The Indefinite term Labor Contract Template

Indefinite term labor contract is a type of employment contract. It outlines the rights and obligations of both parties in the employment relationship. The indefinite term labor contract is one of the long-term agreements between the parties. The following article by Long Phan will provide a detailed template of an indefinite term labor contract in accordance with legal regulations.

Overview of Indefinite term Labor Contract

An indefinite term labor contract is a legal agreement between the employee and the employer. According to Point a, Clause 1, Article 20 of the Labor Code 2019, an indefinite term labor contract is a contract in which the two parties do not determine the term or termination date of the contract. The main feature of this contract is long-term stability in labor relations.

This contract usually applies to long-term, important positions in the business. It creates peace of mind for employees, helping them stick with the company for a long time. For employers, signing an indefinite term labor contract demonstrates a commitment to sustainable development, attracting and retaining talent.

Fixed term and indefinite term  employment contracts have many important differences. This difference affects the rights and obligations of both employees and employers. The choice of contract type depends on the needs and human resources strategy of the business. Indefinite term contracts typically apply to core personnel, while fixed term contracts are suitable for temporary or seasonal work.

Instructions for drafting Indefinite term Labor Contract

Structure of employment contract

Labor contracts with indefinite terms must comply with the structure and content according to the provisions of labor law. Properly drafting regulations will ensure the rights of both employees and employers. This contract has high legal value in regulating labor relations.

Basic contents of an indefinite term labor contract include:

• Name and address of the employer and full name and title of the person concluding the labor contract on the employer’s side;
• Full name, date of birth, gender, place of residence, Citizen Identification card number, ID card or passport of the person entering into the labor contract on the employee’s side;
• Work and work location;
• Term of the employment contract;
• Salary according to job or title, form of payment, payment period, salary allowances and other additional payments;
• Promotion regime, salary increase;
• Working time, rest time;
• Labor protection equipment for workers;
• Social insurance, health insurance and unemployment insurance;
• Training, fostering, improving qualifications and vocational skills.

Legal basis: Article 21 of the  Labor Code 2019

When drafting, attention should be paid to using clear language, avoiding vague expressions that can cause misunderstandings. At the same time, the contract content must comply with the provisions of current labor law.

>>>Download now: Sample labor contract with indefinite term

Conditions and principles of contract conclusion

To enter into an indefinite-term labor contract, the following conditions must be met:

• Employees must be 15 years of age or older and have full civil act capacity;
• The employer must be the person competent to enter into employment contracts according to the provisions of law;
• The work entered into in the contract is not prohibited by law;
• Both parties voluntarily, without deception, coercion or threats;
• The contract content does not violate the law, collective labor agreement and social ethics.

Contracting principles are stipulated in Article 15 of the  Labor Code 2019 as follows:

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

A labor contract with an indefinite term takes effect from the date the two parties sign it, unless the two parties agree or the law provides otherwise.

Legal basis: Article 23 of the Labor Code 2019.

Note when drafting employment contracts

When drafting indefinite term employment contract, careful drafting will help avoid disputes and protect the interests of the parties. Some issues to keep in mind when drafting an indefinite-term contract include:

• The labor contract must be based on a valid legal basis;
• The contract needs to ensure complete basic content, avoiding affecting the rights and interests of the parties;
• Comply with the forms of contract conclusion specified in Article 14 of the 2019 Labor Code;
• An appendix to a labor contract is a document that details, amends, and supplements a number of articles and clauses of the labor contract but does not modify the term of the labor contract;
• In case the labor contract appendix details a number of articles and clauses of the labor contract that lead to a different interpretation from the labor contract, the content of the labor contract shall be implemented.
• In case the labor contract appendix amends or supplements a number of articles and clauses of the labor contract, it must clearly state the content of the amended and supplemented articles and clauses and the effective date.

When drafting, it is necessary to ensure that the provisions comply with the law and do not cause disadvantages to employees. At the same time, it is necessary to consider the practicality and implementation ability of the business.

Consulting services for drafting labor contracts

Consulting on drafting and reviewing contracts

Consulting services for drafting and reviewing employment contracts bring many benefits such as ensuring legality, protecting business interests, and creating a transparent working environment. Long Phan’s consulting service on drafting and reviewing labor contracts includes the following steps:

• Consulting on the appropriate type of employment contract
• Draft employment contracts according to customer requirements and legal regulations
• Review existing employment contracts to ensure legality and protect the rights of both parties
• Consulting on specific terms according to customer requirements
• Update employment contracts according to new legal regulations

Resolve disputes related to labor contracts

Long Phan provides dispute resolution services related to labor contracts. This service includes:

• Consulting on the rights and obligations of the parties in labor disputes
• Representing clients in the process of negotiating and conciliating labor disputes
• Representing clients in Court in labor lawsuits
• Consulting on measures to prevent labor disputes
• Support the development of labor regulations and internal regulations to minimize the risk of disputes

The indefinite term labor contract is an important tool in labor relations. Drafting this type of contract requires in-depth legal knowledge. Customers who need support regarding indefinite-term labor contracts, please contact Long Phan immediately via Hotline 090.673.5386 for support. Long Phan’s team of consultants with high professional knowledge and lots of practical experience will help customers find optimal solutions.