When hiring in Vietnam, one of the first things you will need is a clear and well-structured employment contract. Providing an employment contract is a must under Vietnamese labour law, and it helps make sure everyone is on the same page from the start.
A good contract should spell out the basics: job duties, working hours, salary, benefits, and how things will be handled if the job ends. This applies whether you are hiring local employees or foreign talent.
There are different types of contracts you can use depending on the role:
If you are hiring a foreign national, you will also need to include details about their work permit and visa status in the contract. And since Vietnamese is the official language, contracts should either be in Vietnamese or bilingual if the employee does not speak the language.
While the government does not offer a standard contract template, many businesses use reliable samples that are tailored to local laws. It is important to review these carefully and adjust them to suit your industry or company policies.
In this guide, we will explore how to structure employment contracts in Vietnam, the key legal requirements to follow, and tips to make the process easier.
Hiring employees in Vietnam requires a clear grasp of the legal framework surrounding contracts and workplace policies. From formal agreements to internal rules and third-party approvals, employers have defined responsibilities under national law. Recent changes introduced by the 2019 Labour Code and its implementing decrees make it important to stay current with local requirements.
Employers in Vietnam must use employment contracts that comply with the Labour Code 2019. Contracts may be written, electronic, or verbal—but verbal agreements are only permitted for jobs lasting under one month. Regardless of form, the contract must include specific terms as mandated by law. These include job description, working location, wage, working hours, rest breaks, and provisions around social insurance and occupational safety.
Probationary periods are allowed but must be mutually agreed. Pay during probation must be at least 85% of the official salary. The maximum duration varies up to 180 days for enterprise managers, 60 days for roles requiring higher education, 30 days for vocational-level roles, and six working days for unskilled jobs. No probation is allowed for contracts under one month. Either party may cancel the agreement during the probation without notice or severance.
Companies with ten or more employees are also required to implement written internal labour regulations. These rules should cover working hours, conduct, disciplinary procedures, and more. They must be clearly posted at the workplace and shared with all staff. If a company has an employee representative organisation (such as a grassroots trade union), that group must be consulted before the regulations are submitted to the local Department of Labour, Invalids and Social Affairs (DOLISA) for approval.
It is not mandatory to form a trade union at the company level, but employees have the right to do so voluntarily. The employer must still consult any existing employee organisation before finalising workplace policies. The authority to impose disciplinary measures typically rests with the person authorised to sign contracts on behalf of the company, as outlined in Article 18 of the Labour Code.
Vietnam’s employment settlement policies aim to balance employee protections with business flexibility. As outlined in the Labour Code and further detailed in Decree 145/2020, employers must follow structured processes when resolving disputes or ending employment. Internal procedures and any disciplinary action must adhere to the company’s registered labour regulations.
Employers should be aware that labour regulations are overseen both by local DOLISAs and the central Ministry of Labour, Invalids and Social Affairs (MOLISA), located in Hanoi. Interpretations may vary by region, so local guidance is important when registering or amending internal policies.
Vietnam’s labour law is also shaped by its cooperation with international organisations. The country’s employment settlement policy, guided by Vietnam and ILO collaboration, reflects a commitment to fair treatment and dispute resolution through.
Ultimately, setting up compliant employment agreements and policies is about more than legal coverage—it is a step toward building long-term, stable employment relationships in Vietnam’s competitive labour market.
When hiring in Vietnam, it is important for employers to be precise in how contract terms are drafted and managed. Unlike other jurisdictions where implied terms are accepted, Vietnamese labour law is built around clearly stated, written provisions. Whether you are preparing a permanent or temporary employment agreement in Vietnam, clarity and compliance should always come first.
A typical Vietnam standard work contract in English or Vietnamese must cover certain key details. These include the job role, workplace, working hours, rest periods, wage level, payment method, and insurance responsibilities. The contract must also identify the type of contract—whether indefinite, fixed-term, or for a task with a defined.
Vietnam does not recognise the concept of “”implied terms”” in employment relationships. That means every obligation, entitlement, and condition must be explicitly written into the agreement. Employers cannot rely on verbal commitments or customary practices.
Provisions around contract termination are also worth highlighting. Although not mandatory to include in every contract, conditions for ending employment are tightly regulated by law. Employers can terminate a contract for reasons such as underperformance, restructuring, or serious misconduct—but they must follow prescribed procedures and provide appropriate notice periods, or compensation where necessary. Any clause addressing termination in the contract must align with statutory rules.
Employers should also take note of collective labour agreements (CLAs). If your business has entered into a CLA with employee representatives or trade unions, you are required to honour the commitments set out in that agreement. The CLA can supplement individual contracts and set higher standards for working conditions, salary structures, or grievance procedures.
