Vietnam (VN)
Vietnam is a dynamic, rapidly developing Socialist Republic stretching 1,650km down the eastern coast of the Indochinese Peninsula — a country of extraordinary geographical diversity, from the karst mountains of the north and the Red River Delta, through the stunning coastline of the Central region, to the vast Mekong Delta in the south.
Employment Rights
Sick leave, dismissal protection and red flags in Vietnam.
Vietnam's Labour Code 2019 (Bộ Luật Lao Động 2019, effective 1 January 2021) governs employment relationships for both Vietnamese and foreign workers. Foreign workers have largely the same rights as Vietnamese workers under labour law, with additional immigration-related obligations (work permit requirement, residence card). Key government bodies: Ministry of Labour, Invalids and Social Affairs (MOLISA); Department of Labour, Invalids and Social Affairs (DOLISA) at provincial level for work permits; Labour Courts for disputes. Vietnam is a signatory to 25 ILO Conventions. Workers have the right to join trade unions through the Vietnam General Confederation of Labour (VGCL — Tổng Liên đoàn Lao động Việt Nam), though independent trade unions are prohibited. Regional minimum wages from 1 January 2026 (Decree 293/2025/ND-CP, +7.2%): Region 1 (Hanoi/HCMC urban districts, Binh Duong, Dong Nai, Ba Ria-Vung Tau): VND 5,310,000/month. Region 2 (suburban major cities): VND 4,730,000/month. Region 3 (provincial towns): VND 4,140,000/month. Region 4 (rural provinces): VND 3,700,000/month. These are statutory floors — expats in professional and management roles typically earn VND 20,000,000–100,000,000+/month. The minimum wage is the basis for overtime rate calculations and BHXH severance computations.
Sick leave
Rules: Covered under BHXH social insurance. Employees who have contributed to BHXH are entitled to sick leave benefits. Required: medical certificate from a BHYT-approved health facility (usually a district or provincial hospital). Self-certified sick days: employers may allow 1–2 days at their discretion but BHXH benefit requires medical certificate from Day 1 for the benefit claim.
Doctor note: BHXH sick leave benefit requires a medical certificate (giấy chứng nhận nghỉ ốm) from Day 1 from a BHYT-designated medical facility. Hospital-based certificate required — a clinic note may not qualify for BHXH reimbursement.
Employer pay: During BHXH sick leave: the benefit is paid by BHXH (social insurance fund), NOT the employer. Rate: 75% of the average monthly contributory salary. Normal working conditions: up to 30 sick days/year. Hazardous/heavy work: up to 40 days. Dangerous/very hazardous: up to 50 days. During the first period before BHXH benefit is activated or for short absences not covered by BHXH: employer policy applies (check your labour contract).
Long-term: Extended illness requiring convalescence: BHXH may grant an additional convalescence period (dưỡng sức sau ốm đau) of 5–10 days per year at 25–40% of statutory minimum wage depending on work type. For serious chronic illness requiring hospitalisation beyond the normal sick leave days, BHXH long-term sickness benefit applies on a case-by-case basis.
Dismissal protection
Law: Labour Code 2019 provides significant protection against wrongful dismissal. Lawful grounds for unilateral employer termination: (1) Employee frequently fails to complete work per contract; (2) Employee is ill and unable to work after exhausting sick leave allowance; (3) Force majeure (natural disaster, fire, epidemic, order of competent authority); (4) Employee is absent from work without permission for 5 consecutive days. Wrongful dismissal: employee entitled to re-employment plus back pay, or compensation of 2 months salary per year of employment. Employers must notify MOLISA 30 days in advance for collective layoffs affecting 10+ workers.
Deadline to sue: Labour dispute claims: 1-year statute of limitations from the date of the dispute for most employment matters. Wrongful dismissal: claim at Labour Court or provincial Labour Mediation Centre. Foreign workers: same rights as Vietnamese workers for dismissal protection. Work permit cancellation does not eliminate entitlement to severance pay or wrongful dismissal compensation.
