In case the two parties fail to reach an agreement on the revisions, they shall continue to perform the existing employment contract.
Thus, when you and the company reach an agreement,revisions to employment contracts will be carried out by signing an appendix to the employment contract or concluding a new employment contract in Vietnam.
2. What are obligations of the employer to employees in case of changes in structure, technology or changes due to economic reasons in Vietnam?
Pursuant to Article 42 of the Labor Code 2019 stipulates obligations of the employer in case of changes in structure, technology or changes due to economic reasons, as follows:
1. Changes in structure and technology include:
a) Changes in the organizational structure, personnel rearrangement;
b) Changes in processes, technology, equipment associated with the employer’s business lines;
c) Changes in products or product structure.
2. Changes due to economic reasons include:
a) Economic crisis or economic depression;
b) Changes in law and state policies upon restructuring of the economy or implementation of international commitments.
3. If the change affects the employment of a large number of employees, the employer shall develop and implement a labor utilization plan prescribed in Article 44 of this Labor Code. In case of new vacancies, priority shall be given to retraining of the existing employees for continued employment.
4. If a change due to economic reasons threatens to cause a large number of employees to lose their jobs, the employer shall develop and implement a labor utilization plan as prescribed in Article 44 of this Code.
5. In case the employer is unable to create provide employment and has to resort to dismissing employees, the employer shall pay them redundancy allowances in accordance with Article 47 of this Labor Code.
6. The dismissal of employees in the cases mentioned in this Article shall only be implemented after a discussion with the representative organization of employees (if any) and after giving prior notice of 30 days to the People’s Committee of the province and the employees.
According to this Article, when an enterprise changes its structure, technology or for economic reasons, the employers must have the above obligations towards the employees working at their company in Vietnam.
3. What are regulations on noticing termination of employment contracts in Vietnam?
According to Article 45 of the 2019 Labor Code, noticing termination of employment contracts in Vietnam is as follows:
1. The employer shall send a written notice to the employee of the termination of his/her employment contract, except for the cases specified in Clauses 4, 5, 6, 7, 8 Article 34 of this Labor Code.
2. In case an employer that is not a natural person shuts down business operation, the date of termination of the employment contract is the same date of the notice of business shutdown.
In case the provincial business registration authority issues a notice that the employer does not have a legal representative or a person authorized to exercise the legal representative’s rights and obligations according to Clause 7 Article 34 of this Labor Code, the date of termination of the employment contract is the same date of the notice.
According to this provision, the employer must notify employees in writing of the termination of the employment contract when the employment contract is in accordance with the above provisions in Vietnam.
Best Regards!
