May Public Employees Sign Employment Contracts with Other Companies in Vietnam?

Public employees are recruited according to their job positions, work at public service providers in accordance with employment contract policies, and receive salaries from the salary fund of public service providers as stipulated by law. In addition, public employees may still enter into employment contracts with other companies.

Công  chức  public  employee

Public employees can still sign labor contracts with other companies (Illustrative image)

Public employees working under employment contracts in Vietnam

Article 25 Law on Public Employees, amended and supplemented by Law on Amendments and Supplements to Certain Provisions of the Law on Officials and Law on Public Employees, specifically stipulates two types of employment contracts for public employees as follows:

  Fixed-term employment contract Indefinite-term employment contract
Characteristics Both parties determine the term and the termination point of the contract within a period from 12 months to 60 months. Both parties do not determine the term and the termination point of the contract.
Applicable subjects Persons recruited as public employees from July 1, 2020.


Except for cases where public employees are accepted, appointed to positions defined by law as civil servants; persons recruited as public employees working in areas with particularly challenging socio-economic conditions.
- Public employees recruited before July 1, 2020;


- Public employees accepted, appointed to positions defined by law as civil servants;


- Persons recruited as public employees working in areas with particularly challenging socio-economic conditions.

Public employees are recruited according to job positions, perform jobs or tasks that require qualifications, competencies, professional skills, and receive salary from the salary fund of the public service provider under either fixed-term or indefinite-term employment contracts.

Public employees signing labor contracts with other companies in Vietnam

Article 14 of the Law on Public Employees stipulates the rights of public employees concerning business activities and working outside stipulated hours, specifically:

- They are allowed to engage in professional activities outside the working hours defined in the employment contract unless otherwise stipulated by law.

- They are allowed to sign service contracts with other agencies, organizations, or units that are not prohibited by law but must complete their assigned tasks and obtain consent from the head of the public service provider.

- They are allowed to contribute capital but cannot participate in the management or administration of limited liability companies, joint-stock companies, partnerships, cooperatives, private hospitals, private schools, and private scientific research organizations, unless otherwise stipulated by specialized laws.

The law specifically stipulates that outside working hours defined in the employment contract, public employees are entitled to other professional activities, and to sign contracts with other agencies and organizations not prohibited by law. Public employees can also contribute capital to certain types of businesses but cannot participate in management or administration. This provision is completely appropriate as it creates conditions for public employees to not only comprehensively develop their abilities and passions but also to contribute to economic development and increase their income.

However, public employees must complete their tasks assigned at the public service provider, and the signing of labor contracts with other companies must be agreed upon by the head of the public service provider, ensuring that such activities do not violate prohibitions outlined by the law. If public employees fail to complete their tasks, they will be disciplined according to the following regulations:

- Application of disciplinary measures of reprimand: For acts in which public employees do not comply with the task assignments of authorized persons or do not perform the jobs and tasks committed in the employment contract without a valid reason (Clause 3, Article 10 of Decree 27/2012/ND-CP).

- Application of disciplinary measures of warning: For acts in which public employees do not comply with the task assignments of authorized persons or do not perform the jobs and tasks committed in the employment contract without a valid reason, causing an adverse impact on the general work of the unit (Clause 2, Article 11 of Decree 27/2012/ND-CP).

Le Vy

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