Types of Employment Contracts

Secretary of Law would like to address your query as follows:

According to Article 22 of the Labor Code 2012, labor contracts must be concluded in one of the following three types:

1. Indefinite-term labor contract: This is a contract where both parties do not specify the term, time, and conditions for termination of its validity.
2. Definite-term labor contract: This is a contract where both parties specify the term, time, and conditions for termination of its validity within a period from a minimum of 12 months to a maximum of 36 months.
3. Seasonal or specific job labor contract: This is a contract for a seasonal job or a specific job with a term of less than 12 months.

Thus, labor contracts must be established in one of the above three types. Additionally, this provision also clarifies several issues such as:

- In cases where a definite-term labor contract and the seasonal or specific job labor contract expire but the employee continues to work, within 30 days from the date the labor contract expires, both parties must sign a new labor contract.- If a new labor contract is not signed, the definite-term contract shall become an indefinite-term labor contract, and the seasonal or specific job contract shall become a definite-term contract with a term of 24 months.- In cases where both parties sign a new definite-term labor contract, only one additional contract can be signed. After that, if the employee continues to work, an indefinite-term labor contract must be signed.- A seasonal or specific job labor contract with a term of less than 12 months should not be concluded for jobs of a regular nature lasting 12 months or more, except in cases of temporarily replacing employees on military duty, maternity leave, sick leave, occupational accident leave, or other temporary absences.

Relevant documents:

Decree 44/2013/ND-CP guiding the Labor Code on labor contracts

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