Overview of Vietnam Labor Law and Employment Policies

Employment Law Overview

• Key Legislation:
  • Labor Code (2019)
  • Social Insurance Law (2014)
  • Health Insurance Law (2014)
• Legal Characteristics:
  • Aims to protect employee rights and promote employment stability
  • Regulates areas such as minimum wage, working hours, leave, and social insurance

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts (not exceeding 3 years)
  • Indefinite-term contracts
• Contract Provisions:
  • Must include terms on job description, remuneration, working hours, leave, and social insurance
• Language and Currency:
  • Contracts must be drafted in Vietnamese
  • Currency unit is Vietnamese Dong (VND)

Working Hours Regulations

• Standard Working Hours: 8 hours per day, 48 hours per week
• Rest Days and Breaks: At least 1 rest day per week, 30-minute break after each working day

Leave Policies

• Annual Leave: 12 days per year, increasing by 1 day for every 5 years of service
• Public Holidays: 6
• Special Leave:
  • Sick leave: Up to 30 days per year
  • Maternity leave: 6 months
  • Paternity leave: 5-14 days

Employee Termination and Contract Termination

• Notice Period:
  • Indefinite-term contracts: 45 days
  • Fixed-term contracts: 30 days (1-3 years) or 3 days (less than 1 year)
• Severance Pay: 0.5 month's salary for each year of service after 12 months of service
• Unfair Dismissal Protection: Employers must have just cause to dismiss employees, or employees are entitled to compensation

Tax Laws

• Personal Income Tax:

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• Social Insurance Contributions:

  • Employer: 23.5%
  • Employee: 10.5%

Health Insurance

• Insurance Policy: Employers must provide health insurance for employees
• Insurance Coverage: Includes medical, dental, and vision care

Compensation and Benefits

• Minimum Wage: Varies by region, ranging from VND 4,680,000 to VND 3,250,000
• Salary Structure: Typically includes base salary, bonuses, and allowances

Work Permits and Visas

• Permit Requirements: Foreigners require work permits and visas
• Application Process: Apply through Vietnamese embassies or consulates abroad

Confidentiality and Non-Compete Clauses

• Enforceability: Confidentiality and non-compete clauses are enforceable in Vietnam
• Common Provisions: Restrict employees from disclosing confidential information or engaging in competitive activities after leaving employment

Training and Development

• Legal Requirements: Employers must provide safety training and skills development training for employees
• Government Support: Government provides training subsidies and programs

Workplace Diversity and Inclusion

• Legal Requirements: Prohibits discrimination based on gender, race, religion, or other protected characteristics
• Enforcement Measures: Government agencies responsible for investigating and enforcing discrimination complaints

Remote Work Policies

• Legal Framework: No specific legal framework, but remote work is becoming more common in practice
• Tax and Insurance Implications: Tax and social insurance implications of remote work depend on specific circumstances

Authoritative Website Addresses

• Ministry of Labor, Invalids and Social Affairs of Vietnam: https://molisa.gov.vn/