Do employees on probationary period have to pay social insurance in Vietnam?

Do employees on probationary period have to pay social insurance in Vietnam? (Internet image)

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

1. Do employees on probationary period have to pay social insurance in Vietnam?

According to Clause 1, Article 2 of the Law on Social Insurance 2014, employees being Vietnamese citizens shall be covered by compulsory social insurance, including:

- Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full 3 months and under 12 months, including also labor contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labor law;

- Persons working under labor contracts with a term of between full 1 month and under 3 months;

- Cadres, civil servants and public employees;

- Defense workers, public security workers and persons doing other jobs in cipher organizations;

- Officers and professional army men of the people's army; officers and professional non-commissioned officers and officers and technical non- commissioned officers of the people's public security; and persons engaged in cipher work and enjoying salaries like army men;

- Non-commissioned officers and soldiers of the people’s army; non- commissioned officers and soldiers on definite-term service in the people’s public security; army, public security and cipher cadets who are entitled to cost- of-living allowance;

- Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;

- Salaried managers of enterprises and cooperatives;

- Part-time staffs in communes, wards and townships.

Based on the above provisions, employees entering into probationary contracts are not subject to compulsory participation in social insurance.

However, at present, employees on job probation in two forms:

- Signing a probationary contract;

- Agreement on probation content stated in the labor contract.

For employees who have a probationary period stated in the labor contract and that contract is subject to participation in compulsory social insurance, both the employer and the employee must pay compulsory social insurance for the whole probationary period.

(Refer to Official Dispatch 2447/LDTBXH-BHXH dated 26/7/2011)

2. Probationary period in Vietnam

Article 25 of the Labor Code 2019 stipulates that 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.

3. Termination of probationary period in Vietnam

- 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.

(Based on Article 27 of the Labor Code 2019)

Nguyen Nhu Mai

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