                   THE SOCIALIST REPUBLIC Of VIETNAM
                     Independence-freedom-Happiness.

ORDINANCE ON LABOUR CONTRACTS

CHAPTER I GENERAL PROVISIONS Article 1

A labour contract is an agreement between an employee and an employer (hereinafter referred to as employer) in respect of a paid job in which both parties agree to the conditions of employment, the working conditions to be provided and the rights and obligations of each party.

Article 2

Labour contracts shall apply to organisations and individuals from various economic branches and sectors which employ and hire labour, and to hired employees who are to be paid wages (salaries).
Labour contracts shall not apply in the following circumstances:
1. Persons elected to public office at various levels;
2. Persons appointed to positions in the State apparatus and in State-run economic units;
3. Persons belonging to the people's armed forces;
4. Persons employed by State administrative bodies or work units.
A list of specific are categories of work to which labour contracts shall not apply shall be drawn up by the Council of Ministers.

Article 3

Labour contracts shall be concluded on a voluntary, free, and fair basis and shall not be contrary to law or collective labour agreements which have been signed.

Article 4

The State guarantees the rights and legitimate interests of contracting parties as set out in a labour contract.
The State encourages the conclusion of contracts according to which a worker shall enjoy working conditions better than those provided for in the labour law.

Article 5

A labour contract agreed to by both parties shall include the following essential matters: specification of the job; wages (or salaries); place of work; duration of the contract; conditions required by the laws on occupational saf ety and hygiene; and social insurance to be paid in respect of an employee.
The wage or salary to be paid to employee shall be no lower than the minimum wage provided for by the State.

Article 6

Labour contracts shall be concluded in written or oral form.
Orally concluded labour contracts shall comply with the provisions of this Ordinance and the provisions of the labour law currently in force.

Article 7

Both parties to a labour contract shall be obliged to strictly fulfil all terms and conditions set out in the labour contract. Any party who breaches a labour contract and thereby causes damage to the other party shall be liable to pay co mpensation according to the seriousness of the damage caused.

Article 8

1. A labour contract shall be considered to be totally null and void where:
a. One of the contracting parties has no legal capacity or is not capable of working.
b. One of the contracting parties entered into it under coercion or consequent upon a deception;
c. The contents of labour are prohibited by law;
d. The contents of the labour contract limit the right of an employee to join or to take part in trade-union activities.
2. A labour contract shall be considered to be partially null and void if part of its contents is prohibited by law but does not affect the remaining parts of the contract.
Labour inspectors shall have the power to determine whether a labour contract is partly invalid or totally void.

CHAPTER II CONCLUSION Of LABOUR CONTRACTS

Article 9

1. A labour contract shall be concluded directly between an employee and an employer or the legal representative of an employer.
2. A labour contract shall be concluded directly between an employer and each employee. A labour contract may also be signed between an employer and an employee who is authorised to represent a group of employees. In this case, the labour contract shall be as effective as if it were concluded directly with each employee.
3. An employee shall have the right to establish a number of labour relations and may conclude simultaneously more than one labour contract.
4. Labour contracts in writing shall be on the standard forms issued by the Ministry of Labour, War Invalids and Social Welfare and shall be made in two copies, one copy being for each party. In the event that both parties agree to register w ith a competent State body, the employee shall be exempt from fees and postage duties.

Article 10

When employment is to be used by a sub-contractor the principal employer shall remain liable to pay the employees their wages (salaries), allowances and compensation in the event that the sub-contractor does not pay them in full o r does not pay at all.
When an employer transfers to another person the right to ownership, the right to management or the right to use any property of the enterprise and the transfer directly relates to the performance of a labour contract, the new employer shall c ontinue to be bound by the labour contract in respect of an employee.
Where an employer goes bankrupt and his assets are liquidated, wages (salaries) owned to his employees shall have priority in being paid first.

Article 11

Labour contracts may be concluded in any of the following categories:
1. Labour contracts with an indefinite term.
2. Labour contracts with a definite term.
3. Labour contracts for a specific or seasonal job.

Article 12

Parties to a labour contract must have legal capacity and be capable of working.
An employer shall have legal status or be an individual with all the necessary pre-conditions for hiring and using labour in accordance with the provisions of the law.
Any employee 15 years of age or over shall have the right to conclude a labour contract. Persons under 15 may also conclude labour contracts for any work permitted by law, but must have the consent of parents or other legal representatives.
The Ministry of Labour, War Invalids and Social Welfare shall issue regulations on employee safeguards in respect of minors, on categories of heavy and hazardous work not permitted for persons under 18 and categories of work in whi ch persons under 15 may be employed, and on the conclusion of apprenticeship contracts.

Article 13

When concluding a labour contract, an employer and an employee may agree on a trial period and its duration.
This trial period may be concluded by means of a separate contract.
The duration of a trial period shall depend on the nature of the work but shall not exceed twenty days.
for complicated managerial and technical work, duration of a trial period may be longer, but shall not exceed a maximum of thirty days.
Rights and obligations during a trial period shall be agreed by both parties; in particular, the wage or salary shall be least 70 per cent of the amount paid for the same work at the same grade on a permanent basis. During the trial period, both parties shall have the right to cancel the labour contract without prior notice and without paying compensation.

