LABOR AND EMPLOYMENT ADVISORY

For many years, CELIGAL’s lawyers have been providing legal advice and support to employers (especially foreign employers), and employees, helping them navigate the rapidly changing landscape of Vietnamese labor laws.

CELIGAL’s labor and employment lawyers have extensive experience in handling virtually all challenges that businesses may encounter. Whether you are an employer or an employee, CELIGAL’s labor & employment lawyers are committed to assisting you in protecting your lawful and legitimate rights and interests in a legal and social environment that is evolving rapidly due to Vietnam’s increasing alignment with global standards, including labor law standards.

How Are Labor Contracts Regulated?

Some fundamental regulations on labor contracts under current labor law include:

First, Types of Labor Contracts

Pursuant to Article 20 of the 2019 Labor Code, labor contracts include:

  • Definite-term labor contracts

  • Indefinite-term labor contracts

In addition, several specific regulations apply:

  • A definite-term labor contract may only be renewed once. After the expiration of a definite-term contract that has already been renewed once, if the parties wish to continue the employment relationship, they must enter into an indefinite-term labor contract.

  • The time limit for renewing a definite-term labor contract is 30 days from the date of expiration. If the parties fail to renew the contract within this period, the expired contract shall automatically become an indefinite-term labor contract.

Second, Cases of Labor Contract Termination

There are 13 cases of labor contract termination as stipulated in Article 34 of the 2019 Labor Code.

In cases where the employee unilaterally terminates the labor contract (Article 35 of the 2019 Labor Code):

  • At least 45 days’ prior notice for an indefinite-term labor contract;

  • At least 30 days’ prior notice for a definite-term labor contract with a term from 12 months to 36 months;

  • At least 03 working days’ prior notice for a definite-term labor contract with a term of less than 12 months.

In cases where the employer unilaterally terminates the labor contract (Article 36 of the 2019 Labor Code):

  • At least 45 days’ prior notice for an indefinite-term labor contract;

  • At least 30 days’ prior notice for a definite-term labor contract with a term from 12 months to 36 months;

  • At least 03 working days’ prior notice for a definite-term labor contract with a term of less than 12 months and for employees who are ill and fall under cases where the employer is entitled to unilaterally terminate the labor contract.

Mandatory Insurance Contributions for Employees and Employers

Social Insurance:

  • 8% contributed by the employee (Article 85 of the Law on Social Insurance 2014)

  • 17.5% contributed by the employer (Article 86 of the Law on Social Insurance 2014 and Article 4 of Decree No. 58/2020/ND-CP)

Health Insurance:

(Pursuant to Article 18 of the Regulations on Collection of Social Insurance, Health Insurance, Unemployment Insurance, Occupational Accident and Disease Insurance; issuance of social insurance books and health insurance cards promulgated together with Decision No. 595/QD-BHXH of 2017, as amended by Clause 25 Article 1 of Decision No. 505/QD-BHXH of 2020)

  • 1.5% contributed by the employee

  • 3% contributed by the employer

Unemployment Insurance:

(Pursuant to Article 14 of Decision No. 595/QD-BHXH of 2017)

  • 1% contributed by the employee

  • 1% contributed by the employer

Rights and Obligations of Employees and Employers under the Labor Code

CELIGAL’s Labor and Employment Legal Consulting Services

CELIGAL is one of the law firms specializing in labor and employment law in Vietnam. We provide legal advice on labor regulations, labor contracts, wages, and dispute resolution in labor relations for both employers and employees, including:

  • Representation in court proceedings in labor-related cases;

  • Labor dispute resolution (negotiation, mediation, and legal proceedings);

  • Pre-dispute labor relationship management (collective bargaining agreements, strike and lockout prevention);

  • Dissemination of labor law knowledge (legal updates, analysis, case studies, and guidance);

  • Consulting on the establishment of internal control systems for enterprises;

  • Consulting on labor disciplinary disputes, including dismissal and unlawful unilateral termination of labor contracts;

  • Disputes concerning compensation for damages and allowances upon termination of labor contracts;

  • Disputes between domestic workers and employers;

  • Social insurance disputes;

  • Disputes over compensation between employees and enterprises or service organizations sending employees to work overseas under contracts;

  • Consulting on labor policies, wages, social insurance, health insurance, unemployment insurance, occupational safety and health;

  • Consulting on employee evaluation systems, transfer, rotation, appointment, and disciplinary procedures;

  • Consulting on document management, drafting, and administration of incoming and outgoing documents;

  • Consulting on drafting, issuance, and implementation of internal regulations, rules, and corporate governance documents;

  • Consulting on exit and entry procedures, temporary residence registration, wages, and personal income tax for foreign employees in Vietnam;

  • Consulting on conditions and procedures for recruiting and employing foreign employees in Vietnam, and representing clients in applying for work permits for foreigners at the Department of Labor, War Invalids and Social Affairs.



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