Updated on: 2025/03/11 04:35 (UTC)
Overview
The primary labor law is the Labor Code, which took effect in 1995 and was extensively revised in 2013; major changes included the treatment of maternity leave, overtime, work permits, and disciplinary dismissal. The Ministry of Labor, Invalids, and Social Affairs is the government agency responsible for labor and employment matters. The Labor Code generally does not apply to businesses employing fewer than 10 workers.
Hiring
Employment Contracts
An employment contract must be in writing with a copy for the employer and the employee. The contract may be made orally only if the job is temporary—with a term of three months or less—or if the employee is hired as a domestic servant.
The contract must include descriptions of the job, work hours, break time, salary, place of work, length of the contract, workplace hygiene and safety, and social insurance terms.
A contract may be valid for an indefinite term, for one to three years, or for a seasonal job or a specific job to be carried out in less than one year. (Note: Effective Jan. 1, 2021, there will be only two types of labor contracts: definite term contracts up to 36 months in length and indefinite term contracts.)
Employers must conduct a self-review of their compliance with employment law at least once a year.
Restrictions on Hiring
The minimum working age is 15 years, except for certain jobs defined by the government, for which the child’s parents or guardians must give approval and monitor the work.
Some of the jobs in which children under 15 but older than 13 can work are acting and athletics. Other jobs that do not specify a minimum age include crafts jobs such as pottery glazing, wood carving, and embroidering. An individual who employs workers must be at least 18 years old.
Employees under 18 are not allowed to work in hazardous or dangerous jobs as defined by the government. The working hours of such employees must not exceed eight hours in a day and 40 hours in a week. Overtime or night work is allowed only in certain jobs specified by the government. Employers must provide educational and cultural opportunities for underage workers.
Women are not permitted to do heavy or dangerous work or jobs that necessitate contact with substances that have harmful effects on their ability to bear and raise children, as determined by the government.
Foreign Workers. The Ministry of Labor has amended the experience requirement for foreign workers through Decree 70/2023/ND-CP which amends and supplements Decree 152/2020/ND-CP. The decree shortens the reporting period in which an employer must submit a request to hire foreign workers from 30 days to 15 days and gives the relevant labor authority of the employer’s locality the authority to approve or deny the request.
The decree also removes work permit requirements for foreign workers sent by foreign competent authorities to work as teachers or managers at educational institutions and those confirmed by the Ministry of Education and Training (MoET) to work as managers, executives, principals, or vice principals at educational institutions established by foreign diplomatic missions or intergovernmental organizations in Vietnam.
Recordkeeping
An employer must keep a record of minor employees that includes full names, birth dates, assigned work and results of periodic medical examinations. Employers must keep the health records of the employee and the general records in accordance with the regulations of the Ministry of Health. Tax records generally must be kept for a minimum of five years.
Background Checks
Employers are generally allowed to inquire into an employee or job applicant’s health and criminal histories, and under certain laws job applicants may be required to provide a prospective employer with a health certificate. Third-party background checks are generally permissible if limited to verifying information provided by an applicant or employee. In any case, an employer is well advised to notify the employee or applicant that a background check will be conducted and better still to get the employee or applicant’s written consent.
Noncompetition Agreements
Vietnamese labor law generally prohibits restrictions on an individual’s right to freely choose what work to perform. Noncompetition agreements are therefore generally unenforceable in Vietnamese courts. Employers nevertheless often include noncompete clauses in employment contracts but have to rely on a former employee’s voluntary compliance.
Reference Citations
Employment Contracts: Labor Code 2012, arts. 15-18; Labor Code 2019, art. 20
Restrictions on Hiring: Labor Code 2012, arts. 161-163
Recordkeeping: Labor Code 2012, arts. 152, 161
Immigration and Work Permits
In General
Foreign companies that have only representative offices in Vietnam rather than full business operations are not allowed to directly recruit local workers but must go through local hiring agencies approved by the Ministry of Foreign Affairs, the Ministry of Labor, War Invalids and Social Affairs or the people’s committee of a city or province.
Companies may hire foreign employees for jobs that require highly technical or management skills for a limited period provided the employers establish training programs that enable Vietnamese workers to eventually replace the foreign employees. Employers also must provide an explanation of their need to employ foreign workers and obtain a written approval from the competent state authority.
Employers are required to report their need for foreign labor to the labor authority in the locality where the foreign employees were expected to work. Decree 70/2023/ND-CP amends and supplements to Decree 152/2020/ND-CP shortens the notice period from 30 days to 15 days before hiring.
