Vietnam’s regulations on vocational training contract

According to Decree No. 139/2006/NĐ-CP of Vietnam’s Government, the following cases require the conclusion of written vocational training contracts:

- Vocational training of primary degree;

- Vocational training at foreign-invested vocational training institutions;

- Enterprises recruit trainees who will then work for them.

In particular, handing down occupations and coaching vocations at enterprises require either verbal or written contracts.

According to Vietnam’s regulations, a vocational training contract has the following principal contents:

- The name of the vocation to be trained in, the expected professional skills;

- The training and internship places;

- The duration of the course;

- The training fee level and mode of fee payment;

- The responsibility of each party to pay damages for contract breaches.

Apart from the above principal contents, the two parties may reach agreement on other contents suitable with practical conditions but not in contravention of law and social ethics.

When an enterprise recruits trainees who then work for it, a vocational training contract must, apart from the principal contents defined above, have the following contents:

- The trainee's commitment on the working duration at the enterprise;

- The enterprise's commitment on the conclusion of a labor contract after training;

- The payment of remunerations to a trainee who directly makes products or participates in making products for the enterprise during the time of training.

A vocational training contract in the form of occupation coaching at an enterprise must, apart from the principal contents defined above, contain agreement on the time for starting payment of remuneration and remuneration level for the trainee in each period.

Also according to Decree No. 139/2006/NĐ-CP, the termination of vocational training contracts should be noted as follows:

- A trainee who unilaterally terminates the vocational training contract is not entitled to the refund of training fee.

- When the trainee cannot continue to learn a vocation because he has to perform the military service or his family actually meets with difficulties as certified by the People's Committee of the commune where he resides, or because he/she is suffering from an illness or accident as certified by the competent medical establishment, that trainee is entitled to the refund of a part of the training fee he/she has paid for the remaining training duration and has his/her training results reserved.

- Except for the case of unilateral termination of vocational training contracts due to force majeure circumstances under the provisions of the civil law, vocational training institutions which unilaterally terminate vocational training contracts shall notify the trainees at least three working days in advance and refund the latter all the training fees they have collected.

- During the time of performing a vocational training contract, if the female trainee becomes pregnant and acquires a written certification from a competent medical establishment that the performance of the contract will adversely affect her foetus, she may terminate the vocational training contract ahead of time, is refunded with the training fee amount she has paid for the remaining training duration and has her training results reserved.

- When enterprises recruit trainees who then work for them, if later those trainees decline to work as committed, they are required to compensate the vocational training expenses to the enterprises. The compensation level is agreed upon by the two parties and specified in vocational training contracts.

Decree No. 139/2006/NĐ-CP of Vietnam’s Government takes effect from January 11, 2007.

- Thuy Phu -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE