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Fixed Contracts for Employment in Asia

Many people and companies look forward to the idea of spreading their wings internationally, often in Asia. Many Asian countries look forward to welcoming both skilled workers and companies looking to employ their local citizens. However, there are many contracts when hiring overseas workers, which differ from country to country.


Asian countries have a wide range of laws governing hiring processes, with many requirements and stipulations attached. There won't be any single policy that allows businesses to gain a foothold in more than one of the nation's fast-growing economies.

It's best to decide based on which Asian jurisdiction perfectly serves their business by analyzing each country separately. In this way, they will not end up with more employees than necessary or in a state where their business is stagnant.


Unlike countries such as Vietnam and China, employment contracts in India tend to be less prescriptive, giving employers more leeway. Meanwhile, a lack of proper investigative work can result in unintended contract agreements for business owners in the Vietnamese and Chinese workplace laws.


Fixed Agreements


There are several types of agreements, and this article's focus is on Fixed Contracts. The relationship between the employer and the employee gets set up for a specific period under this contract, which is valid for temporary or regular work.


Chinese Fixed Contract


A company can renew only one agreement in China. Open-term contracts must be given to employees when their contracts become renewable. If a company provides two short fixed-term contracts and the worker approves that agreement, it will inevitably grant the employee an open-term deal, making dismissal much more challenging for the company.


One month after starting at the corporation, the employers and workers must sign a written contract, which the company must do within that period. With no agreement, the workers become entitled to a salary equal to twice what they received had they been employed. The employee's contract becomes open-term after a year without a written agreement.


Vietnamese Fixed Contract


The country's labor laws strictly regulate foreign companies' use of local Vietnamese workers in Vietnam. International firms looking to hire Vietnamese workers must send a hiring proposal to a Vietnamese recruiting firm.


Vietnamese workers are to get introduced to their new employers in under 15 days of the recruiting firm submitting the request. If the agency does not meet this deadline, the international business can actively hire Vietnamese workers.


The Vietnamese Labor Code divides employment agreements into three categories. For fixed-term contracts in Vietnam, these split into definite term and seasonal contracts based on the agreement's duration, similar to China and India. In Vietnam, open-term contracts are also called "indefinite contracts" inside the Labor Code.


India Fixed Contracts


There are a variety of ways in which India, like many other countries, regulates the terms of labor contracts. Within that Indian Constitution, employment is a concurrent subject, which means that both federal and state governments can legislate on this. The Indian Contracts Act, the Industrial Disputes Act, and the Shops and Establishments Act are some of the most important rules concerning labor relations in India.


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