A temporary employment agreement in Vietnam is typically used for work with a clear end date or tied to a specific project. These fixed-term contracts can last up to 36 months. Once they expire, the employer may renew them once more. Any subsequent renewal transforms the agreement into an indefinite-term contract, unless otherwise permitted by law.
These short-term arrangements are commonly used in industries with seasonal demand or project-based work. However, employers must not misuse temporary contracts to avoid offering long-term benefits. The Labour Code places restrictions on consecutive renewals and outlines employee entitlements, even under short-term agreements.
All fixed-term employees are entitled to similar protections as permanent staff. That includes contributions to social and health insurance, public holiday pay, and overtime compensation. If probation is part of the contract, it must follow the rules regarding duration and minimum pay set by the law.
Ultimately, employment contracts in Vietnam should be tailored to the specific needs of the business and role while staying aligned with national legislation. Investing in a clearly drafted contract—especially one reviewed in both Vietnamese and English—helps employers build compliant, sustainable working relationships in Vietnam’s evolving labour market.
Employment contracts in Vietnam are carefully regulated, particularly when it comes to their duration and renewal. For employers operating in Vietnam—or planning to—being familiar with how contract terms can be extended is key to managing workforce continuity without breaching labour regulations.
Vietnamese labour law distinguishes between fixed-term and indefinite-term contracts. Most employees can eventually move onto indefinite-term agreements after completing one or two fixed-term arrangements. However, there are exceptions—particularly for foreign employees.
Under current regulations, foreign workers in Vietnam are only permitted to enter into fixed-term contracts, with a maximum duration of 24 months. These Vietnam extension contracts can be renewed when they expire, but only within specific limits. After the second renewal, employers must seek special approval to continue the engagement or consider alternative solutions such as rotating the position to a different foreign employee.
Employers must also clearly state contract terms such as job role, location, hours, compensation, and benefits. Any probationary period, disciplinary rules, or conditions for termination must comply with the Labour Code 2019. The law does not recognise implied terms—so contracts must be drafted with care and reviewed regularly.
The extent of labour contracts in Vietnam is especially relevant in temporary or project-based employment. Fixed-term contracts are common in sectors like construction, hospitality, or education. These agreements are usually for up to 36 months, after which they can be renewed once. If renewed again, the law requires that the contract convert into an indefinite-term contract—unless it involves a foreign national or a role with special exceptions under Vietnamese law.
It is worth noting that while fixed-term agreements are flexible for employers, the same legal protections apply to temporary staff. This includes social insurance, annual leave, and termination rights. Employers must avoid cycling workers through repeated short-term contracts to bypass long-term obligations, as labour authorities may view such practices as a violation of employee rights.
Independent contracting is not separately governed under Vietnamese labour law. While businesses may engage freelancers or consultants, these relationships fall outside traditional employment regulations and must be clearly distinguished from standard employment arrangements to avoid misclassification risks.
When considering extension of employment contracts in Vietnam, employers should weigh not only operational needs but also regulatory expectations. Using well-drafted agreements and seeking legal review before renewal—especially in cross-border scenarios—can go a long way in maintaining compliance and retaining top talent.
For employers hiring in Vietnam, fixed-term contracts are often the preferred option for roles tied to specific projects, seasonal work, or trial periods before permanent placement. These agreements allow for flexibility while still operating within the country’s formal employment framework. However, contract terms and renewals are governed by clear provisions in national law.
The legal framework for fixed-term contracts in Vietnam is laid out in the Labour Code 2019. Under this legislation, a fixed-term employment contract is defined as an agreement with a duration of up to 36 months. The start and end dates must be stated explicitly in the contract.
If an employee continues working after the contract expires, both parties have 30 days to sign a new contract. Should no new agreement be concluded within this timeframe, the arrangement automatically becomes an indefinite-term contract. The law allows one renewal of a fixed-term agreement. If the employee remains employed after the second fixed-term contract ends, the next agreement must be an indefinite-term contract unless an exception applies.
This mechanism helps prevent the misuse of short-term contracts to avoid providing long-term employee benefits or job security. Employers should ensure they track contract dates and manage renewals with care, especially if operating at scale across multiple roles or sites.
Fixed-term contracts must include the same required terms as permanent contracts. These include job role, location, salary, working time, rest periods, and termination conditions. Any probationary period must also comply with legal limits in terms of duration and pay.
Regardless of the contract length, all employees working under fixed-term agreements are entitled to the same statutory protections. That includes contributions to Vietnam’s compulsory social insurance scheme. Employers must register employees for social insurance if they are on contracts of one month or longer. This is a critical point for compliance, especially when managing a large temporary or seasonal workforce.
The topic of fixed-term contract in Vietnam and social insurance is closely monitored by labour authorities. Non-compliance with registration or contribution requirements can lead to administrative penalties and employee claims. Contributions cover not only retirement and health insurance, but also maternity, occupational accident, and unemployment insurance schemes.
