Who are eligible to sign fixed-term employment contracts for multiple times in Vietnam?

Who are eligible to sign fixed-term employment contracts for multiple times in Vietnam?

Question: According to the provisions of the Labor Law, in which cases will employees not be limited in the number of times they can sign a fixed-term employment contract? Look forward to receiving your feedback.

Answer: In Article 20 of the 2019 Labor Code, it is stipulated:

Article 20. Types of employment contracts

1. An employment contract shall be concluded in one of the following types:

a) An indefinite-term employment contract is a contract in which the two parties neither fix the term nor the time of termination of the contract;

b) A fixed-term employment contract is a contract in which the two parties fix the term of the contract for a duration of up to 36 months from the date of its conclusion.

2. If an employee keeps working when an employment contract mentioned in Point b Clause 1 of this Article expires:

a) Within 30 days from the expiration date of the employment contract, both parties shall conclude a new employment contract. Before such a new employment contract is concluded, the parties’ rights, obligations and interests specified in the old employment contract shall remain effective;

b) If a new employment contract is not concluded after the 30-day period, the existing employment contract mentioned in Point b Clause 1 of this Article shall become an employment contract of indefinite term;

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 regulations in Vietnam, a fixed-term employment contract can only be signed a maximum of 2 times. But for the following subjects, there will be no limit on number of times a fixed-term employment contract can be signed:

- People hired as directors in state-owned enterprises;

- Employing elderly workers;

- Employing foreign workers to work in Vietnam;

Extend the signed employment contract until the end of the term for employees who are members of the leadership board of the employee representative organization at the facility whose term of office expires.

Who are eligible to sign fixed-term employment contracts for multiple times in Vietnam? (Image from the Internet)

Is it mandatory to sign a probation contract to work in a joint stock company in Vietnam?

My name is Nhung, tomorrow I have an interview at HKL Joint Stock Company, I have a question that I hope to be answered: When I apply to work there, will the probationary be mandatory under the law? Or can I just sign a contract?

Answer: Pursuant to Clause 1, Article 24 of the 2019 Labor Code, there are regulations on probation as follows:

1. An employer and an employee may include the contents of the probation in the employment contract or enter into a separate probation contract.

Thus, it can be seen that the issue of probation will be agreed upon by the parties and recorded in the employment contract or probation contract in Vietnam. However, if the employer believes that a probationary period is not necessary, the parties can proceed to sign the employment contract without having to go through the probationary process. You can clearly understand this regulation for the interview. 

After the employment contract expires, can I still sign a new contract if I continue working in Vietnam?

At the end of June, my employment contract expires. If I continue to work for the company for another year, do I have to sign a new contract? Or is it automatically renewed?

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

2. If an employee keeps working when an employment contract mentioned in Point b Clause 1 of this Article expires:

a) Within 30 days from the expiration date of the employment contract, both parties shall conclude a new employment contract. Before such a new employment contract is concluded, the parties’ rights, obligations and interests specified in the old employment contract shall remain effective;

b) If a new employment contract is not concluded after the 30-day period, the existing employment contract mentioned in Point b Clause 1 of this Article shall become an employment contract of indefinite term;

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, based on the above regulations in Vietnam, within 30 days from the date the employment contract expires, the company and you will have to sign a new employment contract. If the two parties do not sign a new employment contract within the prescribed time period and you continue to work, an indefinite-term employment contract will be established.

Because you only want to work at the company for 1 more year, you should sign a fixed-term employment contract to protect your rights and interests in Vietnam.

Best regards!