Can an employer and an employee sign a fixed-term employment contract for many  times? In what circumstances is it possible to sign numerous fixed-term employment contracts? Hong Bang Law Firm would like to give the following advice to clients in order to clarify this questions:

Legal basis

Labor Code No. 45/2019/QH14

Cases where fixed-term employment contract are signed many times

Article 20 of the Labor Code 2019 stipulates the type of employment contract:

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

a) 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;

b) 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 contract mentioned in Point b Clause 1 of this Article expires:

a) 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;

b) If a new employment contract is not concluded after the 30-day period, the existing employment contract mentioned in Point b Clause 1 of this Article shall become an employment contract of indefinite term;

c) 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, except for employment contracts with directors of state-invested enterprises and the cases specified in Clause 1 Article 149, Clause 2 Article 151 and Clause 4 Article 177 of this Labor Code.”

Thus, according to the above provisions, in the following cases, employers and employees can sign many times the fixed-term employment contract:

• Persons hired as directors of state-invested enterprises;
• Employer of elderly workers;
• Employeed foreign workers working in Vietnam;
• Extension of the employment contract signed until the end of the term for employees who are members of the management board of the organization which is representing employees at the establishments in which the employment contract expires.

Services of Hong Bang Law Firm

Hong Bang Law Firm has advised and supported many enterprises in industrial relations. The services provided by Hong Bang Law Firm are as follows:

• Legal advice on labor relations;
• Advising on assessment of employment contracts, labor regulations, other internal documents of enterprises;
• Advising on the compilation of employment contracts, labor regulations and other internal regulations of enterprises;
• Advising on the direction of resolving labor disputes.

If you need more detailed advice and answers as well as how to access this service, please contact directly our Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

Wishing you and your family good health, peace and success!

Best regards!