Employment Contracts in Vietnam
Information on employment law and what a Vietnamese employment contract should include...
According to the Vietnamese Labour Code - No. 10/2012/QH13, which came into effect on 1 May 2013, an employment contract (hợp đồng lao động) is needed for both foreign and Vietnamese workers. The contract should mention the obligations and responsibilities of both the employers and employees, including the nature of the work involved, working hours, breaks, salary, location and duration of the employment.
Types of Contract
Employment contracts in Vietnam are normally one of the following types:
- An indefinite term contract
- A definite term contract of 12 to 36 months
- A seasonal or fixed term contract of less than 12 months
The contract of an employee working on a definite term contract will automatically change into an indefinite term contract if the employee continues to work for the employer after the contract’s expiry and it is not renewed within 30 days.
The contract of an employee working on a seasonal or fixed term contract will automatically change into a definite term contract of 24 months if the employee continues to work for the employer after the contract’s expiry and it is not renewed within 30 days.
A definite term contract may only be extended once, after that the employee must be employed on an indefinite contract or stop working.
An employment contract should include:
- Name and address of employer
- Name, address, date of birth, ID number of employee
- Description of job and working address
- Time frame of the contract
- Salary, payment type, date of payment, allowances and other benefits
- Promotion and salary review system
- Working hours and vacation
- Details of social and medical insurance
- Information about training involved
The length of the probationary period is based on the complexity of the job, as follows:
- No more than 60 days for jobs requiring professional or technical qualifications at college level or higher
- No more than 30 days for jobs requiring technical expertise
- No more than 6 working days for other jobs
Payment during the trial period is 85 percent of the salary stated in the employment contract. Employees working on a seasonal contract are not required to undergo a probationary period.
- For full details of the Labour Code - No. 10/2012/QH13: Click here (PDF)