Vietnam Labor Law for Foreigners: What You Need to Know

Vietnam labor law can be complicated, especially for foreign workers and their employers. To stay compliant and avoid unnecessary headaches, check out Thao & Co.’s practical guide to the key regulations.

Key aspects of Vietnam labor law for foreigners

Here are the main highlights of Vietnam labor law that foreigners need to know about when working in Vietnam.

1. Requirements for expats in Vietnam

To work in Vietnam legally, expatriates must fulfill all of the following requirements:

1. ● Be at least 18 years old and have full civil capacity
2. ● Meet the health requirements regulated by the Ministry of Health and possess adequate qualifications, skills, experiences, etc.
3. ● Have a clean criminal record or proof of record expungement under Vietnam law and international law.
4. ● Obtained a valid Vietnam work permit, unless exempted.

Need help with your work permit? See Thao & Co.’s work permit services in Vietnam for expert assistance.

2. Working hours and time off

Understanding Vietnam labor law annual leave and working hours policies is crucial for expatriates. Here’s what you need to know:

1. ● Working hours: Maximum 8 hours per day or 48 hours per week. Overtime is capped at 40 hours per month.
2. ● Employees working for 12 months under an individual or organization employer are entitled to:
   • + 12 days per year for workers in normal conditions
   • + 14 days per year for minors, workers with disabilities, or those in hazardous working conditions
   • + 16 days per year for employees working in extremely hazardous or dangerous conditions
3. ● If you’ve worked less than 12 months, leave is calculated based on the actual time worked.
4. ● Bonus tip: After every 5 years of working for an employer, you get an extra day of leave.

3. Vietnam work permit for foreigners

A Vietnam work permit is a must-have document for expatriates to work legally in Vietnam.

1. ● Duration of validity: up to 2 years
2. ● Issuing authority: Either the Ministry of Labor – Invalids And Social Affairs (MOLISA) or the provincial Department of Labor – Invalids And Social Affairs

You’ll need a valid Vietnam work permit to apply for a temporary residence card. If exempt from needing a work permit, you’ll still need a certificate of exemption.

4. Vietnam employment contract law for foreigners

Foreign workers must have a labor contract that meets these specific guidelines:

1. ● The term of the contract cannot exceed the validity period of the foreign employee’s work permit.
2. ● The signed contract must be submitted to the work permit issuing authority. Violations can result in fines ranging from 1 to 3 million VND.
3. ● Contracts must be in writing and include a Vietnamese version.
4. ● An additional language, such as English or the employee’s native language, can be included.
5. ● Original or notarized copies of the contract are equally valid.

Learn more about Labor Contract Translation Services at Thao & Co.!

5. Salary, bonus, and benefit policies for foreign employees

As regulated in Vietnam labor law, foreign employees are entitled to similar benefits as local employees. Specifically:

1. ● Salary and bonus: No lower than the regional minimum salary. For example, the minimum wage in Ho Chi Minh City is 4,680,000 VND.
2. ● Social insurance: Foreigners can enroll in the one-time social insurance payment option.
3. ● Health insurance: The contribution rate is 4.5% of the monthly salary, with the employer covering 3%.
4. ● Other benefits: Unemployment insurance, maternity leave, health checkups, etc.

6. Regulations on contract termination

An employer may terminate an employment contract with a foreign employee when:

1. ● The term of the contract has expired, except for circumstances specified in Vietnam labor law.
2. ● The employee has fulfilled the contract.
3. ● Both parties agree to end the contract.
4. ● The employee is convicted of criminal charges.
5. ● The employee is deported.
6. ● Either the employee or employer dies, loses legal capacity, or disappears.
7. ● Disciplinary action leads to firing or termination.
8. ● The employer or employee unilaterally terminates the employment contract.
9. ● The employee’s Vietnam work permit has expired.
10. ● The employee does not pass the probationary period.

Download the full Vietnam labor law PDF

You can download the PDF file for Vietnam labor law here:

Important considerations for employers of foreign workers

Businesses employing foreign nationals must fulfill their obligations under the labor contract. Additionally, they are also obliged to submit a report to the Department of Labour – Invalids and Social Affairs twice a year:

1. ● Semi-annual report:
   • – Due date: Before July 5th every year
   • – Reference period: From December 15th to June 14th of the reporting period.

1. ● Annual report:
   • – Due date: Before January 5th of the next year
   • – Reference period: From December 15th to December 14th of the reporting period

Employing foreign workers without valid work permits can result in the following penalties:

1. ● 30 to 45 million VND if the violation involves 1 to 10 workers
2. ● 45 to 60 million VND if the violation involves 11 to 20 workers
3. ● 60 to 75 million VND if the violation involves 21 workers or more

FAQs about Vietnam labor law

Here are the answers to some common FAQs about Vietnam labor law that you may find helpful.

1. Does Vietnam have labor laws for foreigners?

1. Yes, Vietnam has specific regulations concerning foreign workers within its labor law.

2. How are severance payments calculated under Vietnam labor law?

1. The severance payment formula is as follows:

Severance pay = 0.5 x [Duration of official employment] x [Official salary]

3. Are there laws on sick leaves in Vietnam labor law?

1. Yes, foreign employees participating in the compulsory social insurance program are entitled to the same sick leave benefits as Vietnamese employees.
2. Typically, foreign workers receive a maximum of 30 days of sick leave per year if they have contributed to social insurance for less than 15 years.

4. Vietnam labor law notice period: what’s required?

1. Employees must provide their employers with the following notice periods:
2. ● At least 45 days for indefinite-term contracts
3. ● At least 30 days for fixed-term contracts lasting between 12 and 36 months
4. ● At least 3 days for fixed-term contracts lasting less than 12 months
5. ● Specific regulations apply to certain specialized industries and professions

5. Is the 13th-month salary mandatory under Vietnam labor law?

1. According to Vietnam labor law, the 13th-month salary is not mandatory for employers. Therefore, this depends on the employer’s benefit policies.

Key takeaways

Thao & Co. has simplified the key points regarding Vietnam labor law for foreigners in this article. It is important for both employers and employees to understand these regulations to avoid legal complications.

Setting up a business and employing foreign nationals in Vietnam still presents challenges, largely due to differences in legal systems between countries.

That’s where Thao & Co. steps in. We offer a suite of services designed to smooth your path to success:

1. 🏢 Business setup services: We provide comprehensive solutions, guiding you through the legal and linguistic maze, so you can focus on your dream venture.
2. 📜 Notarized translation services: We handle notarization and consular legalization swiftly and professionally, saving you valuable time and resources.
3. ⚖️ Ongoing support every step of the way: Our dedicated team of legal experts is available to provide ongoing support and answer any questions you may have.

Contact us today for a personalized consultation – simply message us through our website or complete the Contact form. Thao & Co. will promptly reach out to assist.