Vietnam

Vietnam

Capital: Hanoi
Currency: Vietnamese Dong- VND
VND

Overview of Vietnam Labor Law and Employment Policies

Employment Law Overview

  • Key Legislation:
    • Labor Code (2019)
    • Social Insurance Law (2014)
    • Health Insurance Law (2014)
  • Legal Characteristics:
    • Aims to protect employee rights and promote employment stability
    • Regulates areas such as minimum wage, working hours, leave, and social insurance

Employment Contract Requirements

  • Contract Types:
    • Fixed-term contracts (not exceeding 3 years)
    • Indefinite-term contracts
  • Contract Provisions:
    • Must include terms on job description, remuneration, working hours, leave, and social insurance
  • Language and Currency:
    • Contracts must be drafted in Vietnamese
    • Currency unit is Vietnamese Dong (VND)

Working Hours Regulations

  • Standard Working Hours: 8 hours per day, 48 hours per week
  • Rest Days and Breaks: At least 1 rest day per week, 30-minute break after each working day

Leave Policies

  • Annual Leave: 12 days per year, increasing by 1 day for every 5 years of service
  • Public Holidays: 6
  • Special Leave:
    • Sick leave: Up to 30 days per year
    • Maternity leave: 6 months
    • Paternity leave: 5-14 days

Employee Termination and Contract Termination

  • Notice Period:
    • Indefinite-term contracts: 45 days
    • Fixed-term contracts: 30 days (1-3 years) or 3 days (less than 1 year)
  • Severance Pay: 0.5 month's salary for each year of service after 12 months of service
  • Unfair Dismissal Protection: Employers must have just cause to dismiss employees, or employees are entitled to compensation

Tax Laws

  • Personal Income Tax:

    • Salary Range (VND)Tax Rate
      0 - 60,000,0005%
      60,000,000 - 120,000,00010%
      120,000,000 - 216,000,00015%
      216,000,000 - 384,000,00020%
      384,000,000 - 624,000,00025%
      624,000,000 - 960,000,00030%
      960,000,000 and above35%
  • Social Insurance Contributions:

    • Employer: 23.5%
    • Employee: 10.5%

Health Insurance

  • Insurance Policy: Employers must provide health insurance for employees
  • Insurance Coverage: Includes medical, dental, and vision care

Compensation and Benefits

  • Minimum Wage: Varies by region, ranging from VND 4,680,000 to VND 3,250,000
  • Salary Structure: Typically includes base salary, bonuses, and allowances

Work Permits and Visas

  • Permit Requirements: Foreigners require work permits and visas
  • Application Process: Apply through Vietnamese embassies or consulates abroad

Confidentiality and Non-Compete Clauses

  • Enforceability: Confidentiality and non-compete clauses are enforceable in Vietnam
  • Common Provisions: Restrict employees from disclosing confidential information or engaging in competitive activities after leaving employment

Training and Development

  • Legal Requirements: Employers must provide safety training and skills development training for employees
  • Government Support: Government provides training subsidies and programs

Workplace Diversity and Inclusion

  • Legal Requirements: Prohibits discrimination based on gender, race, religion, or other protected characteristics
  • Enforcement Measures: Government agencies responsible for investigating and enforcing discrimination complaints

Remote Work Policies

  • Legal Framework: No specific legal framework, but remote work is becoming more common in practice
  • Tax and Insurance Implications: Tax and social insurance implications of remote work depend on specific circumstances

Authoritative Website Addresses

1.Overview of Vietnam Labor Law and Employment Policies
1.1Employment Law Overview
1.2Employment Contract Requirements
1.3Working Hours Regulations
1.4Leave Policies
1.5Employee Termination and Contract Termination
1.6Tax Laws
1.7Health Insurance
1.8Compensation and Benefits
1.9Work Permits and Visas
1.10Confidentiality and Non-Compete Clauses
1.11Training and Development
1.12Workplace Diversity and Inclusion
1.13Remote Work Policies
1.14Authoritative Website Addresses