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Article 20, Labour Code 2019

Indefinite-term labour contract template

For long-term positions where neither party sets an end date. The template includes clauses on duties, pay, insurance and the lawful grounds for termination.

No end dateEnds only on statutory grounds, stated clearly in the contract.All mandatory sectionsDuties, pay, working hours, insurance and occupational safety.Legal basis includedEach clause cites the article of law currently in force.

Choose an industry to add clauses specific to it.

Indefinite-term labour contract

Labour Code 2019, Article 20(1)(a)

For stable, long-term positions where neither party sets an end date.

9 clauses

Fixed-term labour contract

Labour Code 2019, Article 20(1)(b)

Has a specific end date, lasts up to 36 months and can be renewed only once.

9 clauses

Probation contract

Labour Code 2019, Articles 24 to 27

A probation agreement before the official contract, with pay of at least 85% of the job's salary.

8 clauses

Labour contract under 12 months

Labour Code 2019, Article 20(1)(b)

For temporary, seasonal or specific work lasting less than a year.

9 clauses

Freelance collaborator contract

Civil Code 2015, Article 513 on service contracts

Task-based collaboration, not an employment relationship unless there is management and supervision.

6 clauses

Piecework contract

Civil Code 2015, Article 542 on processing contracts

Assigns a full scope of work, paid according to the accepted results.

5 clauses

Service contract

Civil Code 2015, Articles 513 to 521

The provider performs services for the client and receives a service fee.

5 clauses

Internship contract

Labour Code 2019 and the training institution's internship rules

Hosts student interns, with or without financial support.

6 clauses

Vocational training contract

Labour Code 2019, Articles 61 to 62

The company pays for training and the trainee commits to working after the course.

5 clauses

Labour contract appendix

Labour Code 2019, Article 22

Amends or supplements part of a labour contract that is in force.

3 clauses

Part-time labour contract

Labour Code 2019, Article 32

Fewer hours than normal working time, with entitlements in proportion to the hours actually worked.

9 clauses

Remote work labour contract

Labour Code 2019, Articles 21 and 105

The employee works mainly away from the office, with rules on equipment, connectivity and security.

10 clauses

Labour contract with a foreign employee

Labour Code 2019, Articles 151 to 157

For foreign nationals working in Vietnam, with the term tied to the work permit.

10 clauses

Domestic worker labour contract

Labour Code 2019, Articles 161 to 165

A household hires a domestic worker, with specific rules on rest, board and insurance paid with wages.

7 clauses

Labour contract with an executive

Labour Code 2019 and Law on Enterprises 2020

Signed with directors and department heads, with clauses on authority, income and confidentiality.

10 clauses

Consulting contract

Civil Code 2015, Articles 513 to 521

An expert advises within an agreed scope for a consulting fee, outside an employment relationship.

7 clauses

Non-disclosure agreement

Labour Code 2019, Article 21(2)

Signed with the labour contract to protect trade secrets, customer data and technology.

6 clauses

Labour contract termination agreement

Labour Code 2019, Article 34(3)

Both parties agree to end the contract and settle the last day, payments and handover.

6 clauses
See all 18 contract templates
Guide

Indefinite-term labour contract: when it is required, how it ends and what it must contain

7 sectionsAbout 4 min readUpdated 01/10/2026

An indefinite-term labour contract is one in which the two parties set no end date. Many young people think that signing one means a job for life, while quite a few business owners avoid it by signing one short contract after another. Both have it wrong. This article explains when the law requires this type of contract, what it must contain, how it can be terminated and how to draft one with the template on Việc Hot.

When an indefinite-term labour contract must be signed

Article 20 of the Labour Code 2019 (Bộ luật Lao động 2019) leaves only two types of labour contract: definite-term, for up to 36 months, and indefinite-term. The parties are free to sign an indefinite-term contract from the outset; businesses often do so for operations engineers, shift supervisors or chief accountants, roles that are hard to recruit for and where the company wants people to stay for years.

The law makes it compulsory when a definite-term contract expires and the employee carries on working: within 30 days the two parties must sign a new contract, and only one more definite-term contract is allowed; the third must be indefinite-term, except for older workers, foreign nationals and a few other cases.

  1. First definite-term contractUp to 36 months
  2. Expires, employee keeps workingA new contract must be signed within 30 days
  3. Second definite-term contractThe only renewal allowed
  4. Third contractMust be indefinite-term

Mandatory contents under Article 21, and clauses worth signing alongside

The indefinite-term contract template on Việc Hot follows the order of Article 21 exactly: the company's name and address and the signatory; the employee's full name, date of birth, gender, place of residence and citizen ID card number; the job and the workplace; the salary, the method and timing of payment, allowances and other supplements; pay rises; working hours and rest periods; personal protective equipment; social, health and unemployment insurance; and training. Any item left out will, in a dispute, be settled under the internal labour rules, the collective labour agreement and the law, beyond the drafter's control.

