Overview of Employment in Vietnam
Labor contract means an agreement between an employee and an employer on paid work, on
wages [salary, remuneration], on working conditions, and on the rights and obligations of each party to the labor relationship.
A legal labour contract generally includes four primary components:
- Employment
- Salary, wage, or remuneration
- Management and supervision
- Employment cost
Employment term
Indefinite term labor contract being a contract in which the two parties do not fix the term nor the time of termination of validity of the contract.
Definite term labor contract being a contract in which the two parties fix the term and the time of termination of the validity of the contract which must not exceed thirty-six (36) months from the
effective date of the contract.
For foreign labor, the employment term is definite term, which follows the allowable working time stipulated on Work Permit (often up to 24 months for a position).
Main content of a labor contract
A labor contract must contain following particulars:
- Name and address of the employer and full name and title of the person entering into the labor
contract on the employer’s side - Full name, date of birth, gender, residential address, and serial number of citizen’s card, people’s
identity card or passport of the person entering into the labor contract on the employee’s side - Job description and workplace
- Term of the labor contract
- Wage rate in accordance with the job or title/position, and method of and time of payment of wages, allowances and other additional payments
- Regime for wage increases and promotion
- Working hours and holidays [rest breaks]
- Personal protective equipment of the employee
- Social insurance, health insurance and unemployment insurance
- Training, fostering and raising trade/vocational qualifications and skills
Process of recruitment
The standard duration of the probationary period (maximum basis) is categorized based upon each level of each position and elaborated in the table followings:
| No. | Position/ Level | Probationary period |
| 1. | Managerial level | Not exceeding 180 days |
| 2. | College level or technical expertise | Not exceeding 60 days |
| 3. | Immediate level or technician | Not exceeding 30 days |
| 4. | Other position | Not exceeding 6 days |