Article 14

A labour contract shall take effect from the date of signing or from the date on which both parties reach agreement.
Where an employee has in fact started work or a trial period for which it has been agreed that there shall be no separate contract, the labour contract shall take effect from the date the employee starts work or the trial period.
When a fixed term labour contract or one for a specific or seasonal job has terminated but the employee continues to work and neither party has expressed a desire to terminate the labour contract, the labour contract shall in effect be valid until the day either of the two parties declares it to be terminated.

Article 15

An employee employed under a labour contract shall be furnished with a labour record book in accordance with provisions drawn up by the Council of Ministers.

CHAPTER III IMPLEMENTATION Of, CHANGES TO, DEfERMENT Of AND TERMINATION Of LABOUR CONTRACTS

Article 16

Both parties to a labour contract shall be responsible for the strict implementation of the terms agreed on in the labour contract.
The employer may not oblige an employee to do any work not referred to in the contract or compel an employee to work in conditions in which safety cannot be guaranteed. An employee shall comply with lawful instructions from an employer a nd with labour regulations (where such regulations exist).

Article 17

In the process of carrying out a labour contract any party wishing to change the contents of the labour contract shall give prior notice to the other party. Changes to a labour contract shall be based precisely on the same principles as ag reed on when concluding the labour contract.
Where there is a change to one of the main points of agreement as set out in Article 5 of this ordinance, a worker shall have the right to request that a new labour contract be signed.

Article 18

1. Where the conduct of production or business so requires, an employer shall have the right to transfer temporarily an employee to another place of work or to another job, but only for a period of time not exceeding a maximum of 30 days i n one year, and shall give prior notice to an employee at least one day in advance. If the duration of the transfer exceeds this length of time, the consent of the worker shall be required.
2. In sudden cases of emergencies resulting from unavoidable circumstances an employer may transfer an employee to another place of work or to another job but only for a period not exceeding a maximum of ninety days in one year. If the duration of a transfer exceeds this length of time, the consent of the employee shall be required, and if the employee does not agree, he shall receive the required allowances for suspension of work.
3. When an employer transfers an employee temporarily to another place of work or another job in accordance with the provisions of paragraphs 1 and 2 of this article, the employee shall receive a wage or salary in accordance with the new job, but this amount shall not be less than the wage or salary for this previous job.

Article 19

The performance of a labour contract may be temporarily deferred in any of the following circumstances:
1. The employee is required for military service with a permanent or reserve army unit.
2. The employee performs a public labour obligation or other obligations stipulated by law.
3. The employee is arrested or temporarily detained.
4. Other circumstances agreed on by other sides.

Article 20

A labour contract shall ipso facto be terminated in any of the following circumstances:
1. The duration of the contract has expired or the work agreed on in the contract is completed.
2. Both parties agree to terminate the contract.
3. The employee is sentenced to imprisonment or a form of punishment which prevents him from continuing in his previous work.
4. The employee dies.
5. The employer dies, or is sentenced to imprisonment or a form of punishment which prevents him from continuing in his previous work while the enterprise is closed.

Article 21

1. An employee employed under a labour contract with indefinite term shall have the right to unilaterally terminate the contract, but shall give prior notice to the employer in accordance with the provision of article 24 of this Ordinance.

2. An employee employed under a fixed term labour contract or one for a specific or seasonal job shall have the right to unilaterally terminate the contract before term, in any of the following circumstances:
(a) The employer does not provided the work or provides the work at the other place of work or does not ensure the reasonable working conditions as agreed on in the contract;
(b) The employer does not pay the employee his wages in full and on time in accordance with this contract;
(c) The employer ill-treats the employee;
(d) The employee is elected to public office or is appointed to a position in a State body;
(e) Due to family circumstances the employee is unable to continue to implement the contract.
Where a contract is terminated in accordance with the provisions of points (d) and (e), paragraph 2 of this article, the employee shall give prior notice to the employer in accordance with the provisions of article 24 of this Ordinance.