Clause 2 of Article 21 allows the parties to agree in writing on protecting business and technology secrets. For developers, salespeople who hold the customer list, or accountants, it is worth signing a separate non-disclosure agreement alongside the contract.

Correctly worded term and salary clauses

Article 2. Term of contract: Type of contract: indefinite term. Start date: 1 November 2026.

Article 4. Salary: Salary rate: 18,000,000 VND/month (In words: eighteen million dong). Lunch allowance: 730,000 VND/month. Salary is paid by bank transfer on the 5th of the following month.

Ending an indefinite-term contract: 45 days' notice and the payments due

Having no end date does not mean the employee cannot leave or cannot be let go. The employee may terminate the contract unilaterally without giving a reason, simply by giving 45 days' notice under Article 35; no notice is needed if they are not paid in full or on time, are not assigned to the agreed work, or are mistreated or sexually harassed. It is harder for the business: Article 36 requires a ground provided by law, and 45 days' notice as well. Letting someone go for "not fitting the culture", with no performance evaluation and no internal rules to rely on, is hard to defend in a dispute.

ItemRuleLegal basis
Notice of unilateral terminationRule45 days, for both partiesLegal basisArticles 35 and 36
Settlement after terminationRuleWithin 14 working days, together with finalising the social insurance book and returning documentsLegal basisArticle 48
Severance allowanceRuleHalf a month's salary for each year worked, excluding time covered by unemployment insurance contributionsLegal basisArticle 46
Leaving without the full 45 days' noticeRuleLoss of the severance allowance, plus compensation of half a month's salary and salary for the days of notice not givenLegal basisArticle 40

What employees should check before signing

A designer I once met signed a contract showing a salary of 9 million VND although the offer letter said 15 million, with the difference labelled a "performance bonus"; when the designer left, unemployment benefit was calculated on 9 million. Read the following points carefully before you sign:

  • Whether the salary in the contract is gross or net, and whether it matches the offer letter. In Region I, from 1 January 2026, it may not be lower than 5,310,000 VND.
  • Which amounts are allowances, which are other supplements, and which count towards social insurance contributions.
  • The workplace is stated specifically, not just "as assigned by the company".
  • Working hours of no more than 8 hours a day and 48 hours a week; 12 working days of annual leave after 12 full months.
  • Whether a training commitment or confidentiality agreement comes with the contract, and if so, for how long and how much you would have to repay.
  • Your copy bears all the signatures and the company seal.

Common employer mistakes with this type of contract

Most disputes over this type of contract are not about its clauses but about the ways businesses try to avoid it.

  • Signing a third or fourth consecutive 12-month contract to avoid switching type. The law allows only one renewal.
  • Using an appendix to extend or shorten the term; Article 22 does not allow the contract term to be changed by an appendix.
  • Letting a new hire work for several weeks before signing, whereas Article 13 requires the contract to be signed before the person starts work.
  • Letting someone go by text message, without a ground under Article 36 and without 45 days' notice.
  • Paying the final salary and pay for untaken leave, and finalising the social insurance book, more than 14 working days after termination.

Drafting an indefinite-term contract with the Việc Hot template

  1. Choose the template and industry

    Click "Use this template" above. Choose one of 18 industries and the template adds the relevant clauses automatically: information technology gets source code ownership, manufacturing gets shift arrangements, transport gets limits on driving hours.

  2. Fill in both parties' details and the job

    Enter the company name, tax code and legal representative; the employee's full name, citizen ID card and place of residence; the job title, department, workplace, start date, salary and pay day. Amounts are converted into words automatically.

  3. Read the notes, then print or save

    The "Notes" tab gives separate notes for the employer and for the employee on each clause. The finished contract prints directly on A4 and can be saved in your account, or you can add a second language to print a bilingual version.

Frequently asked questions

Yes, but the company must have a ground under Article 36 and give 45 days' notice; the two parties can also sign a termination agreement under Article 34.

No. Article 20 allows only one further definite-term contract; the third must be indefinite-term, with a few exceptions.

Under an indefinite-term contract, 45 days, with no need to give a reason. If you do not give the full notice, you lose the severance allowance and must pay compensation under Article 40.

Yes. Labour contracts of one full month or longer are subject to compulsory insurance; the company pays 17.5% social insurance, 3% health insurance and 1% unemployment insurance.

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