Probation
Maximum probation periods under Labour Code 2019: 180 days (6 months) for senior management roles, enterprise heads, positions requiring university degree or higher; 60 days for positions requiring a technical or college qualification; 30 days for positions requiring vocational training/intermediate qualifications; 6 working days for all other positions. During probation: minimum salary = 85% of agreed salary. Either party may terminate during probation with 3 days notice, without compensation, unless the contract specifies otherwise.
Notice periods
Employee termination notice: (a) Indefinite-term contract: 45 days. (b) Fixed-term (12–36 months): 30 days. (c) Seasonal/specific task contract (under 12 months): 3 days. Employer termination notice: same periods apply, plus specific procedural requirements including consultation with trade union.
Working time
Max hours: Maximum 8 hours/day, 48 hours/week for regular working hours. Maximum working hours for night shift (22:00–06:00): reduced by 1 hour. Total maximum working hours per year (regular + overtime): 12 hours/day (not more than 4 overtime hours). Annual overtime cap: 200 hours/year (most industries), 300 hours/year (for certain sectors: textiles, garments, electronics assembly, seafood processing — with MOLISA approval). Overtime must be consented to by the employee.
Min rest: Daily rest: minimum 12 hours between shifts. Continuous work: maximum 6 hours before minimum 30-minute break. Weekly rest: minimum 1 full day off (24 consecutive hours). Paid public holidays: 11 days per year. Annual leave: minimum 12 days (20+ years service with same employer: +1 additional day).
Overtime: Overtime rate: 150% of hourly rate (weekdays); 200% (weekends/days off); 300% (public holidays and annual leave days). Night overtime: additional 20–40% premium on top of the above rates. Overtime pay must appear separately on the payslip. Employer cannot force overtime beyond the legal limits — employee consent is required. At Region 1 minimum wage (VND 5,310,000/month ÷ 26 working days ÷ 8 hours = ~VND 25,529/hour base): 150% overtime = VND 38,294/hour (weekday), 200% = VND 51,058/hour (weekend), 300% = VND 76,587/hour (public holiday).
Vacation
Minimum 12 days paid annual leave per year (Labour Code 2019 Article 113). Additional 1 day for every 5 full years of service with the same employer (maximum additional days not capped). Employees can take leave in multiple periods by agreement with employer. Unused leave: employer must pay compensation for unused leave if employee terminates the contract or if employer cannot grant leave. Leave in advance of accrual: allowed by agreement. Tet leave: not separately mandated — covered by public holidays (typically 5–7 days). Many international companies grant 15–20 days plus Tet closure.
Anti-discrimination
Labour Code 2019 prohibits discrimination in employment based on: gender, age, pregnancy, marital status, ethnicity, social class, religious belief, disability, HIV status, or trade union membership. Equal pay for equal work is mandated. Sexual harassment in the workplace is prohibited with employer liability. Foreign workers are protected against discrimination on grounds of nationality in terms of wages, hours, working conditions and benefit access. Practical reality: enforcement of anti-discrimination provisions varies; informal discrimination based on nationality, gender and age exists in some sectors. Formal complaints: DOLISA Labour Inspectorate (Thanh tra Lao động).
Contract red flags
- !No bilingual Vietnamese-English version — always have the Vietnamese version (which legally controls) professionally translated before signing.
- !Unilateral intellectual property assignment clause for work created outside of employment hours and unrelated to the job — request to limit to work-related IP only.
- !Non-compete clauses broader than 6–12 months and covering the entire industry — may be unenforceable but still creates risk of dispute.
- !No specific mention of work permit sponsorship obligation — ensures employer is contractually bound to maintain your work permit.
- !Salary paid partially in cash "off the books" — creates social insurance, tax and dismissal compensation calculation problems for the employee.
- !Probation period longer than the legal maximum for your role type — illegal and signals employer unfamiliarity with the Labour Code.
- !No severance pay or BHXH lump-sum provision upon contract end — should specify your rights under the Labour Code.
- !Vague termination grounds that could be used to dismiss you without cause — request specific, lawful grounds only.
- !No force majeure exclusion that protects you from arbitrary termination during natural disasters or epidemics without compensation.
- !Repatriation clause placing travel costs on the employee — international companies normally bear repatriation costs.
Employment Rights
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