The Process of Concluding an Employment Contract in Vietnam

What is the Conclusion of an Employment Contract? The Process of Concluding an Employment Contract in Vietnam.

What is the Conclusion of an Employment Contract?

The Conclusion of an Employment Contract is the process of agreement between the employee and the employer to define the terms and conditions of work.

The process of concluding an employment contract must comply with labor law regulations to ensure legality and protect the rights of both parties. An employment contract can be concluded either in writing or verbally; however, written contracts are generally preferred to provide clear legal evidence.

The Process of Concluding an Employment Contract in Vietnam

The Process of Signing an Employment Contract is a procedure that involves preparation and the execution of certain steps to ensure legality and protect the rights of both the employee and the employer.

Step 1: Drafting the Employment Contract

Drafting the employment contract is the first stage in the process, where the employer prepares a draft contract based on initial agreements with the employee. Below are the detailed steps to complete the drafting of the employment contract:

Collecting necessary information:

• Employee’s personal information: Including full name, date of birth, ID/Passport number, permanent address, phone number, etc.

• Employer’s information: Company name, address, tax identification number, and name and position of the contract signatory.

• Job description: Clearly define the job the employee will perform, including title, key responsibilities, and specific job requirements.

• Working hours: Define the number of working hours, working days per week, break times, and holidays according to regulations.

• Salary and allowances: Specify the base salary, allowances (if any), and payment method (cash, bank transfer).

• Insurance and benefits: Include policies on health insurance, social insurance, unemployment insurance, and other benefits.

• Contract duration: Specify the contract duration (fixed-term, indefinite-term, or probationary contract).

• Termination conditions: Set out the cases for contract termination and the responsibilities of both parties.

Drafting the contract:

• Select a contract template: Based on the collected information, choose a suitable contract template (fixed-term or indefinite-term employment contract) or draft a new one from scratch.

• Fill in the contract details: Enter all the necessary information into the contract template, ensuring that all terms are clear and accurate.

• Ensure legal compliance: Review the contract’s terms to ensure they fully comply with current labor law regulations.

• Add additional clauses (if necessary): Depending on the nature of the job or specific requirements, you may add clauses on confidentiality, non-compete agreements, training, or other special conditions.

Review and finalize the draft contract:

• After drafting, carefully review each clause in the contract to ensure there are no mistakes or omissions.

• Seek legal advice (if necessary): If needed, the employer can consult with a lawyer to ensure the contract meets all legal requirements and protects the company’s interests.

Finalize and print the contract:

• Once drafting and review are complete, print multiple copies of the contract (typically two), with each party keeping a signed copy after the agreement is executed.

Step 2: Scheduling the Employee for Contract Signing

The employer should contact the employee via phone, email, or other communication methods to inform them of the time and place for signing the contract. Provide detailed information about the signing session, including the documents to bring (such as identification papers, relevant qualifications, etc.) and any other requirements from the company.

Before the scheduled date, it is advisable to remind the employee by phone or message to ensure they are aware of the signing session. Request the employee to confirm their attendance to ensure the signing will proceed as planned.

Step 3: Signing the Employment Contract

Welcoming and Introduction

When the employee arrives, the employer should provide a friendly reception, ensuring the employee feels comfortable and respected.

The employer’s representative (typically the HR manager or the person responsible for signing the contract) will give a brief introduction to the contract signing process and explain the next steps for the employee.

Reviewing the Employment Contract Content

Both parties should read through the entire contract to ensure all terms have been clearly agreed upon and accurately reflected. If the employee has any questions or needs further clarification on any terms, this is the time for the employer to provide explanations.

Signing the Contract

After both parties have agreed on all terms, the employer and the employee will proceed to sign the contract. Both parties must sign and print their full names in the required sections of the contract. The employer will then affix the company stamp to confirm the contract after signing.

After signing, two legally valid copies of the employment contract are usually made. One copy is given to the employee, and the other is kept by the employer.

The employer may also inform the employee of their start date, introduce them to the onboarding process, and provide any other necessary information.

Step 4: Storing the Contract

The employer must keep the signed employment contract in the company’s personnel records to ensure proper management of information and provide a legal basis for any future transactions related to the employee.

Ensure that all information in the contract is kept confidential in accordance with legal regulations and the company’s internal policies.

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