The LCV provides 03 following types of labour contract which the employer and the employee must enter into:

  • The indefinite term labour contract is a contract in which the two parties do not determine the term and the time to terminate the validity of the contract;
  • The definite term labour contract is a contract in which the two parties do determine the term and the time to terminate the validity of the contract within a duration of from full 12 months to 36 months; and
  • The seasonal labour contract or the labour contract for a specific job with duration of less than 12 months.

The employer is allowed to engage the definite term labour contract and seasonal labour contract with the employees (except the employees at the retirement age) maximum twice. If the second definite term labour contract and seasonal labour contract are not signer within the duration of 30 days, starting from the expiry date of the first definite term labour contract and seasonal labour will become an indefinite term labour contract (from 1 May 2013, the signed definite term labour and seasonal labour contract will become a definite term labour of 24 months). After the second definite term labour contract or seasonal labour contract was expired, the indefinite term labour contract must be signed thereafter.

The employer and the employees are prohibited to sign the seasonal labour contracts or the labour contract for a specific job with a dura tion of less than 12 months in respect of a job which is regular and has a duration of 12 months or more, except in the case of the temporary replacement of the employees who have taken leave of absence for military obligation, pregnancy or other temporary reason.