Signing Employment Contracts in Compliance with Regulations 2026: A Guide

Concluding employment contracts in accordance with regulations is a mandatory requirement for employers and employees in Vietnam. An employment contract executed in compliance with the law not only protects the rights and interests of employees but also helps employers avoid legal risks and unnecessary labor disputes. This article provides detailed guidance on the types of contracts, mandatory provisions, execution procedures, and important considerations that enterprises and employers must understand. This article applies in accordance with current labor law.

Legal Basis: Labor Code 2019 (No. 45/2019/QH14), Social Insurance Law 2024 (No. 41/2024/QH15), and implementing Decrees.

Types of employment contracts under current regulations

The Labor Code 2019 provides that employment contracts must be concluded in one of the following two types:

Indefinite-term employment contract

This is a type of contract in which the parties (employer and employee) do not specify the duration or expiration date of the contract. This type of contract is considered a long-term and stable form of contract, usually concluded when the employer requires long-term use of labor to perform regular work.

Fixed-term employment contract

This contract is concluded when the parties specify a duration and expiration date. According to the Labor Code, the duration of a fixed-term contract shall not exceed 36 months from the effective date. This type of contract is suitable for work of a temporary nature, project-based work, or seasonal work.

When a fixed-term contract expires and the employee continues to work, the parties must conclude a new employment contract within 30 days. If no new contract is signed after 30 days, the old contract shall automatically become an indefinite-term employment contract.

Procedures for concluding employment contracts in accordance with regulations

The execution procedure is an important element to ensure the contract has legal validity. The Labor Code 2019 requires that employment contracts must be concluded in writing and made in two copies—one copy for the employee and one copy for the employer.

In addition to the traditional paper form, Vietnamese law also recognizes employment contracts concluded in electronic form. According to new provisions, employment contracts may be concluded through electronic means in the form of data messages in accordance with the law on electronic transactions, and shall have the same effect as contracts in traditional written form.

Additionally, employment contracts may be concluded orally for contracts with a duration of less than one month, except for certain cases as provided by law, such as contracts concluded by an employee authorized on behalf of a group of employees performing seasonal work or work of a specified nature with a duration of less than 12 months, contracts with persons under 15 years of age and their legal representatives, and contracts with domestic workers.

Mandatory provisions in employment contracts

Article 21 of the Labor Code 2019 provides that employment contracts must contain the following main provisions:

• Name, address of the employer, and name and title of the person concluding the contract on behalf of the employer

• Personal information of the employee: full name, date of birth, gender, place of residence, national identification card number, identity card number, or passport number

• Job duties and workplace

• Duration of the employment contract

• Salary according to the job or position, form of salary payment, salary payment period, salary supplements, and other additional compensation

• Provisions on salary and wage increases

• Working hours and rest periods

• Provision of occupational safety and health protection equipment for the employee

• Social insurance, health insurance, and unemployment insurance

• Training, professional development, skill enhancement and upgrading

All of these provisions are mandatory and must be clearly agreed upon by both parties to prevent disputes during the performance of the contract.

Responsibilities of employers when concluding employment contracts

When concluding employment contracts, the Social Insurance Law 2024 and Labor Code require employers to fulfill their responsibilities, which include:

• Register for mandatory social insurance for employees and coordinate with social insurance authorities

• Pay mandatory social insurance contributions for employees in accordance with the law

• Prepare files for employees to receive social insurance benefits and other entitlements

• Provide complete, accurate, and timely information related to social insurance contributions and benefits as requested by competent state authorities

• Provide occupational safety and health protection equipment and ensure occupational safety and health at the workplace in accordance with occupational safety and health law

Important considerations when concluding employment contracts

To avoid errors and legal risks, enterprises should pay attention to the following points:

Do not modify the contract duration through amendments

According to the Labor Code 2019, when preparing amendments to employment contracts to modify or supplement certain provisions, the parties MUST NOT modify the duration of the employment contract. Amendments may only be used to detail or supplement other provisions without changing the essence of the contract.

Ensure the authority of both parties to conclude the contract

The contract must be signed by persons with proper authority—the legal representative of the enterprise on behalf of the employer and the employee themselves on the other side, except in cases of seasonal work or work of a specified nature with a duration of less than 12 months, where a group of employees aged 18 and above may authorize one employee in the group to conclude the employment contract.

Retain complete documentation

Enterprises should keep complete and secure records of all contracts, amendments, and related documents as evidence in case of labor disputes or when competent authorities conduct inspections.

Update the contract when working conditions change

If there are changes to the job, workplace, salary, or working arrangements, the parties should prepare supplementary amendments or conclude a new contract to record these changes and prevent future disputes.

Adjustment of employment contracts upon expiration

When a fixed-term contract is about to expire, enterprises should actively prepare to conclude a new contract if they need to continue using labor. It should be noted that:

• A new contract must be concluded within 30 days from the expiration of the old contract

• If a subsequent fixed-term contract is to be concluded, it may only be signed one additional time. After that, if labor is still needed, an indefinite-term employment contract must be concluded

• During the period when a new contract has not yet been signed (if delayed), the rights, obligations, and benefits of both parties remain governed by the old contract

A clear understanding of regulations on concluding employment contracts in accordance with the law is essential for all enterprises. A&D Law Firm—a business legal consultancy in Vietnam—is ready to assist you in drafting and reviewing employment contracts in compliance with current regulations, helping protect the interests of your enterprise and establish stable, long-term employment relationships.

Legal support for employment contracts from A&D Law Firm

Drafting and concluding employment contracts in compliance with the law helps enterprises minimize legal risks, prevent labor disputes, and avoid violations that could result in penalties.

Consult A&D Law Firm's services on labor law consultation and legal services for enterprises in industrial zones. Contact A&D Law Firm or call our hotline 0896868989 to receive direct consultation from our attorneys.

Disclaimer: The content of this article is for general reference purposes only regarding regulations on employment contract conclusion as of the publication date and does not replace legal advice for specific cases. As legal provisions may change, enterprises should contact A&D Law Firm's specialized attorneys for detailed, accurate, and situation-specific legal advice.