What is a contract for outsourced work in Vietnam?

Based on practical application, the contract for the outsourced work in Vietnam can be summarized as follows:

Definition: A contract for outsourced work is an agreement between two parties, where the contracting party has the obligation to complete a specific task as required by the outsourcing party and, upon completion, deliver the results to the outsourcing party. The outsourcing party accepts the results of the work and is responsible for paying the agreed remuneration to the contracting party.

Nature of the outsourced work contract:

The work agreed upon in the contract is of a seasonal, short-term nature, and does not have a stable or long-term character.

Types of outsourced work contracts:

- Entire outsourcing contract:

+ The outsourcing party provides the contracting party with all expenses, including material costs and labor costs related to the activities necessary to complete the task.

+ The amount paid by the outsourcing party to the contracting party includes material costs, labor costs, and profits from the contract.

- Partial outsourcing contract:

+ The contracting party must arrange their own labor tools.

+ The outsourcing party must pay the depreciation of labor tools and labor costs.

Employees with income from outsourced work contracts are also subject to personal income tax and such income is counted as wages/salaries in accordance with the Law on Personal Income Tax 2007.

Employees working under outsourced work contracts are not required to pay social insurance.

Relevant documents:
Labor Code 2012

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