Vietnam: Latest form of employment contract applied in 2023

Regarding this issue, LawNet would like to answer as follows:

1. What is employment contract?

According to Article 13 of the Labor Code 2019, an employment contract is an agreement between an employee and an employer on a paid job, salary, working conditions, and the rights and obligations of each party in the labor relations.

A document with a different name is also considered an employment contract if it contains the agreement on the paid job, salary, management and supervision of a party.

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

Vietnam: Latest form of employment contract applied in 2023 (Internet image)

2. Form of employment contract in Vietnam

Article 14 of the Labor Code 2019 stipulates that an employment contract shall be concluded in writing and made into two copies, one of which will be kept by the employee, the other by the employer, except for the cases of oral contract

An employment contract in the form of electronic data conformable with electronic transaction laws shall have the same value as that of a physical contract.

Both parties may conclude an oral contract with a term of less than 01 month, except for the cases specified in Clause 2 Article 18, Point a Clause 1 Article 145 and Clause 1 Article 162 of Labor Code 2019.

Sample of employment contract in Vietnam

3. Main contents of employment contracts in Vietnam

According to Article 21 of the Labor Code 2019, an employment contract shall have the following major contents:

- The employer’s name, address; full name and position of the person who concludes the contract on the employer’s side;

- Full name, date of birth, gender, residence, identity card number or passport number of the person who concludes the contract on the employee’s side;

- The job and workplace;

- Duration of the employment contract;

- Job- or position-based salary, form of salary payment, due date for payment of salary, allowances and other additional payments;

- Regimes for promotion and pay rise;

- Working hours, rest periods;

- Personal protective equipment for the employee;

- Social insurance, health insurance and unemployment insurance;

- Basic training and advanced training, occupational skill development.

If the employees’ job is directly related to the business secret, technological know-how as prescribed by law, the employer has the rights to sign a written agreement with the employee on the content and duration of the protection of the business secret, technology know-how, and on the benefit and the compensation obligation in case of violation by the employee.

If the employee works in agriculture, forestry, fishery, or salt production, both parties may exclude some of the aforementioned contents and negotiate additional agreements on settlement in the case when the contract execution is affected by natural disaster, fire or weather.

4. Prohibited acts by employers during conclusion and performance of employment contracts in Vietnam

Prohibited acts by employers during conclusion and performance of employment contracts according to Article 17 of the Labor Code 2019 include:

- Keeping the employee’s original identity documents, diplomas and certificates.

- Requesting the employee to make a deposit in cash or property as security for his/her performance of the employment contract.

- Forcing the employee to keep performing the employment contract to pay debt to the employer.

Nhu Mai

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