Employers may also need to consider trade union interactions if a collective agreement is in place. These may grant fixed-term employees additional rights or benefits beyond the statutory minimums.
In sum, fixed-term contracts in Vietnam offer legal flexibility, but they come with clear conditions. Getting the terms right and staying ahead of renewal deadlines are not just compliance measures—they also help employers maintain a productive, stable, and legally sound workforce.
Employers operating in Vietnam need to take a structured approach to managing working hours. The law is clear on daily and weekly limits, and strict on how overtime is managed. Observing these rules is important for compliance, but it also supports employee well-being and operational efficiency.
The legal working hours in Vietnam are defined by the Labour Code 2019. Employees are not permitted to work more than eight hours per day or 48 hours per week. Employers may arrange shifts across five or six days depending on operational needs, but total weekly hours must not exceed the limit.
The Vietnam labour law working hours framework allows for flexibility in how time is distributed. For instance, an employer can apply compressed schedules (such as working nine hours across five days), provided total hours remain compliant. Industries that operate on a rotating or seasonal basis may also apply different scheduling models within legal limits.
In most industries, the Vietnam working hours per week are distributed from Monday to Friday or Monday to Saturday. There is no universal workweek structure, so businesses have some discretion—although the 48-hour weekly maximum must still be respected.
For reference, the average working hours per month in Vietnam typically ranges from 200 to 208 hours, depending on the calendar and public holidays. Employers should use this figure to plan workloads, monitor overtime exposure, and schedule leave accordingly.
When employees work beyond the statutory hours, this is considered overtime. Consent is required for all overtime work. The limits are as follows:
There are exceptions allowing up to 300 hours annually in specific sectors such as manufacturing, agriculture, or emergency technical work. In these cases, employers must notify the provincial labour authority in writing. Exceptional approval may also apply to jobs affected by seasonal pressures, weather events, or other unforeseen factors.
Overtime pay must be calculated according to statutory rates: 150% of regular wages for extra hours on weekdays, 200% on weekends, and 300% on public holidays.
While complying with Vietnam’s working hours law is the baseline, smart scheduling can also support productivity and retention. Employers should:
A consistent, transparent approach not only helps with audits but also fosters a more sustainable working culture. By respecting time limits and communicating openly with staff, employers can strike a strong balance between legal compliance and business needs in Vietnam’s dynamic employment landscape.
With the rise of flexible work arrangements globally, Vietnam has seen a growing interest in remote employment from both domestic and international companies. While the concept is not formally defined under local law, working arrangements outside the office are covered by general labour regulations. For employers, this means that managing remote work in Vietnam requires close attention to contract terms, working hours, and legal obligations.
Although there is no standalone regulation that defines remote work Vietnam specifically, the Labour Code 2019 still applies to employees working off-site. This includes key elements such as employment contracts, working conditions, compensation, and working hours.
All remote employees—whether working from home or another location—must have a valid employment contract. This can be either fixed-term or indefinite-term, and must include standard provisions such as job responsibilities, salary, benefits, working hours, and termination terms.
Working hours for remote staff must still adhere to legal limits: no more than eight hours per day or 48 hours per week. Overtime must be agreed upon and kept within statutory caps—12 hours per day, 40 hours per month, and a total of 200 hours per year (extendable to 300 hours in specific cases).
Salaries for working remotely in Vietnam must be paid in Vietnamese Dong (VND) through a licensed local bank, in accordance with labour and tax regulations. Employers also remain responsible for social insurance contributions and other statutory benefits.
The market for work from home jobs in Vietnam has expanded across industries. Common remote roles include:
Many Vietnamese professionals, especially in urban areas, are equipped for remote work with high-speed internet and digital tools. Employers should ensure proper onboarding and access to systems for remote hires.
At present, there is no dedicated remote work visa in the country for foreign nationals wishing to work remotely while living in Vietnam. Those planning to stay long-term must typically apply for a work permit and residence card through a sponsoring entity.
Digital nomads entering on tourist or business visas should be aware of the limitations and potential tax and immigration risks. Employers engaging remote foreign talent located in Vietnam should consider permanent establishment risk, cross-border payroll compliance, and tax exposure.
Vietnam has not yet introduced a formal framework for digital nomad visas, though such developments could emerge in future policy reforms.
For companies supporting remote work in Vietnam, it is recommended to:
Ultimately, even without a dedicated legal framework, remote work can be structured effectively in Vietnam—as long as employers anchor their practices to the existing Labour Code and local guidance.
Like any other countries, Vietnam has its own laws and regulations when it comes to employment contracts — and non-compliance could land your company in hot water.
Thankfully, our team is experienced in drawing up tailored, compliant contracts in Vietnam and more than 100+ countries. That means that, when you work with us, you will not need to waste time worrying about whether you have got it right. Instead, you can focus on what matters: growing your business.
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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