Drafting a labor contract is a crucial step in establishing a clear and transparent employment relationship between the employee and the employer. A well-drafted contract helps ensure that the rights and obligations of both parties are protected under the law. Therefore, the drafting process must be conducted carefully, in compliance with proper procedures and in accordance with the current legal framework. Below, NPLaw provides a detailed overview of the legal issues related to the drafting of labor contracts.

I. The need for drafting labor contracts

Today, the demand for labor contract drafting has become increasingly common and essential across enterprises and organizations, particularly in a rapidly developing and diversified labor market. A clear and well-structured labor contract not only ensures that both the employee and the employer understand their respective rights and obligations, but also minimizes potential legal risks during the employment period.

Moreover, enterprises are paying greater attention to standardizing their contracts to comply with updated legal regulations, particularly the Labor Code 2019 and its guiding documents. This has created strong demand for legal consultancy and drafting support services, as well as the adoption of software and automated tools that enable fast, accurate, and cost-efficient contract preparation.

II. Legal provisions on drafting labor contracts

1. What are the legal principles governing the drafting of labor contracts?

Pursuant to Article 15 of the Labor Code 2019, the drafting of labor contracts must adhere to the following legal principles:

  • Voluntariness: The parties must freely consent to enter into the contract without coercion or undue influence.
  • Equality: The parties have equal rights and obligations, and no party may impose unfair conditions or exploit a position of power during negotiation or signing.
  • Good faith: The parties must demonstrate sincerity and a genuine intent to cooperate for mutual benefit in the employment relationship.
  • Cooperation: The parties must work collaboratively and support one another throughout the negotiation and performance of the contract.
  • Honesty: All information and commitments expressed in the contract must be truthful, without deceit or concealment.

The parties enjoy contractual freedom in entering into labor contracts, provided that the agreement does not contravene:

  • Applicable laws and regulations;
  • Collective labor agreements (if any); and
  • Social ethics and public morals.

2. What are the procedures and steps for drafting labor contracts?

According to Articles 16 and 21 of the Labor Code 2019, the process of drafting the labor contract includes the following steps:

- Step 1. Preparation of essential information

Before drafting, the parties must gather the necessary information, including:

  • Employer: Business name, legal representative, address, and contact details;
  • Employee: Full name, date of birth, ID/Passport number, address, and contact details;
  • Job position: Title, department, and workplace location;
  • Salary: Base salary, allowances, other benefits, payment method, and pay period;
  • Working conditions: Working hours, rest days, overtime policy, etc.;
  • Insurance, training, and probation (if applicable).

- Step 2. Drafting the labor contract

Under Article 21 of the Labor Code 2019, the labor contract must include the following principal contents:

  • Names and addresses of both the employer and the employee;
  • Job description and workplace;
  • Term of the contract;
  • Salary, allowances, payment method, and pay period;
  • Working hours and rest periods;
  • Labor protection equipment (if applicable);
  • Social, health, and unemployment insurance;
  • Training, retraining, or skills enhancement (if applicable).

- Step 3. Review and verification of the contract

  • Ensuring no clause contravenes the law;
  • Verifying clarity, accuracy, and completeness of all information.

- Step 4. Execution of the Contract

  • According to Article 14 of the Labor Code 2019, the labor contract must be made in writing, except for cases of employment under one month, where a verbal contract may be used. Each party must retain one original copy signed by the other party.

3. What are the responsibilities of the parties during the drafting process?

Pursuant to Article 16 of the Labor Code 2019:

  • Employer’s responsibilities: Providing truthful information regarding:
    + Job duties and workplace;
    + Working conditions;
    + Working hours and rest periods;
    + Labor safety and hygiene;
    + Wages and payment method;
    + Insurance benefits;
    + Confidentiality obligations;
    + Any other matters directly related to the contract as requested by the employee.
  • Employee’s responsibilities: Providing truthful information regarding:
    + Full name, date of birth, gender, address;
    + Educational qualifications and professional skills;
    + Health status;
    + Any other information directly relevant to the contract as requested by the employer.

III. Questions about drafting labor contracts

1. What legal aspects should be noted when drafting labor contracts?

 Main legal points to consider include:

  • Parties’ information: Full identification of the parties and authorized signatories;
  • Job description and workplace: Clearly definition of job responsibilities and workplace location;
  • Contract term: Type of contract (definite, indefinite, or project-based) with clear start and end dates (if applicable);
  • Salary and allowances: Amount, form, and timing of payment, including bonuses;
  • Salary review: Conditions and timelines for salary increases;
  • Working hours and rest days: Specific working schedule, holidays, and leave entitlements;
  • Labor protection: Employer’s obligations regarding safety equipment;
  • Insurance: Employee’s entitlements under social, health, and unemployment insurance;
  • Training: Provisions on training costs and post-training commitments (if applicable);
  • Confidentiality: Terms protecting business or technological secrets.

2. What mandatory clauses must be included in labor contracts?

As stipulated in Article 21 of the Labor Code 2019, the valid labor contract must contain:

  • Information of the parties;
  • Job duties and workplace;
  • Contract type and duration;
  • Salary, payment form, and pay period;
  • Provisions on salary increase and advancement;
  • Working hours and rest days;
  • Labor protection measures;
  • Social, health, and unemployment insurance;
  • Training and professional development;
  • Confidentiality obligations (if applicable).

3. How are disputes related to labor contract drafting resolved?

Under Articles 188, 192, and 196 of the Labor Code 2019:

  • Disputes must first undergo mediation by a labor conciliator, except in cases such as dismissal, unilateral termination, or disputes involving insurance or compensation;
  • If mediation fails, either party may refer the matter to the Labor Arbitration Council or the People’s Court for resolution.

4. Can a third party be authorized to draft labor contracts?

Under Article 562 of the Civil Code 2015, an authorization contract allows one party (the principal) to authorize another (the agent) to perform acts on its behalf.

Accordingly, individuals or organizations may authorize a third party to draft labor contracts on their behalf.

5. What is the legal validity of electronic labor contracts?

Under Clause 16, Article 3, and Article 35 of the Law on Electronic Transactions 2023, an electronic contract is created in the form of data messages.

According to Clause 1, Article 14 of the Labor Code 2019, an electronic labor contract carries the same legal validity as a written one, provided that it includes all mandatory contents and both parties consent via electronic means.

Thus, electronic labor contracts are fully legal and have an equivalent effect to printed contracts.

IV. Legal consultancy services on drafting labor contracts

The above article by NPLaw provides insights into the legal framework governing the drafting of labor contracts. With a team of experienced lawyers and legal specialists, NPLaw is always ready to provide consultation and support to clients in all legal matters related to labor contract drafting. For legal assistance, please contact NPLaw.