Competence to conclude employment contracts in Vietnam

Competence to conclude employment contracts in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Competence to conclude employment contracts in Vietnam

Competence to conclude employment contracts in Vietnam under Article 18 of the Labor Code 2019 is as follows:

- Employees may directly conclude their employment contracts, except for the cases specified in Clause 2 of Article 18 of the Labor Code 2019.

- In respect of seasonal works or certain jobs which have a duration of less than 12 months, a group of employees aged 18 or older may authorized the representative of the group to conclude the employment contract, in which case such employment contract shall be effective as if it was separately concluded by each of the employees.

The employment contract concluded by the said representative must be enclosed with a list clearly stating the full names, ages, genders, residences and signatures of all employees concerned.

- The person who concludes the employment contract on the employer’s side shall be:

+ 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.

- The person who concludes the employment contract on the employee’s side shall be:

+ 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 lawfully authorized by the group of employees to conclude the employment contract.

- The person who is authorized to conclude the employment contract must not authorize another person to conclude the employment contract.

2. Regulations on types of employment contracts in Vietnam

Regulations on types of employment contracts in Vietnam under Article 20 of the Labor Code 2019 are as follows:

- An employment contract shall be concluded in one of the following types:

+ An indefinite-term employment contract is a contract in which the two parties neither fix the term nor the time of termination of the contract;

+ A fixed-term employment contract is a contract in which the two parties fix the term of the contract for a duration of up to 36 months from the date of its conclusion.

- If an employee keeps working when an employment contract mentioned in Point b Clause 1 of Article 20 of the Labor Code 2019 expires:

+ Within 30 days from the expiration date of the employment contract, both parties shall conclude a new employment contract. Before such a new employment contract is concluded, the parties’ rights, obligations and interests specified in the old employment contract shall remain effective;

+ If a new employment contract is not concluded after the 30-day period, the existing employment contract mentioned in Point b Clause 1 of Article 20 of the Labor Code 2019 shall become an employment contract of indefinite term;

+ The parties may enter into 01 more fixed-term employment contract. If the employee keeps working upon expiration of this second fixed-term employment contract, the third employment contract shall be of indefinite term, except for employment contracts with directors of state-invested enterprises and the cases specified in Clause 1 Article 149, Clause 2 Article 151 and Clause 4 Article 177 of the Labor Code 2019.

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