On December 14, 2020, the Government issued Decree 145/2020/ND-CP guiding the Labor Code on working conditions and labor relations. Accordingly, this Decree provides for the rights, obligations and interests of the parties when the Labor Contract is invalidated as follows:

• For partially invalidated labor contracts: Rights, obligations and interests of both parties during the period from first day on which the employee works under the partially invalidated employment contract to the day on which the contract is revised shall be settled in accordance with the effective collective bargaining agreement or, if such a collective bargaining agreement is not available, in accordance with law.

In case the salary under the invalidated employment contract is lower than the minimum salary prescribed by labor laws or the effective collective bargaining agreement, both parties shall negotiate the salary to ensure conformity with regulations. The employer shall pay the difference between the initial salary and the re-negotiated salary for the actual work period under the invalidated employment contract.

• For (i) the labor contract is completely invalid because the person concludes the labor contract without authority or violates the principle of entering into the labor contract; (ii) The labor contract is completely invalid because the entire contents of the labor contract violate the law or the work entered into the labor contract is the work which is prohibited by law, the rights, obligations and interests of the person The labor contract since starting working under the labor contract is declared invalid until the labor contract is re-signed/ signed to perform as follows:

1. If the rights and interests of each party in the labor contract are not less beneficial than those prescribed by law or effective collective bargaining agreement, the rights, obligations and interests of the employee are performed according to the content of the labor contract which is declared invalid;
2. If the labor contract contains the rights, obligations and interests of each party not conformable with law does not affect other parts of the contracts, the rights, obligations and interests of the employee shall comply with the labor agreement applicable collective action, in case there is no collective bargaining agreement, the provisions of law will be applied.

This Decree takes effect from February 1, 2021.