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Drafting the labor contract in Vietnam

In general, when establishing a relations between an employer and an employee in most industries, they need to sign a labor contract. A labor contract is not only a document that recognise a person employed by an enterprise, but also a legal proof of legitimate rights and interests of both parties. Currently, Vietnamese labor contract is primarily regulated by The Labor Code 2012 and The Civil Code. To a clear explanation, here are some suggestions for the content of the labor contract:

Form of contract:

The labor contract must be in writing and made in 02 coppies of equal legal force, one for each party. However, in case that is a temporary job which lasts less than 03 months, the employer and the employee can make a verbal agreement.

The content of the labor contract:

  • Information of the two parties entering into the contract: the employer and the employee;
  • Job description:
    • What the employee has to do
    • Working place
    • Working time in a day, numbers of days off, term of overtime working hours (if any)
    • The effective duration of the defined term contract, or the exact active time of the non-defined term contract.
  • Benefits:
    • Basic salary or wages (not lower than the legal minimum wage), overtime payroll (if any), wage scale
    • Form of paying salary and time limit for paymentHealth insurance, Social insurance, Unemployment insurance are based on the percentage of monthly salary.
    • Allowance for transportation, mobile phone,…(if any)
  • Other terms upon the argreement of both parties (may depend on the charasteristics of the job or the features of the company):
    • Policies on training, upgrading skills and knowledge: Rights and obligations of each party to ensure training time and costs
    • Agreement on securing technology secret
    • Labor protection regime
    • Rights and obligations of each party: Arcoding to the provision of Vietnamese Labor Code.

The parties can make an addendum in case they wish to change or add in the content of the labor contract.

Note:

  • The labor contract must be made on the voluntariness and equality of the parties and must not against the law.
  • The employee and employer have the right to authorize another person to sign the labor contract, but that person cannot continuely authorize a third person to do so.
  • The employer is not allowed to keep the original of employee’s papers and certifications and must not force the employee to pay for the performance of the labor contract.
  • For the employees from 15 to under 18 years old, there must be a written agreements to sign the contract of their legal representative.

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