The employer is entitled to temporarily assign an employee to perform a job which is not stated in the labor contract in the following cases:

(i) The occurrence of sudden difficulties due to a natural disaster, fire or epidemic, or the taking of measures to prevent or address a work accident, an occupational disease, or an electric or water supply incident; or

(ii) Due to business and production needs.

When temporarily assigning an employee to perform a job which is not stated in the labor contract, the following requirements must be noted:

• • The temporary assignment shall not exceed 60 accumulated workdays within 01 year. Should the assignment exceed 60 accumulated workdays within 01 year, such assignment must be agreed upon by the employee in writing.
  • The employer shall specify in the internal regulations the cases where, due to production and business needs, the employer may temporarily assign the employee to perform a job which is not stated in the labor contract.
  • The employee must be informed at least 03 working days in advance, clearly stating the term of the temporary assignment, and assigning a job suitable to the health and gender of the employee.
  • Salaries will be paid based on the new job assignment. If the salary for the new job is lower than the old one, the employee is entitled to receive the previous salary for 30 working days. Thereafter, the salary for the new assignment must be at least 85% of the old salary but not lower than the minimum salary.
  • Employees who refuse to temporarily perform a job other than that stated in the labor contract for over 60 accumulated days within 1 year that results in work suspension of the employee, the employee shall be entitled to a suspension salary.

The following cases are considered structural and technological changes:

(i) Changing the organizational structure or the reorganization of labor;

(ii)  The changing of the process, technology, machinery and equipment for production and the business associated with the production and business lines of the employer;

(iii) Changing the product or product structure.

The following cases are considered economic reasons:

(i) Economic crisis or recession;

(ii) Implementing State’s policies when restructuring the economy or implementing international commitments.

If the change in structure or technology affects the employment of many employees, the employer shall formulate and implement a labor utilization plan in accordance with Article 44 of the 2019 Labor Code. If new jobs are being created, priority shall be given to retraining existing employees for continued employment.

Should there be more than one employee facing the risk of unemployment or being dismissed for economic reasons, the employer shall formulate and implement a labor utilization plan in accordance with Article 44 of 2019 the Labor Code.

If the employer cannot find a solution regarding the lost jobs and has to lay off employees, the employer shall pay job-loss allowances to the employees in accordance with Article 47 of the 2019 Labor Code.

The dismissal of employees shall be implemented only after discussion with the grassroots-level employees’ representative organization of which the employees are members, and the employer must notify the provincial-level People’s Committee and the employees 30 days in advance.

An employee may enter into multiple labor contracts with multiple employers at the same time as long as they ensure full performance of the tasks as agreed.

If an employee enters into multiple labor contracts:

(i) The responsibility to participate in compulsory social insurance belong to the first employer who enters into a labor contract with said employee.

(ii) The responsibility to participate in unemployment insurance belong to the first employer who enters into a labor contract with said employee.

(iii) The responsibility to participate in compulsory health insurance belong to the employer with a labor contract which has the highest salary.

Labor contracts include the following 02 types:

(i) An indefinite-term labor contract is a contract in which the two parties do not establish the term or the termination date of the contract;

(ii) A definite-term labor contract is a contract in which the two parties establish the term or the date of termination of the contract with a maximum term of 36 months from the effective starting date.

The following contents must be included in labor contracts:

(i) Name and address of the employer or of the lawful representative;

(ii) Full name, date of birth, gender, residence address, number of identity card or other legal documents of the employee;

(iii) Job and workplace;

(iv) Term of the labor contract;

(v) Salary, the form of salary payment, the deadline for salary payment, and salary-based allowances and other additional payments;

(vi) Regimes for promotion and salary increases;

(vii) Working time and break times;

(viii) Labor protection equipment for the employee;

(ix) Social insurance, health insurance and unemployment insurance;

(x) Training, retraining, and occupational skill improvement.

A labor contract shall be established in the following forms:

(i) In writing and made into 02 copies, one retained by the employee and the other kept by the employer.

(ii) By electronic means in the form of data messages pursuant to the law on e-transactions which has the same validity as a written labor contract.

(iii) In verbal form for a labor contract having a term of under 01 month.  However, verbal contracts are not possible with the following groups:

• • The contract was entered into with a group of employees who were fully aged 18 years old or older.
  • The contract was entered into with a person who was under15 years old.
  • The contract was entered into with domestic workers.

The term of a definite term contract cannot exceed 36 months from the effective starting date.

Under the 2019 Labor Code, the parties are not entitled to use an annex to amend the terms of employment. Accordingly, if the parties wish to extend the term of employment, the parties need to sign a new contract with a new term and this shall be considered as an execution of a single labor contract.

