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7

Permitted Contract Structures

Under Vietnamese Labor Code

By Dezan Shira & Associates, Ho Chi Minh City

Editor: Maxfield Vandel Brown

All foreign enterprises seeking to staff operations

in Vietnam will find the process regulated by the

Vietnamese Labor Code of 2012 (LawNo. 10/2012/

QH13) and guided by several circulars which have

clarified aspects of this legislation. Covering hiring,

probationary periods, termination of contracts, and

post-employment benefits, the nature of contracts

should be studied closely to ascertain the most

effective means of onboarding workers as well as

ensuring the compliance requirements associated

with these contracts.

As per Chapter 3, Article 15 of the Vietnamese

Labor Code, the following contract structures are

permitted and thus should form the basis for cost

and compliance comparisons:

• Seasonal or work-specific contracts;

• Indefinite-term contracts;

• Definite-term contracts; and,

• Probationary contracts.

Vietnamese Labor Contract Requirements by Contract Structure

Document

Contract Structure

Indefinite / Definite / Seasonal

Probationary

Name and address of the employer or the lawful representative of the employer

Full name, date of birth, gender, residence address, identity card number, or other

lawful documents of the employee

Job and workplace

Term of the labor contract

Wage, form of wage payment, deadline for wage payment, wage-based

allowances, and other additional payments

Regimes for promotion and wage raise

Working time, rest time

Labor protection equipment for the employee

Social insurance and health insurance

Training, retraining, and occupational skill improvement

Source: Requirements as prescribed under Law No. 10/2012/QH13

Note: For additional clarification please refer to Circular No. 05/2015/NĐ-CP