{"id":8137,"date":"2023-10-25T16:13:50","date_gmt":"2023-10-25T09:13:50","guid":{"rendered":"https:\/\/cdlaf.vn\/?p=8137"},"modified":"2024-01-12T14:48:39","modified_gmt":"2024-01-12T07:48:39","slug":"labor-contract-or-personal-consulting-service-contract","status":"publish","type":"post","link":"https:\/\/cdlaf.vn\/en\/labor-contract-or-personal-consulting-service-contract\/","title":{"rendered":"Labor contract or personal consulting service contract"},"content":{"rendered":"<p>Currently, almost all enterprises understand that the law has no restrictions or regulations prohibiting enterprises and individuals from establishing service contracts, and this also has no restrictions on Vietnamese people or foreigners. So perhaps many enterprises are currently entering into Personal Service Contracts with foreigners, instead of establishing Labor Contracts accompanied with Work Permit procedures. Is this understanding and application by some enterprises considered in accordance with the law and approved by competent authorities?<\/p>\n<p>The article below will help enterprises understand more about this issue.<\/p>\n<figure id=\"attachment_7958\" aria-describedby=\"caption-attachment-7958\" style=\"width: 398px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-7958\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/10\/pexels-athena-2254103-637x800.jpg\" alt=\"\" width=\"398\" height=\"500\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/10\/pexels-athena-2254103-637x800.jpg 637w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/10\/pexels-athena-2254103-318x400.jpg 318w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/10\/pexels-athena-2254103-768x965.jpg 768w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/10\/pexels-athena-2254103-1223x1536.jpg 1223w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/10\/pexels-athena-2254103-1630x2048.jpg 1630w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/10\/pexels-athena-2254103.jpg 1976w\" sizes=\"auto, (max-width: 398px) 100vw, 398px\" \/><figcaption id=\"caption-attachment-7958\" class=\"wp-caption-text\">Source: pexels-athena<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #a32411;color:#a32411\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #a32411;color:#a32411\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/cdlaf.vn\/en\/labor-contract-or-personal-consulting-service-contract\/#1_Understanding_labor_contracts_and_personal_consulting_service_contracts\" >1. Understanding labor contracts and personal consulting service contracts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/cdlaf.vn\/en\/labor-contract-or-personal-consulting-service-contract\/#2_Can_foreigners_provide_services_in_Vietnam\" >2. Can foreigners provide services in Vietnam?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/cdlaf.vn\/en\/labor-contract-or-personal-consulting-service-contract\/#SEND_CONSULTATION_REQUEST\" >SEND CONSULTATION REQUEST<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_Understanding_labor_contracts_and_personal_consulting_service_contracts\"><\/span>1. Understanding labor contracts and personal consulting service contracts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>A labor contract <\/strong>is simply understood as a document recording an agreement between an enterprise and an employee regarding work, salary, rights and obligations between the parties, etc. Previously, to hide the labor relationship, some enterprises have established working agreements with different names. However, according to current labor law, the existence of a labor relationship will not depend on the document name.<\/p>\n<p><strong>A personal consulting service contract <\/strong>is understood as a civil transaction recording an agreement between the parties. This understanding makes no difference between a Vietnamese person or a foreigner. However, for foreigners operating in Vietnam, for convenience in management, the law regulates that the presence of foreigners in Vietnam to perform services shall be associated with certain legal documents. Typically, when a foreigner works in Vietnam, receives wages, and is under the management of an enterprise, the foreigner will need a work permit or document confirming exemption from a work permit. In contrast, in cases of participation as investors, foreigners will need documents related to investment projects in Vietnam.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_Can_foreigners_provide_services_in_Vietnam\"><\/span>2. Can foreigners provide services in Vietnam?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To answer this question, let&#8217;s research into the regulations of relevant laws.<\/p>\n<p>The nature of service provision as prescribed in Clause 9, Article 3 of the Commercial Law is understood as follows: &#8220;Service provision is a commercial activity, whereby one party has the obligation to perform a service for another party and receive payments; The service user is obliged to pay the service provider and use the service according to the agreement\u201d<\/p>\n<p>Thus, a service provision contract between an enterprise and an individual is understood as a commercial relationship between the parties to carry out commercial activities. The Commercial Law also regulates that trader <strong><u>carrying out commercial activities<\/u><\/strong> must register their business, except for some special cases which are not required to register their business. These cases are understood as <em>&#8220;<\/em><em>individuals who daily carry out one<\/em><em> or<\/em><em> several or all of the activities permitted by law on buying and selling goods, providing services and<\/em><em> other<\/em><em> activities for the purpose of profit<\/em> <em>which are not subject to business registration according to the regulations of the law on business registration and are not called &#8220;traders&#8221; according to the regulations of the Commercial Law&#8221; <\/em>such as street vendors and snack trading, car repair, shoe polishing, etc.<\/p>\n<p>Therefore, the law only considers this as a commercial relationship, if the individual providing the service carries out business registration, the case of non-business registration will be considered an employment relationship. Therefore, in this case, the competent authorities often require the enterprise to provide legal documents related to foreign workers such as work permits and to fulfill obligations prescribed by labor law.<\/p>\n<p>Currently, there are many enterprises enter into service contracts with Vietnamese people as well as foreigners and fulfill tax obligations. This leads to a misunderstanding from the enterprises that taxes are declared and paid in full and without any other requirements from the tax authority, the default is that this service relationship is considered in accordance with regulations. However, enterprises should understand that, for tax obligations, enterprises and individuals will have to self-declare and take responsibility for themselves. Tax authority\u2019s receipt does not confirm that the enterprise is complying with the law, nor does it determine that the relationship between the parties is legal.