This amendment gives authority to the appropriate locality agency, rather than the federal labor authority or the provincial-level People’s Committees, to issue documents approving or disapproving the request for the use of foreign workers.
Visas and Work Permits
Foreign workers must be at least 18 years old, must obtain a visa to enter the country, and must have a health certificate showing they are in good health. They also must have documentation of holding a bachelors degree, at a minimum, along with three years of confirmed work experience. If they are to be employed in Vietnam for more than three months, their prospective employers must obtain a work permit for them from a local labor office. A work permit is granted for the period of the labor contract, but not for longer than 24 months, though it can be extended.
Vietnam waives the visa requirement for residents of some 55 countries—not including the U.S.—but it is always best to check with the Vietnamese consular office to determine specific visa requirements.
Foreign nationals who need visas must present their passports to the appropriate Vietnamese authority—either in the Vietnamese consular office of the traveler’s home country or upon arrival in Vietnam—to apply for a visa. The visa application must include the following documents:
- application form with an attached photograph;
- passport (or alternative documents that have been approved in advance) valid for one month longer than the validity of the requested visa; and
- authorization document issued by the Immigration Department (Ministry of Public Security) or the Consular Department, Ho Chi Minh City Department of Foreign Affairs (Ministry of Foreign Affairs).
Visas may be printed in the passport or created separately and attached to the passport.
Vietnam issues both single-entry and multiple-entry visas. Some of the categories in which visas are issued include:
- The LD visa is issued to workers. A foreign national holding such a visa may obtain a TT visa for his or her spouse or minor children. The LD visa is valid for up to two years.
- LV1 and LV2 visas are generally issued to representatives of Vietnam’s trading partners. A foreign national holding such a visa may obtain a TT visa for his or her spouse or minor children. These visas are valid for up to 12 months.
- The DT visa is issued to foreign investors and lawyers operating in Vietnam. A foreign national holding such a visa may obtain a TT visa for his or her spouse or minor children. The DT visa is valid for up to five years.
- The HN visa is issued to attendees at conferences and seminars and is valid for up to three months.
- The SQ visa is issued by Vietnamese visa-granting agencies abroad to foreign nationals who enter the country for up to 30 days for a variety of reasons.
Expired visas can be renewed.
Post-Entry Requirements
Foreign employees who receive a work permit may apply to the provincial labor authority for a temporary residence card. Foreign employees working in Vietnam must comply with the labor law of Vietnam as well as international conventions and treaties to which Vietnam is a signatory. Foreign workers are protected by Vietnamese law.
Foreign workers must be able to participate in civic life and have qualifications, occupational skills and health that suit the work requirements; they must not have been found guilty of any crime in Vietnam or abroad; and they must obtain a work permit if they will be working in Vietnam for more than three months.
Penalties
Any foreign employee working in Vietnam without a work permit faces deportation within 15 days. His or her employer is subject to legal sanction.
Reference Citations
Visas and Work Permits: Decree No. 102/2013, arts. 9-11 (English)
Penalties: Decree No. 102/2013, art. 18 (English)
Nondiscrimination
In General
The Labor Code prohibits discrimination in employment based on sex, race, social class, marital status, belief, religion, HIV status, disability or union participation.
Age Discrimination
The Labor Code does not specifically address discrimination based on age.
Gender Discrimination
The Labor Code prohibits discrimination in employment based on sex and marital status.
Sex discrimination in recruitment, job duties, compensation and promotions is prohibited by the constitution and the Labor Code. The Labor Code calls for affirmative action for women, requiring employers to give preference to hiring female applicants when they are qualified for an opening. Employers are encouraged to allow women to work a flexible schedule, part time or at home. Sexual harassment is prohibited.
An employer may not dismiss a female employee due to marriage or pregnancy or if she is on maternity leave or is raising a child less than 12 months old unless the business terminates its operations.
Pay Discrimination
Companies are required to pay women the same wages as men.
Sexual Orientation Discrimination
The Labor Code does not specifically address discrimination based on sexual orientation.
Reference Citations
Nondiscrimination: Labor Code 2012, art. 8
Gender Discrimination: Labor Code 2012, arts. 8, 154
Pay Discrimination: Labor Code 2012, art. 90
Employee Privacy
Employee Data
Vietnamese law does not regulate the protection of personal data in employment, but the constitution mandates that the collection and publication of information and data about the private life of an individual require that person’s consent.
