Concept

An indefinite-term employment contract is a contract in which the two parties neither fix the term nor the time of termination of the contract

A fixed-term employment contract is a contract in which the two parties fix the term of the contract for a duration of up to 36 months from the date of its conclusion

The duration of employment contract

Indefinite term

Duration for no more than 36 months

There is no end of the contract.

When the employment contract expires but the employee keeps working, the following actions shall be taken: employee keeps working

– Within 30 days from the expiration date of the employment contract, both parties shall conclude a new employment contract. Before such a new employment contract is concluded, the parties’ rights, obligations and interests specified in the old employment contract shall remain effective;

– If a new employment contract is not concluded after the 30-day period, the existing employment contract mentioned in Point b Clause 1 Article 20 shall become an employment contract of indefinite term;

– The parties may enter into 01 more fixed-term employment contract. If the employee keeps working upon expiration of this second fixed-term employment contract, the third employment contract shall be of indefinite term, except for employment contracts with directors of state-invested enterprises and the cases specified in Clause 1 Article 149, Clause 2 Article 151 and Clause 4 Article 177 of the Labor Code 2019.

Time of notices  in unilaterally terminate the employment contract in advance

Except for cases without prior notice, An employee unilaterally terminate the employment contract, provided he/she notices the employee in advance:

– At least 45 days.

– For special works and lines of business in Clause 1, Article 7 of Decree No. 145/2020/ND-CP, at least 120 days’ notice must be given.

Except for cases without prior notice, An employee unilaterally terminate the employment contract, provided he/she notices the employee in advance:

– At least 30 days in case of an employment contract with a fixed term of 12 – 36 months;

– At least 03 working days in case of an employment contract with a fixed term of under 12 months;

– For special works and lines of business in Clause 1, Article 7 of Decree No. 145/2020/ND-CP prior notice period as follows:

• At least 120 days before the termination date if the employment contract has a term of at least 12 months;
• At least one fourth (1/4) of the employment contract duration if the duration is less than 12 months.

Payment compulsory social insurance; Health insurance; Unemployment insurance; Insurance for occupational accidents or occupational diseases

Close all types of insurance as follows:

– Compulsory social insurance;

– Insurance for occupational accidents or occupational diseases;

– Health insurance;

– Unemployment insurance.

– For employment contracts under 1 month: Not participating in any type of insurance;

– For employment contracts with a term from full 01 month to less than 03 months, payment:

• Compulsory social insurance;
• Insurance for occupational accidents or occupational diseases.

– For employment contracts from full 03 months or more, pay:

• Compulsory social insurance;
• Health insurance;
• Insurance for occupational accidents or occupational diseases.

– Regarding unemployment insurance, according to the provisions of the Employment Law 2013:

• Workers are obliged to participate in unemployment insurance when working under labor contracts seasonal or job-based working contracts with a term of between full 3 months and under 12 months (however this type of contract has been canceled under the provisions of the Labor Code 2019).
• For labor contracts with a term of 12 months or more, they must participate in unemployment insurance.