Question:
From what I understand, in Vietnam, the third fixed-term contract should transition into an open-ended contract. However, I’m not sure if this applies to foreigners as well.
Answer:
In accordance with Article 151.2 of the Labor Code 2019, the duration of a labor contract for a foreign employee must not exceed the validity period of their work permit. This means that each employment contract should be structured in alignment with the work permit’s term.
Furthermore, while Vietnamese labor law generally requires that the third consecutive fixed-term contract be converted into an indefinite-term contract, this provision does not apply to foreign employees. For foreign workers, employers and employees may enter into multiple fixed-term contracts, provided that each contract remains within the validity period of the work permit.
Therefore, after the upcoming 30-day contract, Client may proceed with signing another fixed-term contract ensuring that its duration is in compliance with the applicable work permit.
Consultation: Labor Law Services
