WHEN DO FOREIGNERS NEED TO CONCLUDE EMPLOYMENT CONTRACTS FOR FOREIGN WORKERS IN VIETNAM?

How are employment contracts for foreign workers necessary? and How are these employment contracts regulated?. NPLaw would like to provide Clients with understanding and knowledge related to this issue through the following essay.

I. The need for employment contracts for foreign workers

An employment contract is an agreement document between an employee and an employer related to paid work in which there are regulations for labor conditions and the parties’ rights and obligations in contract. Therefore, an employment contract is extremely important for employees, especially foreign workers (also known as foreign employees).

II. Regulations for employment contracts for foreign workers (foreign employees) in Vietnam

1. When do foreigners need to conclude (1) employment contracts for foreign workers (foreign employees)? 

Employers will conclude a contract with foreign employees when they receive those foreign employees to work at their company in Vietnam.

Pursuant to Article 155 of the Labour Code 2019, the duration of work permits of foreign employees will depend on one that is expected to be signed but doesn’t exceed two (02) years. If foreign employees want to extend the work permit, they are only entitled to do so once with the duration of at least two (02) years. The above regulation creates beneficial conditions for foreign employees to continuously work in Vietnam after expiring their work permits.                          

2. Contents and forms of employment contracts for foreign workers (foreign employees) in Vietnam

Contents of employment contracts for foreign employees:

Pursuant to Article 21 of the Labour Code 2019, stipulating contents of employment contracts for foreign employees, as follows:

a. Name and address of employers, and full name and position of persons who conclude employment contracts from the employer side;

b. Full name, date of birth, gender, residential address, identity card (ID) number or passport of persons who conclude employment contracts from the employee side;

c. Work (job) and working address;

d. The duration of the employment contract;

e. Wage according to the type of work or position, the payment methods and time for wage, allowance (2) and other accounts;

f. Policies for upgrading positions and wages;

g. Time of working and breaking (resting);

h. Preparation of personal protective equipment for employees;

i. The health insurance, social insurance and unemployment insurance;

j. Training, enhancement and development of professional knowledge and skills.

Forms of employment contracts for foreign employees:

Pursuant to Article 14 of the Labour Code 2019, an employment contract can be concluded according to the following three methods:

• In writing;
• Electronic means with the method of data message;
• In oral with contracts under one month.

III. Questions and answers related to employment contracts for foreign workers in Vietnam

1. Whether concluding employment contracts of foreigners needs witnesses (3) or not?

Pursuant to Article 14 of the Labour Code 2019, stipulating forms of employment contracts, as  follows:

• An employment contract has to be concluded in writing and divided into two (02) copies, in which an employee holds one copy and an employer holds one copy; except as otherwise provided in Clause 2 of this Article.

        An employment contract is concluded via electronic means with the method of data message according to the Law on Electronic Transaction will have the value as a written employment contract.

• The parties can conclude an oral contract. This applies for contracts whose duration is under one month, except as otherwise provided in Clause 2 of Article 18, Clause 1(a) of Article 145, and Clause 1 of Article 162 of this Code.

Therefore, the applicable Law only stipulates two (02) mandatory forms of an employment contract, including in writing and oral without mandatory requirements for witnesses or even notarization or legalization.

2. When foreign employees work for less than one (01) month, is it mandatory to conclude an employment contract?

Clause 2, Article 151 of the Labour Code 2019 stipulates that the duration of employment contracts for foreign employees in Vietnam will not exceed the Work Permit. When receiving foreigners to work in Vietnam, the parties can agree upon concluding employment contracts with a definite time in multiple times.

Besides, pursuant to Article 14 of the Labour Code 2019, stipulating forms of employment contracts, as  follows: 

• The parties can conclude an oral contract. This applies for contracts whose duration is under one month, except as otherwise provided in Clause 2 of Article 18, Clause 1(a) of Article 145, and Clause 1 of Article 162 of this Code.

Therefore, the applicable Law doesn’t mandatorily stipulate that the parties have to conclude an employment contract when working for less than one month. The parties can perform an oral contract with each other.

3. A sample of an employment contract for foreigners

Pursuant to Article 21 of the Labour Code 2019, stipulating the contents of employment contracts for foreign workers, as follows:

a. Name and address of employers, and full name and position of persons who conclude employment contracts from the employer side;

b. Full name, date of birth, gender, residential address, identity card (ID) number or passport of persons who conclude employment contracts from the employee side;

c. Work (job) and working address;

d. The duration of the employment contract;

e. Wage according to the type of work or position, the payment methods and time for wage, allowance and other accounts;

f. Policies for upgrading positions and wages;

g. Time of working and breaking (resting);

h. Preparation of personal protective equipment for employees;

i. The health insurance, social insurance and unemployment insurance;

j. Training, enhancement and development of professional knowledge and skills.

A sample of an employment contract for foreigners

These are all information related to employment contracts for foreign workers in Vietnam as prescribed by Vietnamese Law. Please don’t hesitate to contact us if the clients have any further questions.

NPLAW is proud to be a prestigious law firm unit and has the trust and belief of clients, enterprises, and individuals. NPLaw specializes in providing legal services all-around relating to domestic and abroad investments such as Enterprise, Real Estate, Intellectual Property, Labor; Drafting Consultation, Negotiation and concluding Support for the Commercial Contract, domestic and abroad Service Contract; consultations and support for implementing licensed procedures of licenses, etc,. NPLaw, with our professional Lawyers and Specialists, we have the full ability to consult with and support customers as they implement the above procedures. Along with the slogan “Your benefits - Our Priority”, NPLaw definitely becomes the accurate, and safe choice for your legal issues.  

NPLaw Firm

Hotline: 0913 44 99 68

Email: legal@nplaw.vn

1. conclude (of a contract): (also known as “enter into”) means that the parties intentionally agree to establish, adjust, or terminate the civil rights and obligations on the basis of compliance with the Law for each particular civil transaction.   (source: NPLaw)

2. allowance: is an amount of money that is used to pay for elements related to labour and activity conditions and complex characteristics of work without being calculated (or being partially calculated) in an employment contract.   (source: NPLaw)

3. witness: is a person or some person who clearly and accurately knows events and situations related to any issue. They will be witnesses when there are arising disputes or competent authorities implement proceeding procedures.   (source: NPLaw)