What is an indefinite-term labor contract?

Pursuant to the provisions in Article 20 Labor Code 2019 An indefinite-term labor contract can be understood as a contract in which the two parties do not specify the term or termination date of the contract.

Signed contracts of indefinite term must comply with the following principles:

- Voluntary, equality, goodwill, cooperation and honesty.

- Freedom to enter into labor contracts but not against the law, collective labor agreement and social ethics.

Contract cases with indefinite term

Pursuant to the provisions in Article 14 and Article 20 Labor Code 2019 An indefinite labor contract will be signed in the following cases:

(1) Case 1: The labor contract is signed according to the agreement between the enterprise and the employee with the working term stated in the labor contract being indefinite.

(2) Case 2: The enterprise and the employee have signed a labor contract with a fixed term. After the contract expires, the employee continues to work but within 30 days from the date of the contract. If the labor contract expires and the two parties do not sign a new labor contract, the signed contract becomes an indefinite-term labor contract.

(3) Case 3: The enterprise and the employee have signed two consecutive labor contracts with a fixed term. When the second labor contract signed expires and the employee continues to work, the enterprise will continue to work. and employees must sign an indefinite-term labor contract.

Is it possible to re-sign a contract for an indefinite term?

Pursuant to the provisions inLabor Code 2019 and related regulations, there are no regulations prohibiting businesses and employees from resigning previously signed indefinite-term labor contracts.

Therefore, if there is a need, businesses and employees can agree to terminate the old labor contract and re-sign a new indefinite labor contract. But it should be noted that re-signing the labor contract in this case must comply with relevant regulationsLabor Code 2019 and other related regulations.

In addition, if you do not want to terminate the validity of the old labor contract, the business and employee can agree on related issues and sign an appendix to the labor contract regarding those change agreements.

Accordingly, in Article 22 Labor Code 2019 Regulations on labor contract appendices are as follows:

- The labor contract appendix is ​​part of the labor contract and has the same effect as the labor contract.

- The labor contract appendix details, amends and supplements a number of articles and clauses of the labor contract but does not amend the term of the labor contract.

In case the labor contract appendix details a number of articles and clauses of the labor contract that lead to a different interpretation from the labor contract, the content of the labor contract shall be implemented.

In case the labor contract appendix amends or supplements a number of articles and clauses of the labor contract, it must clearly state the content of the amended and supplemented articles and clauses and the effective date.