According to the provisions of the Labor Code 2019 (current) effective from January 1, 2021, there are two types of labor contracts, including: indefinite term labor contract and definite labor contract. duration.

1) Legal grounds

– Labor Code 2019

2) Labor contract with indefinite term

Pursuant to Point a, Clause 1, Article 20 of the Labor Code 2019:

“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;”

Example: Mr. A (Director of MT Co., Ltd.) recruits Ms. B to be the director’s secretary. On October 3, 2022, the two parties established a labor contract, but there is no provision on the expiration of the contract between Mr. A and Mrs. B. So this is an indefinite-term labor contract because Mr. A and B could not determine the term and time of termination of the contract between the two parties.

3) Fixed-term labor contract

Pursuant to point b, Clause 1, Article 20 of the Labor Code 2019:

A definite-term labor contract is a contract in which the two parties determine the term and the time of termination of the contract’s validity within a period not exceeding 36 months from the effective date of the contract.

Example: Mr. M (owner of KT company – the company’s main business is distribution of fresh flowers) hires Ms. N as a flower care worker. Mr. M and Mrs. N committed to giving Ms. N a 20-day trial. After 20 days, if both parties feel that they can continue to work, the two parties will sign an official contract. After the agreement, Mr. M and Ms. N signed a labor contract with a probationary period of 20 days. So, this is a fixed-term labor contract because Mr. M and Mrs. N have determined the term. , the time of contract termination is after 20 days of probation (under 36 months) from the date of signing the contract.

Accordingly, in the case when the labor contract with a definite term expires but the employee continues to work, according to Clause 2, Article 20 of the Labor Code 2019:

Within 30 days from the date of expiration of the labor contract, the two parties must sign a new labor contract; If within 30 days from the date of termination of the previous labor contract, the two parties have not signed a new labor contract, the rights, obligations and interests of the two parties shall be performed according to the fixed-term contract. previously committed.

In case the time limit of 30 days from the date of expiration of the signed labor contract has expired but the two parties do not sign a new labor contract, the definite-term contract signed previously shall become an invalid labor contract. determine the deadline.

In case two parties sign a new labor contract which is a definite-term labor contract, it is only allowed to sign one more time, after that, if the employee continues to work, he/she must sign an undefined labor contract. time limit, except for the following cases:

– To sign labor contracts for persons hired as directors in state-owned enterprises.

– When employing elderly employees, the two parties may agree to enter into multiple definite-term labor contracts. (Based on Clause 1, Article 149 of the Labor Code 2019).

– In case of employing foreign workers to work in Vietnam, the two parties may agree to enter into multiple definite-term labor contracts. (Based on Clause 2, Article 151 of the Labor Code 2019).

– In case it is necessary to extend the signed labor contract to the end of the term for the employee who is a member of the leadership board of the employee representative organization at the grassroots during the term when the labor contract expires. (Based on Clause 4, Article 177 of the Labor Code 2019).

Above is Khoa Tin‘s advice on types of labor contracts.

In case customers have unclear problems or need to discuss further, please call us immediately at 0983.533.005 for a free consultation.

Best regards./.