After leaving my previous job, I began collaborating with several travel companies. My monthly working hours are not fixed, as I primarily take on work for individual tours. Therefore, I signed collaborator contracts for each tour rather than employment contracts.
There was no agreement between us regarding fixed working hours or an obligation for me to work regularly for these companies.
Recently, I heard industry colleagues mention that signing a collaborator contract could lead to mandatory social insurance (BHXH) contributions, and failure to comply would result in penalties for businesses. This information caused me considerable confusion.
I had always believed that only individuals under employment contracts were subject to mandatory BHXH. I assumed that those working per tour, receiving payment under individual collaborator contracts like myself, were exempt.
I would like to ask: does my situation require mandatory BHXH participation? And does the designation "collaborator contract" determine the obligation to contribute BHXH?
Reader Minh Phuc
Nguyen Truc Anh, a Master of Law, provides clarification:
Amidst increased scrutiny from social insurance agencies regarding participation at various entities, I understand the questions and concerns you face when signing collaborator contracts with travel companies. However, to determine whether BHXH contributions are mandatory, the Social Insurance Law 2024 requires clarifying the following factors:
First, even if you and the travel company use a different name for your agreement, if the contract's content indicates an employment relationship, involves remuneration or salary, and places you under the management, direction, and supervision of one party, it is considered an employment contract.
Second, according to Point a, Clause 1, Article 2 of the Social Insurance Law 2024, individuals working under employment contracts for a term of one month or more are also subject to mandatory BHXH participation.
Third, Clause 5, Article 33 of the Social Insurance Law 2024 stipulates that if an individual working under an employment contract for a term of one month or more does not receive a salary for 14 working days or more within a month, that employee is not required to contribute BHXH for that specific month. This exemption applies unless both parties have an agreement to contribute BHXH based on the most recent contribution level.
Therefore, if you sign a collaborator contract with a term of less than one month, or if the contract term is one month or more but your total time without salary is 14 working days or more within the month, you are not required to contribute BHXH for that month. This is unless the parties have an agreement regarding BHXH contributions.
In all other scenarios, both the employee and the employer share the responsibility for mandatory BHXH participation. Violations can lead to varying penalties depending on the specific party and action, as outlined in Decree 283/2026/ND-CP on administrative penalties in the field of labor, social insurance, and Vietnamese workers going abroad under contracts, effective from 10/9/2026. Specifically:
- Employees who agree with their employer not to participate in mandatory BHXH or unemployment insurance, or participate incorrectly (e.g., wrong subject, amount, or deadline), face fines ranging from 500,000 VND to 1,000,000 VND, as per Point a, Clause 2, Article 48 of Decree 283.
- Employers who fail to register or incompletely register the number of individuals required to participate in mandatory BHXH within 60 days from the expiration date face fines from 5,000,000 VND to 75,000,000 VND, depending on the number of violated employees, as per Clause 2, Article 43 of Decree 283.