The employer is entitled to enter into a definite-term labor contract with an employee multiple times, but no more than twice.

Specifically, if the first labor contract is a definite-term contract, the employer is entitled to enter into another definite-term labor contract with the employee. After the second labor contract expires and the employee continues working, the employer must enter into an indefinite-term labor contract with such employee.

However, this regulation has the following exemptions:

(i) A labor contract with a person employed as a director of State-invested enterprises.

(ii) A labor contract signed with an elderly person.

(iii) A labor contract with foreign employees who work in Vietnam.

(iv) The extension of a labor contract signed with an employee who is a member of the management board of a grassroots-level employees’ representative organization of employees currently serving their term in which their labor contract expires.

The probation period shall be agreed upon by the two parties based on the nature and complexity of the job. However, probation shall only be applied once for each job and shall comply with the following conditions:

(i) It may not exceed 180 days for an enterprise management position as prescribed by the Law on Enterprises and the Law on Management and Use of State Capital Invested in Business and Production at the Enterprise;

(ii) It may not exceed 60 days for positions requiring professional and technical qualifications of collegial or higher level;

(iii) It may not exceed 30 days for positions which require professional and technical qualifications of intermediate level, or for technical workers and skilled staff;

(iv) It may not exceed 06 working days for other jobs.

The labor contract shall be suspended in the following cases:

(i) The employee is required to perform military service or perform the obligation of joining the militia and self-defense forces;

(ii) The employee is held in custody or temporary detention in accordance with the law on criminal procedure;

(iii) The employee is required to comply with a decision regarding consignment to a reformatory center, compulsory drug detoxification center or compulsory education institution;

(iv) Female employees who are pregnant as prescribed in Article 138 of the 2019 Labor Code.

(v) The employee is appointed as the manager of a single-member limited liability company with 100% charter capital held by the State;

(vi) The employee is authorized to exercise the rights and perform the responsibilities of a representative of the state owner of state capital amounts in an enterprise;

(vii) The employee is authorized to exercise the rights and perform the responsibilities of an enterprise with regard to the enterprise’s capital amounts invested in another enterprise;

(viii) Other cases as agreed upon by the two parties.

A labor contract shall be terminated in the following cases:

(i) The labor contract expires, unless that labor contract is required to be extended until the end of tenure for an employee who is a member of board of an employees’ representative organization which has their labor contract expire.

(ii) The work stated in the labor contract has been completed.

(ii) Both parties agree to terminate the labor contract.

(iv) The employee is sentenced to imprisonment but is not entitled to a suspended sentence or does not qualify for being released as prescribed in Article 328.5 of the Criminal Procedure Code.  The labor contract is also terminated if the employee has been sentenced to death or is prohibited from performing the job stated in the labor contract pursuant to an effective judgment or decision of the Court.

(v) A foreign employee working in Vietnam is expelled pursuant to an effective judgment or decision of the Court or the decision of a competent State agency.

(vi) The employee dies, the Court declares the employee to have lost civil capacity to act, or is missing or dead.

(vii) The individual employer dies or is declared by the Court to have lost civil capacity to act, or is missing or dead. In addition, the contract is terminated if an employer who is not an individual ends its operations or is declared by the business registration agency of the People’s Committee at provincial level to have no legal representative or authorized person to perform the rights and obligations of the legal representative.

(viii) The employee is dismissed as a form of discipline.

(ix) The employee unilaterally terminates the labor contract.

(x) The employer unilaterally terminates the labor contract.

(xi) The employer lays off the employee due to structural and technological changes or due to economic reasons.  These include splitting, separating, consolidation, merger, selling, leasing, or converting the type of enterprise as well as transferring asset ownership or the right to use the assets of an enterprise or a cooperative.

(xii) The work permit of a foreign employee working in Vietnam expires.

(xiii) If the probation is unsatisfactory to the requirements stated in the labor contract or one party cancels the probation agreement.

An employee has the right to unilaterally terminate the labor contract without a specific reason but must inform the employer in advance as prescribed in Article 35.1 of the 2019 Labor Code. An employee has the right to unilaterally terminate the labor contract without prior notice in cases that are prescribed in Article 35.2 of the 2019 Labor Code.

It should be noted that while the employer has the right to unilaterally terminate the labor contract, the conditions and time of notice as specified in Article 36 of the 2019 Labor Code must be satisfied by the employer.

A severance allowance shall be applied to the employee who has worked regularly for 12 full months or longer and the labor contract is terminated in accordance with Article 34.1, 34.2, 34.3, 34.4, 34.6, 34.7, 34.9 and 34.10 of the 2019 Labor Code.  Exceptions apply where the employee is eligible for pension in accordance with the law on social insurance and where the termination of the contract is due to the employee not showing up for work without a justifiable reason for at least 5 consecutive working days.

