What is a contract of employment? Basic contract template

Contract of employment is an important legal tool, helping parties involved in transactions carry out their work clearly and effectively. However, signing a contract must comply with regulations to avoid legal risks. Through the following article, Long Phan will provide customers with detailed information about the relevant regulations, as well as the current standard form of employment contract.

General provisions and classification of employment contracts

An employment contract is a type of civil contract, although there are no specific provisions in legal documents. However, this contract is formed from the agreement between the parties in the transaction. Accordingly, the contracting party has the obligation to pay remuneration to the contracting party when the work is completed.

Currently, employment contracts are divided into two main types:

• Full contract: This is a type of contract in which the contracting party assigns to the contracting party not only the work but also costs such as raw materials, tools, supplies and labor. The contractor does not have to worry about costs, just needs to complete the work on time and according to requirements.
• Partial contract: This type of contract requires the contractor to prepare tools, materials, and labor tools themselves. The contracting party only pays a labor wage, which includes depreciation costs for necessary tools and labor tools.

Sample employment contract according to current standard regulations

A legal employment contract should include the following basic terms:

• Information of participating parties: It is necessary to clearly identify the contracting party (contracting party) and the contracting party, including basic information such as name, address, business license (if any).
• Job description and quality requirements: The content of the work to be performed must be clear and detailed, including completion time and quality standards.
• Costs and payment method: The contracting party needs to clearly state the amount of remuneration to the contracting party and the payment method (in installments, after completing the work, or in a lump sum).
• Time and progress of work: Clearly determine the time to complete the work and important milestones in the contract implementation process.
• Terms to protect the interests of both parties: Includes measures to ensure the interests of both parties, methods for resolving disputes, and responsibilities when there is a breach of contract.

>>>Reference: Contract of employment.

Differences between job contract and labor contract

Contracts and labor contracts have clear differences in the nature of work, management and costs:

Job nature:

• Contract work: Usually applied to jobs that are seasonal, unstable or short-term. Work may or may not be fixed.
• Labor contract: Applicable to stable, long-term, and periodic jobs.

Work management:

• Contract of work: The contracting party has the right to decide how to carry out the work as long as it ensures the required progress and quality. The contracting party does not interfere in the process of performing the work.
• Labor contract: Employees must work under the direct supervision and direction of the employer.

Costs and remuneration:

• Contract of employment: The contracting party can require the contracting party to bear all costs related to the work (raw materials, tools, instruments and labor), and only pay wages according to the contract.
• Labor contract: The employer only pays the employee’s salary, including benefits and social insurance (if any).

Points to note when signing a job contract

When signing contract of employment, the parties should note the following points:

• Clearly define work and requirements: Need to describe details of work, required quality and completion time.
• Choose the right type of contract: Make sure to choose a contract instead of a labor contract if the job is seasonal.
• Avoid management and supervision clauses: The contract must not have clauses requiring management and supervision from the contracting party.
• Cost agreement and payment method: It is necessary to clearly state the remuneration amount and payment method (in installments or after completing the work).
• Ensure the interests of the parties: Specify the specific rights and obligations of the parties to avoid future disputes.
• Determine implementation time: It is necessary to clearly state the time to complete the work and important progress milestones.
• Check legality: Make sure the contract does not violate regulations on labor contracts and related laws.
• Discuss and sign before performing work: All terms need to be thoroughly discussed and agreed upon before signing.

Consulting services for drafting contract of employment

With a team of consultants with many years of experience in the field of contract and labor consulting. Long Phan supports customers in drafting contract of employment with the following services:

• Consulting on the appropriate type of contract
• Support drafting employment contracts as required
• Consulting on determining the obligations and rights of the parties
• Consulting on protecting rights in case of disputes
• Consulting services to resolve issues arising in contracts.

Contracts are an important tool in civil transactions, helping parties perform work effectively. However, to avoid risks, customers need to firmly understand the regulations on employment contracts. If you need advice or need assistance in drafting a contract of employment, please contact us immediately via the hotline 0906735386 for timely answers.