Employee Monitoring and Surveillance
In general, the labor code allows employers to monitor employees in the workplace to ensure that company rules are being observed. Employers can observe employees’ use of the Internet and block access to specific websites. However, employers seeking to collect or process personal information that employees transmit on the Internet must receive employees’ consent beforehand.
Reference Citations
Employee Data: Constitution of Vietnam, 1992, art. 73
Employee Monitoring and Surveillance: Law on Information Technology, 2001, §§ 21-22
Compensation
Hours of Work
By law, normal working time may not exceed eight hours per day and 48 hours per week, although the Labor Code encourages employers to implement a 40-hour workweek.
An employee is entitled to 30 minutes of rest—45 minutes for a night-shift worker—during a six- or eight-hour shift.
Employees are entitled to have at least 12 hours between the end of one shift and the beginning of the next.
An employee is entitled to at least one 24-hour day of rest each week on Sunday or any other fixed day in the week. If the nature of the business makes it impossible for a weekly rest day to be arranged, an employer must give the employee at least four days of rest per month.
Female employees are entitled to a 30-minute rest break for menstruation for at least three days per month.
Rest periods for miners, sea workers, and persons in other jobs with special characteristics are defined by the government.
Minimum Wage
From July 1, 2024, depending on the region, the monthly minimum wage varies from 3.47 million dong to 4.97 million dong per month. From July 1, 2022, depending on the region, themonthly minimum wage varies from 3.25 million dong to 4.68 million dong per month.
Workers get an additional 30 percent of the regular hourly rate for night shift work. Employees who work overtime at night receive an additional 20 percent of the regular hourly rate for daytime work. Night is defined as the period from 10 p.m. to 6 a.m.
Overtime
Overtime can’t exceed four hours per day, 40 hours per month and 300 hours per year, except for certain types of employees, in which case overtime can’t be more than 200 hours a year. These types of employees include:
- children (employees under 18 years old);
- mothers with children less than 12 months old; and
- employees performing work that is heavy, hazardous, or dangerous.
Unless specifically named in the protected categories, employers may have employees work up to 60 hours of overtime in a month if there is a business demand and the employees provide consent.
Overtime worked on a regular workday is paid at 150 percent of the regular hourly rate.
Pay for work on a usual day off is 200 percent of the regular hourly rate and on holidays is 300 percent of the regular rate.
Under earlier versions of the labor law, mandatory overtime was forbidden in all cases. It is now allowed during national emergencies and such other emergency situations as serious accidents, fires, floods, storms, earthquakes, and epidemics.
Wage Payment
Wages are to be paid in full at the workplace or into the employee’s bank account. In special cases in which the pay is delayed, the delay must not exceed one month and the employer must increase the employee’s compensation by an amount at least equal to the interest rate published by the state bank at the time of the payment of the salary.
Employees whose wages are calculated by the hour, day, or week must be paid at least twice a month. Those whose wages are calculated by the month can be paid once a month.
Mandatory Bonuses
There is no legal requirement that employers provide employee bonuses. Voluntary incentive bonuses are often granted based on company earnings, however, and an extra month’s pay (the 13th-month bonus) is frequently given as an annual bonus and a Tet bonus awarded before employees begin their Lunar New Year holiday.
Reference Citations
Hours of Work: Labor Code 2012, arts. 104, 108- 110
Minimum Wage: Labor Code 2012, arts. 91 and 97
Overtime: Labor Code 2012, art. 97; Labor Code 2019, art. 107 Resolution 17/2022 (In Vietnamese)
Wage Payment: Labor Code 2012, arts. 94-96
Benefits
Vacation
An employee is entitled to annual leave with full pay after one year with an employer, as follows:
- 12 days for a person working in normal conditions,
- 14 days for a person working in a hazardous or dangerous job or in a place with harsh living conditions or for a person under 18 years of age, and
- 16 days for a person working in an especially hazardous or dangerous job or in a hazardous or dangerous job located in a place with harsh living conditions.
The number of days of annual leave increases at the rate of one for every additional five years with an employer. An employee with less than one year with an employer receives leave in proportion to the duration of the employment. Wages for the leave time are paid in advance.
An employer is entitled to regulate the schedule for annual leaves after consulting with employees and must give prior notice to them.
If the employer agrees, an employee may divide annual leave into several shorter periods. Employees working in remote areas may combine the leave of two years into a single annual leave.
An employee may choose to receive pay in lieu of taking annual leave. Employees whose employment is being terminated are entitled to pay for unused leave.
