Foreign employees in Vietnam work under a written labour contract governed by the 2019 Labour Code, with the same basic protections as Vietnamese workers: limits on probation and working hours, paid annual leave, public holidays, rules on ending the contract and access to dispute resolution. The main differences are that a foreigner's contract cannot last longer than the work permit, and that foreign workers also receive a day off for their own country's national day and traditional new year. Whether you are in the compulsory social and health insurance schemes depends on your contract and the current rules.
Many foreign employees sign their first Vietnamese contract quickly, focused on the salary and start date, and only read the rest when something goes wrong. This guide goes through the parts of a contract that matter most and explains the legal floor beneath them. It is a general overview; your contract, the employer's internal labour regulations and the current law decide your specific rights, and for a dispute you should take advice from a Vietnamese employment lawyer.
The contract and the work permit
The Labour Code recognises two main kinds of labour contract: one with no fixed term, and one with a fixed term of up to 36 months. For Vietnamese employees, there are limits on how many fixed-term contracts can be signed in a row before the job becomes indefinite. Foreign employees are treated differently: the term of the contract cannot exceed the term of the work permit, and fixed-term contracts can be renewed in line with new or extended permits.
In practice, this means most foreigners sign fixed-term contracts that match their permit, often for one or two years, and renew them as the permit is extended or replaced. Read the contract alongside the permit and check that the employer's name, your position and your place of work are the same in both. A contract for a role different from the one on your permit is a sign that something needs fixing.
The contract must be in writing. It is usually bilingual, in Vietnamese and English, and many contracts say that the Vietnamese version prevails in case of difference. Read the English carefully, and if a clause matters to you, ask a Vietnamese speaker you trust to check that the Vietnamese says the same.
The legal floor: what the Labour Code sets
These are the main minimum standards that apply to most office and professional jobs. Your contract can give you more than this, but not less. Specific industries and jobs have their own rules, so check the detail for your case.
| Topic | General rule | What to check in your contract |
|---|---|---|
| Probation | Limited by the type of job: up to 180 days for enterprise managers, up to 60 days for roles needing a college degree or higher, shorter for other jobs; probation pay at least 85 percent of the job's salary | Length, pay during probation, and whether probation applies on renewal (it normally should not) |
| Normal working hours | No more than 8 hours a day and 48 hours a week; employers are encouraged to apply a 40-hour week | Your schedule, weekend work, how overtime is approved |
| Overtime | Paid at higher rates and capped by law | How overtime is recorded and paid, or whether your role is treated as managerial |
| Annual leave | 12 working days a year for normal conditions, increasing with years of service | Whether the contract gives more, and how unused leave is handled |
| Public holidays | 11 days for all workers, plus one day for a foreign worker's national day and one for his or her traditional new year | How the extra days for your country are scheduled |
| Ending the contract | Grounds and notice periods set by law, depending on contract type | Notice period, final pay, return of documents |
The figures above reflect the Labour Code as generally applied; implementing rules and sector-specific provisions can add detail. If your contract offers less than the legal minimum on any of these points, that clause is not valid, but it is better to fix it before you sign than to argue later.
Salary, payslips and tax
The contract states your salary and how it is paid. The Labour Code states wages in Vietnamese dong but allows foreign employees in Vietnam to be paid in a foreign currency; in practice most employers pay into a local bank account, and foreign exchange rules govern how money moves abroad. Allowances, such as for housing, transport or meals, should be listed clearly, because their treatment for tax and insurance can differ from base salary.
Ask for a payslip every month that shows gross salary, allowances, deductions for insurance and personal income tax, and the net amount. Keep them. They are your evidence for tax finalisation, residence card renewals and any later dispute.
If your package is agreed net, with the employer covering your tax, the contract should say so. Without that clause, a net promise in an email can be hard to rely on. Personal income tax for foreigners depends on tax residence, which is explained in our money, banking and tax section; the employer withholds tax monthly, and an annual finalisation follows.
Social and health insurance
Vietnam has compulsory social insurance, health insurance and unemployment insurance schemes funded by contributions from employers and employees. Foreign workers holding a work permit and a labour contract of a qualifying length are generally required to join compulsory social and health insurance. Unemployment insurance has been treated differently for foreigners. The new Law on Social Insurance, effective from July 2025, has updated parts of the system, so ask your employer exactly which contributions apply to you and check them on your payslip.
Compulsory health insurance gives access to the public system at registered facilities. Many foreign employees also have private international health insurance through their employer, because they prefer private hospitals or want cover abroad. The two serve different purposes; having one does not replace the other where participation is compulsory.
