Employment Contract

An Employment Contract is a foundational document governing the relationship between an employer and an employee, defining the terms and conditions under which employment is offered and accepted. It serves as a roadmap, delineating crucial aspects of the employment arrangement, such as job roles, responsibilities, compensation, and benefits. This legally binding agreement provides clarity and security for both parties, ensuring that each understands their rights and obligations throughout the duration of the employment.

An Employment Contract also addresses specific details unique to the job and the employer’s policies. This may include provisions regarding confidentiality, intellectual property rights, non-compete agreements, and dispute resolution mechanisms. By clearly articulating these terms upfront, the contract aims to mitigate potential misunderstandings or conflicts that may arise during the course of employment, fostering a transparent and harmonious working relationship between the employer and the employee.

An Employment Contract typically includes a comprehensive set of terms and conditions that govern the relationship between the employer and the employee. These may encompass various aspects such as:

By encompassing these key elements, an Employment Contract provides clarity and protection for both parties, ensuring a mutual understanding of their rights and obligations within the employment relationship.

Employment Contracts can vary significantly based on factors such as the nature of the job, the industry, and the preferences of both the employer and the employee. Our template allows you to create any type of Employment Contract you need, tailored to your specific requirements. Some common types of Employment Contracts include:

These contracts have no fixed end date and continue until terminated by either party according to the terms specified in the contract or as per legal requirements.

These contracts have a specified duration, after which they automatically expire. They are commonly used for temporary or project-based employment.

These contracts typically require employees to work a set number of hours per week, usually 35 to 40 hours, and are entitled to full employment benefits.

Part-time contracts involve working fewer hours than full-time employees, often with prorated benefits.

These contracts are not traditional employment contracts but rather agreements between a business and a self-employed individual to provide services for a fee. Freelancers are typically responsible for their own taxes and do not receive benefits like regular employees.

These contracts are specifically designed for individuals seeking practical work experience in a particular field, often as part of their education or training program.

In Vietnam, the probationary period is a legally recognized phase of employment where both the employer and the employee can assess each other’s suitability before entering into a formal, long-term employment contract. According to Vietnamese labor laws, the maximum duration of a probationary period depends on the nature of the job. For positions that require specialized skills or technical qualifications, the probationary period can last up to 60 days. For less specialized positions, the period is generally capped at 30 days. During this time, either party has the right to terminate the contract without prior notice and without severance pay, as long as the termination is reasonable and communicated properly.

During the probationary period, employees are typically paid at least 85% of the wage for the job they are being hired for. It is also required that the terms and conditions of the probationary period, including the duration and the salary, be clearly stated in writing. This helps ensure transparency and mutual understanding between the employer and the employee. If the probationary period is successful and the employer decides to formally hire the employee, the terms of employment will then be transitioned into a standard employment contract, reflecting the full terms and conditions of their continued employment.

Hiring a foreign employee in Vietnam involves several steps to ensure compliance with Vietnamese laws and regulations. Here’s a simple list to guide you through the process:

1. Job Posting and Recruitment: Advertise the job position and conduct the recruitment process. Ensure that you follow non-discriminatory hiring practices.

2. Obtain a Written Approval from the Local Department of Labor, Invalids, and Social Affairs (DoLISA): Submit a report justifying the need to hire a foreign worker and get approval.

3. Check the Candidate’s Qualifications: Ensure that the foreign candidate meets the qualifications and experience requirements for the position.

4. Offer Letter and Employment Contract: Issue an offer letter and prepare an employment contract.

5. Work Permit Application: The foreign employee must undergo a health check at a Vietnamese medical facility. Obtain a criminal record from the candidate’s home country or Vietnam if they have been residing there. Submit the work permit application to DoLISA, including all required documents (passport, health check, criminal record, job offer, qualifications, photos).

6. Visa Application: Apply for the appropriate visa for the foreign employee. Typically, a DN or LD visa is used for foreign workers.

7. Temporary Residence Card (TRC): After obtaining the work permit, apply for a TRC for the foreign employee, allowing them to reside in Vietnam for the duration of their employment.

8. Onboarding and Registration: Complete the onboarding process, including registering the employee with social insurance and other relevant authorities.

Yes, an Employment Contract can be modified after it’s been signed, but any modifications should be agreed upon by both the employer and the employee. Here are some key points to consider regarding modifying an Employment Contract:

While Employment Contracts can be modified after they’ve been signed, it’s essential to proceed with caution, ensuring that any changes are made in accordance with legal requirements and with the consent of both parties involved. Consulting with legal professionals or HR specialists may be advisable to navigate the process effectively.

If there are disputes regarding the terms of an Employment Contract, it’s essential to address them promptly and effectively to avoid escalation and maintain a positive working relationship between the employer and the employee. Here are some steps to consider:

1. Communication:
Open and transparent communication is key to resolving disputes. Encourage both parties to express their concerns, clarify misunderstandings, and discuss potential solutions in a constructive manner.

2. Review the Contract:
Thoroughly review the terms of the Employment Contract to identify the specific areas of disagreement. Ensure that both parties have a clear understanding of their rights and obligations as outlined in the contract.

3. Seek Mediation:
If direct communication fails to resolve the dispute, consider engaging a neutral third party, such as a mediator or arbitrator, to facilitate negotiations and help reach a mutually acceptable resolution. Mediation can provide an impartial forum for discussion and may help bridge the gap between conflicting parties.

4. Legal Advice:
If the dispute cannot be resolved through negotiation or mediation, seeking legal advice from an employment lawyer or legal expert may be necessary. A lawyer can provide guidance on relevant labor laws, contractual obligations, and potential legal remedies available to address the dispute.

5. Follow Internal Procedures:
If the employer has established internal procedures for handling disputes, ensure that these procedures are followed accordingly. This may involve escalating the matter to higher management or involving relevant HR personnel to facilitate resolution.

6. Explore Settlement Options:
In some cases, reaching a settlement agreement may be the most practical way to resolve the dispute. This could involve negotiation of mutually agreeable terms, such as compensation, contract modifications, or other remedies to address the underlying issues.

In Vietnam, an Employment Contract can be terminated by either party under certain conditions, but it’s not a completely unrestricted right. The Labor Code sets out specific grounds and procedures for termination. Both the employer and the employee must adhere to these legal requirements.

For employers, termination typically requires a valid reason such as redundancy, restructuring, the employee’s inability to perform their duties, or serious misconduct. Employers must also follow the correct procedures, which may include providing notice or severance pay depending on the circumstances and the length of the employment. On the other hand, employees can terminate the contract if the employer breaches its obligations, if the employee reaches retirement age, or in certain cases of force majeure. It’s important to note that terminating an Employment Contract without proper justification or following the correct procedures can lead to legal consequences, including the requirement to pay compensation to the other party.