Holidays
Employees are entitled to the following 10 public holidays with full pay:
- Jan. 1: New Year’s Day
- Lunar New Year Festival: five days
- March 10: Hung Kings Commemoration Day
- April 30: Victory Day
- May 1: International Labor Day
- Sept. 2: National Day
Foreign citizens working in Vietnam are entitled to one day of their country’s National Day (if any) and one traditional public holiday in addition to the ten public holidays stipulated by law.
If a holiday falls on a day that is normally not a workday, the following day is allowed as leave.
Employees who are required to work on a public holiday are entitled to 300 percent of their usual wages.
Maternity Leave
During pregnancy, a female employee is entitled to five days’ paid leave for prenatal checkups, five two-day paid absences if the medical facility is distant or the employee has an ailment. A woman is entitled to six months of paid maternity leave, no more than two months of which can be taken before the child is born. If the employee gives birth to two or more children, she is entitled to another 30 days of leave for each additional child. After the end of the leave, if the employee has not fully recovered, she may take five to 10 days of additional leave with a benefit of 25 percent of the minimum wage if she recovers at home or 40 percent of the minimum if she rehabilitates at a rest home. She may take additional unpaid leave if her employer agrees. After the employee returns from the statutory childbirth leave and any unpaid leave, her job is guaranteed.
The employee may return to work before the end of maternity leave if she has taken at least four months’ leave after childbirth and a doctor certifies in writing that her return to work will not harm her health. In this situation, the employee will continue to receive maternity benefits in addition to her pay until the end of the maternity leave period.
Maternity benefits for Vietnamese employees are paid at 100 percent of salary up to a maximum of 20 times the base salary. Maternity leave pay for Vietnamese employees is covered by the social insurance fund. Maternity leave pay for expatriate employees is subject to the agreement between the employer and employee.
If a pregnant employee has a miscarriage, abortion, or stillbirth, she is entitled to 10 days of leave if the fetus was less than 1 month old, 20 days if the fetus was 1 to 3 months old, 40 days if the fetus was 3 to 6 months old, and 50 days if it was more than 6 months old.
Maternity benefits are also paid to insured women who adopt a baby less than 6 months in age. The woman gets the maternity benefit until the baby reaches 6 months old, as well as a lump sum equivalent to two months of the minimum wage for each child.
An employer may not assign a woman who is seven or more months pregnant or who has a child less than 12 months old to overtime or night work hours or to go on distant business trips. If a woman who does heavy work is pregnant, from the seventh month of her pregnancy onward she must be assigned to a lighter job or have her daily work hours reduced by one hour while continuing to receive full pay.
A female employee with a baby less than 12 months of age is entitled to a break of 60 minutes every day for nursing.
If a doctor determines that continuing to work would harm a pregnant worker’s fetus, the woman can terminate her employment without penalty.
The employee is guaranteed her same job upon returning to work after the end of maternity leave. In the case that the old job no longer exists, the employer must arrange another job for her with a salary equal to her salary before maternity leave.
Paternity Leave
A father is entitled to take paternity leave within 310 days of delivery as follows:
- five days, if his wife gives birth naturally;
- seven days, if his wife gives birth by caesarean section;
- 10 days, if his wife gives birth to twins (plus three additional days for each baby from the third child onwards); and
- 14 days, if his wife gives birth to twins by caesarean section.
Sick Leave
Sickness benefits are available for illnesses unrelated to work that are not self-inflicted or related to substance abuse. The benefit is equal to 75 percent of the insured’s wages payable for up to 30 days in a calendar year if the insured has fewer than 15 years of covered employment, 40 days if 15 to 30 years, 60 days if more than 30 years. The level and duration of the sickness benefit increases if the employee works at a hazardous or arduous job. In that case, the benefit is equal to 100 percent of the insured’s wages payable for up to 40 days in a calendar year if the insured has fewer than 15 years of covered employment, 50 days if 15 to 30 years, and 70 days if more than 30 years. If prolonged hospitalization is needed, full benefits can be paid for up to 180 days in a calendar year with reduced benefits if the illness continues after 180 days. Sick pay is covered by the social insurance fund.
Other Leave
Bereavement leave. Employees are entitled to three days’ leave for the death of a spouse, child, parent, or parent of a spouse; they may take one day of unpaid leave upon the death of a grandparent or sibling.
Personal leave. Employees are entitled to three days’ leave with full pay to get married and one day’s leave for the marriage of a child; they may take one day of unpaid leave for the marriage of a parent or sibling.
An employee may take unpaid leave for any reason if the employer agrees.
Pensions and Social Security
Vietnam’s social insurance system covers all private- and public-sector employees with employment contracts of at least three months. The system provides benefits for employees for sickness, occupational injuries and disease, pregnancy, retirement, and death.
