Vietnam

Employment Contracts

Employment contracts in Vietnam must be in writing, with two copies executed (one for the employer and one for the employee). Verbal contracts are only allowed for temporary work of less than three months.

Employment contracts in Vietnam include:

• Name and address of employer and employee
• Description of job
• Working address
• Duration of contract
• Salary
• Payment type
• Date of payment
• Allowances
• Supplemental benefits
• Salary review process
• Working hours
• Vacation benefits
• Details of social and medical insurance

Public Holidays

The following public holidays are observed in Vietnam:

• International New Year’s Day
• Vietnamese New Year’s Eve
• Vietnamese New Year’s Day
• Tet
• Liberation Day, also known as Reunification Day
• International Labor Day
• Independence Day
• Hùng Kings’ Temple Festival (10^th day of the third lunar month)

Compensation

Employers are not legally required to pay employees bonuses but may choose to include bonuses as part of a compensation packages. A 13^th month bonus and performance-based incentives are common.

Working Hours

The standard work week in Vietnam is eight hours a day and 48 hours a week over six days, although this may be reduced in some industries. Employees are entitled to at least one day off a week. Overtime is allowed and employees are entitled to extra pay for work performed in excess of normal hours.

Vacation Leave

Employees receive 12 days of paid annual leave after 12 months of service and then one additional day for every five years of employment with the same employer. Employees with less than 12 months of service receive vacation on a pro rata basis. Employees may receive pay in lieu of annual leave if the leave is not taken by the end of the year.

Sick Leave

Employees receive between 30 and 70 days of paid sick leave depending on the number of contributions made to Vietnam’s social security system and the industry. Employees working in hazardous work environments and those employees who have made more contributions are entitled to more sick leave. Employees receive a percentage of their pay while on leave.

Maternity / Paternity Leave

Female employees receive six months of paid maternity leave, plus 30 additional days for each additional child in the event of the birth of twins or multiples. Male employees receive five to 14 days paid leave depending on whether the baby was born naturally, by C-section and or whether it is a single or multiple birth.

Employment Termination / Severance

Both employers and employees can terminate an employment contract by providing notice. The notice period is between three and 45 days depending on the type of contract and who is giving notice. In limited circumstances, no notice is required.

Employers generally must pay severance to employees with at least 12 months of service, unless the employee is dismissed for violating company rules, the employee retires with a pension or the employee illegally or unilaterally terminates the contract. Severance is one-half month of salary for every year of service.

Health Insurance Benefits

Vietnam provides basic universal healthcare. Some employers choose to provide private health insurance.