Regulations on participation in compulsory social insurance when an employee enters into multiple labor contracts

In the context of the diverse development of the current labor market, not a few employees enter into multiple labor contracts with different employers in order to increase income and diversify career opportunities. However, this raises several issues relating to the responsibilities of employers in complying with obligations on social insurance (SI), health insurance (HI) and unemployment insurance (UI) for employees under the law. 

Furthermore, in recent times, labor law and social insurance law have been amended, leading to difficulties for many employers in determining their obligations toward employees who simultaneously enter into multiple labor contracts. This complexity makes the practical application prone to errors, which may both affect the employees’ entitlements and create legal risks for enterprises. 

Therefore, this article will analyze the current legal provisions and clarify the mechanism for participation in insurance in cases where employees enter into multiple contracts, thereby assisting employers in correctly determining their obligations. 

1. Regulations on entering into multiple labor contracts 

According to Article 19 of the Labor Code 2019: “An employee may enter into multiple labor contracts with multiple employers but must ensure the full performance of the contents agreed upon.” 

Accordingly, employees have the right to enter into multiple labor contracts with different employers at the same time, provided that they fully perform all contents and obligations under each signed contract. 

This regulation reflects the principles of entering into labor contracts, such as voluntariness, equality, and non-coercion. Moreover, the law does not limit the number of contracts that employees may sign. However, both employees and employers must still comply with basic provisions such as working hours, rest time, overtime, annual leave, etc., and ensure sufficient capacity, health, and time to properly perform the contracts. 

2. Regulations on participation in and payment of social insurance when entering into labor contracts with multiple employers 

According to Article 2.1(a) of the Social Insurance Law 2024, compulsory SI participants include those working under indefinite-term labor contracts, definite-term labor contracts with a term of at least 01 month, including cases where the employee and employer agree under another title but with contents showing paid work, salary, and the management, administration, and supervision of one party. 

Accordingly, employees entering into and performing multiple labor contracts are identified as subjects of compulsory SI under each contract they sign. This means that each labor contract between an employee and each employer will create a corresponding compulsory SI obligation, ensuring SI entitlements for the employee under each specific contract. 

In this case, the law on social insurance provides that the compulsory SI participation of an employee shall be determined based on the first labor contract signed. When the labor contract used as the basis for compulsory SI participation is suspended and the parties have no agreement on compulsory SI contribution during the suspension period, compulsory SI participation shall be determined in the order of the effective date of the subsequently signed contracts. 

This regulation is stipulated in Article 42.1 of Decision 595/QĐ-BHXH of the General Director of Vietnam Social Security on collection procedures, issuance of social insurance books, and insurance cards. Accordingly, employees simultaneously have two or more labor contracts with different entities: 

• SI and UI shall be contributed under the first labor contract signed; 

• HI shall be contributed under the contract with the highest salary; 

• Occupational accident and occupational disease insurance shall be contributed under each labor contract. 

The purpose of setting out the principle of compulsory SI participation in this case is to: 

1. avoid duplicate contributions while employees are still fully entitled to benefits arising from the working process; 
2. simplify administrative procedures for both the insurance agency and enterprises, minimizing overlap and difficulty in managing compulsory SI participation records; 
3. ensure that employees’ entitlements are accumulated, without affecting eligibility for pensions or future allowances. 

Date Written: 20/08/2025

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