Electronic Labor Contracts: Execution Regulations and Legal Validity in Vietnam

I. What is an Electronic Labor Contract in Vietnam

According to Clause 1, Article 3 of Decree 337, an Electronic Labor Contract is a labor contract concluded and established in the form of a data message in accordance with the provisions of labor law and the law on electronic transactions. It holds the same legal validity as a written paper labor contract. Thus, an electronic labor contract is recognized as having equivalent legal value to a physical document; however, its execution must strictly comply with labor laws and electronic transaction regulations.

II. General Principles for Executing and Performing Electronic Labor Contracts

1. The execution and performance of electronic labor contracts must comply with regulations on labor, electronic transactions, network information security, data, personal data protection, archiving, and the provisions of this Decree.

2. The electronic labor contract must be sent to the employee and the employer in the form of a data message via suitable electronic means as agreed upon by the parties.

3. The use of electronic labor contracts is encouraged to replace written paper contracts in the employer's human resource management and in the settlement of administrative procedures related to labor contracts.

III. Conditions and Methods for Executing Electronic Labor Contracts

1. The execution of an electronic labor contract is conducted through an eContract system that ensures the following conditions:

a) Utilization of digital signature software and digital signature verification meeting the requirements of electronic transaction laws.

b) Implementation of security measures to ensure the safety of customer information and electronic labor contract data; presence of technical plans to maintain and recover electronic contract authentication operations in the event of an incident.

c) Presence of archiving plans to ensure the data integrity of electronic vouchers; ensuring the ability to search for electronic labor contracts concluded on the eContract system.

d) Functionality to ensure correct subject identification and perform identity authentication in accordance with laws on identification and electronic authentication for both the employee and the employer.

e) Technical measures to confirm that identified organizations or individuals agree to the contents of the labor contract.

f) Functionality to authenticate electronic labor contracts in accordance with electronic transaction laws before sending them to the Electronic Labor Contract Platform for ID assignment. g) Functionality to convert between electronic labor contracts and written paper contracts in accordance with electronic transaction laws.

h) Provision of electronic transaction accounts complying with the conditions specified in Article 46 of the Law on Electronic Transactions.

i) Functionality to support the employer in reporting labor usage status as prescribed by labor law through protocols and formats specified by the Ministry of Home Affairs.

j) Functionality for synthesizing, statistics, and periodic or irregular reporting for the management of electronic labor contract transactions.

k) Connection via a standard Application Programming Interface (API) with the Electronic Labor Contract Platform as regulated by the Ministry of Home Affairs.

l) Assurance of technical requirements for information security in accordance with the law on network information security.

2.Employers and Employees must ensure the following conditions

a) For individual employees and employers: Valid identification documents including Citizen ID cards, Identity cards, electronic identities, identity certificates, Level 2 electronic identification accounts, or valid passports; valid entry visas or documents proving exemption from entry visas (for foreign individuals).

b) For employers that are enterprises, agencies, organizations, cooperatives, or households: Establishment decisions or decisions on functions, duties, powers, and organizational structure; or Business Registration Certificates, Investment Certificates, or Household Business Registration Certificates, along with the valid identification documents of the legal representative.

c) Possession of digital signatures and the use of time-stamping services in accordance with electronic transaction laws.

3. eContract Service Providers must ensure the following

a) Possession of an eContract system meeting the conditions in Clause 1 of this Article.

b) Solutions and technology to collect, check, and compare data to ensure a match between organizational/individual identification information, biometric data of the legal representative (fingerprints, face, iris, voice, etc.) and the corresponding information on their identification documents.

c) Possession of a License for Providing Trust Services, specifically for providing data message authentication services under electronic transaction laws.

4. Execution Process

Electronic labor contracts are created, subject to identity authentication, digitally signed, time-stamped, and authenticated by the eContract Provider. Within 24 hours of the final signature, the eContract Provider must send the contract to the Electronic Labor Contract Platform for ID assignment.

IV. Validity of Electronic Labor Contracts

An electronic labor contract takes effect from the moment the last party digitally signs, the time stamp is attached to the digital signatures of the parties, and the eContract Provider authenticates the data message, unless otherwise agreed by the parties.

V. Conclusion

The adoption of electronic labor contracts is not only an inevitable trend in the digital era but also an optimal solution helping businesses save costs, time, and modernize human resource management processes. However, to ensure legal safety, both employers and employees must pay close attention to identity authentication requirements, digital signatures, and the role of reputable eContract service providers. Mastering the regulations under Decree 337 and the Law on Electronic Transactions will enable parties to execute contracts transparently, securely, and in full compliance with the law.

FAQ - FREQUENTLY ASKED QUESTIONS (ENGLISH)

1. Is an electronic labor contract as legally valid as a paper one?

Yes. According to Decree 337, an electronic labor contract holds the same legal validity as a written paper contract, provided it complies with labor laws and electronic transaction regulations.

2. What are the requirements for signing an electronic labor contract?

Both the employee and the employer must provide valid identification (Citizen ID/Passport/Level 2 Electronic ID), possess a digital signature, and utilize a qualified time-stamping service.

3. When does an electronic labor contract officially take effect?

The contract becomes effective at the moment the final party applies their digital signature and the time stamp is attached, unless otherwise agreed upon by the involved parties.

4. What is the role of the eContract Service Provider?

The provider offers the technical platform for execution, identity authentication, and data message certification. They must also submit the contract to the Ministry of Home Affairs' platform for ID assignment within 24 hours.

The information contained in this article is general and intended only to provide information on legal regulations. DB Legal will not be responsible for any use or application of this information for any business purpose. For in-depth advice on specific cases, please contact us.

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