Signing labor contracts via FPT.eContract: Feasible in terms of both legal validity and practical adoption
Recently, a webinar themed “Electronic labor contract: From legal view to practice” organized by FPT Information System Corporation (FPT IS) has addressed multiple problems and opens a new direction for adoption of electronic labor contract signing.
Decent legal basis and integrated authentication
According to a survey of more than 400 guests attending the webinar, the large number of documents to sign, time-taking signing process, and dependence on responsible persons’ schedules are the problems that companies have been facing when using paper labor contracts. 95% of surveyed companies say they are aware of electronic labor contracts, but there are still concerns regarding legal validity, security and flexibility for practical adoption.
Survey results from more than 400 guests attending the webinar.
According to Mr. Mai Duc Thien, Deputy Director of Legal Department, Ministry of Labour – Invalids and Social Affairs, from January 1, 2021, the Labor Code 2019 has officially taken effect with positive changes regarding labor contract to better ensure the legitimate rights and interests of employees and employers, accordingly, electronic labor contract has officially been recognized as legally valid. As emphasized by Mr. Thien, Article 14 of the Labor Code 2019 states: “An labor contract in the form of electronic data conformable with electronic transaction laws shall have the same value as that of a physical contract”.
Ms. Duong Tieng Thu – Senior Associate, Phuoc & Partners Vietnam Company Law – says: “Electronic labor contract has helped companies get rid of multiple big issues, and particularly, promotes the adoption of personal digital signature. According to Article 9 of Decree 130/2018/ND-CP, organizations that can provide digital signature services include: Vietnam National Root Certification Authority; Specialized certification authorities of the Government; Public digital signature certification service providers; Specialized certification authorities of agencies and organizations issued with certificates of eligibility for special-use digital signature security”.
Mr. Nguyen Ta Anh discusses the signing of electronic labor contracts via FPT.eContract.
Currently, FPT IS is one of pioneering companies providing FPT.eContract electronic contract solution and FPT-CA digital signature service in Vietnam. Mr. Nguyen Ta Anh, Deputy Director of FPT IS Electronic Service Center, says: “We must admit that concerns regarding legal validity and security have hindered companies from adopting electronic labor contracts, despite the fact that the Government has created favourable conditions and issued relevant regulations to legalize this form of signing. FPT IS has deployed electronic labor contract signing platform FPT.eContract for a large number of companies in various fields such as retail, finance, manufacturing, etc. With a decent legal basis and platforms that highly meet business requirements such as FPT-CA digital signature, FPT.CeCA electronic contract authentication system, companies can completely rest assured to adopt FPT.eContract to sign electronic labor contracts”.
Pioneering in the adoption of electronic labor contracts helps companies create breakthroughs
Adopting the method of electronic signing via FPT.eContract from the beginning of 2022, Tiki Co., Ltd. has seen multiple positive changes. “After 20 days of working with FPT IS on the solution, we have started signing electronic labor contracts with employees. The signing process is evaluated compliant with Tiki’s security standards and is integrated with FPT.iHRP human resource management system. Adopting electronic labor contract helps us reduce printing, delivery, storage costs, and shorten approval time. Currently, Tiki is adopting an electronic labor contract solution at Tiki, TikiNow, Tiki Commerce. The company is in consideration to adopt the solution for other types of documents, such as agreements, minutes, decisions, policies, etc.”, said Mr. Luong Xuan Linh, Deputy Manager of HR Software System, Tiki Co., Ltd.
Signing labor contracts in a quicker way using FPT.eContract.
30Shine Trade Services Joint Stock Company is also one of the companies that have successfully and effectively adopted the signing of electronic labor contracts on FPT.eContract. “With just a single training session, new employees can sign labor contracts within the same day. Employees receive labor contracts via email or SMS together with security authentication code, and perform electronic signing. An electronic contract has equal legal validity as a paper copy. Adopted from January 2021, this form of signing has been widely used for all employees of 30Shine”, said Ms. Nguyen Thi Dung – Head of Administration – Human Resources Department, 30Shine Trade Services Joint Stock Company.
With ensured legal validity and security, capability of flexible deployment for all companies, FPT.eContract electronic labor contract solution has been adopted in a large number of organizations and companies, creating positive changes and enhancing companies’ operational efficiency. Read more about FPT.eContract electronic labor contract solution here.
