LABOR CONTRACT CONCLUSION

Labor contract

A labor contract is an agreement between the employee and the employer on the paid job, the work conditions, the rights and obligations of each party in the labor relation.

Form of labor contracts

1. A labor contract must be concluded in writing and made into 02 copies, the employee shall keep 01 copy, the employer shall keep 01 copy, except for the case prescribed in Clause 2 this Article.

2. For temporary jobs with terms under 03 months, the parties may conclude verbal contracts.

Principles of labor contract conclusion

1. Voluntary, equitable, affable, cooperative and truthful.

2. The contract is freely concluded without violating the law, the collective labor agreement and social ethics.

Responsibilities for labor contract conclusion

1. Before recruiting, the employer and the employee must directly conclude the labor contract.

In case the employee is from 15 to 18 years old, the labor contract conclusion must be agreed by the legal representative of the employee.

2. For casual works and regular works with terms under 12 months, the employee group may authorize an employee in the group to conclude the written contract; in this case, the validity of the contract is equal to each person.

The labor contract concluded by the authorized person must be enclosed with the list specifying the full names, ages, genders, residences, occupations and signatures of every employee.

Responsibilities to provide information before the labor contract conclusion

1. The employer must provide information for employees about the work, work location, work conditions, working hours, break time, labor safety, labor hygiene, salary, method of salary payment, social insurance, the provisions on business secret protection, technical know-how and other issues directly related to the labor contract conclusion requested by the employee.

2. The employee must provide information for the employer about their full name, gender, residence, educational background, vocational skills, health condition and other issues directly related to the labor contract conclusion requested by the employer.

The prohibited acts committed by the employer during the conclusion and performance of the labor contract

1. Keeping the originals of the identity papers, certificates and qualifications of the employee.

2. Requesting the employee to mortgage cash or property for the labor contract performance.

Concluding labor contracts with multiple employers.

The employee may conclude contracts with multiple employers as long as they can ensure the implementation of the concluded contents.

For contracts concluded with multiple employers, the social insurance, medical insurance of the employee must comply with the Government’s provisions.

Kinds of labor contracts

1. The labor contract must be concluded in one of the following kind:

a) Labor contracts without fixed term;

The labor contract without fixed term is a contract in which both parties do not specify the term and the expiry date of the contract.

b) Fixed-term labor contracts;

The fixed-term labor contract is a contract in which both parties specify the term and the expiry date of the contract within 12 to 36 months.

c) Casual labor contracts or regular labor contracts with terms under 12 months.

2. In case the employee keeps working when the labor contract prescribed in Point b and Point c Clause 1 this Article expires, both parties must conclude the new labor contract within 30 days as from its expiry date; if the new labor contract is not concluded, the contracts concluded as prescribed in Clause 1 this Article shall be come a labor contract without fixed term, and the contract concluded as prescribed in Point c Clause 1 this Article shall be come a labor contract with a fixed term of 24 months

The new labor contract being a fixed-term contract shall be concluded only one more time. After that, if the employee keeps working, the labor contract without fixed-term must be concluded.

3. It is prohibited to conclude casual labor contracts or regular labor contracts with terms under 12 months to do regular works from 12 months and above, except for temporary replacement of employees doing military service, taking maternity leave, suffering from sickness or occupational accidents, or taking other temporary leave.

Labor contract contents

1. The labor contract must include the following contents:

a) Name and address of the employer or the legal representative;

b) The full name, date of birth, gender, residence, ID number or other legal papers of the employee;

c) The work and working location;

d) The labor contract term;

dd) The salary, method of salary payment, salary payment term, allowance and other additional pays;

e) The grade increase, salary increase regime;

g) The working hours, break time;

h) The labor protection equipment for the employee;

i) Social insurance and medical insurance.

k) The vocational training and improvement courses.

2. In case the employee doing works directly related to the business secret, technical know-how as prescribed by law, the employer is entitled to reach a written agreement with the employee on the contents and term of business secret, technical know-how protection, the interests and compensation for the employee’s violations.

3. For employees working in the agriculture, forestry, fishery, salt industries, both parties may remove a number of primary contents from the labor contract and reach additional agreements on the settlement in case the contract performance is affected by natural disasters, fire and weather.

4. The contents of labor contracts with employees being hired as directors in the enterprise contributed by the State must comply with the Government’s provisions.

Labor contract annex

1. The labor contract annex is part of the labor contract and as valid as an labor contract.

2. The labor contract annex is to specify a number of terms or to amend and supplement the labor contract.

In case the labor contract Annex specify a number of labor contract terms that leads to different interpretation of the labor contract, the labor contract contents shall apply.

In case the labor contract annex amends and supplements the labor contract, the amendments, supplements and date of effect must be specified.

Labor contract effect

The labor contract takes effect as from the date of conclusion unless otherwise agreed by both parties or prescribed by the law.

Probation

1. The employer and the employee may reach the agreements on the probation, the rights and obligations of both parties during the probation. If the probation is agreed, the probation contract may be concluded.

The probation contract includes the contents prescribed in Point a, b, c, d, dd, g and h Clause 1 Article 23 of this Code.

2. The employees working under casual labor contract do not have to undergo probation.

Probation duration

Only one probation is given for a job. The probation duration varies according to the nature, the complication of the work and must satisfy the following conditions:

1. Within 60 days for works that demand college education or further;

2. Within 30 days for works that demand vocational intermediate education, technical workers, professional workers.

3. Within 6 working days for other works.

Probation salary

The employee’s salary during the probation is agreed by both parties but must be at least 85% of the official salary.

Probation expiry

1. If the probation is passed, the employer must conclude the labor contract with the employee.

2. During the probation, each party is entitled to terminate the probation without prior notice and without compensation if the probation fails to satisfy the requirements agreed by both parties.