NOTES WHEN SIGNING LABOR CONTRACTS AT MULTIPLE PLACES AT THE SAME TIME

I. Legal basis

- Labour Code 2019

- Social Insurance Law 2014

- Decision 959/QD-BHXH in 2015

- Health Insurance Law 2014

II. The  signing of labor contracts at many places

1. Are employees allowed to sign contracts at multiple locations?

Pursuant to Point a, Clause 1, Article 5 of the Labor Code 2019,  it is stipulated that employees have the following rights: "Work; freedom to choose jobs, workplaces, occupations, apprenticeships, improve professional qualifications; free from discrimination, forced labor, sexual harassment in the workplace;"

Pursuant to Clause 1, Article 19 of the Labor Code 2019: "Employees can enter into many labor contracts with many employers but must ensure the full implementation of the signed contents".

Thus, the fact that one employee works in many places is completely in accordance with the law. However, when entering into contracts with many employers, employees need to ensure the rights and obligations of previously signed contracts.

2. Notes when employees sign multiple contracts

• About the ability to ensure the simultaneous performance of multiple labor contracts

Also according to the provisions of Clause 1, Article 19 of the Labor Code 2019, employees "must ensure the full implementation of the contents of the contract".

This is also what companies care about the quality, responsibility and efficiency for the work of employees when entering into contracts. Therefore, employees themselves need to ensure their health and spirit to be able to handle many jobs, many positions at the same time, ensuring efficiency and productivity at work.

• Payment of social insurance and unemployment insurance for the first signed labor contract:

According to the provisions of Clause 1, Article 2 of the Law on Social Insurance 2014, employees working under labor contracts with a full term of 01 month or more are required to participate in social insurance.

In case of signing a labor contract with more than one employer, the employee must only pay social insurance according to the first signed labor contract (according to Clause 4, Article 85 of the Law on Social Insurance 2014).

In addition, Clause 1, Article 43 of the Employment Law 2013 also clearly stipulates that in case the employee enters into and is performing many labor contracts specified in this Clause, the employee and the employer who first sign it are responsible for participating in unemployment insurance.

• Participate in paying health insurance according to the labor contract with the highest salary:

According to Article 12 of the 2008 Law on Health Insurance, amended in 2014, employees who sign labor contracts with a full term of 03 months or more are eligible for compulsory health insurance.

Pursuant to Article 13 of this Law, if there is one or more labor contracts with a full term of 3 months or more, the employee will have to pay health insurance according to the labor contract with the highest salary.

At the same time, Clause 1.2, Article 38 of Decision 959/QD-BHXH in 2015 also reaffirms the above provisions of the Law on Health Insurance, if the employee works at the same time in many places, from 02 companies or more, where the highest salary is located, the employee shall pay health insurance according to the labor contract at that place.

• About personal income tax payable

The total salary and wages of employees when participating in many companies are still calculated according to the partial progressive tax schedule, however, employees are only calculated family deductions for themselves and dependents at one workplace, the rest are not calculated deductions.

• About business secrets, technology secrets

Trade secrets, trade secrets, technology secrets are issues that companies are quite concerned about and this is also a barrier why companies are so afraid to accept workers to work in many places. Therefore, you should consider choosing companies that do not have competition or industries with conflicting interests to avoid unfortunate risks related to business secrets and technology.

When you have worked for 2 or 3 companies at the same time, you need to comply with regulations on protecting business secrets and technology secrets of companies because if you violate, you may be disciplined with the most severe form of dismissal according to Clause 2, Article 125 of the Labor Code 2019.

If you are doing more than 01 job and are interested in the above content or other related content, please contact us for answers.

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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Attention: This legal update is not an advice and should not be treated as such.