Regulations on probation before officially working in Vietnam, Regulations on probation, Regulations on probation period in Vietnam, Violations of the labor code regarding the probationary period

Regulations on probation before officially working in Vietnam

Normally, the graduate college students who first experience society for the first time will go to one of the big’s corporations for their internship in which they will get no salary. After the internship, they will get to a probation period to self-evaluate that do they fit with the company. At the same time, the company will reevaluate that person’s capability. This probation period is slightly confused to most people because it is a legal working status according to the law but it is also somewhat not an affirmed position. So, what are the regulations on probation before officially working in Vietnam?

Regulations on probation period in Vietnam

According to the provisions of Article 25 of the Labor Code 2019, an employee and an employer can agree on a probation period. However, for each job, there can only be one probation period.

Along with that, the maximum probationary period must also comply with the regulations:

  • 180 days: Business manager’s job.
  • 60 days: The job requires professional and technical qualifications from college or higher.
  • 30 days: The job requires professional qualifications, intermediate technicians, technical workers, professional staff.
  • 06 working days: Other work.

Pursuant to Article 27 of the Labor Code 2019, after the end of the above probationary period, the employer must notify the probation result to the employee.

After the probation period, there can normally be 2 outcomes. 

First, the employee is qualified and he/she will sign a labor contract if previously signed a probationary contract or continue to perform the signed labor contract if previously signed a labor contract for probation.

Second, if the employee is unqualified, he/she will get their probationary contract terminated or labor contract with the probation content recorded.

Violations of the labor code regarding the probationary period

Although rarely, sometimes the employer might try to abuse their power, violating the law and the employee’s rights by paying them a lower salary according to the Labor Code. 

However, both the Labor Code 2012 or the Labor Code 2019 stipulates that the probationary salary is equal to at least 85% of the salary of the job. Paying probationary salaries lower than the prescribed level is a violation of the law. Accordingly, the employer will be administratively fined according to Point c, Clause 2, Article 9 of Decree 28/2020/ND-CP as follows:

“2. A fine of between VND 2,000,000 and 5,000,000 shall be imposed on the employer who commits one of the following acts:

c) Paying employees during the probationary period less than 85% of the salary for that job;”

Besides being fined up to 5 million VND, employers who pay probationary wages lower than 85% are also required to pay full wages at this level for employees.

Regulations on probation before officially working in Vietnam
Regulations on probation before officially working in Vietnam

In addition, another scenario is that after the probationary period ends, the employers may keep trying to prolong the employee’s probationary period to pay them lesser than what they deserved to earn.

Although the law does not specify the time to sign a labor contract after the probationary period ends, however, if the company does not sign a labor contract with the employee after the probationary period ends for too long or violate the agreed time in the probationary contract, the company will be administratively sanctioned according to Decree 28/2020/ND-CP with the following fines:

  • A fine ranging from VND 500,000 – 01 million: Failure to notify the results of the probationary period of the employee.
  • A fine ranging from VND 01 to 05 million: At the end of the probationary period, the employee continues to work but the employer does not sign a labor contract with the employee.

Accordingly, in order not to be penalized for violations, after the probationary period ends and the results are met, the company needs to sign a labor contract with the employee.

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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