Can collaborator contracts be considered employment contracts in Vietnam?

Nowadays, there are many cases where employees and employers sign a collaborator contract to limit the procedures for social insurance, labor discipline, etc. So what is a collaboration contract? Is a collaborator contract considered an employment contract in Vietnam?

Can collaborator contracts be considered employment contracts in Vietnam? (Source: Internet)

1. What is a collaborator contract?

Currently, the laws in Vietnam do not have specific regulations on what a collaborator contract is. However, in essence, a collaborator contract can be considered a service contract.

According to Article 513 of Vietnam's Civil Code 2015, it stipulates:

Contract for services means an agreement between parties whereby a service provider performs an act for a client which pays a fee for that act.

Collaborator contracts are usually entered into with a trader as a party, and are mainly applied under Vietnam's Commercial Law 2005.

2. Is a collaborator contract considered an employment contract?

Pursuant to Clause 1, Article 13 of Vietnam's Labor Code 2019, an employment contract is an agreement between an employee and an employer on a paid job, salary, working conditions, and the rights and obligations of each party in the labor relations..

A document with a different name is also considered an employment contract if it contains the agreement on the paid job, salary, management and supervision of a party.

Based on the above provisions, if a collaborator contract meets the following conditions, it will be considered an employment contract:

-Content showing paid jobs and wages.

-Contents showing the management, administration, and supervision of one party.

If the collaborator contract is considered an employment contract, the employer and employee must comply with the provisions of the Labor Code (such as paying social insurance, health insurance, unemployment insurance, etc.). This is the fundamental difference between an employment contract and a service contract.

Thus, depending on each case, a collaborator contract can be considered an employment contract or a service contract. The name of the contract is not an important factor in determining whether the contract is an employment contract or not.

Nhu Mai

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