The question "do temporary workers have to sign a labor contract" comes up constantly during peak production seasons. The short answer: yes. Since 01/01/2021, the 2019 Labor Code has abolished the type "seasonal or specific-job contract under 12 months" and replaced it with new rules. Understanding this correctly helps enterprises avoid unnecessary risks.
What has changed compared with before 2021?
Previously, the 2012 Labor Code had three types of contract: indefinite term, fixed term, and a seasonal or specific-job contract under 12 months. The third type allowed enterprises to sign repeatedly in succession without it converting into a long-term contract.
The 2019 Labor Code merges these into two types: indefinite term and fixed term (up to 36 months). Accordingly, "temporary" workers are now signed on a fixed-term labor contract with a short term, for example 1, 2, 3 or 6 months. See the general principles in the article on fixed-term and indefinite-term contracts.
The consecutive-signing rule: the biggest trap for factories
Because "temporary" work is now just an ordinary fixed-term contract, enterprises are subject to the consecutive-signing rule of Article 20 of the Labor Code:
- When the first contract expires, if the enterprise still uses that person, it may sign a fixed-term contract only one more time.
- After the second signing, if the employee keeps working, an indefinite-term contract must be signed.
- If the contract expires without a new one and the employee keeps working beyond 30 days, the contract converts automatically into an indefinite-term contract.
This means a factory that uses the same worker across several consecutive seasons through 3-month, 3-month, 3-month contracts and so on will breach the rule. The lawful solutions are to use workers only for genuinely short-term needs, or to move the fluctuating part of demand to a labor supplier holding a suitable license.
Do temporary workers have to be insured?
Yes, if the contract meets the conditions. Some milestones to remember:
| Type of contract | Compulsory BHXH | Health insurance | Unemployment insurance |
|---|---|---|---|
| From 1 month to under 3 months | Yes, under the 2024 Social Insurance Law (from 01/07/2025) | Yes | Depends on current rules on covered persons |
| 3 months or more | Yes | Yes | Yes |
| Under 1 month | Not subject to compulsory coverage | No | No |
An important new point: the 2024 Social Insurance Law, effective from 01/07/2025, brings people working under a labor contract of 01 month to under 03 months into compulsory BHXH. Many factories did not pay for this group before and now need to review. For penalties when contributions are not paid in full, see the article on penalties for not paying BHXH.
Minimum rights of temporary workers
Even when working short-term, employees are guaranteed the same rights as other workers:
- A written (or electronic) contract before starting work.
- Pay not below the regional minimum wage, paid on time.
- Overtime and night work paid at the statutory multipliers.
- Occupational safety training and equipment.
- Compulsory insurance benefits as shown in the table above.
For very short contracts, the law still allows an oral agreement for work lasting under 01 month, but enterprises should prepare a written record as evidence when needed.
Two lawful models for using temporary workers
Model 1 - Signing directly. Suitable when demand is clearly cyclical and the enterprise has an HR function. You need to plan so that you do not fall foul of the consecutive-signing rule above.
Model 2 - Through a labor supplier or labor leasing provider. The employee signs with the supplier; the user enterprise signs a service contract. For labor leasing, the law has its own list of jobs and conditions; see what labor leasing is and how labor supply and labor leasing differ.
Frequently asked questions
Has there been a separate seasonal contract since 2021? No. The law now recognizes only indefinite-term and fixed-term contracts. Temporary workers sign fixed-term contracts with a short term.
Can several consecutive 3-month contracts be signed for one worker? It is not advisable. After the first contract, only one more fixed-term contract may be signed, and then an indefinite-term contract must be signed if you keep using that person.
Does a temporary worker employed for 2 months need social insurance (BHXH)? Under the 2024 BHXH Law, people working under a contract of 1 month to under 3 months are subject to compulsory BHXH from 01/07/2025. Enterprises should check the latest guidance from the insurance authority.
Is hiring temporary workers through a labor supplier safer legally? It can reduce the management burden if the supplier meets the conditions to operate lawfully. Enterprises still need to check the supplier's license, contract and insurance responsibilities.
Content updated until October 2026. Regulations on the insured subjects and implementation guidelines may be adjusted; businesses should reconfirm before applying.