Vietnam
Vietnam, known for its stunning landscapes, rich history, and rapidly growing economy, offers great opportunities for businesses looking to expand internationally. TCWGlobal simplifies the process of hiring in Vietnam, offering comprehensive solutions for building your contingent workforce.
Fixed term contracts are permitted in Vietnam. There is a 3-year (36 month) maximum, but no minimum. A fixed term contract can only be renewed once. Generally, both parties must inform the other 30 days in advance of terminating a fixed-term contract. In some cases, it may require longer notice.
Workers in Vietnam recognize 11 paid public holidays. If the holiday falls on the weekend, it is recognized on the next working day. Work performed on a public holiday is payable at 300%. Expatriate Workers are entitled to additional paid days for their traditional new year and national day.
Workers are entitled to 12 days of paid vacation per year. Workers who have worked less than 12 months are entitled to one day of vacation for each month of service. Workers are entitled to 1 additional vacation day per year for every 5 years of service. The Worker can be allowed to carry over unused leave by mutual agreement for up to three years or they can be required to use all leave during the year. Any unused leave is payable at termination.
Probationary periods are permitted in Vietnam, but only one probationary period is allowed. The maximum duration depends on the role: Enterprise managers as defined by the Vietnam Law on Enterprises — up to 180 days College-level or higher professional roles — up to 60 days Intermediate technical or clerical roles — up to 30 days All other jobs — up to 6 days During probation, either party may terminate without notice or compensation, but reason must be provided if requested by the Worker. The probationary salary must be at least 85% of the official job salary.
Sick leave is payable by the government for 30 to 60 days depending upon length of service. A medical certificate is required within 48 hours from start of sick leave.
A standard workweek is 8 hours per day and 48 hours per week. Workers who work six consecutive hours a day are entitled to a paid rest break of at least 30 minutes. If night work is to be performed, it should be stated in the contract and limited to 8 hours per day to avoid premium payments. Paid rest breaks for working hours of 10:00 p.m. to 6:00 a.m. require at least 45 minutes. Workers are entitled to at least 24 hours of rest per week or 4 days per month.
Overtime is considered any hours worked above the standard workweek. The worker must provide written consent if overtime is required. It is payable at 150% if worked on a regular working day or 200% if worked on a weekly rest day. In all cases, overtime cannot exceed 12 hours per day, 40 hours per month, and 200 hours per year. This is extended to 300 hours per year in certain industries such as textiles, electronics, or manufacturing.
A 13th month payment is not mandatory in Vietnam, but it is customary to provide to workers at Lunar New Year.
Termination of a contract after the probationary period requires good cause such as poor performance, prolonged illness, breaches of workplace rules, and redundancy. Indefinite contracts require a minimum of 45 days’ notice. Fixed-term contracts from 12 months to 36 months require 30 days’ notice and a fixed-term contract under 12 months only requires 3 days’ notice, except in some cases of severe Worker misconduct.
A Worker may generally resign without stating a reason by providing the applicable statutory advance notice. Notice periods can range from 3 to 45 days depending on contract type and term length.
If a Worker has been employed for more than 12 months and is terminated due to reasons beyond their control, such as restructuring or job redundancy, they may be entitled to severance pay. When due, severance must be at least 50% of the Worker's monthly wage (calculated based on gross earnings in the preceding six months) multiplied by the years of service.
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