The law respects the agreements between employers and employees but not all agreements are recognized by the law. Here are the illegal agreements that every employee should know before signing in the contract.
1. Agreement for not participating in compulsory social insurance
In accordance with Article 168, Labor Code 2019, employers and employees shall participate in compulsory social insurance, health insurance, and unemployment insurance.
In accordance with Article 2, Law on Social insurance 2014, persons working under labor contracts with a term of between full 1 month shall be covered by compulsory social insurance.
In the case of employees do not participate in the social insurance, employers and employees shall be imposed with the fine for administrative violations in accordance with the Decree No. 12/2022/ND-CP as follows:
A fine shall be imposed on any worker who enters into an agreement with the employer to avoid paying compulsory social insurance, unemployment insurance.
- Fine: VND 500,000 - 01 million
Pursuant to: Clause 1, Article 39, Decree No. 12/2022/ND-CP
- Fine for failing to pay sufficient social insurance and unemployment insurance premiums.
- A fine equal to between 12% and 15% of the total compulsory social insurance and unemployment insurance premiums at the time of making a minute of administrative violations, with a total fine of no more than VND 75 million.
Pursuant to: Point c, Clause 5, Article 39, Decree No. 12/2022/ND-CP.
2. Agreements for not signing the labor contracts with other companies
For the fear of “brain drain”, some companies require employees not to have a labor contract with other companies.
However, Article 19 of the Labor Code prescribes clearly that:
1. The employee may enter into different labor contracts with more than one employer, provided that he/she fully performs the contents of the entered contracts.
2. For the employee who concurrently enters into different labor contracts with more than one employer, his/her participation in social insurance, health insurance and unemployment insurance must comply with the laws on social insurance, health insurance, unemployment insurance, and occupational safety and health.
Therefore, employees are free to enter into different labor contracts with many employers with the condition to finish all the agreed work.
The requirement for employees not to work for other companies is totally unreasonable and violates employees' freedom for choosing jobs and working places. This agreement is not accepted by the law provisions.
3. Agreement for not getting married or having babies in the first years
In order to restrict the discontinuity in business activities, a number of companies require employees to sign a commitment to not being pregnant and having babies in the first years of working.
However, this type of commitment violates the regulations on rights and obligations of each couple or individual in carrying out the movement for population and family planning and reproductive health care prescribed in Ordinance No. 08/2008/PL-UBTVQH12 on amending the Article 10 of the Population Ordinance No. 06/2003/PL-UBTVQH11.
Rights and obligations of each couple or individual in carrying out the movement for population and family planning and reproductive healthcare:
1. To decide on the time to have babies and the interval between child births.
Therefore, this type of agreement has no legal validity although the employee agrees to sign.
On the other hand, in accordance with Clause 3, Article 137 of the Labor Code 2019, the employer may neither dismiss the employee nor unilaterally terminate the labor contract with the employee for the reason of marriage, pregnancy, or maternity leave.
The employer shall be imposed a fine ranging from VND 10 - 20 million (Point i, Clause 2, Article 28, the Decree No. 12/2022/ND-CP).
4. Agreement for working in the long time
Many companies require the employee to sign in the commitment for working in the long time with the condition to pay compensation for quitting the job before the consistent term, normally the term is from 03 - 05 years.
In accordance with Point a, Clause 1, Article 5 of the Labor Code 2019, The employee has the rights to work; to freely choose a job, a workplace, or an occupation, to receive vocational training and improve occupational qualifications.
The employees can unilaterally terminate the labor contract in the case of definite contracts or indefinite contracts.
The employee may unilaterally terminate his/her labor contract provided he/she shall notify such termination to the employer. The employee only makes compensation for illegal contract termination.
Therefore, the commitment to working in the long term has violated the unilateral rights to terminate the employee's contract.
5. Agreements for not working for the competitor's companies
In accordance with Clause 1, Article 10 of the Labor Code 2019, the employee freely chooses a job and works for any employer in any place that is not banned by law. At the same time, Clause 6, Article 9 of the Law on Employment 2013 prohibits obstructing or causing difficulties or damage to, the lawful rights and interests of workers or employers.
Therefore, the employers cannot force the employee to sign in the agreement for not working for the competitor’s companies. This agreement has no legal validity although the employee agrees to sign.
Here is the information on illegal agreements that everybody should know when signing a labor contract.