Types of current labor contracts? Principles when signings

What is a labor contract?

An employment contract is a written agreement between two main subjects, the employer and the employee. In this contract, there will be contents stipulating the conditions, rights and obligations between the contracting parties. The two subjects will sign a labor contract on a voluntary basis and in compliance with the State's regulations.

Labor contract

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Types of labor contracts

Based on article 20 of the Labor Code issued in 2019, labor contracts are divided into 2 types based on the duration of the contract. The duration of this contract will be counted from the time of signing to the time of arising according to the content of the contract.

• Labor contract with indefinite term: For this type of contract, the signatories will not specify the exact time to finish the work. Example: B signs a contract to work with company Y. The contract only specifies the signing time, not the contract's ending time. Therefore, B can terminate the labor contract when an incident or problem occurs that terminates the labor relationship.

Sample labor contract with indefinite period

• Fixed-term labor contract: This type of labor contract has a fixed term for the official termination of the contract. Example: B signs a labor contract with enterprise Y for a period of 24 months. At the end of the contract, if B does not want to continue to sign the contract with company Y, the labor relationship of the two parties will be terminated.

Sample labor contract with fixed term

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Principles when entering into labor contracts

The principle of entering into a labor contract is understood as the ideas that are thoroughly understood in the contract that the parties must adhere to during the time of signing. When signing a labor contract, an enterprise needs to fully meet three following principles:

• Principle of freedom and voluntary agreement: The two parties sign the labor contract in the spirit of freedom and voluntariness. When a fraudulent act occurs when signing, the labor contract will now be void.
• The principle of equality: Both parties in a labor contract need to treat each other equally. Any party that causes inequality within the contract period will be considered a violation of the laws of the State.
• The principle of not being against the law and the collective labor agreement: A labor contract can only be signed after the two parties have reached a mutual agreement. However, the content and charter of the contract should be within the ethical and legal framework of the state as well as the collective labor agreement.

Principles when entering into labor contracts

Who is authorized to sign the labor contract?

According to the provisions of the Labor Code 2019, the representative of the employer will be the competent authority to sign the labor contract. The employer's representative can be a legal representative, a director or a contractual proxy. In addition, both the employee and the employer need to have full behavioral capacity in accordance with State regulations.

The employer's representative is the subject that has the authority to sign the contract

The above article of Viindoo has shared to businesses information about current types of labor contracts in accordance with the law. Labor contract is a very important document for employees and employers. Therefore, businesses should carefully refer to the article to understand the basic information about labor contracts.

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