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7 Things to Know When Signing a Probationary Contract

You may not know this, but here are some key points to note when signing a probationary contract. Hopefully, this information will be helpful in your career journey.

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Below are 7 important things to know when signing a probationary contract, helping you ensure your rights and responsibilities during the probation period at agencies and enterprises:

1. Regulations on Probation

The 2019 Labor Code does not require employees to undergo probation before signing a labor contract. Probation is based on mutual agreement between the two parties. However, in practice, most enterprises require probation. Note that if the labor contract has a duration of less than one month, the enterprise cannot require probation (according to Clause 3, Article 24 of the 2019 Labor Code).

2. Using a Labor Contract for Probation

Clause 1, Article 24 of the 2019 Labor Code allows employees and enterprises to sign a labor contract with probationary terms instead of a separate probationary contract. This helps better protect the rights of employees.

3. Mandatory Contents of a Probationary Contract

A probationary contract must include basic information such as the company's name, personal information of the employee, specific job details, workplace, probationary salary, probation period, and other relevant conditions (according to Clause 2, Article 24 of the 2019 Labor Code).

4. Probationary Period

The probationary period depends on the nature and complexity of the job and is limited to one probation period for each job. The maximum probationary period is as follows:

  • 180 days for managerial positions,
  • 60 days for jobs requiring a college degree or higher,
  • 30 days for intermediate-level jobs,
  • No more than 6 days for other jobs (Article 25 of the 2019 Labor Code).

5. Probationary Salary

According to Article 26 of the 2019 Labor Code, the salary during probation must be at least 85% of the salary for the corresponding job.

6. Benefits During Probation

Probationary employees are entitled to several benefits, such as:

  • Working hours limited to no more than 8 hours per day and 48 hours per week,
  • Annual leave,
  • Paid holidays if they continue working after the probation period.
    If a labor contract is signed for probation, the employee is also entitled to social insurance (SI) contributions.

7. Termination of a Probationary Contract

At the end of the probationary period, if the employee meets the requirements, the enterprise will sign an official labor contract. If the employee does not meet the requirements, either party has the right to terminate the probationary contract without prior notice or compensation (according to Clause 2, Article 27 of the 2019 Labor Code).

The probation period is an opportunity to evaluate an employee's capabilities and suitability for the job. Understanding the regulations will help you safeguard your rights and avoid risks during the probation period.

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