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What are types of employment contracts according to Vietnamese law?
Employment Contract
An employment contract is an important legal document that establishes the labor relationship between the employee and the employer. It defines the rights and obligations of both parties during the course of employment and serves as the basis for protecting the legitimate interests of the involved parties. According to Vietnamese law, an employment contract is defined as an agreement between the employee and the employer regarding paid work, working conditions, and the rights and obligations of both parties.
Types of Employment Contracts
Current Vietnamese labor law clearly defines the types of employment contracts, ensuring the rights and obligations of both employees and employers. According to the 2019 Labor Code and its guiding documents, such as Decree 145/2020/ND-CP, there are two main types of employment contracts:
- Indefinite-term employment contract: This type of contract does not specify a termination date. It provides stability and security for employees, as they can work without concerns about sudden contract termination, except in cases provided by law.
- Definite-term employment contract: This contract is signed for a specific duration, not exceeding 36 months. If, after the expiration of the contract, the employee continues to work without signing a new contract, the contract automatically becomes an indefinite-term contract. This type of contract is typically used in cases where employers need flexibility in staffing or when performing seasonal work or short-term projects.
Labor law regulations also clearly specify the form, content, and required clauses in the contract to protect the rights of employees and prevent disputes during the implementation of the contract.
Why is it necessary to sign an employment contract?
Signing an employment contract is an important and mandatory step in establishing a labor relationship between the employee and the employer. Below are the main reasons explaining why an employment contract must be signed:
Compliance with labor law regulations
An employment contract serves as the legal basis to formalize the labor relationship between the employee and the employer. It is a mandatory requirement under the law, particularly as stipulated by the 2019 Labor Code, to avoid the use of illegal labor without a contract, which could harm employees.
A valid employment contract is also necessary for the employee to participate in social insurance, health insurance, and unemployment insurance, ensuring their basic social welfare rights.
Protection of the legal rights of both parties
An employment contract is the legal foundation that defines the rights and obligations of both the employee and the employer. It clearly outlines clauses such as salary, working hours, rest periods, insurance, and other benefits that the employee is entitled to. This ensures that both the employee and the employer fully understand what they have committed to, thereby preventing misunderstandings and unnecessary disputes.
The contract also serves as a basis for labor authorities and relevant parties to monitor compliance with labor laws, ensuring that employees work under safe, fair conditions with their rights protected.
The employment contract serves as a basis for resolving labor disputes
In the event of a dispute between the employee and the employer, the employment contract is a critical legal document for resolving the conflict. Courts or labor arbitration bodies will rely on the terms of the contract to make fair and reasonable decisions.
The employment contract also helps protect the employer’s rights in enforcing labor discipline or terminating the contract when the employee breaches agreed-upon regulations.
In summary, signing an employment contract is not only a legal requirement but also a tool for protecting the rights and obligations of both the employee and the employer, ensuring transparency, responsibility, and legality in the labor relationship.
Validity of an Employment Contract
An employment contract becomes effective from the time it is signed by both parties, unless otherwise specified in the contract regarding the start date of its validity. This means that from the time of signing, the rights and obligations of both parties under the contract will begin to be enforced. If the employment contract is signed before the employee begins working, the effective date may be the day the employee officially starts work.
The person signing the employment contract must be the legal representative of the employer, and the employee must have full civil capacity.
The contents of the contract must comply with the provisions of the Labor Code and other relevant legal documents. If any clause violates the law, that specific clause may be invalid, but it will not affect the validity of the remaining clauses.
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