Supplementary Regulations on Labor Contracts between Parties from January 01, 2021

Draft amendment to the Labor Code is still in the public consultation phase and is expected to take effect from January 1, 2021. One of the important contents of this Draft is the revised and supplemented provisions regarding labor contracts.

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To be specific:, according to the Draft, a labor contract is an agreement between the employee and the employer regarding the work to be done, salary, rights, and obligations of each party in the labor relationship.

Other agreements that express contents regarding the work to be done, salary, and the management, administration, and supervision of one party are determined to be labor contracts. (This is newly added content in the Draft).

Regarding the form of the labor contract, inheriting the current regulations, the Draft stipulates that the labor contract must be concluded in writing and made into 02 copies, with the employee keeping 01 copy and the employer keeping 01 copy, except in cases where the labor contract is concluded orally.

In addition, the Draft also stipulates that a labor contract concluded through electronic means in the form of data messages in accordance with the law on electronic transactions is considered a written labor contract. (This is a new regulation added in the Draft).

According to the Draft, the parties may conclude an oral labor contract for a contract with a duration of less than 01 month, except in cases where the employee is under 15 years old and for domestic workers. (According to current regulations, the parties may conclude an oral labor contract for a contract with a duration of less than 03 months).

Thus, it can be seen that the Draft tightens the regulations on the form of labor contracts compared to the Labor Code 2012.

Nguyen Trinh

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