Vietnam: What are annexes to employment contract?

Vietnam: What are annexes to employment contract? (Internet image)

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

1. What are annexes to employment contract?

According to Article 22 of the Labor Code 2019, the annexes to employment contract are prescribed as follows:

- An annex to an employment contract is an integral part of the employment contract and is as binding as the employment contract.

- An annex to an employment contract may elaborate or amend certain contents of the employment contract and must not change the duration of the employment contract.

Where an annex to an employment contract elaborates the employment contract in a manner that leads to a different interpretation of the employment contract, the contents of the employment contract shall prevail.

Where an annex amends certain contents of the employment contract, it should clearly states the amendments or additions, and the date on which they take effect.

2. Regulations on revisions to employment contracts in Vietnam

Article 33 of the Labor Code 2019 stipulates that the revisions to employment contracts in Vietnam as follows:

- During the performance of an employment contract, any party who wishes to revise the employment contract shall notify the other party of the revisions at least 03 working days in advance.

- In case where an agreement is reached between the parties, the revisions shall be made by signing an annex to the employment contract or signing a new employment contract.

- In case the two parties fail to reach an agreement on the revisions, they shall continue to perform the existing employment contract.

3. Types of employment contracts in Vietnam

Pursuant to Article 20 of the Labor Code 2019, 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.

Nhu Mai

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