Six Provisions On Probationary Contracts | AS Auditing

Before working officially, you must have a probationary period. Probation is an international labor practices, each country governs this content by law. Vietnam has provisions on probation, in the labor law.

To understand the probationary regulations in Vietnam's labor law, labor participants need to know about six provisions on probationary contracts.

The first:  Agreement on probation in the contract

Article 24 Labor Code No. 45 of 2019, employers and employees can agree on issues related to probation, through the following two forms:

• Include the contents of the probation in the employment contract;
• Or enter into a separate probation contract.

Note: Probation is not allowed if the employee works under an employment contract with a duration of less than 01 month.

Second: How to cancel a probationary agreement?

Article 27 Labor Code No. 45 of 2019, regulations on canceling the probationary agreement are as follows: During the probationary period, either party has the right to terminate the concluded probation contract or employment contract without prior notice and compensation obligation.

Third: Probationary period.

Article 25 Labor Code No. 45 of 2019, 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 not exceed:

• 180 days for the position of enterprise executive prescribed by the Law on Enterprises.
• 60 days for positions that require a junior college degree or above.
• 30 days for positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees.
• 06 working days for other jobs.

Fourth: Probationary salary.

Artical 26 Labor Code No. 45 of 2019, the probationary salary shall be negotiated by both parties and shall not be lower than 85% of the offered salary.

Fifth: Social insurance during probationary period.

Article 2 Social Insurance No.58 of 2014, employees being Vietnamese citizens shall be covered by compulsory social insurance, including:

• Persons working under indefinite-term labour contracts, definite-term labour contracts.
• Persons working under seasonal labour contracts or contracts for given jobs with a term of between full 3 months and under 12 months.
• Persons working under labour contracts with a term of between full 1 month and under 3 months.

Thus, employees sign a probationary contract, not having to participate in compulsory Social Insurance.

However, for an Employee who has a probationary period stated in the labor contract, and that contract is subject to the compulsory Social Insurance, that must pay the Compulsory Social Insurance for the probationary period.

You can refer to Official Letter No. 2447/2011 of the Ministry of Labour, Invalids and Social     Affairs.

Sixth: Termination of probationary period.

Artical 27 Labor Code No. 45 of 2019, upon the expiry of the probationary period, the employer shall inform the employee of the probation result.

• If the result is satisfactory:

 The employer shall keep implementing the concluded employment contract.

 Or conclude the employment contract.

• If the result is not satisfactory, the employer may terminate the concluded employment contract or the probation contract.

When learning about labor law on probation, you need to know about six contents that mention above.