Employment contracts and collaboration contracts are often confused as being the same type of contract. However, these two types of contracts have fundamentally different natures. According to regulations from January 1, 2021, what are differences between these 02 types of contracts according to the law in Vietnam?
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From January 01, 2021: What are the Differences Between Employment Contracts and Collaborator Contracts in Vietnam? (Illustrative photo)
Below, Lawnet will summarize the basic criteria for our Customers and Members to recognize the differences between an employment contract and a collaborator contract in Vietnam according to the following table:
| Criteria | Employment Contract | Collaborator Contract |
| Legal Nature |
It is the agreement between the employee and the employer regarding compensated work, wages, working conditions, rights, and obligations of each party in the labor relationship.
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Based on the nature of the collaborator contract, it is a form of service contract. The collaborator contract is an agreement between the parties, whereby the service provider performs work for the service user, who has to pay the service fee to the service provider. |
| Form of Contract | The employment contract must be concluded in writing and made into 02 copies, each party holds 01 copy. Note: Employment contracts concluded through electronic means in the form of a data message have the same value as a written employment contract. |
There are no specific regulations on the mandatory form of a collaborator contract. Therefore, a collaborator contract applies as a civil contract and can be expressed verbally, in writing, or established through specific actions. |
| Content of the Contract | - Name, address of the employer and full name, title of the person concluding the employment contract on the employer's side; - Full name, date of birth, gender, residence, ID card, citizen identification card, or passport number of the person concluding the employment contract; - Job and workplace; - Duration of the employment contract; - Wage according to the job or title, form of payment, payment period, salary allowances, and other additional amounts; - Promotion, salary increase regime; - Working hours, rest time; - Labor protection equipment for employees; - Social insurance, health insurance, and unemployment insurance; - Training, fostering, and improving professional skills. Note: The employer has the right to agree in writing with the employee about the contents, duration of confidential business protection, technology protection, benefits and compensation in case of violation. |
The collaborator contract is not required to ensure specific content. Therefore, the parties have the right to freely negotiate the work and benefits when concluding the contract but must ensure not to violate legal regulations. |
| Contract Duration | - Undetermined-term employment contract: both parties do not determine the term, the termination point of the contract. - Determined-term employment contract: the termination point of the contract within no more than 36 months. |
The collaborator contract does not specifically regulate or limit the working duration. Depending on the job's nature, the two parties will determine an appropriate duration for the collaborator contract. |
| Unilateral Termination of the Contract | - At least 45 days if working under an undetermined-term employment contract; - At least 30 days if working under a determined-term employment contract with a period from 12 months to 36 months; - At least 03 working days if working under a determined-term employment contract with a period under 12 months; Note: For some specific industries, trades, or jobs, the prior notice period is implemented as per the regulations of the Government of Vietnam. |
The collaborator contract does not specify the unilateral termination of the contract among parties. The parties have the right to unilaterally terminate the contract in case the work is not beneficial for either party; however, the parties must notify the remaining party a reasonable time in advance. At the same time, payment for the completed work and compensation for damages to the collaborator must be ensured. |
An employment contract and a collaborator contract are essentially two different types of contracts; hence, failing to distinguish between these two types can easily lead to errors. Therefore, everyone needs to be mindful to protect their rights when concluding these two types of contracts in Vietnam.
Legal Basis:
Ty Na
- Key word:
- employment contract
- Collaborator Contract
- Vietnam
