Vietnam: Enterprises are not allowed to extend a labor contract with an appendix to the labor contract from January 01, 2021

As a result, many regulations will be changed, including allowing enterprises to extend labor contracts by adding an appendix to the labor contract.

Specifically, according to Article 22 of the Labor Code 2019 of Vietnam on annexes to employment contract:

Article 22. Annexes to employment contract

1. An annex to an employment contract is an integral part of the employment contract and is as binding as the employment contract.

2. An annex to an employment contract may elaborate or amend certain contents of the employment contract and must not change the duration of the employment contract.

Where an annex to an employment contract elaborates the employment contract in a manner that leads to a different interpretation of the employment contract, the contents of the employment contract shall prevail.

Where an annex amends certain contents of the employment contract, it should clearly state the amendments or additions, and the date on which they take effect.

In comparison with the Labor Code 2012 of Vietnam, it only stipulates that: An annex to a labor contract details some provisions or amends or supplements the contract. The amendment of the duration of the labor contract by the appendix of the labor contract is not mentioned in the Labor Code 2012 but is stipulated in Article 5 of the Decree No. 05/2015/NĐ-CP of Vietnam’s Government: The term of the employment contract shall be amended only once in employment contract Appendix.

Thus, the previous labor law allowed enterprises to amend the term of the labor contract by the appendix of the labor contract. However, from January 01, 2021, when the Labor Code 2019 of Vietnam officially takes effect, the enterprise shall not be allowed to extend the labor contract by the addendum to the labor contract.

View more details at the Labor Code 2019 of Vietnam, effective from January 01, 2021.

Phuong Thanh

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