Who has right to sign an employment contract with the director of a single-member limited liability company in Vietnam?

Who has right to sign an employment contract with the director of a single-member limited liability company in Vietnam?

Our company is a single-member limited liability company owned by the organization, organized according to the member council model. We are making an employment contract with the director and at the same time acting as the company's legal representative to pay insurance for the director. I would like to ask a lawyer, in case of signing an employment contract as a director and legal representative, who has the right to sign?

Answer : Pursuant to the provisions in Point a, Clause 3, Article 18 of the 2019 Labor Code:

3. The person who concludes the employment contract on the employer’s side shall be:

a) The legal representative of the enterprise or an authorized person as prescribed by law;

According to the information he provided, the director of his company also holds the position of legal representative of the company. Therefore, this is the person who has authority to sign employment contracts with employees in the company on behalf of the company.

However, Clause 3, Article 141 of the 2015 Civil Code determines: A natural or juridical person may represent multiple natural or juridical persons but he/she/it may not, on behalf of the principal, enter into and perform a civil transaction with him/her/it or with a third party that he/she/it also acts as a representative therefor, unless otherwise prescribed by law.

Thus, according to this regulation in Vietnam, the director is the legal representative of the company, so he cannot both sign an employment contract on behalf of the company and as an employee.

Therefore, in this case, the director can authorize another person to sign an employment contract with him to ensure proper implementation of regulations in Vietnam.

Who has right to sign an employment contract with the director of a single-member limited liability company in Vietnam? (Image from the Internet)

If I sign an employment contract with a probationary agreement, do I have to give advance notice to terminate my probationary period in Vietnam?

I just signed an employment contract with the company in which the probationary period is 2 months. At the end of those 2 months, if I meet the company's requirements, I will be converted into an official employee. But the HR lady said that according to the new law, the employment contract now includes a probationary period, so if I want to quit during the probationary period, I still have to give 30 days notice like a normal contract. If I quit without notice, I have to compensate the company, right?

Answer: Pursuant to the provisions of Clause 1, Article 24 of the 2019 Labor Code: An employer and an employee may include the contents of the probation in the employment contract or enter into a separate probation contract.

According to this regulation in Vietnam, current law allows businesses, when recruiting workers, to sign a probationary contract that is separate from the labor contract or combine to sign only the labor contract and show the content of the probationary period in the employment contract. 

At the same time, Clause 2, Article 27 of the 2019 Labor Code stipulates:

2. During the probationary period, either party has the right to terminate the concluded probation contract or employment contract without prior notice and compensation obligation.

Thus, during the probationary period, the employee has the right to terminate the probation agreement, including in the case of signing a separate probation contract and an employment contract combined with the probation contract. The fact that the enterprise agrees on the probationary content in the labor contract does not limit the employee's right to terminate the probationary period in Vietnam.

Therefore, it is against the law for company personnel to require you to give 30 days notice if you want to quit during the probationary period in Vietnam.

Do part-time jobs require an employment contract in Vietnam?

We would like to ask, in the case of a convenience store chain that hires students to work part-time in rotating shifts, paying them according to the number of hours worked in the shift (usually 4 hours per shift, 25,000 VND per hour). When recruiting students, do I have to sign an employment contract?

Answer: Pursuant to the provisions in Clause 2, Article 13 of the 2019 Labor Code:

2. Before recruiting an employee, the employer shall enter into an employment contract with such employee.

According to this regulation in Vietnam, in all cases when recruiting employees to work, it is mandatory to sign an employment contract with them regardless of whether the job is full-time or part-time.

In fact, the law does not stipulate the term part-time work, so for jobs that are not full-time in nature, the provisions of Article 32 of the 2019 Labor Code will apply.

Specifically:

1. A part-time employee is an employee who works for less than the usual daily, weekly or monthly working hours as prescribed by labor laws, the collective bargaining agreement internal labor regulations.

2. An employee may negotiate part-time employment with the employer when enter into an employment contract.

3. The part-time employee shall be entitled to receive salary, equal rights and obligations as a full-time employee; equal opportunity and treatment, and to a safe and hygienic working environment.

Thus, combining the above regulations in Vietnam, when recruiting student workers to work part-time shifts, you still have to sign an employment contract with the worker and fulfill other obligations for them such as: salary, ensuring safety, labor hygiene,...

Best regards!