What are the types of employment contracts in Vietnam?

What is an employment contract under the law in Vietnam?

Pursuant to Article 13 of the Labor Code 2019,  an employment contract is an agreement between an employee and an employer on a paid job, salary, working conditions, and the rights and obligations of each party in the labor relations. a document with a different name is also considered an employment contract if it contains the agreement on the paid job, salary, management and supervision of a party.

An employment contract shall have the following major contents:

- 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;

- Social insurance, health insurance and unemployment insurance;

- Basic training and advanced training, occupational skill development.

If the employees’ job is directly related to the business secret, technological know-how as prescribed by law, the employer has the rights to sign a written agreement with the employee on the content and duration of the protection of the business secret, technology know-how, and on the benefit and the compensation obligation in case of violation by the employee.

If the employee works in agriculture, forestry, fishery, or salt production, both parties may exclude some of the aforementioned contents and negotiate additional agreements on settlement in the case when the contract execution is affected by natural disaster, fire or weather.

What are the types of employment contracts in Vietnam? (Internet image) 

What are the 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 a fixed-term employment contract 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 fixed-term employment contract 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.

Mai Thanh Loi

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