What is a labor contract? How many types of labor contracts are there?

Pursuant to Clause 1, Article 13, the 2019 Labor Code stipulates that a labor contract is an agreement between the employee and the employer regarding paid employment, wages, working conditions, rights and obligations. obligations of each party in the labor relationship.

Currently, according to Article 20, Labor Code 2019, labor contracts include the following two types:

- An indefinite-term labor contract is a contract in which the two parties do not specify the term or termination date of the contract;

- A fixed-term labor contract is a contract in which both parties determine the term and termination date of the contract within a period of no more than 36 months from the effective date of the contract.

Is it mandatory to sign a written labor contract?

Pursuant to Article 14, Labor Code 2019, labor contracts can exist in one of the following forms:

- The labor contract must be concluded in writing and made into 02 copies, the employee keeps 01 copy, the employer keeps 01 copy, except in the case of entering into a verbal labor contract in the case of a labor contract. Contract with a term of less than 01 month.

Labor contracts concluded through electronic means in the form of data messages according to the law on electronic transactions are as valid as written labor contracts.

- Both parties can enter into a verbal labor contract for contracts with a term of less than 01 month, except for cases (1), (2), (3) section 3.

Accordingly, a labor contract can exist in one of the following forms:

- Written;

- Through electronic means in the form of data messages;

- Verbally.

Therefore, it is not required to conclude a written labor contract, but depending on the case, the employee and the employer can choose to enter into a contract in one of the three ways above.

In case the labor contract is required to be made in writing

A labor contract must be concluded in writing if it falls into one of the following cases:

(1) Labor contracts employing workers under 15 years old as prescribed in Point a, Clause 1, Article 145, Labor Code 2019, specifically:

When employing a person under 15 years old to work, the employer must enter into a written labor contract with the person under 15 years old and that person's legal representative;

(2) Labor contract with domestic worker as prescribed in Clause 1, Article 162, Labor Code 2019, specifically:

The employer must enter into a written labor contract with the domestic worker.

(3) The labor contract is concluded according to the provisions of Clause 2, Article 18, Labor Code 2019.

For seasonal work or certain jobs with a term of less than 12 months, a group of workers aged 18 or older can authorize a worker in the group to enter into a labor contract; In this case, the labor contract must be concluded in writing and has the same effect as if it were signed with each employee.

The labor contract signed by an authorized person must be accompanied by a list clearly stating the full name, date of birth, gender, place of residence and signature of each employee.

(4) Labor contracts signed with other employees have a term of 01 month or more as prescribed in Article 14, Labor Code 2019.

How much is the penalty for not signing a written labor contract?

Pursuant to the provisions in Clause 1, Article 9, Decree No. 12/2022/ND-CP violates regulations on entering into labor contracts as follows:

- Fines will be imposed on employers when committing one of the following acts: entering into unwritten labor contracts with employees doing jobs with a term of 1 full month or more; enter into non-written labor contracts with a person authorized to enter into contracts for groups of workers aged 18 or older who do seasonal work or certain jobs with a term of less than 12 months as prescribed in Clause 1 of this Article. Clause 2, Article 18, of the Labor Code; entering into the wrong type of labor contract with employees; Signing a labor contract that does not fully include the main contents of a labor contract as prescribed by law according to one of the following levels:

+ From 2,000,000 VND to 5,000,000 VND for violations from 01 person to 10 employees;

+ From 5,000,000 VND to 10,000,000 VND for violations from 11 to 50 employees;

+ From 10,000,000 VND to 15,000,000 VND for violations of 51 to 100 employees;

+ From 15,000,000 VND to 20,000,000 VND for violations from 101 to 300 employees;

+ From 20,000,000 VND to 25,000,000 VND for violations of 301 or more employees.

Note: The fine level mentioned above is the fine level for individuals. The fine for organizations is 2 times the fine for individuals. (Clause 1, Article 6, Decree No. 12/2022/ND-CP)