VI The labor contract serves as a solid legal basis, creating a harmonious and sustainable employment relationship between the employee and the employer. This is not only an agreement but also a key legal tool, protecting the legitimate rights and interests of both parties throughout the working process. According to Vietnamese law, the establishment, implementation and termination of labor contracts must strictly comply with regulations to ensure fairness, transparency and stability for the labor market. Let’s analyze with Pham Consult the legal nature and main contents of labor contracts according to current regulations.
- What is a labor contract?
The 2019 Labor Code defines a labor contract as an agreement between an employee and an employer on paid work, wages, working conditions, rights and obligations of each party in the labor relationship. In case the two parties agree by a different name but the content shows the paid work, wages and management, operation and supervision of one party, that document is considered a labor contract.
Before accepting an employee to work, the employer must enter into a labor contract with the employee. The labor contract must be concluded based on voluntariness, equality, goodwill, cooperation and honesty. The employer and employee are allowed to freely enter into a labor contract but must not violate the law, collective labor agreements and social ethics.
When participating in labor relations, the labor contract is the basis for the employer to exercise the right to manage labor. At the same time, the labor contract is also the basis for the parties to comply with their rights and obligations in the labor relationship. And it is also an important basis for resolving disputes arising in relation to the labor relationship.
- Forms of labor contracts.
The labor contract must be concluded in writing and made in 02 copies, the employee keeps 01 copy, the employer keeps 01 copy. Labor contracts concluded through electronic means in the form of data messages in accordance with the provisions of the law on electronic transactions have the same value as written labor contracts.
For contracts with a term of less than 01 month, the two parties can conclude a verbal labor contract, except for the cases specified in Clause 2, Article 18, Point a, Clause 1, Article 145 and Clause 1, Article 162 of the Labor Code 2019.
III. Competence to conclude labor contracts
- On the part of the employee
The person concluding the labor contract on the part of the employee is one of the following cases:
– Employees aged 18 years or older;
– Employees aged 15 years or older but under 18 years old with the written consent of their legal representative;
– Employees under 15 years old and their legal representative;
– Employees legally authorized by other employees in the group to conclude a labor contract in the following cases:
+ For seasonal work or certain work with a term of less than 12 months, a group of employees aged 18 years or older may authorize one employee in the group to conclude a labor contract; in this case, the labor contract must be concluded in writing and is valid as if it were concluded with each employee.
+ The labor contract signed by the authorized person must be accompanied by a list clearly stating the full name, date of birth, gender, place of residence and signature of each employee.
- On the employer’s side
The person signing the labor contract on the employer’s side is one of the following cases:
– The legal representative of the enterprise or the person authorized in accordance with the law;
– The head of an agency or organization with legal status in accordance with the law or the person authorized in accordance with the law;
– The representative of a household, cooperative, other organization without legal status or the person authorized in accordance with the law;
– The individual directly employing the employee.
Note: The person authorized to sign the labor contract may not re-authorize another person to sign the labor contract.
- Types of labor contracts
According to Article 20 of the 2019 Labor Code, based on the term of the contract, labor contracts are divided into 02 types:
– An indefinite-term labor contract is a contract in which the two parties do not specify the term or the time of termination of the contract;
– A fixed-term labor contract is a contract in which the two parties specify the term or the time of termination of the contract within a period not exceeding 36 months from the effective date of the contract.
- Contents of the labor contract
The main contents that must be included in a labor contract are stipulated in Clause 1, Article 21 of the 2019 Labor Code, including:
(i) Name and address of the employer and full name and title of the person concluding the labor contract on the employer’s side;
(ii) Full name, date of birth, gender, place of residence, ID card number, or passport of the person signing the labor contract on the employee’s side;
(iii) Job and place of work;
(iv) Term of labor contract;
(v) Salary according to job or position, form of salary payment, salary payment period, salary allowances and other supplements;
(vi) Promotion and salary increase regime;
(vii) Working hours, rest hours;
(viii) Labor protection equipment for employees;
(ix) Social insurance, health insurance and unemployment insurance;
(x) Training, fostering, improving professional qualifications and skills.
Note:
– When an employee performs work directly related to business secrets or technological secrets as prescribed by law, the employer has the right to reach a written agreement with the employee on the content and duration of protection of business secrets or technological secrets, rights and compensation in case of violation.
– For employees working in the fields of agriculture, forestry, fishery, and salt production, depending on the type of work, the two parties may reduce some of the main contents of the labor contract and agree to supplement the content on the method of settlement in case the contract performance is affected by natural disasters, fires, or weather.
