LABOR CONTRACT INVALIDATION

Labor contract invalidation

1. The labor contract is totally invalidated in one of the following cases:

a) The entire labor contract contents are illegal;

b) The labor contract is concluded by incompetent persons;

c) The works in the concluded labor contract is prohibited by law;

d) The labor contract restricts or obstructs the right to establish, join and participate in the Union activities of the employee.

2. The labor contract is partially invalidated when part of it violates the law provisions but does not affect the rest.

3. In case part or the entire labor contract specifies the employee’s interests that are inferior to that in the effective collective labor agreement, law provisions on labor, labor regulations, or the labor contract restricts other rights of the employee, part or the entire labor contract shall be invalidated.

Authority to invalidate labor contracts

1. The Labor Inspectors, People’s Courts are entitled to invalidate labor contracts.

2. The Government shall specify the order and procedures for the Labor Inspectors, People’s Courts to invalidate labor contracts.

Handling invalidated labor contracts

1. The partially invalidated labor contract shall be handled as follows:

a) The rights, obligations and interests of the parties shall be settled under the collective labor agreement or law provisions;

b) The parties shall amend, supplement the invalidated part of the labor contract to suit the collective labor agreement or law provisions on labor.

2. The totally invalidated labor contract shall be handled as follows:

a) In case of ultra virus signing prescribed in Point b Clause 1 Article 50 of this Code, the State labor management agencies shall guide the parties to sign it again;

b) The rights, obligations and interests of employees shall be settled under the collective labor agreement or law provisions;

3. The Government shall elaborate this Article.