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VIETNAM LABOR CODE - 2021
TYPES OF EMPLOYMENT CONTRACTS – PROBATIONARY – CASES OF TERMINATION

VIETNAM LABOR CODE - 2021
TYPES OF EMPLOYMENT CONTRACTS – PROBATIONARY – CASES OF TERMINATION

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.

Types of employment contracts: probationary & cases of termination
There are new regulations on employment relations since 2021, the manager shall keep in mind the following key policies to manage daily labor matters:

TYPES OF EMPLOYMENT CONTRACTS

An employment contract shall be concluded in one of the following types:

  1. An indefinite-term employment contract is a contract in which the two parties neither fix the term nor the time of termination of the contract;
  2. A fixed-term employment contract is a contract in which the two parties fix the term of the contract for a duration of up to 36 months from the date of its conclusion.

If an employee keeps working when an employment of fixed-term contract expires:

Within 30 days from the expiration date of the employment contract, both parties shall conclude a new employment contract. Before such a new employment contract is concluded, the parties’ rights, obligations and interests specified in the old employment contract shall remain effective;

If a new employment contract is not concluded after the 30-day period, the existing employment contract fixed-term shall become an employment contract of indefinite term;

The parties may enter into 01 more fixed-term employment contract. If the employee keeps working upon expiration of this second fixed-term employment contract, the third employment contract shall be of indefinite term.

PROBATIONARY PERIOD

The probationary period shall be negotiated by the parties on the basis of the nature and complexity of the job. Only one probationary period is allowed for a job and the probation shall not exceed:

  1. 180 days for the position of enterprise executive prescribed by the Law on Enterprises;
  2. 60 days for positions that require a junior college degree or above;
  3. 30 days for positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees;
  4. 06 working days for other jobs.

TYPICAL CASES OF TERMINATION OF AN EMPLOYMENT CONTRACT

  1. The employment contract expires.
  2. The tasks stated in the employment contract have been completed.
  3. Both parties agree to terminate the employment contract.
  4. The employee is dismissed for disciplinary reasons.
  5. The employee unilaterally terminates the employment contract in accordance with the law.
  6. The employer unilaterally terminates the employment contract in accordance with the law.
  7. The employer allows the employee to resigns in accordance with the law.
  8. The work permit or a foreign employee expires according to the law.
  9. The employee fails to perform his/her tasks during the probationary period under the employment contract or gives up the probation.

THE RIGHT OF AN EMPLOYEE TO UNILATERALLY TERMINATES THE EMPLOYMENT CONTRACT

An employee shall have the right to unilaterally terminate the employment contract, provided he/she notices the employee in advance:

  1. At least 45 days in case of an indefinite-term employment contract;
  2. At least 30 days in case of an employment contract with a fixed term of 12 – 36 months;
  3. At least 03 working days in case of an employment contract with a fixed term of under 12 months;
  4. The notice period in certain fields and jobs shall be specified by the government.

THE RIGHT OF AN EMPLOYER TO UNILATERALLY TERMINATES THE EMPLOYMENT CONTRACT

  1. An employer shall have the right to unilaterally terminate an employment contract in one of the following circumstances:
  2. The employee repeatedly fails to perform his/her work according to the criteria for assessment of employees’ fulfillment of duties established by the employer. The criteria for assessment of employees’ fulfillment of duties shall be established by the employer with consideration taken of opinions offered by the representative organization of employees;
  3. The employee is sick or has an accident and remains unable to work after having received treatment for a period of 12 consecutive months in the case of an indefinite-term employment contract…
  4. In the event of a natural disaster, fire, major epidemic, hostility, relocation or downsizing requested by a competent authority, the employer has to lay off employees after all possibilities have been exhausted;
  5. The employee quits his/her fails to go to work without acceptable excuses for at least 05 consecutive working days;
  6. The employee fails to provide truthful information during the conclusion of the employment contract in accordance with the law and in a manner that affects the recruitment.

When unilaterally terminating the employment contract in any of the cases, the employer shall inform the employer in advance:

  1. At least 45 days in case of an indefinite-term employment contract;
  2. At least 30 days in case of an employment contract with a fixed term of 12 – 36 months;
  3. At least 03 working days in the case of an employment contract with a fixed term of less than 12 months and in other cases.

Please contact with our expertises for tailored solutions that shall be fully complied with the laws but also fully protect interests of enterprises, in fair manners.

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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