Labor Code of Vietnam 1994, amended in 2002, 2006, 2007 and 2011 covers many aspects of labor relationships including employment, contract, wages, working hours and holidays, collective labor agreement, occupational safety and hygiene, separate provisions on female employees, resolution for labor disputes, trade unions, social insurance, etc.

Under Vietnamese law, labor contract shall be entered into one of the following forms:

a.       An indefinite term labor contract: An indefinite term labor contract is a contract in which the two parties do not determine the term and the time for termination of the validity of the contract;

b.      A definite term labor contract: A definite term labor contract is a contract in which the two parties determine the term and the time for termination of the validity of the contract as a period of twelve (12) months to thirty six (36) months;

c.       A labor contract for a specific or seasonal job with duration of less than twelve (12) months.

When the definite term labor contract and contract for a specific or seasonal job with duration of less than twelve (12) months as described above expire and the employee continue to work then the employer and employee must sign a new contract, if both parties fail to do so, the existing contract shall become indefinite term labor contract. (Article 27 of Labor Code)

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