1.1. Labor Code

The primary legislation governing labor relations in Vietnam is the Labor Code of 2019, which came into effect on January 1, 2021. This code outlines the rights and obligations of both employers and employees, covering various aspects of employment, including contracts, working hours, wages, and termination.

1.2. Relevant Regulations

• Decree No. 145/2020/ND-CP: Provides detailed regulations on labor contracts, working conditions, and occupational safety.
• Decree No. 28/2020/ND-CP: Regulates the implementation of labor laws regarding wages.
• Circulars and Guidelines: Issued by the Ministry of Labor, Invalids, and Social Affairs (MOLISA) to clarify and guide the implementation of the Labor Code.

2. Employment Contracts

2.1. Types of Contracts

• Indefinite-term contracts: No specified end date; typically used for long-term employment.
• Fixed-term contracts: Lasts for a specific period (up to 36 months).
• Seasonal or task-based contracts: For temporary work that is not ongoing.

2.2. Contract Requirements

• Must be in writing for fixed-term and indefinite-term contracts.
• Should include essential details such as job description, salary, working hours, and duration.

3. Working Hours and Conditions

3.1. Standard Working Hours

• The standard working week is 40 hours, typically 8 hours per day.
• Overtime is permitted but must not exceed 200 hours per year (300 hours for certain industries).

3.2. Rest Days

• Employees are entitled to at least one day off per week.
• Public holidays are also recognized, with specific days off mandated by law.

4. Wages and Benefits

4.1. Minimum Wage

• The minimum wage varies by region and is updated periodically. As of 2023, the minimum monthly wage ranges from 4.42 million VND to 4.68 million VND depending on the region.

4.2. Salary Payments

• Salaries must be paid at least once a month.
• Employers are required to provide payslips detailing deductions and contributions.

4.3. Social Insurance

• Employers must contribute to social insurance, health insurance, and unemployment insurance for their employees, which is approximately 32.5% of the employee's salary (with the employer contributing about 21.5% and the employee 10%).

5. Hiring Procedures

5.1. Recruitment Process

• Employers must comply with non-discrimination laws during recruitment.
• Job advertisements should clearly state job requirements, salary, and benefits.

5.2. Work Permits for Foreign Workers

• Foreigners must obtain a work permit to work legally in Vietnam. The process includes:
  • Securing a job offer from a Vietnamese employer.
  • Submitting required documents (passport, health certificate, criminal record check).
  • Applying through the Department of Labor, Invalids, and Social Affairs (DOLISA).

6. Termination of Employment

6.1. Grounds for Termination

• Valid reasons include employee misconduct, redundancy, or mutual agreement.
• Employers must provide written notice, typically 30 days for indefinite contracts and 3 days for fixed-term contracts.

6.2. Severance Pay

• Employees are entitled to severance pay if they have worked for the employer for at least 12 months, calculated based on the length of service.

7. Country-Specific Considerations

7.1. Cultural Norms

• Understanding local customs and workplace etiquette is essential. Hierarchical structures are common, and respect for seniority is important.

7.2. Language

• While English is increasingly spoken in urban areas, proficiency in Vietnamese can be beneficial for effective communication.

7.3. Labor Unions

• Employees have the right to join labor unions, which play a role in negotiating collective agreements and protecting workers' rights.

8. Conclusion

Navigating labor laws and regulations in Vietnam requires a clear understanding of the legal framework, employment contracts, working conditions, and cultural nuances. Whether you are an employer or an employee, being informed about these aspects will help ensure compliance and foster a positive working environment. For specific legal advice or assistance, consulting with a local labor law expert or legal advisor is recommended.