Service Agreement Vietnam

Article 513 of the 2015 Civil Code (Article 518 of the 2005 Civil Code) provides that “a service contract is an agreement between the parties under which a service provider performs a task for a service user and the user must pay a service fee to the service provider”. In order to conclude service contracts with individuals, it is therefore necessary for these persons to register their company in accordance with the legal provisions (in the first place in compliance with the Law on Enterprises). When a company enters into a service contract with a person without a registered company, it is very likely that it is a violation of the legal provisions analyzed above. Throughout the treaty process, when a problem needs to be resolved, both parties must discuss, agree to resolve the issue immediately, comfortably and reasonably. If both parties fail to reach an agreement, each party has the right to submit the case to a competent court, in accordance with laws and regulations. It should be noted that, generally speaking, companies that need a job do not hire individuals to regularly provide the small types of services listed above, but hire individuals to perform activities that require a specific profession or qualification. However, in the case of activities requiring a specific profession or qualification, the person must declare his or her business in order to be able to consider the exercise of those activities as a commercial activity and not as an employer/employee relationship under labour law. There is a misperception that compliance with income tax (PIT) requirements means that signing a service contract is acceptable Another position (from our subjective point of view) is that if the public authorities and Vietnamese law effectively recognize the legality of service contracts signed with individuals without their activity being registered in accordance with the law. There would be no need for the existence of labour law and provisions relating to social security, health insurance and unemployment insurance.

2. 5. Pay the service fee in accordance with section 5 of this agreement. Article 15 of the 2012 Labour Code provides that “an `employment contract` is an agreement between an employee and an employer on the remunerated work, working conditions, rights and obligations of each party in the employment relationship”. From a practical point of view, this is to prevent employers from abusing service contracts as an alternative mechanism for recruiting individuals (as opposed to traditional employment contracts). The use of employment contracts generally makes it easier for employers to carry out dismissal without legal restrictions and to avoid compulsory social security contributions, as would normally be necessary under a formal employment contract. At present, many companies operate incorrectly (signing service contracts with people who do not comply with the law), but their actions have not been verified or verified by the authorities. As a result, undertakings mistakenly believe that the signing of service contracts is accepted by public authorities and, therefore, other undertakings follow this example.

Unable to detect or be aware of all infringements, public authorities focus only on handling cases that they can handle comfortably in order to avoid a delay and achieve their annual targets (which the state proposes to them or their sub-units). . . .