Current types of labor contracts
According to the current Labor Code, there are only two main types of labor contracts: indefinite-term contract and definite-term contract (not exceeding 36 months). Seasonal contracts of less than 12 months are no longer a separate type of contract — temporary jobs should be handled through short-term fixed-term contracts or seasonal labor supply services.
Mandatory contents in labor contracts
The labor contract must have complete information: information of the parties, job and work location, contract term, salary and payment method, working and rest hours, labor protection equipment, social insurance - health insurance - unemployment insurance. Missing one of the required contents may cause the contract to be considered invalid in the event of a dispute.
Procedures for handling labor discipline according to the law
Wrong disciplinary procedures are a common reason why businesses lose labor lawsuits. Required steps include:
- Make a record of violations immediately upon discovery.
- Notify in writing inviting employees and employee representative organizations to participate in disciplinary meetings.
- Organize a disciplinary meeting with all members according to regulations, and prepare meeting minutes.
- Issue a disciplinary decision within the prescribed statute of limitations (usually no more than 6 months from the date of violation, or 12 months for violations related to finance, property, technology or business secrets).
- Send disciplinary decisions to employees.
Skipping any step in the above process can cause disciplinary decisions, including dismissal, to be declared invalid by a court even if the employee's fault is real.
Common forms of labor disputes
- Dispute over unilateral termination of labor contract (unlawful dismissal or layoff).
- Dispute over salary, overtime pay, severance pay.
- Disputes over labor discipline.
- Dispute between the employee and the labor subleasing unit or labor supply unit.
Steps to resolve labor disputes
Individual labor disputes usually have to go through a labor conciliator before being sued in court (except in some cases where the law allows direct lawsuits, such as disputes over disciplinary dismissal or unilateral termination of labor contracts). Enterprises should prioritize internal dialogue and reconciliation before letting disputes escalate, both to reduce costs and maintain reputation with other employees.
Does dismissal of an employee require prior notice? Dismissal is a form of discipline, effective immediately after the decision is made in accordance with the correct procedure, and does not apply a notice period like unilaterally terminating a normal labor contract. However, the conditions for dismissal are very strict and only apply to serious violations listed in the labor regulations.
Can an enterprise that does not have written labor regulations be disciplined? Enterprises employing 10 or more employees are required to have written labor regulations registered with the state labor management agency. Without it, disciplinary action, especially dismissal, can easily be declared invalid when there is a dispute.