Do employers have to pay social insurance in case of signing seasonal labor contract from 3 to 6 mon

Do employers have to pay social insurance in case of signing seasonal labor contract from 3 to 6 months?
Posted date: 25/09/2019

I own a portion in Danang City which is near some universities. I intend to open a coffee shop. Thus, I am going to hire about 6 waiters and waitress. They will work in shifts and partime.

My employees are students which leads to personnel fluctuation. Thus, I estimate working term in labor contract is from 3 to 6 months.

Please kindly advice me if I have to establish labor contract in writing and pay social insurance.

FDVN’s opinion:

Sincerely thank you for your concerning our legal consulting service. We are glad to give you our advise for your question.  

 [1]. About labor contract:

According to Article 5, Labor Code 2012: “Labor contract is an agreement between an employee and an employer on a paid job, working conditions and the rights and obligations of each party in industrial relations.”

According to Article 16, Labor Code 2012: Form of labor contract:

“1. A labor contract must be established in writing and made in two copies, one to be kept by the employee and the other by the employer, except the case stated in Clause 2 of this Article.

2. For temporary jobs with a duration of under 3 months, the parties may enter into a verbal labor contract.”

Thus, hiring employees and pay salary for carrying on the business of the coffee shop is a labor relationship. As the information provided, the working term you want to establish with your employees is from 3 to 6 months.

According to above regulations, the labor contract in this case must be established in writing and made in two copies, one to be kept by the employees and the other by you. Both parties may enter into werbal labor contract in case of temporary jobs with a duration of under 3 months.

 [2]. About social insurance:

According to point a, clause 1, Article 2, Law on Social Insurance 2014,

Employees being Vietnamese citizens shall be covered by compulsory social insurance, including: “Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full 3 months and under 12 months, including also labor contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labor law.”

According to point a, clause 1, Article 2, Decree No. 115/2015/ND-CP guiding Law on Social Insurance about compulsory social insurance:

“1. Employees are Vietnamese citizens who participate in compulsory social insurance as prescribed in this Decree, including:

a) Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full of 3 months and under 12 months, including also labor contracts signed between employers and legal representatives of persons aged under 15 years in accordance with the labor law.”

Thus, your employees are subject to participate in compulsory social insurance since their labor contract duration are over 3 months. You have to implement procedure to declare and pay social insurance.

            Unless you declare and pay social insurance, you are about to violate the provision of clause 1, Article 17, Law on Social Insurance 2014 and will be dealt according to Article 122, Law on Social Insurance 2014.

Above are the advice of FDVN Limited Law Firm base on studying law provisions and theories. We hope that our opinions would be useful.

Legal Expert: Mai Quoc Viet

FDVN Law Company


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