Probation is the initial stage of the working process at an enterprise, contributing to the decision of cooperation between the employer and the employee. Below are the notable contents on probation for employers and employees from 2021 when the Labor Code 2019 comes into effect.
Article table of contents
Vietnam: Notable contents on probation for employers and employees from 2021 (illustration)
On January 1, 2021, the Labor Code 2019 will come into effect. At that time, legal regulations regarding probation will change to benefit both employees and employers in agreeing on tasks, timeframes, and contract conclusion in Vietnam. The parties can agree on the probationary contents recorded in the employment contract or agree on probation by entering into a probation contract.
Firstly, the content in the probation contract:
The Labor Code allows the content in the probation contract to be agreed upon by the employee and the employer, as long as it ensures the probationary period and some main clauses as follows:
- The employer’s name, address; full name and position of the person who concludes the contract on the employer’s side;
- Full name, date of birth, gender, residence, identity card number or passport number of the person who concludes the contract on the employee’s side;
- The job and workplace;
- Duration of the employment contract;
- Job- or position-based salary, form of salary payment, due date for payment of salary, allowances and other additional payments;
- Regimes for promotion and pay rise;
- Working hours, rest periods;
- Personal protective equipment for the employee;
In addition to the above terms, the two parties can agree on additional terms regarding social insurance premiums, the rights and obligations of the parties, confidentiality terms, etc.
Note: Probation dose not apply to employees who enter into an employment contract with a term of less than one month.
Secondly, the probationary period:
The Labor Code 2019 continues the spirit of the Labor Code 2012 and adds new cases suitable to the development trend of society. The probationary period shall be negotiated by the parties on the basis of the nature and complexity of the job. Only one probationary period is allowed for a job and the probation shall not exceed:
- 180 days for the position of enterprise executive prescribed by the Law on Enterprises, the Law on management and use of state investment in enterprises;
- 60 days for positions that require a junior college degree or above;
- 30 days for positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees;
- 06 working days for other jobs.
Vietnamese law is designed to benefit employees, thereby allowing both parties to agree to shorten the probationary period to proceed to official work and set a maximum probationary period for various fields so that the employer cannot extend the probationary period.
Thirdly, salary:
Continuing the spirit of the Labor Code 2012, from 2021, the probationary salary shall be negotiated by both parties and shall not be lower than 85% of the offered salary.
Finally, upon completion of the probationary period:
- Upon the expiry of the probationary period, the employer shall inform the employee of the probation result.
If the result is satisfactory, the employer shall keep implementing the concluded employment contract, if there is one, or conclude the employment contract.
If the result is not satisfactory, the employer may terminate the concluded employment contract or the probation contract.
- During the probationary period, either party has the right to terminate the concluded probation contract or employment contract without prior notice and compensation obligation.
Legal basis: Labor Code 2019
Long Binh
