Workers may enter into multiple labor contracts

Before employing a worker, the employer must sign a labor contract with the worker.

This requirement is a mandatory regulation, even in cases where the worker works for multiple employers. However, the way workers participate in compulsory insurance schemes differs.

Lawyer Pham Dinh Duc (Dong Nai Province’s Lawyers Association) provides advice for workers on their obligations when entering into labor contracts with multiple employers. Photo: Doan Phu

Workers must fulfill contractual obligations

According to Clause 2, Article 6 of the 2019 Labor Code, in labor relations, workers are obliged to perform the labor contract, collective bargaining agreements, and other lawful agreements; comply with regulations on labor, employment, vocational education, social insurance (SI), health insurance (HI), unemployment insurance (UI), and occupational safety and hygiene...

With qualifications as a construction engineer and a bachelor's degree in foreign languages, Nguyen Van Hong, who resides in Binh Phuoc ward, Dong Nai province, works under an open-ended labor contract for a construction enterprise based in Binh Long ward. In his spare time, he also teaches at a foreign language center. As the teaching job is only part-time with modest income, Hong has not paid attention to signing a labor contract or participating in mandatory insurance schemes such as social insurance, occupational accident - occupational disease insurance, or health insurance.

Therefore, when colleagues advised him, although his teaching job at the foreign language center is just additional work with lower income compared to his main construction job, the law requires both workers and employers to sign a labor contract, thereby strictly fulfilling responsibilities for paying SI, HI, and occupational accident - occupational disease insurance in accordance with regulations.

Nguyen Van Hong wants to know: If he signs a labor contract with the foreign language center, how will he be required to pay SI, HI, and occupational accident - occupational disease insurance, given that he already pays fully under his construction contract?

Meanwhile, Tran Thi Bich, a resident of Tam Hiep ward, Dong Nai province, shared that she works part-time as an accountant for multiple companies, earning a total monthly income of just over 15 million VND. She wishes to pay social insurance based on her total income so that she can receive higher benefits upon retirement. However, the companies she works for did not agree, explaining that she can only contribute to social insurance based on the salary stated in each labor contract. Her question is: For a person with multiple labor contracts, how are SI, HI, and occupational accident - occupational disease insurance regulated?

Taking advantage of free time to do extra work and increase income and experience is a legitimate need not only for skilled workers but also for unskilled ones. Therefore, when signing labor contracts with multiple employers, workers need to allocate time and health properly to perform the jobs according to obligations stated in the labor contract and collective bargaining agreement.

Lawyer VU DUY NAM (Ho Chi Minh City’s Lawyers Association)

Non-compliance will be sanctioned

Regarding the concerns raised by Nguyen Van Hong and Tran Thi Bich, lawyer Pham Dinh Duc from the Dong Nai Lawyers Association explained: Employees may sign multiple labor contracts with different employers, but they must fully comply with the terms agreed upon in each contract. In cases where workers simultaneously enter into various contracts, participation in social insurance, health insurance, and unemployment insurance must be carried out in accordance with the provisions of the laws on social insurance, health insurance, unemployment insurance, and occupational safety and hygiene.

To ensure that workers and employers fulfill obligations of paying SI, HI, and occupational accident - occupational disease insurance when entering into multiple labor contracts with different employers, Clause 1, Article 42 of Decision No. 595/QD-BHXH dated April 14, 2017 of Vietnam Social Security on the collection of SI, HI, UI, and occupational accident - occupational disease insurance; management of SI books and HI cards, stipulates: workers simultaneously holding two or more labor contracts with different units shall pay SI and UI according to the first signed contract, pay HI according to the contract with the highest salary, and pay occupational accident - occupational disease insurance under each contract. However, workers are not required to pay into the occupational accident - occupational disease insurance fund, as this responsibility belongs to the employer.

Also, according to lawyer Pham Dinh Duc (Dong Nai Province's Lawyers Association), Clause 1, Article 118 of the 2024 Social Insurance Law stipulates that the SI fund includes component funds such as: sickness and maternity fund, retirement and survivorship fund, and occupational accident - occupational disease insurance fund. Therefore, based on Point a, Clause 7, Article 39 of Decree 12/2022/ND-CP dated January 17, 2022 of the Government on administrative penalties in the fields of labor, SI, and Vietnamese workers working abroad under contracts (referred to as Decree 12), employers who evade paying compulsory SI but not to the extent of criminal liability will be fined from 50-75 million VND.

At the same time, Point a, Clause 1, Article 9 of Decree 12 stipulates fines from 2-5 million VND for employers who sign labor contracts not in writing with 1-10 workers doing jobs with a term of one month or more.

Lawyer Pham Dinh Duc further noted: To prevent and control acts of late payment and evasion of compulsory SI and UI contributions, Article 40 of the 2024 Social Insurance Law stipulates measures for handling late payment of compulsory SI and UI as follows: mandatory full payment of arrears, payment of an amount equal to 0.03%/day calculated on the unpaid SI, UI contributions and the number of days of late payment into the SI and UI funds, administrative penalties in accordance with law, ineligibility for commendation titles or awards.

Article 41 of the 2024 Social Insurance Law stipulates that employers must fully pay all evaded contributions; additionally, they must pay an amount equivalent to 0.03% per day, calculated on the unpaid social and unemployment insurance contributions and the number of days of evasion, into the respective insurance funds. Violations may also result in administrative sanctions or criminal prosecution in accordance with the law. Offending entities will not be eligible for emulation titles or commendation awards.

By: Doan Phu

Translated by: Minh Hanh - Minho