Question:
Our company is planning to hire a part-time employee. Due to the specific nature of the job, the working hours will be from 4:30 PM to 8:30 PM, Monday to Friday. The total number of working days per month will not exceed 10 to 11 days.
In this case, is the company required to pay social insurance contributions for this employee? Is there any type of contract that might apply in our case?
Answer:
According to current Vietnamese regulations, an employee is subject to compulsory social insurance contributions if they work under a labor contract with a term of one month or more and actually work and receive wages for at least 14 working days in a month. (Note: This refers to actual working days, not accumulated working hours converted into days for the purpose of social insurance contribution.)
Furthermore, employees are also subject to compulsory health insurance and unemployment insurance contributions if they work under a labor contract with a term of three months or more, as prescribed by the Law on Social Insurance and relevant guiding regulations.
In your company’s case, to avoid incurring obligations for these types of insurance, you may consider entering into alternative contractual arrangements other than labor contracts, such as:
- Service Contract: A contract where the service provider performs a specific task for the service user within a defined period and is paid a service fee for the work.
- Collaborator Contract: A contract for freelancers or collaborators who perform tasks based on agreed workload, time, location, and remuneration without being bound by standard employment terms.
- Vocational Training Contract: An agreement between a learner and an employer where the learner is trained to work for the employer. The learner may receive wages if they directly participate in productive activities, as agreed upon. During the training period, the learner is typically not subject to compulsory social insurance.
