Recently, the Ministry of Labor, War Invalids and Social Affairs of Vietnam has issued the Circular No. 10/2020/TT-BLĐTBXH elaborating and guiding certain articles of the Labor Code , effective from January 1, 2021.
Article table of contents
According to Article 3 of the Circular No. 10/2020/TT-BLĐTBXH of the Ministry of Labor, War Invalids and Social Affairs of Vietnam elaborating and guiding certain articles of the Labor Code of Vietnam concerning employment contracts, collective bargaining council and jobs with hazards to reproductive function and children raising, 10 major contents of an employment contract as prescribed in clause 1 Article 21 of the Labor Code include:
1. Name and address of the employer, name and position of the authorized person of the employer to enter into the employment contract are prescribed as following:
- Name of the employer:
+ Name stated in the certificate of registration of enterprise, cooperatives, cooperatives union or in the certificate of investment registration or approval for investment policies or establishment decision, for an enterprise, organization, cooperatives, cooperatives union;
+ Name stated in the cooperation contract, for an artel;
+ Name of the household representative or individual stated in the ID card/citizen card/passport, for a household or individual;
- Address of the employer:
+ Address stated in the certificate of registration of enterprise, cooperatives, cooperatives union or in the certificate of investment registration or approval for investment policies or establishment decision, for an enterprise, organization, cooperatives, cooperatives union;
+ Address stated in the cooperation contract, for an artel;
+ Address of the residence of household or individual, for a household or individual;
+ Phone number, email address (if any);
- Full name, position of the authorized person of the employer to enter into the employment contract: in accordance with clause 3 Article 18 of the Labor Code of Vietnam, to be specific:
+ The legal representative of the enterprise or an authorized person as prescribed by law;
+ The head of the organization that is a juridical person, or an authorized person as prescribed by law;
+ The representative of the household, artels or an organization that is not a juridical person, or an authorized person as prescribed by law;
+ The individual who directly hires the employee.
2. Full name, date of birth, gender, place of residence, ID card/citizen card/passport of the authorized person of the employer and other details, including:
- Full name, date of birth, gender, address, phone number, email address (if any), ID card/citizen card/passport of the authorized person of the employer as prescribed in clause 4 Article 18 of the Labor Code of Vietnam, to be specific:
+ The employee himself/herself if he/she is 18 or older;
+ The employee aged 15 to under 18 with a written consensus by his/her legal representative;
+ The employee aged under 15 and his/her legal representative;
+ The employee is lawfully authorized by the group of employees to conclude the employment contract.
- Number of the work permit or certification of exemption from work permit issued by the competent authority to the foreign worker;
- Full name, address, number of ID card/citizen card/passport, phone number, email address (if any) of the legal representative of a person under 15 years of age.
3. Jobs and workplace are stipulated as follows:
- Jobs: jobs that the employee has to perform;
- Workplace: location and scope that the employee will perform the job as agreed; if the employee performs the job on a regular basis in varied locations, specify them.
4. Contract duration:
- Contract performance duration (number of months or days);
- Starting date and ending date (for a definite term employment contract);
- Starting date (for an indefinite term employment contract).
5. Job- or position-based salary, form of salary payment, due date for payment of salary, allowances and other additional payments are specified as follows:
- Job- or position-based salary: state the salary paid based on the performance time of the job or position in the pay scale or payroll developed by the employer in Article 93 of the Labor Code; or state the piece work pay or fixed wage for an employee who receives piece work pay or fixed wage.
- Allowances as agreed by the contracting parties as follows:
+ Allowances to compensate factors such as working conditions, job complexity, employee’s life and employment attraction that the base salary agreed under the employment contract fails to take into account or sufficiently take into account;
+ Allowances associated with the job process and performance of the employee.
- Other additional payments as agreed by the contracting parties as follows:
+ Additional payments with specific amounts in conjunction with the base salary agreed under the employment contract and to be paid regularly in every pay period;
+ Additional payments with non-specific amounts in conjunction with the base salary agreed under the employment contract and to be paid regularly or irregularly in every pay period, associated with the job process and performance of the employee.
Note: The following benefits shall be stated in a separate section in the employment contract: bonuses, initiative bonuses; mid-shift meal allowance; vehicle, cell phone, travel, lodging, daycare, children raising allowances; allowances for the employee with relatives who are dead or get married, employee’s birthday, allowances for the employee suffering financial hardship upon an occupational accident or disease and other allowances.
- Form of salary payment shall be determined by the two parties, based on the nature of work and production and business conditions, the employer and employee shall reach an agreement on whether the salary is time-based, product-based (piece rate) or a fixed amount as follows:
+ Time-based salary shall be paid to the employee monthly, weekly, daily or hourly as agreed in the employment contract. To be specific:
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Monthly salary is the salary for a month’s work;
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Weekly salary is the salary for a week’s work;
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Daily salary is the salary for a days’ work;
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Hourly salary is the salary for an hour’s work.
+ Piece rate pay is paid to piece workers according to the quantity and quality of products, productivity norms and unit prices of the products.
+ Fixed salary is paid according to the quantity and quality of works and time needed for completion of these works.
Note: Payment of salaries shall be made transferred to the employees’ bank accounts. The employers shall pay the fees for opening accounts and transferring salaries.
- Due date for payment of salary shall be determined by the two parties, to be specific:
+ An employer who receives an hourly, daily or weekly salary shall be paid after every working hour, day or week respectively, or shall receive a sum within not more than 15 days as agreed by both parties.
+ An employee who receives a monthly or bi-weekly salary shall be paid after every month or every two weeks respectively. The payment time shall be periodic and agreed upon by both parties.
+ An employee who receives a piece rate or a fixed amount shall be paid as agreed by both parties. In case a task cannot be completed within one month, the employee shall receive a monthly advance payment based on the amount of work done in the month.
6. Advancement in pay step, pay raise: as agreed by the contracting parties concerning conditions, time, pay rate after advancement in pay step, pay raise, or as regulated in the collective bargaining agreement, or as stipulated by the employer.
7. Hours of work, hours of rest: as agreed by the contracting parties or as regulated in the labor regulations, as stipulated by the employer, collective bargaining agreement and as per the law.
8. Personal protective equipment for the employee: types of personal safety equipment as agreed by the contracting parties, as stipulated by the employer, collective bargaining agreement and as per the law on safety and labor hygiene.
9. Social insurance, health insurance and unemployment insurance: in accordance with laws on labor, social insurance, health insurance and unemployment insurance.
10. Advanced training program of occupational skills: rights, obligations and interests of the employer and the employee in time, training budget, advanced training program of occupational skills.
Le Vy
