Labor Code 2019 was passed by the National Assembly on November 20, 2019, with numerous noteworthy amendments and supplements. One of the important amendments mentioned in this Code is the regulation regarding the types of labor contracts that may be concluded between the employee and the employer.
Article table of contents
Labor Code 2019: Only 02 types of labor contracts from January 01, 2021 (Illustrative image)
LABOR CODE 2019 (OFFICIAL)
To be specific:, according to the contents of the Labor Code 2019, from the effective date of this Code, the employee and the employer are only allowed to enter into one of the following types of labor contracts:
- An indefinite-term labor contract is a contract in which the parties do not determine the term and the time of termination of the contract;
- A definite-term labor contract is a contract in which the parties determine the term and the time of termination of the contract within a period not exceeding 36 months from the effective date of the contract.
Thus, the Labor Code 2019 has eliminated the type of seasonal labor contract from the types of labor contracts that employees and employers are allowed to sign. Accordingly, from January 01, 2021, only two types of labor contracts remain: definite-term labor contracts and indefinite-term labor contracts.
In case the definite-term labor contract mentioned above expires and the employee continues to work, the following actions shall be taken:
- Within 30 days from the expiration date of the labor contract, the parties must sign a new labor contract; during the period when a new labor contract has not been signed, the rights, obligations, and benefits of both parties shall be performed according to the signed contract;
- If the period of 30 days from the expiration date of the labor contract passes without signing a new labor contract, the signed definite-term labor contract shall become an indefinite-term labor contract;
- If the parties sign a new definite-term labor contract, only 01 additional contract may be signed, after which if the employee continues to work, an indefinite-term labor contract must be signed, except for the case of hiring a director for a state-owned enterprise and the cases specified in Clause 1 Article 149, Clause 2 Article 151, and Clause 4 Article 177 of this Code.
Nguyen Trinh