Employee and employer contributions to the system vary depending on the benefit program. The maximum wage used for calculating contributions to social insurance is 20 times the minimum wage.
If the employee works at a seasonal or temporary job or for an employer with fewer than 10 employees, the employer must include a social insurance allowance in the salary so the employee can join a social insurance scheme of his or her choice.
Sick child benefit: A female employee may receive 75 percent of her wages for up to 20 days in a calendar year to care for a sick child younger than age 3, 15 days for a sick child between the ages of 3 and 7.
Old age pension: The ages for pension eligibility are:
- age 60 (men) or age 55 (women) with at least 20 years of social insurance contributions;
- age 50 (men and women) with at least 20 years of contributions including at least 15 years of employment in coal mines;
- age 55 (men) or age 50 (women) with at least 20 years of contributions including at least 15 years of employment in hazardous or arduous working conditions or in certain geographic regions or with 10 years of work in South Vietnam or Laos before April 30, 1975, or Cambodia before Aug. 31, 1989;
- age 50 (men) or age 45 (women) with 20 years of contributions and a degree of disability of at least 61 percent as assessed by a Ministry of Health medical board; or
- no age requirement with 20 years of contributions including 15 years in extremely hazardous or arduous working conditions and a degree of disability of at least 61 percent as assessed by a Ministry of Health medical board.
Retirement from employment is required to be eligible for benefits.
Disability grant: A disability grant is paid to a person with a permanent total or partial disability at any age with an assessed degree of disability of at least 61 percent. A Ministry of Health medical board assesses the degree of disability.
Workers’ Compensation
All employees with employment contracts for a job lasting at least three months are covered by workers’ compensation. There is no minimum qualifying period to receive benefits for a work injury or an occupational disease.
A list of occupational diseases is published by the Ministry of Health and the Ministry of Labor, Invalids, and Social Affairs after consultation with the Vietnam General Confederation of Labor, the nation’s central trade union, and representatives of employers.
After a permanent disability is assessed by a Ministry of Health medical board, benefits are paid according to the percentage of disability and number of years the worker has paid into the social insurance system. Workers determined to have lost 5 to 30 percent of earning capacity get a lump sum, while those who have lost at least 31 percent of their earning capacity get a monthly benefit.
If the insured dies in a workplace accident or from an occupational disease or during initial medical treatment for an accident or disease, the worker’s relatives are entitled to a lump sum of 36 times the monthly minimum wage in addition to survivors’ benefits if they are eligible.
Reference Citations
Vacation: Labor Code 2012, arts. 111-114
Holidays: Labor Code 2012, arts. 97, 115
Maternity Leave: Labor Code 2012, arts. 155-157; Law on Social Insurance, 2014, art. 34
Paternity Leave: Law on Social Insurance, 2014, art. 34
Sick Leave: Social Insurance Law, Arts. 22-23
Other Leave: Labor Code 2012, art. 116
Pensions and Social Security: Social Insurance Law, Arts. 24, 50-54, 63 to 66
Workers’ Compensation: Social Insurance Law, Arts. 39-47
Labor Relations
In General
Workers have the right to establish or join a trade union and to participate in union activities to protect their rights. An employer must recognize and cooperate with a trade union once it is legally formed; cannot legally discriminate against a worker for establishing, joining, or participating in the activities of a trade union; and may not use economic measures to interfere in the organization and activities of the union.
Collective labor disputes are first referred to the local labor mediator. Disputes not resolved at that level are referred to the provincial labor arbitration council, then to the people’s court. While a dispute is before a labor council, neither party is allowed to take unilateral action against the other. If an agreement cannot be reached, five days must pass following the conclusion of the labor arbitration council’s deliberations before a strike may be called.
Violence—acts that damage the machinery, equipment, or other property of the business—and acts that violate public order and safety during a strike are forbidden. Employers are prohibited from harassing or retaliating against the participants or leaders of strikes and may not terminate labor contracts during a strike.
Right to Organize
Workers have the right to establish or join a trade union and to participate in union activities to protect their rights.
The local trade union is required by law to set up union organizations at existing companies that do not have union representation or at new companies. Nevertheless, some reports have found that most private enterprises are not unionized.
An employer must recognize and cooperate with a trade union once it is legally formed. An employer is not allowed to discriminate against a worker for establishing, joining, or participating in the activities of a trade union. Neither is the employer allowed to use economic measures to interfere in the organization and activities of the trade union.
