questions and answers

The employer is entitled to enter into a definite-term labor contract with an employee multiple times, but no more than twice.

Specifically, if the first labor contract is a definite-term contract, the employer is entitled to enter into another definite-term labor contract with the employee. After the second labor contract expires and the employee continues working, the employer must enter into an indefinite-term labor contract with such employee.

However, this regulation has the following exemptions:

(i) A labor contract with a person employed as a director of State-invested enterprises.

(ii) A labor contract signed with an elderly person.

(iii) A labor contract with foreign employees who work in Vietnam.

(iv) The extension of a labor contract signed with an employee who is a member of the management board of a grassroots-level employees’ representative organization of employees currently serving their term in which their labor contract expires.