Latest labor contract form 2024 (according to the Labor Code)
The labor contract template is widely used in recruitment activities of businesses, and is an important legal document between employees and employers. To help businesses save time in drafting, 1C Vietnam has compiled sample labor contract forms in the article below as well as principles to keep in mind when signing. Let's find out now!
1. What is a labor contract?
Pursuant to Clause 1, Article 13 of the 2019 Labor Code, a labor contract is an agreement between the employee and the employer regarding work that includes salary agreements; working conditions; rights and obligations of the parties when participating in this labor relationship.
The labor contract is the basis for establishing the relationship between the employee and the employer. This document serves as legal evidence, ensuring the implementation of the rights and obligations of all parties. Through the contract, the participating parties also demonstrate their willingness to establish and maintain a labor relationship. Finally, the contract is also the basis for resolving disputes that arise during the cooperation process.
2. There are 2 popular types of labor contracts today
Based on the 2019 Labor Code, effective from 2021, there are two types of labor contracts, specifically as follows:
2.1 Labor contract with fixed term
A fixed-term labor contract is a type of contract in which the time and conditions for termination of the contract are specifically determined from the beginning. Normally, this type of contract has a duration of no more than 36 months from the date the contract takes effect, and is used in cases of specific projects or time-limited work.
2.2 Labor contract with indefinite term
An indefinite labor contract is a contract model in which information such as working time and contract termination conditions are not determined from the beginning. The contract will exist until there is a decision to terminate by either party. This type of contract is often used for key positions in the business, who have experience and want to maintain a long-term relationship.
Note: From 2021, seasonal labor contract forms and contracts for work less than 12 months are no longer legally valid. If a business wants to sign a short-term contract with an employee, it can use a fixed-term contract.
3. Latest standard labor contract form 2024 according to the Labor Code
Depending on job characteristics and specific positions, businesses can use appropriate labor contract templates . Below is a commonly used standard labor contract form compiled by 1C Vietnam.
3.1 The simplest form of labor contract
This labor contract form is very popular, can be used in most cases, and applies to a variety of industries and fields. The content of the contract ensures full rights and obligations of both parties involved. Refer to the simplest labor contract sample below:
3.2 Sample of fixed-term labor contract
The form of a fixed-term labor contract clearly stipulates the time and conditions for termination of the contract. In cases where employees work for less than 3 years, fixed-term contracts are preferred. Refer to the sample below:
3.3 Sample labor contract with indefinite term
For employees with a lot of work experience and a desire to stay long-term with a key position in the company, an indefinite labor contract form is often used. This type of contract is flexible for employees and employers but also poses some challenges regarding managing the terms. Below is a sample labor contract with an indefinite term:
3.4 Labor contract sample Word file with probation
A labor contract with probation is a type of contract in which the employee must go through a trial period before signing an official contract. The probationary period is intended to evaluate the employee's skills, suitability for the position as well as work efficiency. After completing this process, businesses and employees can sign an official contract. Refer to the sample labor contract below:
3.5 Sample bilingual labor contract English - Vietnamese
For businesses doing business in a multilingual environment, bilingual labor contract templates should be prioritized to provide transparency and clarity for both parties to the contract. Making bilingual contracts also limits disputes and misunderstandings during the work process. Enterprises can refer to the following bilingual word file sample labor contract:
3.6 Sample labor contract appendix
Most contracts have an appendix to supplement terms, information or modifications related to the main contract. Addendums can contain important information, helping to clarify agreements in the main contract to meet special conditions depending on the location. Refer to the sample appendix below:
4. Necessary contents in the labor contract form
The standard labor contract form according to the provisions of the 2019 Labor Code needs to fully ensure the following contents:
- Work to be done: This is the most important part of the labor contract, determining the specific tasks the employee will perform when participating in labor relations with the enterprise. Information includes: Job name; Job content and Requirements regarding expertise, experience, and qualifications.
- Contract term: The term of the labor contract stipulates the period of time that the two parties have agreed to maintain the labor relationship. There are two types of contract term, including: Definite term and indefinite term.
- Salary and benefits: This is the amount of money the employee is paid when performing work as agreed in the contract. According to the 2019 Labor Code, wages are determined based on title, job or a unit of product.
- Working and rest hours: This content is related to the time that employees have off during the week, month, and year. Besides, the contract also needs to clearly stipulate public holidays, Tet, etc.
- Some other contents: Some other contents also need to be clearly specified in the labor contract including working location; probationary period; compensation and leave regime; Labor safety conditions and types of insurance.
5. Principles to remember when concluding labor contracts
Based on the Labor Code effective from 2019, when signing a labor contract, participants need to note a few things below:
1 - Probation period
- No more than 180 people for business management positions.
- No more than 60 days for workers with a college degree or higher.
- No more than 30 days for workers with intermediate qualifications.
- Maximum 6 days for other locations.
- Employees only have one probation period for one job and no probation for contracts with a fixed term of less than 1 month.
2 - Probationary salary
- Minimum equal to 85% of agreed official salary.
- Mandatory signing of an official labor contract when the employee meets the probationary requirements.
3 - Official salary: Must not be lower than the regional minimum salary prescribed by the State.
4 - Regarding identification documents, certificates and diplomas: Enterprises are not allowed to keep identification documents, certificates, diplomas or original copies of employees.
5 - Overtime pay: Comply with the current Labor Code on time and overtime pay.
6 - Holiday regulations: Employees are entitled to 10 holidays and New Year holidays according to the provisions of law and 12 days of leave per year.
7 - There are specific penalties for violations of labor contracts.
6. Manage labor contracts systematically with 1C:Document Management
The number of human resource contracts in businesses is often very large. If not systematically stored and managed, contracts will easily be lost, affecting the interests of the parties involved, and making it difficult to find information. Understanding that, 1C Vietnam offers 1C:Document Management solution, which helps digitize and visually manage labor contracts as well as related documents in businesses.
Some outstanding features of the software to support businesses in managing labor contracts include:
- Record contract types by multiple attributes and multiple attachments. Easily link personnel contracts with other types of documents, automatically circulating to the board of directors for approval.
- Decentralize access rights according to each type of contract, keeping important information confidential.
- Quickly integrate with printers, scanners and other types of devices.
- Easily extract reports and track labor contract processing...
Thus, in the article above, 1C Vietnam has compiled the latest labor contract samples as well as issues to note during the signing process. Hope your business has more useful information. If you want more details about 1C:Document Management software, please contact 1C Vietnam for support.