Social Insurance for Apprentices and Probationary Employees

According to regulations in Clause 1, Article 2 of the Social Insurance Law 2014, even if the working duration is only from one month, employees are still required to participate in compulsory social insurance. However, to determine the subjects for compulsory social insurance participation, it is first necessary to ascertain if there is a labor contract signed between the parties.

Article 15 of the Labor Code 2012 stipulates the labor contract as follows:

"A labor contract is an agreement between an employee and an employer on a paid job, working conditions, rights, and obligations of each party in the labor relationship."

A collaborator contract will be considered a labor contract if there arises a labor relationship between the two parties, which means a wage-based relationship, where the employee is bound by the work regulations and policies, etc. Conversely, a collaborator contract is merely considered as a standard service contract where the service provider is the "employee." In this case, the employee is not subject to compulsory social insurance participation.

Regarding apprenticeship, internship cases, the Labor Code has specific provisions for this type of contract in Article 61 and Article 62, and it is not a labor contract. Specifically:

"If an employer recruits someone for an apprenticeship or internship to work for them, they do not need to register the vocational training activities and cannot charge a training fee.

The apprentice or intern in this case must be at least 14 years old and must meet the health requirements suitable for the job, except for certain jobs stipulated by the Ministry of Labor - Invalids and Social Affairs.

Both parties must sign a vocational training contract. This contract must be made in two copies, each party keeps one copy.

During the apprenticeship or internship period, if the apprentice or intern directly participates in labor and produces standardized products, they shall be paid a wage by the employer at a rate agreed upon by both parties."

The Social Insurance Law currently does not mandate compulsory social insurance for vocational training contracts. However, after the apprenticeship period, if the employee signs a labor contract with a duration of one month or more with the employer, they must participate in social insurance.

Duy Thinh

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