Electronic labour contracts: A step forward in digital transformation in the labour sector

In the context of the strong global trend of digital transformation, Viet Nam is gradually building a modern, transparent, and efficient administration. The draft Decree on the conclusion and implementation of electronic labour contracts is not only an important legal basis for promoting digital technology in labour management but also aims to maximise convenience for both citizens and enterprises.

Over the past five years, many enterprises in Viet Nam have proactively adopted electronic contract signing systems and reaped significant benefits such as saving time, costs, and human resources; improving personnel management efficiency; enhancing data security and reducing the risk of document loss; and facilitating employees in accessing and monitoring their entitlements.

ThHowever, the absence of a detailed and unified legal framework has created numerous obstacles and difficulties. Specifically, there are no standardized guidelines on the amendment, supplementation, or termination of electronic contracts. In addition, some authorities and organizations still do not recognize electronic contracts in administrative procedures. The lack of a centralized database has also led to fragmented and disconnected data.

Therefore, this new Decree is formulated based on the overarching orientations of the Party and the State on digital transformation, including Resolution No. 57-NQ/TW (2024), which identifies institutions as a prerequisite for digital transformation. Particularly, it has been developed in harmony with existing legal instruments such as the Labour Code 2019, the Law on Electronic Transactions 2023, the Law on Digital Data 2024, and the Law on Personal Data Protection 2025.

Most importantly, the new Decree will address legal gaps, standardize the entire process, and lay the foundation for unified digital governance nationwide. Accordingly, electronic labour contracts are recognized as having the same legal validity as paper-based contracts.

A key and breakthrough feature of the Decree is the establishment of a National Electronic Labour Contract Platform administered by the Ministry of Home Affairs. This national database system is assigned for development under Resolution No. 71/NQ-CP (2025) and will be connected to Project 06.

This platform will serve as a key instrument to promote the common interests of society, providing functions such as storing, managing, and synchronizing employment contract data nationwide; connecting with national databases on population, social insurance, taxation, and other administrative agencies; automating enterprise labour reporting; offering contract verification and lookup services for employees; and ensuring safety, security, and strict access control.

The platform not only helps regulatory agencies enhance the efficiency of labour statistics, forecasting, and human resource policymaking, but also serves as an important tool supporting the development of the digital economy and digital society.

According to the draft Decree, to conclude an electronic contract, the parties must meet both technical and legal requirements: they must possess a digital identification account, use a valid digital or electronic signature, and employ an e-contract system (software) that complies with technical standards.

An electronic contract becomes effective once both parties have signed and the contract is assigned an identification code (ID). This ID ensures transparency, integrity, and traceability throughout the contract’s lifecycle.

The Decree on electronic labour contracts represents a crucial pillar in improving the institutional framework for national digital transformation. Once promulgated and implemented uniformly, it will modernize labour governance, enhance business competitiveness, and foster a transparent, efficient, and internationally integrated labour market.

This is a bold yet necessary step, demonstrating the Government’s determination to apply digital technologies in serving citizens and enterprises, thereby advancing toward an intelligent and sustainable labour ecosystem.