Manufacturing enterprise has seasonal production period can hire workers under seasonal labour contract. So when using seasonal workers, Does Enterprise have to sign Labour contract? Each year, how many time with seasonal labour contract that a company can sign in?
According Labour Law no 10/2012/QH13 at Article 22 regulates about types of Labour contract as below:
“1. A labour contract must be entered into in one of the following types:
c) A seasonal or work-specific labour contract that has a duration of under 12 months.
When a labour contract stipulated at Points b and c, Clause 1 of this Article expires and the employee continues working, within thirty (30) days from the date of expiration of the contract, the two parties shall sign a new labour contract; if no new labour contract is entered into, the contract entered into under Point b, Clause 1 of this Article will become an indefinite-term labour contract and the contract entered into under Point c, Clause 1 of this Article will become a definite-term labour contract with a duration of 24 months.
In case the two parties enter into a new labour contract with a definite term, only 1 additional definite-term labour contract may be signed; after that, if the employee continues working, an indefinite-term contract must be entered into.”
According Labour Law no 10/2012/QH13 at Article 16 regulated forms of Labour contract:
“1. A labour contract must be established in writing and made in two copies, one to be kept by the employee and the other by the employer, except the case stated in Clause 2 of this Article.
For temporary jobs with a duration of under 3 months, the parties may enter into a verbal labour contract.”
Based on above regulation:
– Enterprise can sign seasonal contract with seasonal job. The signing seasonal labour contract can be made by verbal but not necessarily into the contract in writing.
– Within 30 days Enterprise has to sign new contract otherwise seasonal contract will become indefinite labour contract.
– Enterprise can only sign seasonal labour contract with maximum time of 2. After 2 consecutive times of signing seasonal labour contract, if workers continue to work then employer has to sign indefinite labour contract.
Enterprise makes wages payment for seasonal workers need to know some notes below:
According to Circular 111/2013/TT-BTC at Article 25, clause 1, point I regulate about PIT deduction when making payment for seasonal workers with some below notes:
– Enterprise has to deduct PIT with seasonal workers which have total payment from 2 million at rate of 10% of paid amount.
Example: Enterprise makes payment for seasonal worker with an amount of 5.000.000 VND then before making payment Enterprise has to deduct PIT from worker with an amount of:
5.000.000 x 10% = 500.000 VND.
– Workers with seasonal labour contract has income for one month from over 2 million, they can use commitment form 23/BCK-TNCN with the purpose of non-deducting PIT from their income. Workers can only make commitment form when satisfying these following conditions:
+ Having income from only single source.
+ Total income after deducting self-independence under the level of PIT liability.
– Enterprise has to make PIT finalization, declaration for workers who sign seasonal labour contract with company under the form 05-2/BK-TNCN.