Must Sign an Indefinite-term Contract to Sign a 40-month Employment Contract?

Based on Clause 1, Article 20 of the Labor Code 2019 stipulates: Labor contracts must be concluded in one of the following types:

- An indefinite-term labor contract is a contract in which both parties do not determine the term and the time of termination of the contract's validity;

- A definite-term labor contract is a contract in which both parties determine the term and the time of termination of the contract's validity within a period not exceeding 36 months from the effective date of the contract.

According to this regulation, a definite-term labor contract may not exceed 36 months. In cases where due to work requirements the contract's term exceeds 36 months, multiple definite-term contracts may be signed or an indefinite-term labor contract may be signed.

Note: The nature of these 02 types of labor contracts is different, so depending on the actual situation and needs, the company can consider the appropriate solution by choosing the suitable type of labor contract.

Sincerely!