An employee who works part time for a union may perform union duties during working hours and still receive full pay. The amount of time that can be spent on union work depends on the size of the business and on the agreement between the employer and the local trade union but must not be fewer than three working days in a month.
Employers and employees must engage in collective bargaining once a year.
Any business with more than 10 employees must post written labor regulations. Before publishing the regulations, the employer must consult the executive committee of the local trade union.
The regulations must cover the following:
- work hours and rest periods,
- safety and sanitation at the workplace,
- protection of property and technological and business secrets of the business, and
- disciplinary measures for violations of work rules.
An employee who damages equipment or other property must pay compensation. If the damage is not very serious and was caused by carelessness, the maximum compensation is three months’ salary to be gradually deducted from the worker’s pay.
An employee who violates work rules shall, depending on the level of fault, be subjected to one of the following disciplinary measures: reprimand, transfer to another job with lower pay for a maximum of six months, or dismissal. An employee may not be subject to multiple forms of discipline for a single violation.
Before imposing a disciplinary measure, the employer must prove the employee’s offense. During hearings on the matter, the employee has the right to defend himself or be defended by a representative. A representative of the executive committee of the local trade union must be present and a written record of the proceeding must be made.
An employee who is reprimanded for violating work rules shall be automatically reinstated after three months. One whose punishment is a transfer must be considered for reinstatement after serving half the term of the sanction, then must be reinstated after six months.
Acceptable causes for disciplinary dismissal have been expanded to include assault, drug use, infringement of employer intellectual property rights and any other conduct causing serious damage to employer interests or assets.
Works Councils
The Labor Code does not address works councils.
Dispute Resolution
Labor disputes can be either individual or collective.
Individual labor disputes can be settled by the local labor mediator or by the people’s court.
An individual can bypass mediation and go straight to court if the dispute concerns unilateral termination of the labor contract, compensation upon termination of a labor contract, social insurance, issues between domestic workers and their employers or disputes over compensation arising from contract work done overseas. The employee is exempt from paying court fees for litigation concerning a demand for salary, social insurance, indemnities for dismissal or unlawful termination of the labor contract. The mediation process must be completed within six months, and any resulting court case must be settled within a year.
Collective labor disputes are first referred to the local labor mediator. Disputes not resolved at that level are referred to the provincial labor arbitration council, then to the people’s court. The provincial labor arbitration council is composed of representatives of the provincial labor office, the trade union, employers, and the public. The provincial council must have an odd number of members, not exceeding seven.
Strikes/Lockouts
While a dispute is before a labor council, neither party is allowed to take unilateral action against the other. If an agreement cannot be reached, five days must pass following the conclusion of the labor arbitration council’s deliberations before a strike may be called.
A decision to strike is made by the executive committee of the local trade union after a majority of members approve it by secret ballot or by their signatures. The executive committee then informs the employer of the decision to strike. If the employer chooses not to settle the dispute, the trade union executive committee organizes and leads the strike.
Violence—acts that damage the machinery, equipment, or other property of the business—and acts that violate public order and safety during a strike are forbidden.
Strikes are forbidden in businesses that are essential to the national economy or national security and defense as stipulated in a list issued by the government. The prime minister can suspend or end a strike when it is found to be detrimental to the national economy or public safety. Strikes that do not arise from a collective labor dispute, that have been called before going through the proper conciliation procedures or that haven’t been approved by a majority of the workers are considered illegal.
Employers are prohibited from harassing or retaliating against the participants or leaders of strikes, and they may not terminate labor contracts during a strike.
Successorship Clauses
The labor code urges, in cases of a merger or transfer of ownership of a business, the succeeding employer and the union representing the employees to agree to the continuous implementation or amendment of the old collective bargaining agreement or to enter into a new collective bargaining agreement.
Reference Citations
Right to Organize: Labor Code 2012, arts. 189-192
Works Councils: Labor Code 2012, art. 115
Dispute Resolution: Labor Code 2012, art. 194-199
Strikes and Lockouts: Labor Code 2012, art. 116
Successorship Clauses: Labor Code 2012, art. 86
Safety, Health and Security
In General
The employer must ensure that the workplace meets government standards for space, ventilation and lighting, as well as limits on dust, steam, noxious gases, radiation, heat, noise, vibration and other harmful factors. Workplaces must be periodically checked to ensure their safety. Specific training must be provided for managers and employees who must meet strict safety and hygiene requirements.
Employers may monitor employees in the workplace but only with their consent.
