The Labor Code 2019 takes effect from January 1st , 2021, the provisions on labor contracts have also been adjusted. Therefore, employees and employers need to know to ensure that the contents of the labor contract are agreed in accordance with the provisions of law.
Through this article, Hong Bang Law Firm will summarize the new regulations on labor contracts as follows:
Form of labor contract
Article 14 of the Labor Code 2019 adds the form of labor contract through electronic data conformable with electronic transaction laws that shall have the same value as that of a physical contract.
Thus, from 2021, the labor contract has the following forms:
- The contract is concluded in writing;
- The labor contract is concluded by electronic means in the form of electronic data conformable with electronic transaction laws that shall have the same value as that of a physical contract.
- Oral labor contract – applicable to a labor contract with a term of less than 1 month, 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.
Type of labor contract
From 2021, there are only two types of labor contarct:
- Indefinite-term labor contract;
- The Labor Contract shall determine the term of time in which the two parties determine the time limit and time of termination of the contract;
Thus, compared to the old provisions in Article 22 of the Labor Code 2012, the Labor Code 2019 has eliminated seasonal labor contracts or under a certain job with a term of less than 12 months.
Prohibited acts by employers during conclusion and performance of employment contracts
When committing labor contracts, performing labor contracts, employers may not perform the following acts:
- Keeping the employee’s original identity documents, diplomas and certificates.
- Requesting the employee to make a deposit in cash or property as security for his/her performance of the employment contract.
- Forcing the employee to keep performing the employment contract to pay debt to the employer.– Article 17 of the Labor Code has added this act in the prohibited acts of the employer.
Probationary period
Regarding probationary period, the Labor Code includes cases in the Labor Code 2012. In addition to the case: “Probation is not more than 18 days for the work of the business manager” and “Probation does not apply to employees who have contracted an employment contract with a term of less than 01 month”.
Additional cases of postponing labor contracts
In addition to cases where employees are entitled to postpone labor contracts in Article 30 of the Labor Code 2019 compared to Article 32 of the Labor Code 2012:
- The employee is conscripted into the army or militia;
- The employee is authorized to represent the enterprise’s investment in another enterprise;
Unilateral termination of labor contract
According to the Labor Code in 2012, only the case of signing an indefinite-term labor contract can unilaterally terminate the labor contract without reason.
By Labor Code 2019, this rule applies to all types of contracts. However, when unilaterally terminating the labor contract, the employee still needs to ensure the notice period in Clause 1, Article 35 as follows:
- At least 45 days: Indefinite-term labor contract;
- At least 30 days: Labor contract from 12 to 36 months;
- At least 03 days: Labor contract less than 12 months.
Exceptions: 07 cases where employees have the right to unilaterally terminate the contract without notice including:
- Not to be arranged in accordance with the work, place of work or not guaranteed working conditions as agreed;
- Not being paid in full or on time;
- Abused, beaten or verbally abused by an employer, humiliating or acts affecting health, dignity and honor; forced labor;
- Sexual harassment in the workplace;
- Pregnant female workers must quit their jobs;
- Full retirement age as prescribed;
- The employer provides dishonest information that affects the performance of the contract.
Add cases in which the employer have right to terminated
From 2021, employees should note that, in addition to the previously prescribed cases, the Labor Code in 2019 has added 03 cases where the employer has the right to terminate the labor contract:
- The employee is not present at work without acceptable excuses for at least 05 consecutive working days;
- The employee is of sufficient retirement age as prescribed, unless otherwise agreed;
- The employee provides dishonest information about the full name, date of birth, gender, place of residence, education level, vocational skill level, confirmation of health status and other related issues when signing labor contracts affecting the recruitment of employees.
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