NEW REGULATIONS ON ELECTRONIC EMPLOYMENT CONTRACTS UNDER DECREE NO. 337/2025/ND-CP

Against the backdrop of rapid digital transformation, the adoption of electronic methods in human resource management and the execution of employment contracts has become increasingly widespread. To establish a comprehensive legal framework for this development, the Government has promulgated Decree No. 337/2025/ND-CP on electronic employment contracts. The Decree not only affirms the legal validity of electronic employment contracts but also provides detailed regulations on the principles governing their execution, management, storage, and information security. Set out below are the key changes that employers and employees should be aware of.

Key changes on electronic employment contracts

On 24 December 2025, the Government issued Decree No. 337/2025/ND-CP on electronic employment contracts, which takes effect on 1 January 2026. This is the first legal instrument in Vietnam specifically governing the execution, performance, and management of electronic employment contracts, thereby establishing a unified legal framework for digital transformation in the labour sector. The notable changes include:

(i) For the first time, a statutory definition of an electronic employment contract is introduced

Pursuant to Clause 1, Article 3 of Decree No. 337/2025/ND-CP, an electronic employment contract is an employment contract concluded in the form of a data message in accordance with the labour legislation and the legislation on electronic transactions. Previously, while the 2019 Labour Code recognized that employment contracts could be concluded by electronic means, it did not provide a specific definition or a comprehensive legal framework governing this type of contract.

(ii) Confirmation of the legal validity of electronic employment contracts

Under Clause 1, Article 3 of Decree No. 337/2025/ND-CP, an electronic employment contract has the same legal validity as a written employment contract, provided that it is concluded in compliance with applicable laws. This provision provides employers with greater legal certainty in adopting electronic contract in place of paper-based contracts, thereby reducing administrative costs and improving the efficiency of human resource management.

(iii) Introduction of a mechanism for converting between paper-based and electronic employment contracts

A noteworthy development is set out in Article 8 of Decree No. 337/2025/ND-CP, which allows the parties, by mutual agreement, to convert a written employment contract into an electronic employment contract, or vice versa, during the performance of the contract. Such conversion does not affect the rights, obligations, or validity of the employment contract, unless otherwise agreed by the parties. This provides an important legal basis for enterprises to implement digital transformation without the need to re-execute the entire employment contract.

(iv) Introduction of the National Electronic Employment Contract Platform

Pursuant to Clause 2, Article 3 and Chapter III of Decree No. 337/2025/ND-CP, the State will establish and operate the Electronic Employment Contract Platform for the centralized management of electronic employment contract data nationwide. The Platform is intended to facilitate the creation, storage, retrieval, and sharing of electronic employment contract data, thereby enhancing transparency, improving state administration, and supporting both employers and employees throughout the implementation of employment contracts.

(v) Detailed provisions on the conditions for execution and the effective date of electronic employment contracts

The Decree also sets out detailed requirements for the execution of electronic employment contracts. Under Articles 4 and 6, the execution of an electronic employment contract must comply with the legislation on electronic transactions, ensure proper authentication of the contracting parties, maintain the integrity of electronic data, utilize valid electronic signatures, and satisfy requirements relating to information security, cybersecurity, and personal data protection.

In addition, Article 7 provides that an electronic employment contract becomes effective upon completion of the electronic signing by the last contracting party or at such other time as agreed by the parties. This provision addresses the previous legal uncertainty regarding the effective date of electronic employment contracts.

Effective Date

– Legal Instrument: Decree No. 337/2025/ND-CP of the Government on Electronic Employment Contracts.

– Date of Issuance: 24 December 2025.

– Effective Date: 1 January 2026.

From this date, employers and employees may enter into electronic employment contracts in accordance with Decree No. 337/2025/ND-CP. They must also comply with the relevant provisions of the Labour Code, the Law on Electronic Transactions, and other applicable regulations relating to personal data protection and information security.

Practical Considerations for Employers and Employees

Employers should review their recruitment, contract execution, and employment contract management procedures to ensure compliance with the requirements of Decree No. 337/2025/ND-CP, particularly those relating to electronic signatures, electronic data storage, information security, and the ability to retrieve electronic contracts when required. Employers are also advised to establish appropriate technological infrastructure to facilitate the effective and compliant implementation of electronic employment contracts.

Employees should carefully review the contents of electronic employment contracts, the method of execution, confirm receipt of the electronic contract, and retain the relevant data messages to safeguard their lawful rights and interests throughout the employment relationship.

The promulgation of Decree No. 337/2025/ND-CP marks a significant milestone in the digitalization of employment relationships in Vietnam by providing a clear legal framework for the use of electronic employment contracts. To ensure regulatory compliance and minimize legal risks, employers should promptly review their contract execution procedures, upgrade their electronic contract management systems, and ensure compliance with the applicable requirements on electronic transactions and information security. Employees should likewise familiarize themselves with their rights and obligations when entering into electronic employment contracts in order to effectively protect their lawful interests throughout the course of their employment.

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