Written labour contracts in Vietnamese (or bilingual with Vietnamese prevailing) are mandatory for employment over one month and must set out job role, salary in VND (including overtime and allowances), working hours and breaks, work location and mobility, contract type (indefinite or fixed-term up to 36 months), probation terms (capped: 6 days unskilled, 30 days skilled, 60 days professional, 180 days managerial), statutory benefits (annual leave, sick, maternity/paternity, social insurance), health and safety obligations, confidentiality/IP, non-compete (within legal limits), termination grounds, notice periods, and dispute-resolution mechanisms. Contracts must be in writing, signed, retained by the employer, and provided to the employee; multiple part-time contracts are allowed if properly documented. Misclassification of employees as contractors is heavily sanctioned and can lead to reclassification, back pay, retroactive social insurance and tax, and joint liability for EOR and client. Fixed-term contracts must be objectively justified and cannot be rolled indefinitely; repeated use is capped (generally not beyond 36 months in aggregate) after which employment is deemed indefinite. Employers must register with the tax authority and Social Insurance Fund, calculate monthly payroll with PIT at progressive 5–35% rates, and fund social, health and unemployment insurance (employer burden roughly 21.5% of salary) alongside employee contributions, then file monthly electronic returns and remit all withholdings and contributions on time. Employees are entitled to at least 12 days’ paid annual leave (with seniority increments), social-insurance-funded sick pay, six months’ paid maternity leave, limited paternity leave, unpaid parental leave to age three, and coverage for pension, sickness, work injury and unemployment; public holidays are fully paid. Statutory social insurance and leave cannot be waived or replaced by private schemes, and additional benefits (health plans, allowances, bonuses) sit on top of legal minimums.
Termination in Vietnam must follow the Labour Code, with written grounds, correct notice (3 working days for very short fixed terms, 30 days for longer fixed-term, 45 days for indefinite), and objective justification for dismissals based on misconduct, redundancy, restructuring or closure; employees with at least 12 months’ service generally receive severance of half a month’s wages per year of service, plus payment of accrued salary, unused leave and bonuses at or shortly after exit. Protected categories (pregnant workers, those on maternity/parental leave, union representatives, and older/long-service employees) cannot normally be dismissed except for serious misconduct or closure, and wrongful terminations frequently result in reinstatement and back pay. EOR providers must be registered as employers with the tax and social insurance authorities, issue compliant Vietnamese-language contracts, run fully compliant payroll (PIT, social/health/unemployment insurance), administer statutory leave and benefits, maintain time, payroll and OSH records, and observe all termination and redundancy procedures, including consultation and authority notification where required. Labour-outsourcing activities are licensed and regulated under Decree 145/2020 and related rules; EOR structures must either fit within permitted outsourcing categories with the proper licence or clearly operate as genuine employers with independent control over hiring, direction, performance management and termination. Vietnam applies a strict substance-over-form test, so any EOR that appears to merely supply labour to a client’s core activities risks reclassification as unlawful labour supply, joint liability for both parties, recovery of arrears and, in serious cases, administrative or criminal sanctions.
Get the full hiring guide now!
For detailed hiring information, customized employment guidance, or support with your Vietnam EOR setup, please reach out to our team. We provide compliant employment contracts, payroll processing & tax remittance, social security registration & reporting, benefits administration, and customized onboarding & offboarding services.
