In what cases is labor contracts invalid?

Article overview

Labor contracts are invalid is an important issue in the labor sector, directly affecting the rights of both employees and employers. Clearly identifying cases of invalid labor contracts helps prevent disputes from arising, ensuring a fair and transparent working environment. In the article below, Long Phan will inform about cases of invalid labor contracts to help employees and employers protect their legal rights according to the law.

Cases where labor contracts are invalid
Cases where labor contracts are invalid

Principles when concluding labor contracts

When concluding a labor contract, the parties need to comply with a number of basic principles to ensure the legality and validity of the contract. Principles for entering into labor contracts are specifically stipulated in Article 15 of the Labor Code 2019, including:

  • Voluntary, equality, goodwill, cooperation and honesty.
  • Freedom to enter into labor contracts but not against the law, collective labor agreement and social ethics.
Current contract conclusion principles
Current contract conclusion principles

Cases of invalid labor contracts

The determination of invalidity is based on specific legal grounds. Each case of invalidity has its own characteristics that need to be considered. According to the provisions of Article 49 of the Labor Code 2019, the labor contract can be declared invalid in whole or in part. Specifically:

A labor contract is declared completely invalid when:

  • The entire content of the labor contract violates legal regulations;
  • The person signing the labor contract has no authority or violates the principles of entering into a labor contract;
  • The work specified in the labor contract is on the list of prohibited by law.

A labor contract is partially invalidated when the content of that part violates the law, but does not affect the remaining parts of the contract.

Legal consequences when the labor contract is invalid

For partially invalid labor contracts

When a labor contract is partially invalidated, the non-violating contents are still valid. Violated provisions will be replaced by legal regulations. Workers’ rights are still guaranteed according to regulations. Legal consequences for invalidity include:

  1. When a labor contract is declared partially invalid, the employer and employee need to amend the violating terms to comply with the collective labor agreement and the law.
  2. Rights and obligations during the invalid labor contracts period will comply with the collective labor agreement; if there is no agreement, the law will apply.
  3. If the salary in the invalid labor contract is lower than prescribed, the two parties must renegotiate the salary and the employer must refund the difference.
  4. If no agreement is reached on the amendment, the parties will:
  • Termination of labor contracts;
  • Resolve rights and obligations as prescribed in section 2;
  • Resolve severance benefits according to regulations;
  • Working time under a void contract will be counted to determine labor regimes.

Legal basis: Clause 1, Article 51 of the Labor Code 2019, Article 9 of Decree 145/2020/ND-CP.

In case of partial invalidity
In case of partial invalidity

The entire labor contract is void

A labor contract that is completely invalid will have no legal effect. Accordingly, the legal consequences when the contract is completely invalid are as follows:

In cases where a labor contract is completely invalidated due to the person signing it without proper authority or violating the principles of entering into a labor contract:

  1. When the labor contract is completely invalid, the parties must re-sign the contract according to the law.
  2. The rights and obligations of employees from the beginning of employment until re-signing are implemented as follows:
  • If each party’s benefits are not lower than the provisions of law and the labor agreement, the benefits will be implemented according to the content of the labor contract that is declared invalid.
  • If the contract contains violating content but does not affect other parts, the employee’s rights will be as prescribed in Clause 2, Article 9 of this Decree.
  • Working time under an invalid contract will be counted to determine the basis for calculating labor benefits.
  1. In case the labor contract is not re-signed and is declared completely invalid:
  • Terminate labor contract.
  • Rights and obligations from the time of starting work will be as prescribed in Clause 2, Article 10 of the Decree.
  • Resolve severance benefits according to regulations.

In cases where the labor contract is completely invalid because the entire content of the labor contract violates the law or the work concluded in the labor contract is work prohibited by law:

  1. When the contract is invalid, the parties must enter into a new contract according to regulations.
  2. The employee’s benefits from the beginning of work will be as prescribed in Clause 2, Article 10 of the Decree.
  3. If the parties do not sign a new contract then:
  • Terminate the contract.
  • The employee’s benefits from the start of employment comply with clause 2.
  • The employer must pay an agreed amount, at least equal to one month’s regional minimum wage for each year of work.
  • Handle severance benefits according to regulations.

Legal basis: Clause 2, Article 51 of the Labor Code 2019, Articles 10, 11 of Decree 145/2020/ND-CP.

Consulting service on invalid labor contracts at Long Phan

Long Phan provides in-depth consulting services on labor contracts. With a team of experts with extensive experience in the field of labor law, we provide services including:

  • Consulting on labor law regulations
  • Review contracts in accordance with current regulations
  • Consulting on invalid contract cases and dispute resolution methods
  • Support dispute resolution procedures when the contract is invalid
  • Representing customers in drafting and negotiating contracts
  • Representatives work to protect rights when disputes arise.

To avoid legal risks related to invalid labor contracts, customers need to consult in-depth advice on labor law regulations. With a team of experienced experts in the field of consulting and resolving labor contract disputes, Long Phan is ready to support you in the above issues. Contact Long Phan immediately via the hotline: 0906735386 for professional advice on labor legal issues.