Service contracts are a mechanism often used by Vietnamese companies to formalize and document agreements with individuals without having to enter into a formal employment contract. In order to sign service contracts with individuals, it is therefore necessary for these persons to register their transactions in accordance with the legal provisions (first of all in compliance with the Law on Companies). When a company enters into a service contract with a person who does not have a registered business, it is very likely that this is a violation of the legislation discussed above. To avoid the obligations of social security, health insurance and unemployment insurance to their employees and avoid liability under labour law, many companies propose that their employees sign service contracts instead of employment contracts. Is the signing of a service contract between a company and an employee (a person) legal under Vietnamese law? Answer: We have been asked to provide legal advice for the preparation of a service contract between the client and a freelancer/service provider based in Hanoi. That is why we would like to present our proposal for the legal department for review. AVSE-TESOL (Australia) has entered into third-party agreements with our partners in Vietnam and Cambodia for the provision of Certificate IV in the TESOL training program. These agreements are in accordance with ASQA rules and the rules of Vietnam and Cambodia. Section 3.9 of the 2005 Trade Act states that „service“ refers to a commercial activity in which a party (hereafter referred to as „service provider“) is required to provide services to another party and receives a payment; and the party using the services (hereafter referred to as „customer“) is required to make the payment to the service provider and use the services as agreed.
People who do not register their business are often not allowed to provide services 1. Part A is responsible for the payment of all accommodation, food, travel expenses for Part B staff, if part B benefits in accordance with clauses 3 and 4, Article 1 of this contract. When individual workers enter into service contracts instead of employment contracts with a company, they are not considered „workers“ under the labour code.