Question:
I and Company A signed a Personal Service Contract in 2023. After the contract came into effect, I worked for Company A, received salary, and had insurance contributions during the entire time under the supervision and management of Company A. At the beginning of 2025, the Company dismissed me on the grounds that I did not complete the work. When I filed a complaint against the dismissal decision, Company A argued that since it had not signed an employment contract with me, it was not required to terminate the contract in accordance with the provisions of the Labor Code. What do the current laws of Vietnam stipulate regarding this matter?
Answer:
Clause 1, Article 13 of the Labor Code 2019 stipulates on employment contracts as follows:
“An employment contract is an agreement between an employee and an employer on paid work, wages, working conditions, rights and obligations of each party in the labor relationship.
In cases where the parties agree under a different name but the content reflects paid work, wages, and the management, administration, and supervision of one party, it shall be considered an employment contract.”
Accordingly, even though the contract between you and Company A is named a “Personal Service Contract,” if in reality the contract contains the following elements:
- You work for Company A;
- You receive wages;
- Insurance contributions are made for you;
- Company A has the right to manage, supervise, and direct your work,
then the relationship between you and Company A is legally considered a labor relationship, meaning that an employment contract has arisen under the law.
Therefore, Company A’s unilateral termination of the relationship with you without complying with the legal provisions on termination of employment contracts (e.g., grounds, procedures, entitlements upon termination) is not in accordance with the law.