Workplace Safety and Health
The employer must ensure that the workplace meets government standards for space, ventilation and lighting, as well as limits on dust, steam, noxious gases, radiation, heat, noise, vibration and other harmful factors. Workplaces must be periodically checked to ensure their safety. Specific training must be provided for managers and employees who must meet strict safety and hygiene requirements.
Maintenance and repair of machines, equipment, buildings and storage facilities are the responsibility of the employer. Machines and equipment must be fitted with safety mechanisms, and employers must post signs that give safety and hygiene instructions. If conditions in the workplace pose a threat of accident or disease, the employer must immediately take remedial action or order cessation of operations until the danger has been removed. The employer must not force employees to continue work or to return to the workplace until the danger has been removed. If an employee sees a situation that could be a serious threat to life or health, the worker must immediately warn his or her direct supervisor and has the right to refuse to work or to leave the workplace.
Labor accidents include those that occur:
- during breaks and rest time,
- outside the workplace or working hours but on assignment from the employer, and
- during travel between the employee’s residence and workplace within a reasonable period of time and on a reasonable route.
In workplaces containing chemicals or other threats to safety or health, the employer must have medical equipment and protective gear to enable a quick response if an accident occurs.
The employer is responsible for training employees about safety and accident prevention.
Drug and Alcohol Use
The labor code allows employers to terminate a worker’s employment if the individual uses illicit drugs inside the workplace.
Reference Citations
Workplace Safety and Health: Labor Code 2012, arts. 137-150
Drug and Alcohol Use: Labor Code 2012, art. 126
Termination
An employer may dismiss an employee if the employee consistently fails to perform the duties of the job; has not recovered from an illness or accident after a prescribed period; has committed theft or embezzlement, disclosed business or technological secrets, or committed another act that causes serious damage to the interests of the employer; or is absent from work without a valid excuse for five days in a month or 20 days in a year. Valid grounds for termination also include closure or contraction of the business. Except for dismissals due to criminal conduct, repeat offenses, or repeated absences, an employer must give at least 45 days’ notice before terminating an employee working under a labor contract without a definite term.
Upon lawful termination of a labor contract with an employee who has worked for the company for a year or more, the employer must pay severance of one half month’s salary for every year of service.
If an employer is found to have improperly dismissed an employee, the employer must reinstate the employee and pay back wages plus at least two months’ salary. If the employee does not want to return to work, the employer must pay back wages, two months’ salary, and one month’s wages for every year of service.
An employee working under a labor contract without a definite term must give the employer at least 45 days’ notice before leaving the job.
Termination by Employer
An employer may dismiss an employee if the employee consistently fails to perform the duties of the job; has not recovered from an illness or accident after a prescribed period; has committed theft or embezzlement, disclosed business or technological secrets, or committed another act that causes serious damage to the interests of the employer; or is absent from work without a valid excuse for five days in a month or 20 days in a year. Valid grounds for termination also include closure or contraction of the business. Except for dismissals due to criminal conduct, repeat offenses, or repeated absences, an employer must give at least 45 days’ notice before terminating an employee working under a labor contract without a definite term.
An employer may dismiss an employee if:
- the employee consistently fails to perform the duties of the job;
- the employee has not recovered from an illness or accident after six months’ treatment (under a fixed-term labor contract), one-half of the contract term (under a casual labor contract) or 12 months’ treatment (under a regular labor contract), although in this case the employee may be considered for a new contract;
- the employee has committed theft or embezzlement, disclosed business or technological secrets, or committed another act that causes serious damage to property or other interests of the business;
- the employee was disciplined by being transferred to a new job and commits a new offense during the period of the discipline;
- the employee is absent from work without a valid excuse for five days in a month or 20 days in a year;
- natural disasters, fires, or other extraordinary circumstances force the employer to scale down production and reduce its labor force; or
- the business closes. (Effective Jan. 1 2021, new grounds for terminating employees include when they reach retirement age, fail to show up for work for five consecutive days without a legitimate reason, and are dishonest or provide false information during the recruitment process.)
Except for dismissals due to criminal conduct, repeat offenses, or repeated absences, an employer must give at least 45 days’ notice to an employee working under a labor contract without a definite term, at least 30 days for labor contracts with terms ranging from one year to three years, and at least three days for labor contracts for seasonal jobs or specific jobs that do not last more than one year.
An employer is not allowed to unilaterally terminate an employee’s labor contract if the employee is under medical treatment due to sickness, a workplace accident, or an occupational disease or if the employee is on annual leave, personal leave, or any other leave taken with the employer’s consent. An employer may not dismiss a female employee due to marriage or pregnancy or if she is on maternity leave or is caring for her child under 12 months of age unless the business terminates its operations.
