Employment contract is fully invalid in case record is borrowed
04/06/2022 04:11 PM
MOLISA sent Official Letter No 1767/LDTBXH-BHXH People Committee of provinces/munipalities , VSS on the status of employees borrowing record to sign employment contract and participate social insurance.
Accordingly, MOLISA has received complaint from some localities about this status and gave the following ideas: employee borrowing another’s record to sign employment contract is the action violating the “faithfullness” principle under regulation at Labour Code’s clause 2 article 15 and vilolates “loyality” principle under regulation at Labour code’s clause 2 article 16. Based on regulation Labour code’s point b clause 1 article 49, the contract is fully invalid.
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The competence to announce and solve invalid employment contract is implemented under regulation at Labour Code’s Article 50, Article 51 and Government’s Decree 145/2020/NĐ-CP’s section 3 Chapter III on Dec 14th 2020 detailedly regulating and guiding to carry out Labour Code’s some articles on labour conditions and relation. Accordingly, People Court has right to declare the entirely invalid employment contract. Solving entirely invalid employment contract because the labourer enter into the employment contract without authority or violating principle of entering into an employment contract’s principle under regulation at Laboour Code’s clause 2 article 51 and Decree 145/2020/ NĐ-CP’s article 10 regulating: “Other issues relevant to employment contracts that are fully invalidated because they are concluded ultra vires or against regulations on employment contract conclusion shall be settled by court in accordance with the Civil Procedure Code”.
MOLISA proposed People Committee in provinces/ municipalities to direct Department of Labors, War Invalids and Social Affairs and related competent agencies to strengthen information and promotion for emplyees and employers to follow Labour Code’s regulation; to regularly examine and inspect to settle strictlythe intentional violation. VSS directs social security officces of preovinces/ cities to actively and timely cooperate with local competent agencies to check, discover and settle under regulation of Labour Code, Law on Social Insurance.
The Ministry of Labor, War Invalids, and Social Affairs (MOLISA) has issued Official Dispatch No. 1767/LĐTBXH-BHXH to the People's Committees of provinces and centrally governed cities, as well as Vietnam Social Security (VSS), regarding the issue of workers using other people's documents to sign labor contracts and participate in social insurance.
Recently, MOLISA has received reports from several localities regarding this issue and provides the following response: Cases where workers use another person's documents to enter into a labor contract violate the principle of "honesty" as stipulated in Clause 1, Article 15 of the Labor Code and breach the obligation to provide truthful information when signing a labor contract under Clause 2, Article 16 of the Labor Code. Based on the provisions of Point b, Clause 1, Article 49 of the Labor Code, such contracts are considered entirely invalid.
The authority to declare labor contracts invalid and handle void contracts is regulated under Articles 50 and 51 of the Labor Code and Section 3, Chapter III of Decree No. 145/2020/NĐ-CP, issued on December 14, 2020, by the Government, which details and guides the implementation of several provisions of the Labor Code concerning working conditions and labor relations. According to these regulations, the People's Court has the authority to declare a labor contract invalid.
The handling of entirely invalid labor contracts due to improper authorization in contract signing or violations of labor contract principles follows the provisions of Clause 2, Article 51 of the Labor Code and Article 10 of Decree No. 145/2020/NĐ-CP. Clause 4, Article 10 of this decree states: "Other issues related to handling entirely invalid labor contracts due to improper authorization in contract signing or violations of labor contract principles fall under the jurisdiction of the Court in accordance with the Civil Procedure Code."
MOLISA requests that the People's Committees of provinces and centrally governed cities direct the Departments of Labor, War Invalids, and Social Affairs, social insurance agencies, and relevant authorities to strengthen information dissemination and awareness campaigns to ensure that both workers and employers comply with labor laws. Additionally, authorities must conduct regular inspections and promptly address and strictly handle intentional violations.
Vietnam Social Security is instructed to direct its provincial and municipal branches to proactively and promptly coordinate with local authorities to review, detect, and handle violations in accordance with labor laws and social insurance regulations.
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