Electronic Labor Contracts and Legal Considerations

I. OVERVIEW AND LEGAL CONTEXT

On December 24, 2025, the Government officially promulgated Decree No. 337/2025/ND-CP (effective from January 1, 2026), providing detailed regulations on electronic labor contracts (e-LCs). The issuance of this Decree constitutes an important legal component that concretizes Article 14 of the 2019 Labor Code and relevant laws, in the context of the national digital transformation strategy entering an accelerated phase.

Scope of regulation: Regulations on the conclusion and performance of electronic labor contracts; the establishment and management of the National Electronic Labor Contract Platform.

II. KEY CONTENTS OF THE DECREE

1. Affirmation of the legal validity of electronic labor contracts

Clause 1, Article 14 of the 2019 Labor Code provides that labor contracts concluded via electronic means in the form of data messages in accordance with the law on electronic transactions have the same legal validity as written labor contracts.

Clause 1, Article 3 of Decree No. 337/2025/ND-CP reiterates this core principle: electronic labor contracts have legal validity equivalent to paper-based written labor contracts.

Contracts established in the form of data messages, in compliance with regulations on electronic transactions and cybersecurity and information safety, are recognized and protected by law. This provision removes concerns of both employers and employees regarding the “legitimacy” of digital contracts.

2. New management mechanism: the “Electronic Labor Contract Platform” and Identification Code (ID)

This is the most notable aspect of Decree No. 337. Instead of allowing enterprises to independently and fragmentedly manage their data, the Government provides for the establishment of the Electronic Labor Contract Platform (built, operated, and managed by the Ministry of Home Affairs, together with agencies assigned by the Government to coordinate).

Electronic labor contract identification code (ID): The Electronic Labor Contract Platform issues a unique ID for each electronic labor contract and for electronic labor contracts converted from paper-based written labor contracts.

eContract: The information system serving electronic transactions in the conclusion and performance of electronic labor contracts (eContract) is connected to the Electronic Labor Contract Platform, enabling employees and employers to create, digitally sign, store, retrieve, and manage electronic labor contracts, as well as to report on labor utilization and authenticate electronic labor contracts in accordance with this Decree.

Data connectivity: Service providers (eContract) are required to connect and synchronize data to the national platform within 24 hours after contract execution.

3. Conditions for Conclusion and Identification Requirements

The conclusion and performance of electronic labor contracts must comply with the provisions of labor law, electronic transaction law, cybersecurity and information safety law, data regulations, personal data protection regulations, archiving regulations, and the provisions of this Decree.

Participants involved in the conclusion and performance of electronic labor contracts include:

• Employees and employers who have the authority to conclude labor contracts in accordance with Article 18 of the Labor Code;

• eContract service providers that satisfy the conditions prescribed in Clause 3, Article 6 of this Decree.

The Decree sets high standards for authentication to prevent impersonation and protect employees’ rights, as stipulated in Article 6 of the Decree.

Both employers and employees must have their identities properly identified and authenticated based on legally valid documents. For employers, authentication must accurately reflect the legal status of the enterprise as well as the authority of its legal representative.

Digital signatures and trusted timestamping services are mandatory requirements for both parties and constitute conditions to ensure the validity and enforceability of electronic labor contracts.

Unless otherwise agreed by the parties, an electronic labor contract takes effect at the time the last signing party completes the electronic signing process.

4. Conversion between Paper-Based and Electronic Contracts

The Decree clearly stipulates rules on conversion (from paper-based to electronic form and vice versa) for purposes of archiving or legal proof. A converted labor contract has the same legal value as the original when it satisfies all conditions prescribed by the law on electronic transactions.

III. IMPLEMENTATION ROADMAP

The Decree designs a “soft” roadmap to allow stakeholders to adapt:

• Transitional phase (January 1, 2026 – June 30, 2026): The Decree takes effect. Entities begin preparing technical infrastructure. Electronic labor contracts concluded prior to this period remain valid for performance.

• Official phase (from July 1, 2026): The National Electronic Labor Contract Platform officially comes into operation. The conclusion and management of electronic labor contracts must fully comply with procedures for ID assignment and data synchronization to the Platform.

Are electronic labor contracts mandatory?

The Decree does not mandate that all subjects must conclude electronic labor contracts. Clause 3, Article 4 provides that the use of electronic labor contracts is encouraged as a substitute for paper-based written labor contracts in employers’ human resource management and in the handling of administrative procedures related to labor contracts.

IV. ASSESSMENT OF IMPACTS ON EMPLOYERS AND EMPLOYEES

1. For Enterprises (Employers)

Key obligations include: securely storing contract data; fully and accurately fulfilling labor declaration and reporting obligations; coordinating with licensed eContract service providers and competent state authorities; organizing training and providing technical support for employees; and promptly reporting incidents related to information security or data.

Opportunities:

• Reducing printing and physical storage costs for thousands of personnel records.

• Enabling borderless signing processes, facilitating enterprises with multiple branches or remote recruitment.

• Easy data extraction for inspections, audits, or tax/social insurance reporting.

Challenges:

• Investment in technological infrastructure or costs for outsourcing eContract services.

• Strict compliance with personal data protection regulations (Decree No. 13/2023/ND-CP) when processing employee data in the digital environment.

• Ensuring information security.

Enterprises: Need to review their human resource processes, select reputable eContract service providers (licensed by the Ministry of Industry and Trade / the Ministry of Information and Communications), and prepare digital signature systems for personnel.

2. For Employees

Transparency: Employees can easily access and review their contracts anytime and anywhere via the Platform or electronic identification applications, avoiding situations of “lost contracts” or unlawful unilateral amendments by employers.

Convenience: Remote contract signing reduces administrative procedures when seeking employment.

Employees: Should equip themselves with knowledge of digital signatures and the protection of personal electronic identification accounts.

Conclusion:
The promulgation of Decree No. 337 represents not only an advancement in administrative procedures but also an effective tool for safeguarding healthy and transparent labor relations in the digital economy.

This article is for informational purposes only and does not constitute legal advice for any specific case. Should you require legal consultation, please contact us directly for assistance from a lawyer.

Contact Information: Ta Pha Law Firm

Address: 07 Nguyen Van Troi Street, Phu Nhuan Ward, Ho Chi Minh City

Hotline: 0972 633 633.