Article 22

1. An employer shall have the right to unilaterally terminate a labour contract, but shall give prior notice to the employee in accordance with the provisions of article 24 in any of the following circumstances:
(a) The employee continually fails to fulfil his tasks in accordance with the causing serious harm to the assets and interests of the enterprise, office, production establishment or business unit;
(b) The employee commits acts of theft, corruption or other acts violating the law causing serious harm to the assets and interests of the enterprise, office, production establishment of business unit;
(c) The employee suffers illness and injury and remains unable to work after having been treated for six consecutive months;
(d) Due to natural disasters, fire or other unavoidable circumstances which the employer has tried by all means to prevent but is forced to cut production and employment;
(e) The office, enterprise, production establishment or business unit is dissolved or its assets liquidated.
2. When a labour contract is terminated in accordance with points (a) and (c), paragraph 1 of this article, the following conditions shall be complied with:
(a) If the employer belongs to a non-State economic sector, he shall consult the Executive Committee of the trade union or a representative of the employees.
(b) If the employer belongs to a State economic sector, he shall abide by the provisions of paragraph 2, article 12 of the Trade Union Law.
3. When a labour contract is terminated in accordance with points (d) and (e), paragraph 1 of this article, an employer shall give prior notice and obtain the approval of the local labour office.
4. The termination of a labour contract in accordance with the provisions of paragraph 1 of this article, with regard to an employee who is the chairman or an official of the Executive Committee of the trade union, the provisions of paragraph 4 , article 15 of the Trade Union Law shall be complied with; with regard to an employee who is the representative of the employees the employer shall consult the employees.

Article 23

An employer may not unilaterally terminate a labour contract in the following circumstances:
1. The female employee is pregnant, except in the circumstances referred to in points (b) and (e), paragraph 1, article 22; on maternity leave according to administrative provisions, or is nursing a child under twelve months.
2. The employee falls ill; is the victim of a labour accident; is receiving treatment for an occupational disease; is receiving treatment or undergoing a period of rehabilitation prescribed by a doctor, except in circumstances provid ed for in point (c) and (e), paragraph 1 of article 22.
3. The employee is on his legally prescribed annual leave or taking other authorised leave.

Article 24

Prior notice as referred to in articles 21 and 22 on the unilateral termination of a labour contract shall be defined as follows:
1. for a labour contract with an indefinite term, a maximum of at least 45 days in advance.
2. for a fixed term labour contract at least 30 days in advance.
3. for a labour contract for a specific or seasonal job at least one day in advance.
Each party may unilaterally withdraw an intention to terminate a labour contract before the expiry of the period required for advance notice. After the expiry of the required for advance notice, the other side shall have the right to termina te the labour contract.

Article 25

1. When a labour contract is terminated in breach of the provisions for prior notice required by the provisions in article 21, 22, 23 and 24 of this Ordinance, the party in breach shall pay compensation to the party in a sum equal to the wa ges (salaries) which would otherwise have been paid during the notice period in accordance with the provisions of the law.
2. Depending on each case of changes to or temporary deferment of performance or termination of a labour contract, an employee may receive compensation, allowances for suspension of work, or termination of employment and shall enjoy rights as provided for by the Council of Ministers.

Article 26

Within seven days from the date of termination of a labour contract, each party shall be responsible for payment of all sums outstanding to the other party in accordance with the law. Special cases in which the period for payment may be extended beyond seven days shall be determined by the Council of Ministers. The employer shall return an employee's labour records, all files and other documents and provided required certification at the employee's request.

CHAPTER IV SETTLEMENT Of LABOUR DISPUTES AND ACTION ON VIOLATIONS

Article 27

Differences arising between two parties regarding the carrying out of a labour contract shall be regarded as a labour dispute and may be settled by the same procedures as for the settlement of labour disputes.

Article 28

The settlement of a labour dispute may be solved first of all through direct negotiations between two parties in a spirit of reconciliation and respect for mutual interests.
Both parties shall have the right to make complaints to labour inspectors; labour inspectors shall guide both sides in conciliation of a dispute strictly accordance with labour legislation, within seven days of receipt of the complaint.

Article 29

The bodies with the authority to settle labour disputes include:
1. The council of labour dispute settlement at the establishment, comprising an equal number of representatives of the employer and employees and representatives of the trade union Executive Committee (or of the employee's collective) and the settlement shall be achieved according to the principle of unanimity.
2. The council of arbiters appointed by the local labour office at district level or above.
3. The people's courts.
Procedures and jurisdictions in the settlement of labour disputes shall be in accordance with legal provisions.

Article 30

Any person violating the provisions of this Ordinance on Labour Contracts shall, depending on the seriousness of the offence, be subject on administrative penalties or shall be prosecuted for criminal liability in accordance with lega l provisions.

CHAPTER V fiNAL PROVISIONS

Article 31

Labour contracts concluded before the date on which this Ordinance on Labour Contracts comes into force shall continue to be totally valid if they do not contravene the provisions of this Ordinance. Principles contained in the Ordinance on Labour Contracts should be applied to the signing and performance of labour contracts between Vietnamese employees and individuals and organisations or offices of other countries set up in Vietnam or carr ying on activities pursuant to the Law on foreign Investment in Vietnam.

Article 32

Organisation of the conclusion of Labour Contracts in accordance with this ordinance within enterprises and offices belonging to the State-run economic sector should be carried out in accordance with provisions issued by the Council of Ministe rs, with the agreement and co-operation of the Vietnam federation of Trade Unions. Separate regulations should apply to public servants in administrative and public work.

Article 33

Any previous provisions inconsistent with this Ordinance are hereby repealed.

Article 34

The Council of Ministers shall issue detailed regulations concerning the implementation of this Ordinance.