Learning English with FDVN's Newsletter No. 01/2021

LAW PROVISIONS ON AUTOMATIC TRANSFORMATION OF LABOR CONTRACT

QUY ĐỊNH PHÁP LUẬT VỀ CHUYỂN HÓA HỢP ĐỒNG LAO ĐỘNG

(Lawyer Tran Thi Hau – FDVN’s Newsletter No. 3)

I. VOCABULARY IN USE:

“Law provision on automatic transformation of definite term labor contract (Hợp đồng lao động xác định thời hạn) is issued to create the continuity in labor relations (tính liên tục trong quan hệ lao động) and work stability for employees. Whereby, some definite term labor contracts will be automatically renewed, transformed into other types of labor contract with longer-term on the principle of ensuring the employee’s benefit. However, due to the lack of strictness and unified in the application (việc áp dụng pháp luật) of these regulations, there are different viewpoints on law settlement and application. Thereby, the effect of applying the regulations on automatic transformation (chuyển hóa tự động) of labor contract is not as expected”.

From the original provisions of law

This issue is legalized (luật hóa) in Clause 3, Article 1 of the Law on the amendment and supplementing  (Luật sửa đổi và bổ sung) some articles of the Labor Code (Bộ luật Lao động) 2002. For a definite term labor contract and a seasonal or work-specific labor contract (hợp đồng lao động theo mùa vụ hoặc theo một công việc nhất định) with a term of fewer than 12 months which the employee still continues to work after the contract expires, within 30 days from the date of the labor contract expiration, the two parties must sign a new labor contract. If the signing is not made, the old one shall naturally become the labor contracts with indefinite term (hợp đồng lao động không xác định thời hạn). In cases the newly signed labor contracts are those with definite terms, they can be signed only for an additional period. If the employees continue working, the labor contracts with indefinite term shall be signed.

After that, this provision is guided in Article 4 of Decree 44/2003/ND-CP with the contents not only guiding the law but also supplementing: “Pending the signing of new labor contracts, the two parties must abide by (tuân theo) the signed labor contracts” and "In cases where newly signed labor contracts are those with definite terms, they can be signed only for an additional period of no more than 36 months"

To the Labor Code 2012 with the flawed regulations

The Labor Code 2012 takes effect (có hiệu lực) on May 1, 2013, and will expire (hết hiệu lực) from January 1, 2021, when the Labor Code 2019 replaces it. Article 22 of the Labor Code 2012 inherits the previous regulations but had the shortcomings leading to many different viewpoints when settling the disputes during the application:

1. Previously, over the time limit of 30 days, if the new labor contracts are not signed, the concluded labor contracts (included definite term labor contracts and seasonal or work-specific labor contracts) shall automatically transform into the labor contracts with indefinite terms contract (Hợp đồng lao động không xác định thời hạn). Now, the Labor Code 2012 has a regulation respectively transform as follows: a definite term contract becomes an indefinite term one, a seasonal contract (hợp đồng thời vụ) will be transformed into a 24-month definite term one. It can be seen that this regulation is appropriate (phù hợp/thích hợp) because it is impossible for an employer to sign an indefinite term contract for seasonal work (công việc theo mùa vụ/có tính chất mùa vụ), the nature of the job for a short time.         

In fact, there are many employers who do not comply with the provisions that only one indefinite term contract should be signed, and the indefinite term labor contract must be signed if the employees continue working for them. It was learned from two labor disputes (tranh chấp) happened at Kindergarten T (village 2, commune T, district L, province Lam Dong) that:

Ms. Phan Thi V and Mr. Vo Si P both worked at T Kindergarten from 2010 to 2018. During this time, both Ms. V and Mr. P signed consecutively 11 definite term contracts with the term of less than 1 year. In 2018, Kindergarten T terminated the labor contract (chấm dứt hợp đồng lao động) for the reason of contract expiration. Both Ms. V and Mr. P believed that although the actual contracts of the two parties is the definite term contracts, their contracts have automatically transformed into the indefinite term contracts according to the law provisions. Due to the unlawful termination of Kindergarten T, they required to be compensated for the damages (được bồi thường thiệt hại) under the case of illegal unilateral termination of the labor contract (đơn phương chấm dứt hợp đồng lao động trái pháp luật).

In fact, the competent Courts (Tòa án có thẩm quyền) settling these cases (xử lý tranh chấp) applied the provisions of Clause 2, Article 22 of the Labor Code 2012 to determine that although Ms. V, Mr. P, and Kindergarten T have signed the definite term contracts, “the contract between the parties is indefinite term labor contract is true to the essence (đúng về mặt bản chất) and accordance with the law”. Base on this ground, it was determined that the Kindergarten T’s termination of the labor contracts did not fall into the cases (thuộc trường hợp) of legal unilateral termination for expiration under Article 36 of the Labor Code. It fell into the case of terminating the indefinite term labor contract under the provisions of Article 38 of the Labor Code. For ensuring the time limit for prior notice (thông báo trước) in the case of terminating the indefinite term labor contract, the Kindergarten T had to bear the compensation obligations (chịu trách nhiệm bồi thường) according to the laws.

It is learned from the practice of the labor relationship in our country that there are many cases like Ms. V and Mr. P’s ones. The employees concern the job stable and continuous instead of the kind of labor contracts and the transformer of them. Not so many employees think about protecting their legitimate rights and interests (quyền và lợi ích hợp pháp) by filing a lawsuit (gửi đơn khởi kiện) to a competent Court when the labor contract is terminated. The question called (Vấn đề đặt ra) is despite the law provision regulated this issue and the administrative sanctions also tend to be more severe, those are not the only rule for the strict implementation of the employers.

2. The additional provision in Decree 44/2003/ND-CP has been left behind the Labor Code 2012. Thereto, what is the labor relations (quan hệ lao động) between the employee and the employer when the employee continues working for the employer despite the termination of the labor contract? And how we deal with the dispute arising within this period?

(to be continued)

II. EXPLANATION AND DEMONSTRATION:

1. Legalize (v) – legalization (n): Luật hóa hay còn gọi là hợp thức hóa, hợp pháp hóa.

2. Code (n): Bộ luật.

Ngoài ra, chúng ta có Act (n) là Đạo luật – đôi khi vẫn dịch là luật, Bill (n) là dự luật, Law (n) – thường đi với on... nghĩa là Luật về…, Decree (n) là Nghị định, Circular (n) là Thông tư, Resolution (n) là Nghị quyết và Decision (n) là Quyết định.

3. Appropriate (adj): thích hợp, phù hợp. Trong tiếng Anh pháp lý, chúng ta thường dùng từ này để diễn tả mức độ phù hợp, tương thích, hợp lý của vấn đề hoặc của văn bản, hồ sơ.

4. Terminate (v) – Termination (n): Chấm dứt - Sự chấm dứt, thường được dùng trong tiếng Anh pháp lý về các loại hợp đồng.

Unilateral termination (compound noun): Sự đơn phương chấm dứt hợp đồng.  

Sau khi chấm dứt hợp đồng, chúng ta thường sẽ thực hiện bước Liquidation (n): sự thanh lý

5. Compensate (v) – Compensation (n): Bồi thường - Sự bồi thường

Từ đồng nghĩa thường hay dùng trong tiếng Anh pháp lý: indemnify (v) – indemnification (n)

6. File a law suit to the competent Court = take someone to the Court: Kiện ra ai Tòa

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