Can elderly employees renew their contracts when the one-year term expires in Vietnam?

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Question date: 23/03/2023

Please ask: My company recruits elderly employees to work, but the term of 1 year is almost over. I want to ask is it possible to sign for another year in Vietnam?

    • Can elderly employees renew their contracts when the one-year term expires in Vietnam?

      Pursuant to Article 148 of the Labor Code 2019 stipulates as follows:

      1. An elderly employee is a person who continues working after the age stipulated in Clause 2 Article 169 of this Labor Code.

      2. Elderly employees are entitled to negotiate with their employer on reduction of reduce their daily working hours or to work on a part-time basis.

      3. Employers are encouraged by the State to assign works that are suitable for elderly employees in order to uphold their right to work and ensure efficient utilization of human resources.

      Pursuant to Article 149 of the Labor Code 2019 stipulates as follows:

      1. When an elderly person is employed, both parties may agree on conclusion of multiple fixed-term employment contracts.

      2. In case a person who is receiving retirement pension under the Law on Social Insurance enters into a new employment contract, he/she shall receive salary and other benefits prescribed by law and the employment contract in addition to the benefits to which they are entitled under the pension scheme.

      3. Employer must not assign elderly employees to do laborious, toxic or dangerous works, or highly laborious, toxic or dangerous works that are harmful to their health, unless safety is ensured.

      4. Employers are responsible for taking care of the health of elderly employees at the workplace.

      Thus, referring to your case, your company employs elderly employees, whereby your company can still sign a employment contract with an additional term of 1 year or multiple fixed-term employment contracts with elderly employees after the end of the contract as you mentioned in Vietnam.

      Best Regards!

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    "This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts"

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