When demoting an employee in Vietnam, do I have to sign a new labor contract?
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I have a new employee who is departmental manager in Vietnam but due to the violation, the company decided to demote the assistant manager. His job position, salary, bonus, allowance,... has changed. So, do I have to make a new contract in this case?
For this case, the job position, salary, bonus, allowances, etc. have changed. In principle, the two parties are fully entitled to agree to re-sign the new labor contract to suit the reality.
In addition, Article 22 of the Labor Code 2019 also provides for an annex to the labor contract, whereby:
An annex to an employment contract may elaborate or amend certain contents of the employment contract and must not change the duration of the employment contract.
Where an annex amends certain contents of the employment contract, it should clearly states the amendments or additions, and the date on which they take effect.
According to the regulations in Vietnam , the annex of the labor contract may elaborate or amend certain contents of the employment contract (not to modify the term of the labor contract), so for this case, the company may also make an annex to change some terms in the signed contract accordingly.
In general, depending on the actual situation, the two parties can choose the most appropriate and convenient treatment.
Best Regards!
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