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When signing a labor contract, employees need to pay attention to several aspects to avoid unfavorable situations in the future. The labor contract must be based on which form? To address these concerns from customers, LawPlus would like to share the following analysis.

1. Concept

According to the provisions of Article 13, Clause 1 of the 2019 Labor Code, a labor contract can be understood as a legal agreement between the employee and the employer. This document includes specific information about the obligations and rights of both parties during the working period, creating a mechanism for dispute resolution if conflicts arise.

There are two forms of contract formation: in writing and orally, according to Article 14 of the 2019 Labor Code.

2. 7 things employees need to be aware of

  • Maximum probation period: The probation period should not exceed 180 days for managerial positions, a maximum of 60 days for.those with a college degree or higher, 30 days for those with intermediate-level qualifications, and 6 days for other positions.
  • An employee can only undergo probation once for a specific job, and probation is not applicable.to contracts lasting less than a month.
  • Probation salary: The probation salary must be at least 85% of the official salary. Once the employee meets the requirements, both parties must sign the official labor contract immediately.
  • Official salary: The official salary should not be lower than the regional minimum wage.
  • Personal documents/degrees/certificates: Employers are not allowed to keep the original copies of employees’ personal documents, degrees, or certificates.
  • Overtime pay: If the contract specifies overtime work, the duration and overtime pay rate should be clearly defined.
  • Regulations on holiday pay: Employees are entitled to 10 days of holidays per year,.including Tet (Vietnamese New Year), and 12 days of annual leave.
  • Penalties for contract violations: Understand the penalties for contract violations and the corresponding fines.

3. Other issues

  • During contract negotiation:

Delegation of authority to sign contracts is possible, but the authorized person cannot further delegate this authority to others.

Pay attention to the workplace (as a company may have multiple workplaces). Agree on salary components: Salary should include position/title pay, salary allowances, and other additional supplements.

Include information about the 13th-month salary in the contract. Employers often agree to pay the 13th-month salary when employees complete a full year,.so it’s important to specify the length of time worked and the percentage to avoid any disadvantages. Multiple contracts can be signed, but the first labor contract serves as the basis for social insurance contributions.

The contract with the highest salary determines health insurance contributions.

  • Regarding deadlines:

The 2019 Labor Code stipulates two types of labor contracts: indefinite-term contracts and definite-term contracts. For definite-term contracts, within 30 days before expiration, both parties must negotiate terms such as salary and job continuation. If the parties do not sign a new contract, the existing contract becomes.an indefinite-term contract if the employee continues working.

Employees have the right to unilaterally terminate indefinite-term contracts and must give notice at least 45 days in advance. For definite-term contracts, at least 30 days’ notice is required. In urgent cases, a 3-day notice is sufficient for definite-term contracts lasting less than 12 months.

When employers unilaterally terminate contracts under certain circumstances outlined in Article 34 of the 2019 Labor Code,.they are responsible for paying severance to employees who have worked regularly for at least 12 months. The severance pay is half a month’s salary for each year worked (except for those eligible for pensions).and one month’s salary for each year of job loss, with a minimum of two months’ salary.

For any related inquiries, customers can contact LawPlus through the website, hotline 02862 779 399 / 0965 052 039 / 0966 008 030 (WhatsApp, Viber, Zalo), or email info@lawplus.vn.

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