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TYPE OF LABOR CONTRACTS IN VIETNAM
HOW TO TERMINATE BY THE EMPLOYER?

TYPE OF LABOR CONTRACTS IN VIETNAM
HOW TO TERMINATE BY THE EMPLOYER?

VIVA BUSINESS CONSULTING là công ty tư vấn doanh nghiệp được tín nhiệm bởi hằng ngàn khách hàng danh tiếng từ năm 2006. VIVA cung cấp nền tảng quản lý toàn diện và nguồn lực thực thi theo cách kết hợp đồng thời của: Luật pháp và thủ tục hành chính trong kinh doanh – Quản lý thuế và kế toán – Quản trị quan hệ lao động – Quản trị tài chính doanh nghiệp – Quản trị và kiểm soát nội bộ. Năng lực của chúng tôi giúp khách hàng lường trước các rủi ro, tối ưu chi phí, kiến tạo lợi thế kinh doanh.

VIVA is a business consulting company, specializes in business compliance procedures according to local business laws and regulations since 2006. VIVA has been continuously trusted by thousands of well-known clients since 2006. We are creating added value for clients by offering one-stop business platform with exclusive and tailored-made services related to market entry and mandatory business compliances. We keep our client’s good standing in lawful and optimal manners whenever they are working and doing business in Vietnam.

Type of labor contracts in Vietnam

A labor contract is an agreement between an employee and an employer on a paid job, working conditions, and the rights and obligations of each party. There are 03 types of labor contracts. A labor contract must be established in writing and made in two copies, one to be kept by the employee and the other by the employer. For temporary jobs with a duration of under 3 months, the parties may enter into a verbal labor contract.

BY LOCAL LAWS AND REGULATIONS, THERE ARE TYPES OF LABOR CONTRACTS

TYPESDESCRIPTIONCONDITIONSREMARK
Indefinite-term labor contractThe two parties do not determine the duration and the time of termination of the contract.
Definite-term labor contractThe two parties determine the duration and the time of the contract within a period of 12 months.When a labor contract expires and the employee continues working, if no new labor contract is entered into, the contract will become an
Indefinite-term labor contract.
After the new contract, only 1 additional definite-term labor contract may be signed; the third new contract must be entered into Indefinite.
The two parties determine the duration and the time of the contract within a period of 24 months.When a labor contract expires and the employee continues working, if no new labor contract is entered into, the contract will become an
Indefinite-term labor contract.
After the new contract, only 1 additional definite-term labor contract may be signed; the third new contract must be entered into Indefinite.
The two parties determine the duration and the time of the contract within a period of 36 months.When a labor contract expires and the employee continues working, if no new labor contract is entered into, the contract will become an
Indefinite-term labor contract.
After the new contract, only 1 additional definite-term labor contract may be signed; the third new contract must be entered into Indefinite.
A seasonal or work-specific labor contractFor only jobs that duration of When a labor contract expires and under 12 months.When a labor contract expires and the employee continues working, if no new labor contract is entered into, the contract will become a definite-term labor contract with a duration of 24 months.After the new contract, only 1 additional definite-term labor contract may be signed; the third new contract must be entered into Indefinite.

BY LOCAL LAWS AND REGULATIONS, THERE ARE CASES OF TERMINATION OF A LABOR CONTRACT

  1. The labor contract expires.
  2. The work started in the labor contract has been completed.
  3. Both parties agree to terminate the labor contract.
  4. The employee fully meets the requirements on the time of payment of social insurance premiums and the age of retirement.
  5. The employee is sentenced to imprisonment or death or is prohibited from performing the job stated in the labor contract under a legally effective judgment or ruling of a court.
  6. The employee dies or is declared by a court to have lost civil act capacity, be missing or dead.
  7. The individual employer dies or is declared by a court to have lost civil act capacity, be missing or dead; the institutional employer terminates the operation.
  8. The employee is dismissed under Labor Code.
  9. The employee unilaterally terminates the labor contract.
  10. the employer lays off the employee due to structural or technological changes or because of economic reasons, merger, consolidation, or division of the enterprise or cooperative.
  11. The employer unilaterally terminates the labor contract because of reasons:  The worker often fails to perform his/her job stated in the labor contract | The worker is sick or has an accident and remains unable to work after having received treatment for 12 consecutive months, in case he/she works under an indefinite-term labor contract, or for 6 consecutive months, in case he/she works under a definite-term labor contract, or more than half the term of the labor contract, in case he/she works under a labor contract for a seasonal job or a specific job of under 12 months | If, as a result of natural disaster, fire or other force majeure event as prescribed by law, the employer, though having applied every remedial measure, has to scale down production and cut jobs;

When unilaterally terminating a labor contract, the employer shall notify the employee in advance:

  1. At least 45 days, for indefinite-term labor contracts.
  2. At least 30 days, for definite-term labor contracts.
  3. At least 3 working days, for seasonal or work-specific labor contracts of under 12 months.

In which, case N0 03 and 09 is the most safety for the employer. As the employer, you shall be very careful in unilaterally terminates the labor contracts. If you fail to comply with the cases by-laws, the employees usually wait for 12 months from the date of termination and ask the Court to obligate you as follow:

  1. Pay for 12 months salary as job loss due to illegal termination.
  2. Pay for at least 02 months of salary as compensation.
  3. Pay for all compulsory insurances.
  4. Recruit again for the same position and income.

VIVA may help you to manage a full package which is all required by local labor laws and regulations, mainly consist of:

  1. Manage labor relations with the employees
  2. Manage labor relations with the Labor Departments
  3. Manage labor relations with the Tax Department.
  4. And with typical tasks that help you free from local compliance procedures: Employees profiles | Labor contracts | Payrolls | Compulsory insurances | Personal income tax | Corporate income tax  | Manage the implementation of labor contracts and relations with your employees | Business records management (Any related transaction shall be proved by lawful original records) | Other compliance procedures required by the Labor Department.

ABOUT VIVA BUSINESS CONSULTING

VIVA is the local expertise for local business compliance procedures, has been trusted by thousands of foreign investors, multinational companies from Europe, Japan, Singapore, India, Korea, USA… for the required business compliance procedures by local laws and regulations since 2006.

Thanks for consistent of practice expertise in Business laws - Employment relations – Tax and accounting – Corporate finance – Corporate services, VIVA has been successfully providing service for thousands of leading companies in such industries: Garment, energy, pharma, advertising, agricultural…

VIVA keeps its signature by offering one-stop business platform with regard to market entry and the mandatory business compliances. We ensure for our client’s good standing, in lawful and optimal manners whenever they are working and doing business in Vietnam.

Thanks to a unique combination of local expertise and global experiences, VIVA BUSINESS CONSULTING is the one-stop solution for the required compliance procedures in Vietnam for foreign investors and experts. We are still here since 2006s because of our thousands of satisfied clients and our employees. Our staying power is a testament to the professional resources, and so much more.

 

VIVA not only manage business required procedures by laws but firstly places client’s compliance and good standing, in the optimal methods when offering any solution, and integrated with our intensive resources that allow us to prevent most of the risks in advance, create more benefits, advantages and business inspiration for entrepreneurs.

The insights and consistent backgrounds in Business Laws – Accounting and Corporate Finance – Tax Management – Labor Relations and Payroll – Serectarial and consistent with our exclusive standard operation processes, consisting of consultation – implementation – pratice operation help us fully protect client interests as one-stop solution.

YOU WILL RECEIVE

“If you ask any successful businessperson, they will always have had a great mentor at some point along the road.”

 

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