Unpaid Work Agreement Template (Free Download)

An unpaid work agreement is an important legal document in labor relations, helping employees and employers reach an agreement on suspending salary payments for a specific period of time. Understanding the legal regulations, rights and obligations of the parties involved will help avoid potential legal risks and protect the legitimate rights of employees. 1C Vietnam will guide you on how to build an unpaid work agreement in accordance with the law.

1. What is an unpaid work agreement?

An unpaid work agreement is a written agreement between an employee and an employer that the employee will continue to work or temporarily stop working for a certain period of time without receiving pay.

Unpaid work agreements are often used in the following situations:

• Employees request unpaid leave for personal reasons
• Probationary period without pay as agreed
• Unpaid training and internship period
• The company is in financial difficulty and is forced to temporarily cut costs.
• Force majeure situations such as natural disasters and epidemics disrupt production activities.

In labor relations, unpaid work agreements play an important role in ensuring transparency and legality. This document helps to clearly define the rights and obligations of the parties, avoiding future disputes. It is important that this agreement is based on the voluntary agreement of both parties and complies with the provisions of current labor laws.

2. Legal regulations on unpaid work agreements

Vietnamese law has specific provisions on unpaid work agreements to protect the rights of both employees and employers.

According to the 2019 Labor Code, specifically in Article 115, employees have the right to take unpaid leave in the following cases:

• Personal leave without remaining annual leave or not enough leave
• Leave of absence for other personal reasons and with the employer's consent
• Unpaid leave due to business suspension due to objective difficulties

On the rights and responsibilities of the parties involved:

• Workers:
  • Right to request unpaid leave for justifiable reasons
  • Must notify the employer in advance according to internal regulations.
  • Must comply with agreed rest time
  • Right to return to work after unpaid leave ends
• Employers:
  • Have the right to agree or disagree with the request for unpaid leave
  • Workers should not be forced to take unpaid leave.
  • Must ensure compliance with regulations on working time and rest time.
  • Must accept employees back to work after the leave period ends.

Regarding social insurance when taking unpaid leave, the law stipulates:

• Cases of payment: If the unpaid leave is less than 14 working days in a month, the employer must still pay social insurance, health insurance and unemployment insurance for the employee.
• Exemption: If the unpaid leave is 14 working days or more in a month, the employer and employee are allowed to temporarily stop paying into the pension and death fund according to the provisions of Decree 115/2015/ND-CP.

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3. Sample agreement to work without pay

An unpaid work agreement must be in writing to ensure its legality and protect the rights of all parties. Below is a guide to the structure and content of this agreement.

The basic structure of an unpaid work agreement includes:

• Title of the minutes
• Employer information (company name, address, representative)
• Employee information (full name, date of birth, ID card/CCCD number, position)
• Agreement content:
  • Reason for unpaid leave
  • Start and end time
  • Rights and obligations of the parties during the break
  • Social insurance, health insurance
• Commitment of the parties
• Signature of employee and employer representative
• Date of record

Employees can download the latest standard minutes form for 2025 at the official website of the Ministry of Labor, War Invalids and Social Affairs or from other reliable legal sources.

When filling out an agreement to work without pay, please note:

Step 1: Fill in full personal information of the employee and information of the employer.

Step 2: Clearly state the reason for unpaid leave, which must be specific and in accordance with legal regulations.

Step 3: Determine the exact start and end dates of your unpaid leave.

Step 4: Clarify the rights and obligations of each party during the break.

Step 5: Make sure both parties sign and date the minutes to make them legally valid.

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4. Points to note when signing an unpaid work agreement

When signing an unpaid work agreement, both employees and employers need to pay attention to some important points to ensure legality and protect the rights of all parties.

Conditions for a legal unpaid work agreement include:

• Voluntary consent of both parties, without coercion
• The content of the agreement does not violate labor laws.
• The agreement must be in writing.
• Each party retains a fully signed copy of the agreement.
• Unpaid leave must be specifically defined.

Failure to comply with regulations can lead to a number of legal risks:

• Labor disputes can arise if the agreement is unclear or lacks transparency.
• Employers may be subject to administrative penalties under Decree 28/2020/ND-CP if they force employees to take unpaid leave.
• Employees can sue for damages if their rights are violated.
• Risks of paying social insurance incorrectly

To avoid the above risks, both parties should:

• Learn about labor laws or consult a legal expert.
• Make sure the agreement is in writing with specific, clear content.
• Fully acknowledge the rights and obligations of each party
• Keep the agreement and related documents carefully.
• Regularly update changes in labor laws

5. Rights and obligations of the parties in the agreement

When entering into an unpaid work agreement, each party has certain rights and obligations that are protected and regulated by law.

Employee benefits during unpaid leave include:

• Job position is reserved after returning to work
• Continuous working time is still counted if the leave period does not exceed 1 month.
• Not considered as quitting without permission if there is a clear agreement
• Have the right to unilaterally terminate the agreement before the term with prior notice as prescribed
• Annual leave is calculated proportionally to actual working time.

Employee obligations:

• Comply with agreed rest time
• Periodic reports as required by the employer (if any)
• Return to work on time as agreed
• Complete administrative procedures related to unpaid leave

Employer's rights:

• Allowed to suspend salary payment during employee leave
• Have the right to hire someone else to temporarily replace the employee during the employee's leave.
• Allowed to impose reasonable conditions on unpaid leave

Obligations of the employer:

• Ensure transparency in the agreement
• Workers should not be forced to take unpaid leave.
• Must accept employees back to work after the end of the leave period
• Pay social insurance according to the law
• Comply with the commitments in the agreement

6. Frequently asked questions about unpaid work agreements

Do employees who take unpaid leave have to pay social insurance?

If the employee is absent from work for less than 14 working days in a month, the employee and the employer must still pay social insurance. If the employee is absent from work for 14 working days or more in a month, the contribution to the pension and death fund can be temporarily suspended, but the employee must still pay health insurance.

Does an unpaid work agreement need to be notarized?

Unpaid work agreements do not have to be notarized. However, the agreement must be signed by all parties and made in multiple copies for each party to keep.

What are the common types of unpaid leave?

Unpaid leave for personal reasons, leave due to temporary suspension of company operations, unpaid leave for study/training, unpaid leave due to prolonged illness after insurance coverage has run out, and unpaid leave due to natural disasters/epidemics.

How is unpaid leave different from paid leave?

Paid leave is the right of the employee to receive full salary and insurance benefits during the leave. Unpaid leave is an agreement between the two parties, the employee does not receive salary and can temporarily stop paying some types of insurance. Paid leave is limited by law, while unpaid leave can be extended by agreement.

An unpaid work agreement is an important legal tool that helps employees and employers reach an agreement in special situations. Understanding the legal regulations, following the correct agreement drafting process, and understanding the rights and obligations of each party will help protect legitimate interests and avoid potential legal risks. 1C Vietnam recommends that employees and businesses consult legal experts when drafting an unpaid work agreement to ensure the legality and effectiveness of the document.

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