Employment Policies and Standards in Vietnam

Employment Contracts

All contracts must be in writing (except for casual work < 1 month, though even these are often written for compliance).
Contracts must be in Vietnamese; bilingual (Vietnamese + English) is common.
Types:
Indefinite-term contract
Fixed-term contract (up to 36 months; renewable once before converting to indefinite)
Must include job title, duties, workplace, salary, working time, leave, benefits, termination conditions.

Working Hours and Overtime

Standard: 8 hours/day, 48 hours/week (some sectors have reduced hours e.g., 40-44 hours).
Overtime: Limited to 40 hours/month, 200 hours/year (can extend to 300 hours/year in certain industries).
Overtime pay:
150% on weekdays
200% on weekly rest days
300% on public holidays

Leave Entitlements

Annual leave:
12 working days (increases by 1 day every 5 years of service at the same employer)
Additional leave for hazardous work (14-16 days)
Public holidays: 11 official national holidays (paid)
Sick leave: Paid through Social Insurance, duration depends on service years and job type (up to 30-60 days/year or longer for hazardous jobs).
Maternity leave:
6 months paid leave (7 months for twins or more)
Additional 1 month if working in hazardous roles
Paternity leave:
5-14 working days (depending on number of children, birth circumstances)

Remuneration, Payroll, and Taxes

Minimum wage: Set by region (varies ~3.25m-4.68m VND/month as of 2024)
Pay frequency: Monthly
Statutory contributions (based on gross salary):
Employer:
Social insurance: 17.5%
Health insurance: 3%
Unemployment insurance: 1%
Trade union fee: 2% of payroll (if applicable)
Employee:
Social insurance: 8%
Health insurance: 1.5%
Unemployment insurance: 1%
Personal income tax (PIT):
Progressive rates up to 35% (after standard deductions: 11 million VND for taxpayer + 4.4 million VND/dependent)

Health & Safety

Employers must:
Ensure a safe and hygienic workplace.
Provide necessary PPE (Personal Protective Equipment).
Offer training in health and safety practices.
Comply with occupational health inspections.
Report accidents and occupational diseases as required by law.

Termination & Severance

Notice period:
45 days (indefinite-term contracts)
30 days (fixed-term contracts >12 months)
3 working days (contracts <12 months)
Valid termination reasons:
Mutual agreement
Expiry of contract term
Disciplinary reasons (must follow strict process)
Employer restructuring, economic reasons
Severance pay:
0.5 month’s salary per year of service (where eligible; does not apply if dismissed for disciplinary reasons)

Non-Discrimination and Equal Opportunity

No discrimination allowed on the grounds of gender, race, social status, religion, disability, or political opinion.
Equal pay for equal work is mandatory.

Trade Unions

Employees have the right to join or form trade unions.
Employers contribute 2% of payroll to trade union funds (where union exists).