The employer shall pay a job-loss allowance to the employee who has worked for the employer for 12 full months or more and has lost their job as prescribed in Article 34.11 of the 2019 Labor Code.

Labor contracts are deemed invalid when:

(i) The entire content of the labor contract is illegal;

(ii) The person who executed the contract is incompetent or breaches the principles of labor contract execution as prescribed in Article 15.1 of the 2019 Labor Code;

(iii) The job agreed to in the labor contract is prohibited by law.

A labor contract which is declared to be partially invalid shall be handled as follows:

(i) The rights, obligations and benefits of the two parties shall be settled according to the currently applicable collective labor agreement or, in case the collective labor agreement is not available, according to the law;

(ii) The two parties shall modify the part of the contract which has been declared null and void to conform with the collective labor agreement or the labor law.

When a labor contract is declared to be wholly null and void, the rights, obligations and benefits of the employee shall be settled in accordance with the law. If the contract is signed ultra vires, the two parties shall re-sign it.

The employer utilizing outsourced employees shall have the following responsibilities:

(i) To inform and guide the outsourced employee to understand its internal labor regulations and other regulations.

(ii) Not to discriminate between the outsourced employees and its own employees regarding working conditions.

(iii) To negotiate with the outsourced employee on working at night or overtime as prescribed in the 2019 Labor Code.

(iv) To negotiate with the outsourced employee and the outsourcer in order to officially employ the outsourced employee if the labor contract between the outsourced employee and the outsourcer has not yet expired.

(v) To return to the outsourcer the outsourced employees who fail to meet the requirements as agreed upon or who have violated labor discipline.

(vi) To provide evidence of the outsourced employee’s violation of labor discipline to the outsourcer for consideration of disciplinary actions.

Wages are the amount of money paid to the employee by the employer as agreed upon in order to perform the work, comprising the wage for the work or position, allowances and other bonuses.

The employer may pay salary based upon work time, production or piecework.  Salary shall be paid either in cash or via the personal bank account of the employee.  In case salary is paid via the personal bank account of the employee, the employer is required to pay for the fees related to the opening the account and the transferring of the salary.

The time limits for the employer to pay salary to the employee is as follows:

(i) Employees who receive an hourly, daily or weekly salary shall be paid after every working hour, day or week respectively, or shall receive a sum within 15 days as agreed to by both parties.

(ii) Employees who receive a salary monthly or bi-weekly shall be paid after every month or every two weeks respectively. The payment time shall be periodic and agreed upon by both parties.

(iii) Employees who receive salary based on production or piecework shall be paid as agreed upon by both parties. If the task is required to be carried out for more than one month, the employee shall receive an advance payment each month based on the amount of work done in the month.

(iv) In the event of a force majeure in which the employer is unable to pay the employee on schedule after all remedial measures have been implemented, the salary shall be paid no more than 30 days behind schedule. If a salary is paid at least 15 days behind schedule, the employer shall pay the employee compensation that is worth at least the deposit interest rate on a late payment for a period of 1-month as quoted by the bank at which the employee’s salary account was opened.

An employee who performs overtime work must be paid according to the salary unit or salary for their current job as follows:

(i) On normal days, at least the equivalent to 150% of salary;

(ii ) On weekends, at least the equivalent to 200% of salary;

(iii) On public holidays or paid leave days, at least the equivalent to 300% of salary, excluding the salary for public holidays or the paid leave days of employees who receive daily salary.

The employee who works at night must be paid an additional amount at least the equivalent to 30% of salary calculated according to the salary unit or the salary for a job performed during normal workdays.

An employee who performs overtime work at night, in addition to the aforementioned amounts, shall also be entitled to an additional amount the equivalent to 20% of salary calculated according to the salary unit or the salary for a job performed during the daytime of normal workdays, weekends or public holidays, or Lunar New Year Holidays.

The time periods included in the paid working hour comprise:

(i) Rest breaks prescribed in Article 64.2 of Decree 145/2020/ND-CP;

(ii) Breaks in accordance with the nature of the work;

(iii) Breaks that are necessary and accounted for in productivity norms due to natural human needs;

(iv) Rest periods for female employees that are pregnant, raising a child under 12 months of age or during menstruation as prescribed in Article 137.2, Article 137.4 of the 2019 Labor Code;

(v) Work suspension periods through no fault of the employees;

(vi) Periods of meetings, learning, or training required or accepted by the employer;

(vii) Periods in which trainees and apprentices directly perform or participate in the performance of work as prescribed in Article 61.5 of the 2019 Labor Code;

(viii) Periods in which employees who are members of the management board of the internal employee representative organization are employed to perform the duties prescribed in Article 176.2 and Article 176.3 of the 2019 Labor Code;

(ix) Time spent on health check-ups, medical examinations for occupational diseases, or medical evaluations for determination of work capacity reduction due to occupational accidents or diseases if arranged or required by the employer;

(x) Time spent on registration and medical examinations for military service if the employees are paid as prescribed by military service laws.

