Tiếng Việt
中文 (中国)
Labor contract, a popular concept in Vietnam, is the most important factor verifying the labor relationship between the employee and the employer. On the other hand, the concept of a working contract is a factor that confuses many workers, often mistakenly equating it as one. So, what is the difference between a working contract and a labor contract in Vietnam?
Labor contract
Articles 13 and 14 of the Labor Code 2019 have the following provisions:
- A labor contract (employment contract) is an agreement between an employee and an employer on a paid job, salary, working conditions, and the rights and obligations of each party in the labor relations.
- A document with a different name is also considered a labor contract if it contains the agreement on the paid job, salary, management and supervision of a party.
- Before recruiting an employee, the employer shall enter into a labor contract with such employee. A labor contract shall be concluded in writing and made into two copies, one of which will be kept by the employee, the other by the employer, except for the case to be an oral labor contract.
- A labor contract in the form of electronic data conformable with electronic transaction laws shall have the same value as that of a physical contract.
- Both parties may conclude an oral contract with a term of less than 01 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.
Working contract
Clause 5, Article 3 of the Law on Public employees 2010 stipulates: “A working contract is a written agreement between an public employee or a person recruited as an public employee and the head of a public non-business unit on a job position, wages, remuneration, working conditions, rights and obligations of each party.”
Article 25 of the Law on Public employees 2010 stipulates that the subjects entering into a working contract include:
– Heads of public non-business units.
– Persons who are public employees or who are recruited into public employees.
– Persons who are cadres or civil servants are recruited into public employees.
In terms of form, a working contract must be entered into in writing and there is no existence of a verbal working contract in accordance with Vietnamese law. The working contract must be made in 3 copies, one copy shall be handed to the public employees.
The difference between a working contract and a labor contract in Vietnam
In essence, a labor contract is a contract signed between an employee and an employer working in the private sector, while a working contract is a contract signed between Vietnamese citizens working in the public sector, that is, working for the State of the Socialist Republic of Vietnam.
The Law on Public employees 2010 has the following concepts about public employees and non-business units:
– Public employees are Vietnamese citizens recruited according to working positions, working in public non-business units under working contracts and salaried from salary funds of public non-business units in accordance with law.
– Public non-business unit is an organization established under law by a competent state agency, a political organization or a socio-political organization, having the legal person status and providing public services and serving state management work.
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