Regulations on Signing Probationary Contracts

According to the policy of the Vietnam GE Ltd. Branch in Hai Phong, employees who sign a probationary contract are entitled to the full benefits as official employees, such as the official salary, participation in mandatory insurance, additional voluntary insurance purchased by the company, paid leave, seniority recognition, etc.; there is no discrimination in terms of benefits.

The Vietnam GE Ltd. Branch in Hai Phong inquired about the possibility of limiting printing expenses since other contents of the contract remain unchanged. Could the Company sign an initial fixed-term contract of 13 or 14 months, specifying that the probation period is 1 or 2 months (depending on the position)?

For example, the contract specifies:

Type of contract: Fixed-term

Wherein, probation period: from January 1, 2018, to February 28, 2018

Official contract period: from February 1, 2018, to February 28, 2019

To simplify paperwork procedures for both employees and employers and to provide employees with peace of mind regarding the company's committed policies, through the Enterprise Feedback and Resolution System, the Company requests consideration of the legality and advice on this specific case.

Regarding this matter, the Ministry of Labor – Invalids, and Social Affairs responds as follows:

According to the provisions in Article 26 of the Labor Code 2012, the employer and the employee may agree on probationary work and the rights and obligations of both parties during the probationary period. If there is an agreement on probationary work, the parties may enter into a probationary contract.

Clause 1 of Article 29 of the Labor Code 2012 stipulates that if the probationary work meets the requirements, the employer must enter into a labor contract with the employee.

Thus, when the employee and the employer agree on probationary work, the two parties enter into a probationary contract. The probationary period is based on the nature and complexity of the work but it is allowed only once for a job and must ensure the conditions stipulated in Article 27 of the Labor Code. When the probationary work meets the requirements, the two parties must enter into a labor contract according to the provisions of Article 29 of the Labor Code.

According to Dan Tri

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