<\/p>\n<p>To be clear, we cite tax authorities&#8217; opinions in a written response to enterprises in Vietnam:<\/p>\n<p><em>\u201c<\/em><em>Based on the above instructions, in case Hanoi French Hospital Co., Ltd. enters into<\/em> <em>a contract with foreign doctors to perform medical examination and treatment for patients at Hanoi French Hospital or other facilities designated by the Hospital. Contract between the Hospital and foreign doctors<\/em><em> regulates<\/em><em> a weekly salary payment mechanism that is not based on the volume of medical examination and treatment services of foreign doctors. The hospital is responsible for occupational risks, provides working facilities, controls and is responsible for working locations for foreign doctors. On the other hand, <strong>foreign doctors are not individuals with business registration<\/strong>. Thus, the income that foreign doctors receive from the Hospital is income from salaries and wages. Determination of personal income tax obligations of non-resident individuals with income from salaries and wages shall comply with Article 18 of Circular No. 111\/2013\/TT-BTC dated August 15, 2013 of the Ministry of Finance.<\/em><\/p>\n<p>The fact that many enterprises apply does not mean that this method is recognized by law. Therefore, to avoid risks that may arise in the future when there is a dispute, enterprises need to review the contracts with foreigners to make timely adjustments.<\/p>\n<p><strong><em>Time of writing:<\/em><\/strong> 21\/<em>09\/2023<\/em><\/p>\n<p><em>The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer at <a href=\"https:\/\/mail.google.com\/mail\" target=\"_blank\" rel=\"noopener\"><strong>info@cdlaf.vn<\/strong><\/a><\/em><\/p>\n<div class=\"content-post-nd\">\n<div style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5519 size-full aligncenter\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png\" alt=\"\" width=\"1080\" height=\"600\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png 1080w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-720x400.png 720w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-768x427.png 768w\" sizes=\"auto, (max-width: 1080px) 100vw, 1080px\" \/><\/div>\n<\/div>\n<div class=\"content-post-nd\">\n<p><strong>Why choose CDLAF\u2019s service?<\/strong><\/p>\n<ul class=\"li-content\">\n<li>We provide effective and comprehensive legal solutions that help you save money and maintain compliance in your business;<\/li>\n<li>We continue to monitor your legal matters even after the service is completed and update you when there are any changes in the Vietnamese legal system;<\/li>\n<li>Our system of forms and processes related to labor and personnel is continuously built and updated and will be provided as soon as the customer requests it;<\/li>\n<li>As a Vietnamese law firm, we have a thorough understanding of Vietnam&#8217;s legal regulations, and grasp the psychology of employees, employers, and working methods at competent authorities;<\/li>\n<li>CDLAF&#8217;s team of lawyers has many years of experience in the field of labor and enterprises, as well as human resources and financial advisory.<\/li>\n<li>Strict information security procedures throughout the service performance and even after the service is completed.<\/li>\n<\/ul>\n<\/div>\n<p><strong style=\"color: #a32411;\">You can refer for more information:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/key-terms-in-the-franchise-agreement-part-1\/\" target=\"_blank\" rel=\"noopener\">Key terms in the Franchise Agreement (Part 1)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/key-terms-in-the-franchise-agreement-part-2\/\" target=\"_blank\" rel=\"noopener\">Key terms in the Franchise Agreement (Part 2)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/guidelines-for-holding-the-general-meeting-of-shareholders-in-accordance-with-the-law-part1\/\" target=\"_blank\" rel=\"noopener\">Guidelines for holding the General Meeting of Shareholders in accordance with the law (Part 1)<\/a><\/li>\n<\/ul>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f2681-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"2681\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/en\/wp-json\/wp\/v2\/posts\/8137#wpcf7-f2681-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"2681\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.5\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f2681-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<h2 class=\"tt-form\"><span class=\"ez-toc-section\" id=\"SEND_CONSULTATION_REQUEST\"><\/span>SEND CONSULTATION REQUEST\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><label>Full name<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"full-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"text\" name=\"full-name\" \/><\/span><br \/>\n<label>Email<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"email\" name=\"email\" \/><\/span><br \/>\n<label>Phone Number<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-text wpcf7-validates-as-tel\" aria-invalid=\"false\" value=\"\" type=\"tel\" name=\"phone\" \/><\/span><br \/>\n<label>Message<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"coment\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" aria-invalid=\"false\" name=\"coment\"><\/textarea><\/span><br \/>\n<input class=\"wpcf7-form-control wpcf7-submit has-spinner btn-yellow\" type=\"submit\" value=\"Send\" \/>\n<\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Currently, almost all enterprises understand that the law has no restrictions or regulations prohibiting enterprises and individuals from establishing service contracts, and this also has no restrictions on Vietnamese people or foreigners. So perhaps many enterprises are currently entering into Personal Service Contracts with foreigners, instead of establishing Labor Contracts accompanied with Work Permit procedures&#8230;.<\/p>\n","protected":false},"author":4,"featured_media":7958,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[64],"tags":[],"class_list":["post-8137","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/8137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/comments?post=8137"}],"version-history":[{"count":0,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/8137\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media\/7958"}],"wp:attachment":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media?parent=8137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/categories?post=8137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/tags?post=8137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}