Tiếng Việt
中文 (中国)
Normally, an employee and an employer establish an employment relationship through a written labor contract with authentic signatures of both parties. However, in some cases, an oral contract will have the same legal validity as a written labor contract. So, what are the cases where an oral contract has legal enforceability in Vietnam?
A labor contract is an agreement between an employee and an employer on paid jobs, wages, working conditions, rights, and obligations of each party in the labor relationship (Clause 1, Article 13 of the Labor Code 2019)
Clause 1, Article 20 of the Labor Code 2019 details the types of labor contracts in Vietnam. Accordingly, an labor contract must be entered into one of the following categories:
- An indefinite term labor contract is a contract in which the two parties do not determine the term and the time of termination of the contract’s validity;
- A definite-term labor contract is a contract in which the two parties determine the term, the time of termination of the contract’s validity within 36 months from the effective date of the contract.
Oral labor contract
Article 14 of the Labor Code 2019 clearly stipulates the form of a labor contract. Whereby:
– The labor contract must be entered into in writing and made in 2 copies, the employee keeps 1 copy, and the employer keeps 1 copy, except for the case specified in Clause 2, Article 14 of the Labor Code.
A labor contract entered via electronic means in the form of a data message in accordance with the law on electronic transactions has the same value as a written labor contract.
– The two parties may enter into a verbal labor contract for a 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 2019.
Thus, for a job between an employee and an employer with a term of less than 1 month, the two parties may enter into a verbal contract but not necessarily in writing. However, for the following cases, even if it is a labor contract of less than 1 month, an official written labor contract is still required:
– Entering into a labor contract with a group of employees aged full 18 years or older through an employee in the group authorized to enter into a labor contract to do seasonal work or certain jobs with a fixed term of fewer than 12 months (Clause 2, Article 18).
– Entering into labor contracts with persons under 15 years old (Point a, Clause 1, Article 145).
– Entering into labor contracts with domestic workers (Clause 1, Article 162).
The regulation on the case of entering into a verbal labor contract as above is a remarkable new point of the Labor Code 2019, developed in the direction of benefiting the employee because the Labor Code 2012 stipulates: For temporary jobs with a term of fewer than 3 months, the parties may enter into a verbal labor contract (Clause 2, Article 16 of the Labor Code).
Accordingly, with a maximum period of 1 month, the interests of employees will be more secure, avoiding the case where the employer intentionally prolongs the internship or probationary period in order to pay lower wages to the employee, and evade social insurance contributions, etc.
ASL LAW is the top-tier Vietnam law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.
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