Seasonal labor in Vietnam and 10 regulations to know

1. Seasonal Employment Contract in Vietnam

According to labor law, a seasonal employment contract is an agreement between the employee and the employer regarding a paid job of a seasonal nature or a specific task that is not regular, with a term of less than 12 months, including working conditions, and the rights and obligations of each party within the labor relationship.

2. Conditions for Signing a Seasonal Employment Contract in Vietnam

To understand the conditions for signing a seasonal employment contract, the nature of the work the employee is engaged in must first be determined. If the nature of the job is seasonal, less than 12 months, and not regular work for 12 months or more, a seasonal employment contract will be signed.

According to Clause 3, Article 22 of the Labor Code 2012, regular work of 12 months or more shall not be concluded under a seasonal employment contract or for a job with a term of less than 12 months, except in the following cases:

- Temporarily replacing an employee performing military service, on maternity leave, etc.;

- The employee is sick or has an occupational accident or temporarily stops working for other reasons.

In case of violation, the employer will be subject to administrative fines ranging from 500,000 to 20,000,000 VND depending on the number of employees the employer violates, according to Clause 1, Article 5 of Decree 95/2013/ND-CP.

3. Form of the Seasonal Employment Contract in Vietnam

Pursuant to Clause 2, Article 16 of the Labor Code 2012, for temporary jobs with a term of less than 03 months, the parties may conclude an employment contract verbally.

Thus, for jobs with a term of less than 03 months, the parties may enter into a verbal agreement. For jobs with a term of more than 03 months, the contract must be in writing.

4. Duration of the Seasonal Employment Contract in Vietnam

Clause 2, Article 22 of the Labor Code 2012 stipulates that within 30 days from the expiry of the seasonal employment contract, the enterprise must sign a new contract. Otherwise, the seasonal employment contract will automatically become a definite term employment contract with a term of 24 months.

Labor law does not stipulate the maximum number of times an employee can sign a seasonal employment contract with the employer. However, the total duration of multiple contracts in 1 year must not exceed 12 months. If the total duration of all signed contracts in 1 year exceeds 12 months, it is considered regular work for 12 months or more.

5. Social Insurance Policies for Seasonal Employment Contracts in Vietnam

According to Points a and b, Clause 1, Article 2 of the Social Insurance Law 2014, mandatory social insurance participants include:

- Persons working under an indefinite-term employment contract, a definite-term employment contract, a seasonal employment contract or a specific job contract with a term from 03 months to less than 12 months, including contracts signed between the employer and the legal representative of a person under 15 years old according to labor laws;

- Persons working under a contract of a term from 01 month to less than 03 months.

Thus, from January 1, 2018, employees working under a seasonal employment contract of 01 month or more must also participate in mandatory social insurance according to social insurance laws.

Illustration (Source: Internet)

6. Benefits when Employees Sign Seasonal Employment Contracts in Vietnam

According to the Social Insurance Law 2014 and the Labor Code 2012, when signing a seasonal employment contract, employees are also entitled to benefits, including:

- Participation in unemployment insurance, social insurance, and full benefits when meeting the conditions for unemployment benefits, maternity policies, retirement, occupational accidents, etc.;- Protection of legitimate rights under labor laws such as not being unjustly dismissed, receiving timely wage payment, etc.

7. No Probation Period for Seasonal Employment Contracts in Vietnam

According to Clause 2, Article 26 of the Labor Code 2012, employees working under a seasonal employment contract are exempt from probation.

8. Content Regulations for Seasonal Employment Contracts in Vietnam 

A seasonal employment contract must ensure full content as prescribed by labor laws. Specifically, according to Article 23 of the Labor Code 2012 and Article 4 of Decree 05/2015/ND-CP, a seasonal employment contract must include the following basic contents:

- Name and address of the employer or lawful representative;- Full name, date of birth, gender, residential address, ID card number, or other legal documents of the employee;- Job description and work location;- Duration of the employment contract;- Salary, payment method, payment period, allowances, and other additional amounts;- Promotion and wage increase regime;- Working hours and rest hours;- Labor protection equipment for the employee;- Social insurance and health insurance;- Training, retraining, professional skill enhancement;- Other related contents as agreed by both parties.

9. Employee Unilateral Termination of Seasonal Employment Contracts in Vietnam

Based on Article 37 of the Labor Code 2012, employees working under a seasonal employment contract must notify the employer in advance if they wish to terminate the contract before its expiry. The notice period varies depending on the case:

- At least 3 working days for cases such as not being assigned the correct job, work location, or working conditions as agreed in the contract; not being paid or being paid late as agreed; being mistreated, sexually harassed, or forced to work; being sick or having an accident and having been treated for 1/4 of the contract term without recovering work capacity;

- At least 3 working days for cases like personal or family difficulties that prevent continued contract performance, being elected to a full-time position in an elective body, or being appointed to hold a position in the state apparatus;

- For pregnant female workers who must take leave as prescribed by a competent medical establishment, the notice period to the employer depends on the prescribed period of the medical establishment.

Note: In cases where employees under a seasonal employment contract unilaterally terminate the contract, they will not be entitled to severance pay as prescribed in Article 48 of the Labor Code 2012 and Article 14 of Decree 05/2015/ND-CP.

10. Employer Unilateral Termination of Seasonal Employment Contracts in Vietnam

In case the employer unilaterally terminates the seasonal employment contract before its expiry, the employer must notify the employee at least 3 working days in advance. This is specifically stipulated in Article 38 of the Labor Code 2012.

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