On October 25, 2013, the Circular Ministry of Labor, War Invalids and Social Affairs issued Circular No. 30/2013/TT-BLDTBXH, guiding the implementation of a number of articles of the Government’s Decree No. 44/2013/ND-CP of May 10, 2013, detailing a number of articles of the Labor Code regarding labor contracts.
Accordingly, the remarkable content focuses on handling invalid labor contract of prohibited jobs regulated by the law. In case of failing to enter into new labor contracts with employees when labor contracts are declared to be wholly invalid as because the contractual jobs are banned by law, The employer shall pay to the employee an amount of money as agreed by the two parties, which must be at least equal to one monthly minimum wage applicable to the locality where the employer’s production and business establishment, unit or branch at which the employee is working.
In case the employee has worked for the employer for full 12 months or more under other previous labor contracts but not yet received severance allowances or job-loss allowances from the employer, in addition to the amount payable to the employee specified in Clause 1 of this Article, the employer shall pay severance allowances in accordance with law for the period the employee has worked under these previous labor contracts.
Also in this Circular, the term of a labor contract signed with a foreigner hired to work as director may be determined by the two parties, which ranges from full 12 months to 36 months but must not exceed the validity duration of the work permit granted by a competent state agency. The employer and a foreigner hired to work as director may agree to extend the labor contract once through signing an annex thereto but the extended duration must not exceed 12 months. Past the extended duration, the two parties shall enter into a new labor contract. The extended duration of a labor contract signed with a foreigner hired to work as director must not exceed the validity duration of his her work permit granted by a competent state agency.
This Circular takes effect on December 10, 2013.
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