If you leave Vietnam permanently, you may be able to claim a lump-sum payment of social insurance under the conditions the law sets. Ask the social insurance office or your HR team before you leave, because claims are easier while you are still in the country.
Internal rules, discipline and restrictive clauses
Larger employers in Vietnam have internal labour regulations, a document registered with the labour authority that sets out working time, discipline, confidentiality and similar matters. It forms part of the framework of your employment even if it is not attached to your contract, so ask for a copy, in English if available. Disciplinary action must follow the procedures in the Labour Code and the internal regulations, including a meeting at which you can present your side. Fines deducted from salary as a punishment are not allowed.
Contracts for foreign professionals often include confidentiality and intellectual property clauses, and sometimes non-compete clauses that try to stop you working for a competitor after you leave. Vietnamese law protects business secrets, but how far a post-employment non-compete can be enforced has been debated, and courts look at reasonableness. Do not assume such a clause is meaningless, and do not assume it is airtight. If it matters to your next career step, ask a lawyer before you sign.
Watch for clauses that make you repay training or relocation costs if you leave early. They are common in expatriate packages. Make sure the amount, the period and how it reduces over time are written clearly.
Ending the contract
A fixed-term contract ends when its term expires, unless it is renewed. Either side can also end the contract early under the conditions in the Labour Code. As an employee, you generally have the right to resign by giving notice: the required notice depends on the type of contract, and there are situations where you can leave without notice, for example if you are not paid on time or are mistreated. The employer can terminate only on the grounds the law allows, such as repeated failure to perform, prolonged illness, restructuring or serious misconduct, and must follow the procedures and notice rules.
For foreign workers, the contract also ends when the work permit expires or is revoked, and when a foreigner is deported. That is one more reason to keep the permit current.
When the contract ends, the employer must settle what it owes, including salary, unused leave where applicable and any severance due, within the period the law sets, and return documents it holds. Ask for a written confirmation of employment, your final payslip and tax withholding records. Severance and job-loss allowances under the Labour Code apply in some situations but are limited where you were covered by unemployment insurance; the details depend on your contract and insurance history.
If there is a dispute
Most problems are resolved by talking, but it helps to know the formal route. The Labour Code provides several steps, and the right one depends on the type of dispute.
- Raise the issue in writing with HR or your manager, stating the facts and what you ask for. Keep copies.
- Check the employer's internal labour regulations and the grievance procedure they describe.
- Request mediation by a labour mediator, which is the usual first formal step for many individual disputes.
- If mediation fails or is not required, the dispute can go to a labour arbitration council or to the people's court, depending on the issue.
- Take advice from a Vietnamese employment lawyer early, especially about time limits for bringing a claim.
Do not let a dispute put your immigration status at risk. If your contract is ending as part of a dispute, plan your visa position at the same time.
Keep your own records from the first day: the signed contract, the internal regulations, payslips, emails about overtime or changes to your duties, and any written warnings. Labour disputes are decided on documents, and the employee who kept them is in a far stronger position than the one who relies on memory of conversations. Messages in chat apps count too, so save the important ones before you leave the company's groups.
Câu hỏi thường gặp
Can a foreigner in Vietnam have an indefinite-term contract?
In practice, foreign employees' contracts are tied to the work permit, whose term is limited, so contracts are normally fixed-term and renewed with each permit or extension. The Labour Code specifically says the contract term cannot exceed the permit term. Ask your employer how renewals are handled.
How long can probation be for a foreign employee?
The Labour Code limits probation by type of job: up to 180 days for enterprise managers, up to 60 days for jobs requiring a college degree or higher, and shorter periods for other roles. Probation pay must be at least 85 percent of the job's salary. Probation is not normally repeated when a contract is renewed.
Do foreign employees get extra public holidays?
Yes. In addition to the 11 public holidays for all workers, foreign employees are entitled to one day off for their country's national day and one day for their traditional new year. Agree with HR in advance how these days are scheduled.
Do I have to pay Vietnamese social insurance?
Foreign workers with a work permit and a qualifying labour contract are generally covered by compulsory social and health insurance, with contributions deducted from salary and paid by the employer. Rules were updated by the 2024 Law on Social Insurance, so confirm with your employer which contributions apply.
How much notice do I have to give to resign?
It depends on the type of contract, and the Labour Code sets different periods for indefinite and fixed-term contracts, with some situations allowing no notice. Check your contract and the current law, and give notice in writing so the date is clear.
What can I do if my employer does not pay my final salary?
Start with a written request to the employer. If that fails, you can seek mediation through a labour mediator and then pursue labour arbitration or a court claim. A local employment lawyer can advise on deadlines and evidence. Keep payslips, the contract and all correspondence.