The periods of time regarded as working time of employees for the calculation of annual leave days comprise:

(i) Time of apprenticeship and job training to work for employers pursuant to a committed apprenticeship or job training contract.

(ii) Time of probation under labor contracts before working for employers.

(iii) Time of paid leave for personal reasons.

(iv) Time of unpaid leave agreed upon by employers, provided that the accumulated time of unpaid leave does not exceed 01 month in a year.

(v) Time of leave due to an occupational accident or disease, provided that the accumulated time of this leave does not exceed 6 months.

(vi) Time of sick leave, provided that the accumulated time of this leave does not exceed 02 months in a year.

(vii) Time of maternity leave as provided in the law on social insurance.

(viii) Time of leave for the performance of the objectives of the employees’ representative organization as provided by the law.

(ix) Time of work suspension or being out of work not due to the employees’ fault.

(x) Time of suspension from work after which the employee is declared to be clear of any violation or exempt from disciplinary measures.

An employee who, due to being laid off or made redundant, fails to take or fully take their annual leave, shall be entitled to a payment for the unused leave days.

The employer is not required to give bonuses to employees. These bonuses must be based on production and business results or the employee’s performance.

The employer is required to issue internal labor regulations if there are at least 10 employees.  In this case, the internal labor regulations are required to be in writing. If there are less than 10 employees, then the internal labor regulations are not required to be in writing but there must be an agreement on the content of labor discipline and material responsibility in the labor contract.

Collective labor agreements are not compulsory under the law. Such agreements are reached through collective bargaining and executed in writing.

The 04 forms of labor discipline are as follows:

(i) A warning;

(ii) A delay of the salary increase period for no more than 06 months;

(iii) Demotion;

(iv) Dismissal.

The laws forbid the use of disciplinary measures against an employee for an act not regulated in the internal labor regulations, not agreed upon in the labor contract or prescribed in the labor law.

Under the 2019 Labor Code, the employee’s attendance is required for the application of discipline. If the employee is under 15 years old, their legal representative must also participate.

The following legal consequences may occur if the employer illegally disciplines an employee:

(i) The employee can file a complaint with the employer to terminate the decision applying disciplinary measures. If the problem is not resolved or not resolved in an acceptable manner, the employee can file a complaint with the competent authorities;

(ii) In case of a dispute regarding discipline in the form dismissal, the employee can directly file a petition with the Court in accordance with the civil procedure process;

(iii) The employer shall be handled administratively in accordance with Decree No. 28/2020/ND-CP.

The statute of limitations for labor discipline is 06 months from the date the violation occurs. The statute of limitations for labor discipline that directly relates to the finances, assets, disclosure of technology, or trade secrets of the employer is 12 months.

Upon the expiry of the period specified in Article 122.4 of the 2019 Labor Code, if the statute of limitations for labor discipline has expired or still remains valid but is less than 60 days, it may be extended to handle violations of labor discipline.  However, the extension must not exceed 60 days from the expiry date mentioned above.

An employee shall compensate an employer if:

(i) The employee causes damage to tools, equipment or commits other acts causing damage to the assets of the employer; or

(ii) The employee loses tools, equipment or assets of the employer or other assets assigned to them by the employer or uses supplies in excess of the permitted norms.

An employer is not entitled to reduce or cut the salary of an employee in lieu of imposing disciplinary measures.

Should an employee, due to negligence, cause non-severe damage which does not exceed the 10 months’ regional minimum salary announced by the Government as applied at the employee’s workplace, an employer is entitled to deduct a maximum of 3 months’ of an employee’s salary.

There are 03 types of compulsory insurance:

(i) Social Insurance: The employer’s contribution rate is 17.5% of the salary fund, the employee’s rate is 8% of monthly wages;

(ii) Unemployment Insurance: The employer’s contribution rate is 1% of the salary fund; the employee’s rate is 1% monthly wages; and

(iii) Health Insurance: The employer’s contribution rate is 3% of monthly wages; the employee’s rate is 1.5% of monthly wages.

The salary that is subject to compulsory social insurance premiums include wages, allowances and other extras in accordance with Article 30.2 of Circular No. 59/2015/TT-BLĐTBXH.

