In Vietnam, how many times can a fixed-term labor contract be signed?

How many times can a fixed-term labor contract be signed in Vietnam? (Illustration)

According to Clause 2, Article 20 of the Labor Code of Vietnam, If an employee keeps working when the labor contract expires, the following actions shall be taken:

- 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 this Article 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.

However, the Labor Code of Vietnam stipulates the following 04 cases where a definite-term labor contract can be signed many times:

-  Directors of state-invested enterprises

- Elderly employees;

- Foreign employees working in Vietnam;

- The employment contract with an employee that is a member of the management board of the internal employee representative organization expires before the end of his/her term of office, the existing contract shall be extended until the end of the term of office.

Therefore according to the above provisions, a definite-term labor contract can only be signed a maximum of 02 times, except for the 04 cases mentioned above, it is possible to sign a definite-term labor contract many times.

Heavy fines if you sign a labor contract with a term that exceeds the specified number of times

Under the regulations of Vietnam, except for 04 special cases where the definite-term labor contract is signed many times, an employer is only required to sign the definite-term labor contract up to 02 times.

Therefore, if the employer fails to enter into the correct type of labour contract with the employee, it will be subject to a fine according to Clause 1, Article 8 of Decree 28/2020/ND-CP, specifically as follows:

- A fine ranging from VND 2,000,000 to VND 5,000,000 to be imposed if the violation involves 01 – 10 employees;

- A fine ranging from VND 5,000,000 to VND 10.000.000 to be imposed if the violation involves 11 – 50 employees;

- A fine ranging from VND 10,000,000 to VND 15,000,000 to be imposed if the violation involves 51 – 100 employees;

- A fine ranging from VND 15,000,000 to VND 20,000,000 to be imposed if the violation involves 101 – 300 employees;

- A fine ranging from VND 20,000,000 to VND 25,000,000 to be imposed if the violation involves 301 or more employees.

At the same time, the employer is required to enter into the correct type of contract with the employee according to regulations.

Bao Ngoc

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