What to Note When Signing Labour Contract with Foreign Workers?
With the policy of
opening the economy in Vietnam, not only Vietnam attracts investors to set up company,
but also the demand for foreign workers in enterprises grows and diversifies.
However, in order for Vietnam companies to be able to use foreign workers, they
must sign a labor contract.
After meeting the
conditions specified in the Labor Code on meeting the requirements for
recruitment and working in Vietnam, the foreign worker working in Vietnam shall
sign a labor contract before the expected date intend to work for the employer.
In this contract, the employer and the foreign worker will agree on all issues
arising in the process of working as well as using labor together.
Firstly, on the working
position in the labor contract, it must show the correct position and position
for which the employer has determined the needs with the competent authority
and in accordance with the working position shown in the document and the work
permits which have been granted to foreign workers.
Regarding the working
time, it will normally be agreed upon by the two parties but must not exceed
the number of working days (hours) as prescribed by Vietnamese law. The number
of overtime hours must be based on voluntary work and must ensure rest time,
rest during working time and weekends for foreign workers.
According to the
provisions of the Labor Code, in addition to Vietnamese public holidays and New
Year’s holidays, foreign workers are allowed to take one more day off for the
national traditional New Year and one national day of the country. This is a
humane regulation, respecting the national culture of Vietnam. Therefore, the
employer needs to learn about the National Day and the traditional Tet holiday
of foreign workers so that the employees can take leave in accordance with the
provisions of the law.
Regarding the term of
the labor contract, the term of the labor contract for foreigners is also
governed by the duration of the work permit issued by the competent Vietnamese
authority. Accordingly, the term of the labor contract for foreign workers working in Vietnam must not exceed the term of the work permit. Therefore, the
employer should pay attention to conclude the contract term in accordance with
regulations.
In addition, employers
and foreign workers should be aware of the terms of disputes which could potentially
arise. Because, contract terms are an important legal basis to resolve when a
labor dispute arises, agreeing in advance on how to resolve a dispute when a
dispute arises will create a clear legal foundation for easy settlement by both
parties. Labour dispute lawyers in Vietnam are suggested to be consulted at an early stage
to avoid dispute escalation.
At most, it is important
that the employers and foreign workers need to pay attention and strictly
comply with the provisions of the law so that the process of entering into and
performing the contract is conducted smoothly and in compliance with the law in
Vietnam.
ANT Lawyers in a law firm in Vietnam, recognized by Legal500, IFLR1000. We are an exclusive Vietnam member of Prea Legal, the global law firm network covering more than 150 jurisdictions. The firm provides a range of legal services to multinational and domestic clients. For advice or services request, please contact us via email ant@antlawyers.vn
Source ANTLawyers: https://antlawyers.vn/library/what-to-note-when-signing-labour-contract-with-foreign-workers.html
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