Many employees decide to stay and work for enterprises for a long time. Employees with seniority shall enjoy a number of the following benefits.
1. Allowed to add more annual leave days
In accordance with Clause 1, Article 113, Labor Code 2019, each employee is entitled to a fully paid annual leave as follows:
Number of annual leave
An employee who has been working for the employer for full 12 months
Employees working in normal conditions.
Juvenile employees, employees being persons with disabilities, or persons doing heavy, hazardous, or dangerous jobs;
Persons doing extremely heavy, hazardous, or dangerous jobs.
An employee who has been working for the employer for full 12 months:
Annual leave increased based on working seniority.
Employees with long working seniority shall be added more number of annual leave days as prescribed in Clause 114, Labor Code 2019:
For every full 5 years during which the employee has worked for the employer, 1 day shall be added to the number of annual leave days of the employee prescribed in Clause 1, Article 113 of this Code.
2. Allowed to sign the indefinite-term labor contract
Contract labor shall be agreed upon by employees and employers. Currently, in accordance with Clause 1, Article 20, Labor Code 2019, labor contracts are divided into two types:
- Indefinite-term labor contract: This is a contract in which the two parties do not determine the term and time of termination.
- Definite-term labor contract: This is a contract in which the two parties determine its term and time of termination within 36 months from the date the contract takes effect.
Employees and enterprises have the right to agree on labor contracts term but must ensure compliance with provisions prescribed in Point c, Clause 3, Article 20, Labor Code 2019:
c) In case the two parties sign a new labor contract with a definite term, they may not sign another definite-term labor contract; if the employee continues working after the expiration of this contract, the two parties shall sign an indefinite-term labor contract, except labor contracts entered into by persons hired to work as directors of state capital-invested enterprises and the cases specified in Clause 1, Article 149, Clause 2, Article 151, and Clause 4, Article 177, of this Code.
Accordingly, enterprises are allowed to sign definite-term labor contracts with the employees once more time. It means that the enterprise must sign an indefinite-term labor contract with that employee to keep him/her in the third contract signing.
For example: B signs a labor contract with the enterprise within 03 years. After 03 years, B continues to sign the labor contract of 03 years for the second time. After 06 years, B's labor contract shall become an indefinite-term labor contract.
Therefore, employees with seniority shall have a chance to sign indefinite-term labor contracts.
The benefits of indefinite-term labor contracts:
- If the employer may unilaterally terminate the employee’s labor contract provided he/she shall notify such termination to the employee for a longer time than the employee who sign the definite-term labor contract.
+ Definite-term labor contract: At least 45 days in advance:
+ Definite-term labor contract: At least 30 days in advance:
- Cases in which employees may exercise the right to unilaterally terminate labor contracts for being sick or suffering an occupational accident: Employee’s time for receiving medical treatment of indefinite-term labor contract is longer than the time of a definite-term labor contract.
+ Definite-term labor contract: The employee who receives medical treatment for being sick or suffering an occupational accident under 12 continuous months shall not be unilaterally terminated with the labor contract.
+ Definite-term labor contract: The employee who receives the medical treatments for being sick or suffering an occupational accident under 06 continuous months (contract term is from 12 - 36 months) or half of the contract term (contract term is under 12 months).
3. Other welfare benefits for employees with seniority
Employees with seniority will receive many more welfare benefits in accordance with internal regulations of the enterprise besides the benefits prescribed by law provisions. Currently, many enterprises have set up many preferential policies for employees with seniority such as:
- Increase higher seniority annual leaves, for example, employees who work full 5 years are ad more 2 annual leave days.
- Other allowances for seniority besides KPI rewards...
- Higher wages and salaries for employees with seniority.
- Other remuneration policies such as medical health supports, health insurance...
Here is the information on the benefits of employees with long working seniority.