If an employer is found to have improperly dismissed an employee, the employer must reinstate the employee and pay back wages plus at least two months’ salary. If the employee does not want to return to work, the employer must pay back wages, the two months’ salary, and one month’s wages for every year of service.
Termination by Employee
An employee who is working under a labor contract without a definite term must give the employer at least 45 days’ notice before leaving the job.
An employee working under a labor contract for a seasonal job or specific task lasting less than one year or in a job lasting from one to three years is entitled to unilaterally terminate the contract with three days’ notice in the following circumstances:
- the employee is not assigned to the job or the workplace specified in the contract or otherwise not assured of the conditions of work agreed to,
- the employee is not paid fully or not paid at the time stipulated in the contract,
- the employee is maltreated or subjected to sexual harassment or forced labor,
- the employee or employee’s family encounters difficulties that cause the employee not to be able to fulfill the labor contract,
- the employee is elected to a post in government,
- the employee is pregnant and must leave her job at the instruction of a medical professional, or
- the employee has not recovered from an illness or accident after 90 days’ treatment (under a fixed-term labor contract), one-quarter of the contract term (under a casual labor contract), or 12 months’ treatment (under a regular labor contract).
For seasonal workers, only three days’ notice is required if they terminate the contract because of family difficulties or election to a government position. Workers with contracts lasting one to three years must give 30 days’ notice under these circumstances.
If the employee is found to have improperly terminated his or her own employment, the employee shall not receive any severance allowance and must pay the employer a half-month’s salary.
Plant Closings and Mass Layoffs
If a business restructuring, technological change, or economic recession causes a worker to lose a job, the employer has a duty to retrain the employee and assign him or her to a new job. If no new job exists or can be created and the worker must be dismissed, the employer must pay the worker one month’s salary for every year of service with a minimum of two months’ salary.
If a mass layoff is necessary, the employer must give prior notice of 30 days to the local trade union and labor office.
Payment on Termination
Upon lawful termination of a labor contract with an employee who has worked for the company for a year or more, the employer must pay severance of one half of one month’s salary for every year of service. The redundancy allowance that is only applicable in cases of retrenchment is one month’s salary for each year of employment, but at least two months’ salary. The employer also must compensate the employee for any outstanding wages, unused annual leave, or bonus owed to the employee.
Periods of probation, apprenticeship, and job practicing do not count towards total length of service for purposes of calculating severance payment.
Unemployment Insurance
Workers and employers each contribute 1 percent of the workers’ monthly salary up to a limit of 20 times the minimum wage to the unemployment insurance fund. Employers must start paying for unemployment insurance if they have employees with contracts of at least three months.
To qualify for this benefit, the worker must have an employment contract with an indefinite term or a term of 12 months to 36 months. In addition, the worker must have at least 12 months of unemployment insurance contributions during the 24 months prior to the job loss or the expiration of an employment contract and be unable to find a new job within 15 days following the end or cancellation of the contract and after registering with a labor agency.
The amount of the unemployment benefit corresponds to 60 percent of the average salary during the last six months of employment. The length of time a person can receive benefits depends on how many contributions to the insurance fund were made.
Reference Citations
Termination by Employer: Labor Code 2012, arts. 38, 126
Termination by Employee: Labor Code 2012, art. 37
Plant Closings and Mass Layoffs: Labor Code 2012, art. 44
Payment on Termination: Labor Code 2012, arts. 48-49
Personal Taxes
Residency Requirements
An individual is considered a resident of Vietnam and liable for tax on global income if one of the following conditions is satisfied:
- being in Vietnam for a period of 183 days or more within one western calendar year or for 12 consecutive months from the first date on which the individual is in Vietnam, or
- having a regular residential location in Vietnam either registered as a permanent residence or leased for a term of 183 days or more within the tax assessment year.
Taxable Income
Residents are taxed on their worldwide income, nonresidents only on income earned in Vietnam.
Tax Rates
Salary and wages are subject to progressive personal income tax rates of 5 percent to 35 percent.
Reference Citations
Taxable Income: Law on Income Tax
Web References
In English.
Law and Regulation
Civil Code 2001
Labor Code 2012
Law on Information Technology 2001
Social Insurance Law
Government Websites and Publications
General Statistics Office of Vietnam
Vietnam News Agency
Other Websites and Publications
Circular 23/Guidelines on Wages
Vietnam Trade Office in the United States, Labor in Vietnam