Labour Contract in Vietnam
- Types of Labour Contract
According to the Labour Code of Vietnam, there are two types of labour contract, i.e.:
(1)
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Labour contract with an indefinite term;
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(2)
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Labour contract with a definite term (of no more than 36 months). The term of a labour contract signed with a foreigner shall be subject to the valid term of the work permit, which is no more than 2 years.
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An employer is only allowed to sign maximum two definite term labour contracts with an employee. After that, if that employee continues to work for the employer, then an indefinite labour contract must be signed.
Upon expiration of a definite term labour contract, if the employee continues to work for the employer, and the employer fails to renew the labour contract with the employee within 30 days after the expiration of the contract, it shall be deemed that the employer and the employee have concluded a labour contract with an indefinite term
- Probation Period
Only one probation period is allowed for one job position. According to the Labour Code of Vietnam, the probation period shall not exceed:
(1)
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180 days for enterprise executive positions;
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(2)
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60 days for positions that require college degree or above;
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(3)
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30 days for positions that require a vocational certificate;
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(4)
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6 working days for other positions.
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The salary during the probation period shall not be less than 85% of the salary after formal employment. During the probation period, it is not compulsory to buy social insurance for the employee.
- Termination of Labour Contract
The employer is entitled to unilaterally terminate the labour contract under the following circumstances:
(1)
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The employee repeatedly fails to perform the work in accordance with the terms of the labour contract.
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(2)
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The employee is ill or has an accident and remains unable to work after having received treatment for a period of 6-12 consecutive months or more than half of the duration of the contract.
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(3)
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In the event of a natural disaster, fire, major epidemic, hostility, relocation, downsizing requested by a competent authority or other force majeure reasons as prescribed by law, the employer has to lay off employees after all possibilities have been exhausted.
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(4)
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The employee is not present at the workplace after expiry of the temporary suspension of the labour contract.
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(5)
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The employee fails to go to work without acceptable reasons for at least 5 consecutive working days.
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(6)
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The employee fails to provide truthful information related to their name, date of birth, sex, education level, health condition etc. during the conclusion of the labour contract in a manner that affects the recruitment.
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For unilateral termination, the employer shall inform the employee in advance:
(1)
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At least 45 days in the case of an indefinite term labour contract;
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(2)
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At least 30 days in the case of a definite term labour contract with term from 12 to 36 months;
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(3)
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At least 3 working days in the case of a definite term labour contract with the less than 12 months. |
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