Incomes which are not calculated in the payment of premiums comprise other benefits such as bonuses, rewards for creative ideas, payments for mid-shift meals; subsidies on the costs of transport fuel, phone allowances, travel allowances, housing allowances, child care, benefits for raising children; benefits provided upon the death or marriage of a employee’s relative, bonuses upon the employee’s birthday, benefits for employees suffering from occupational accidents or diseases and other benefits and subsidies specified in separate sections of the labor contract.

In the event of an occupational accident, the employer has the following responsibilities:

(i) To timely provide first aid and emergency care for injured employees, and advance the expenses for first aid, emergency care and medical treatment for victims of occupational accidents or diseases;

(ii) To pay all medical expenses for first aid, emergency care, and treatment for the employee until such time the employee’s health becomes stable, including:

• • Co-payment expenses and expenses which are not covered by health insurance for employees with health insurance;
  • Expenses for medical assessment to determine the decrease in the level of working capacity for employees whose working capacity is determined to have decreased by under 5% by the Medical Assessment Council recommended by the employer;
  • Payment of all medical expenses for employees without health insurance.

(iii) Payment of full salary (including wages, allowances and other extras in accordance with the Labor law) to employees who are involved in occupational accidents or diseases and need to take leave for medical treatment and occupational rehabilitation;

(iv) Compensation for victims of occupational accidents which are not entirely due to the fault of the employee and for employees who are victims of occupational diseases as follows:

• • At least 1.5 months’ salary if the employee’s working capacity decreased between 5% and 10%, plus 0.4 month’s salary for every additional 1% working capacity decrease from 11% to 80%;
  • At least 30 months’ salary if the employee’s working capacity decreased 81% or more. For employees who died of occupational accidents or diseases, this compensation shall be paid to their relatives;

(v) Payment of an allowance to the employee equivalent to at least 40% of the amount prescribed in Section (iv) above corresponding to the level of their working capacity due to occupational accidents caused by the fault of the employee;

(vi) Recommend employees who are victims of occupational accidents or diseases for medical assessment to determine the level of their working capacity decrease so that they may obtain medical treatment, recover health and rehabilitate their working functionality in accordance with the law;

(vii) Provide compensation and allowance for victims of occupational accidents and diseases within 5 days after the Medical Assessment Council issues conclusions on the level of working capacity decrease or the occupational accident investigation team issues its investigation record in the event of a fatal occupational accident;

(viii) Assign appropriate work based on the conclusions of the Medical Assessment Council to employees who are victims of occupational accidents or diseases after they return to work from medical treatment and rehabilitation; and

(ix) Prepare dossiers regarding the occupational accident and disease regime from the Occupational Accident and Disease Insurance Fund.

The authorities that have the ability to settle individual labor disputes are:

(i) Labor Mediators;

(ii) Labor Arbitration Councils;

(iii) The People’s Court.

For a dispute settled by a labor mediator, the statute of limitations is 06 months from the date of discovering the act which allegedly infringed upon the lawful rights or interests of the requesting party.

For a dispute settled by the Labor Arbitration Council, the statute of limitations is 09 months from the date of discovering the act which allegedly infringed upon the lawful rights or interests of the requesting party.

For a dispute settled by the People’s Court, the statute of limitations is 01 year from the date of discovering the act which allegedly infringed upon the lawful rights or interests of the requesting party.

Should the requestor establish that their noncompliance with the statute of limitations stipulated in Article 190 of the 2019 Labor Code was due to force majeure, objective obstacles or other reasons prescribed in the law, the period of the force majeure, objective obstacles or the mentioned reasons will not be calculated into the statute of limitations for the settlement of an individual labor dispute.

A strike is a temporary, voluntary and organized work stoppage of employees in order to achieve their demands during a labor dispute settlement. The employees’ representative organization, which is a party to the dispute and has the right to conduct collective negotiation, shall coordinate and lead this strike.

There are 6 types of illegal strikes, which can be defined as those which:

(i) Do not fall within the definition of a legal strike in accordance with Article 199 of the 2019 Labor Code.

(ii) Are not coordinated by the employees’ representative organizations.

(iii) Violate the regulations on procedures and formalities to conduct strikes in accordance with the 2019 Labor Code.

(iv) Are collective labor disputes which are being settled by the competent agencies, organizations and individuals pursuant to the 2019 Labor Code.

(v) Take place in cases where strikes are prohibited in accordance with Article 209 of the 2019 Labor Code.

(vi) Are postponed or canceled by the competent authorities in accordance with Article 210 of the 2019 Labor Code.