Probation, employment contract and termination of employment contract

1. Probation
(i) An employer and an employee may include the contents of the probation in the employment contract or enter into a separate probation contract;
(ii) Probation is not allowed if the employee works under an employment contract with a duration of less than 1 month;
(iii) The probationary period shall be negotiated by the parties on the basis of the nature and complexity of the job. Only one probationary period is allowed for a job and the probation shall satisfy the following conditions:
- Not longer than 180 days for the position of enterprise executive;
- Not longer than 60 days for positions that require junior college degrees or above;
- Not longer than 30 days positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees;
- Not longer than 6 working days for other jobs.
(iv) The employee's salary during the probationary period shall be agreed upon by the two parties and shall be at least equal to 85% of the salary offered for the job.
(v) At the end of the probationary period, the employer shall notify the employee of the probation results.
If the result is satisfactory, the employer shall keep implementing the concluded employment contract, if there is one, or conclude the employment contract.
If the result is not satisfactory, the employer may terminate the concluded employment contract or the probation contract.
During the probationary period, either party has the right to terminate the concluded probation contract or employment contract without prior notice and compensation obligation.

2. Employment contract
(i) Before recruiting an employee, the employer shall enter into an employment contract with such employee.  A document with a different name is also considered an employment contract if it contains the agreement on the paid job, salary, management and supervision of a party.
(ii) An employment contract shall be concluded in writing and made into two copies, one of which will be kept by the employee, the other by the employer.  Both parties may conclude an oral contract with a term of less than 1 month.
(iii) Prohibited acts by an employer during conclusion and performance of an employment contract:
- Keeping original identity documents, diplomas and certificates of employees.
- Requesting the employee to make a deposit in cash or property as security for his/her performance of the employment contract.
- Forcing the employee to keep performing the employment contract to pay debt to the employer.
(iv) An employee may enter into employment contracts with more than one employer, provided that he/she fully performs all terms and conditions contained in the concluded contracts.
(v) An employment contract shall be concluded in one of the following types:
a) Indefinite-term employment contract;
b) Definite employment contract with a fixed term of up to 36 months from the effective date of the contract.

3. Termination of employment contracts
An employment contract shall be terminated in the following cases:
(i) The employment contract expires.
(ii) The tasks stated in the employment contract have been completed.
(iii) Both parties agree to terminate the employment contract.
(iv) The employee is sentenced to imprisonment without being eligible for suspension or release, capital punishment or is prohibited from performing the work stated in the employment contract by an effective verdict or judgment of the court.
(v) The foreign employee working in Vietnam is expelled by an effective verdict or judgment of the court or a decision of a competent authority.
(vi) The employee dies; is declared by the court as a legally incapacitated person, missing or dead.
(vii) The employee is dismissed for disciplinary reasons.
(viii) The employee unilaterally terminates the employment contract.
(ix) The employer unilaterally terminates the employment contract.
(x) The employer allows the employee to resign.
(xi) The work permit for a foreign employee working in Vietnam expires.
(xii) The employee fails to perform his/her tasks during the probationary period under the employment contract or gives up the probation.
Within 14 working days following the termination of an employment contract, both parties shall settle all payments in respect of the rights and interests of each party. Such period may be extended, but shall not exceed 30 days (if there is a legitimate reason as prescribed by laws).

Cre: VIETBID LAW CO., LTD
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