Article table of contents
Vietnam: Major contents of an employment contract in Vietnam (Internet image)
1. What is employment contract?
According to Clause 1, Article 13 of the 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.
2. Major contents of an employment contract in Vietnam
Major contents of an employment contract in Vietnam include:
(1) Name and address of the employer, name and position of the authorized person of the employer to enter into the employment contract:
- 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.
(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 2019;
- 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:
- Jobs: jobs that the employee has to perform;
- Workplace: location and scope that the employee will perform the job as agreed; if the employee perform 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:
- 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 2019; 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:
+ 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:
+ 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.
The following benefits shall be stated in a separate section in the employment contract: bonuses mentioned in Article 104 of the Labor Code, 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 as prescribed in Article 96 of the Labor Code 2019;
- Due date for payment of salary shall be determined as prescribed in Article 97 of the Labor Code 2019.
(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.
(Article 3 of Circular 10/2020/TT-BLDTBXH)
Diem My
- Key word:
- employment contract in Vietnam
