Vietnam Employment Contracts: Types, Rules, and Requirements (2026)

Vietnam's Labor Code 2019 (Law No. 45/2019/QH14) governs all employment contracts in Vietnam. The law recognizes two contract types: definite-term and indefinite-term. Employers must issue written contracts for all employment relationships. Electronic contracts are valid under Decree 145/2020/ND-CP effective from February 2021.

What Types of Employment Contracts Exist in Vietnam?

Vietnam's Labor Code 2019 recognizes two employment contract types. A definite-term contract has a fixed duration of up to 36 months. An indefinite-term contract has no end date. The 2019 Labor Code eliminated the seasonal contract category that existed under the 2012 Labor Code. All employment relationships exceeding 1 month require a written contract.

A definite-term contract can be renewed once. After two consecutive definite-term contracts, the employer must offer an indefinite-term contract. If the employer fails to issue an indefinite-term contract within 30 days of the second contract's expiration, the contract automatically converts to indefinite-term.

Contracts for work lasting less than 1 month may be verbal. Contracts for domestic workers must be written regardless of duration. Vietnam labour law for foreignerss in Vietnam must hold definite-term contracts matching their work permit validity. Work permits have a maximum duration of 2 years.

What Are the Mandatory Clauses in a Vietnam Employment Contract?

Article 21 of the Labor Code 2019 requires nine mandatory clauses in every employment contract. Employer name and address. Employee name, date of birth, gender, residence, ID number. Job description and workplace. Contract duration. Salary, payment method, payment date, allowances, and other payments. Working hours and rest periods. Personal protective equipment. Social insurance, health insurance, and unemployment insurance. Training requirements.

average salary in Vietnam must be stated in Vietnamese Dong (VND). The contract must specify base salary separately from allowances. Probation salary must equal at least 85% of the agreed salary. The payment date cannot exceed the agreed frequency by more than 15 days.

What Are Vietnam Probation Rules?

Vietnam's probation period varies by position type. Managerial positions allow a maximum 180-day probation. Professional positions requiring a college degree or higher allow maximum 60 days. Technical positions allow maximum 30 days. Other positions allow maximum 6 working days. Probation can only occur once per job.

The employer must notify the employee of probation results 3 days before the probation period ends. If the employer does not notify, the employee automatically passes probation. The employer cannot extend the probation period beyond the statutory maximum. Probation terms must be included in the employment contract or in a separate probation agreement.

What Language Must Vietnam Employment Contracts Use?

Employment contracts in Vietnam must be in Vietnamese. Bilingual contracts are permitted: the Vietnamese version prevails in case of discrepancy. There is no legal requirement for a foreign language version. Foreign employees typically receive bilingual contracts (Vietnamese and English or their native language).

Electronic contracts are valid if they meet the requirements of the Law on Electronic Transactions 2023. Both parties must agree to the electronic format. The electronic contract must include all mandatory clauses. Digital signatures are accepted under Decree 130/2018/ND-CP.

How Can an Employment Contract Be Amended in Vietnam?

Either party can propose contract amendments. The other party must respond within 3 working days. If both parties agree, an amendment appendix is signed. If the parties cannot agree, the existing contract terms continue. The employer cannot unilaterally change contract terms except in specific circumstances defined by Article 29 of the Labor Code.

Article 29 permits temporary transfer to a different job for up to 60 working days per year in cases of natural disaster, fire, epidemic, or production necessity. The temporary transfer salary must equal at least 85% of the original salary and cannot be lower than the regional minimum wage.

What Happens When a Vietnam Employment Contract Expires?

When a definite-term contract expires, three outcomes are possible. First, the employer and employee sign a new contract. Second, the contract is not renewed and employment ends without severance (for first-term contracts). Third, if neither party raises the issue within 30 days of expiration, the definite-term contract automatically converts to indefinite-term.

If the employee continues working after contract expiration without a new written contract, the relationship becomes indefinite-term employment after 30 days. The employer loses the ability to use a second definite-term contract. This automatic conversion rule prevents employers from keeping employees on rolling short-term contracts indefinitely.

Aniday's EOR service in Vietnam (Aniday EOR Vietnam) manages all contract types and ensures compliance with conversion requirements. Aniday's PEO service (Aniday PEO Vietnam) assists companies with their own entity in contract management.

What Are the Penalties for Non-Compliant Contracts in Vietnam?

Administrative fines for employment contract violations range from 2 million VND to 75 million VND ($80-$3,000). Specific violations include: employing workers without a written contract (10-20 million VND fine per worker), failing to include mandatory clauses (5-10 million VND), and probation violations (2-6 million VND). Repeat violations trigger doubled penalties.

Can a Vietnam employment contract be in English only?

No. The employment contract must be in Vietnamese. A bilingual contract (Vietnamese and English) is permitted, but the Vietnamese version is the legally binding document. If a dispute arises, Vietnamese labor authorities and courts rely on the Vietnamese text.

What is the minimum wage in Vietnam for employment contracts?

Vietnam has four regional minimum wages effective July 2024: Region I (Hanoi, Ho Chi Minh City): 4,960,000 VND/month. Region II: 4,410,000 VND/month. Region III: 3,860,000 VND/month. Region IV: 3,450,000 VND/month. Employment contracts must specify salary at or above the applicable regional minimum wage.

Can probation be included in the employment contract in Vietnam?

Yes. Probation terms can be included in the employment contract as a clause, or the parties can sign a separate probation agreement. If included in the employment contract, the probation period counts toward the total contract duration. There is no requirement for a separate probation contract.

How many times can a definite-term contract be renewed in Vietnam?

A definite-term contract can be renewed once. After two consecutive definite-term contracts, the third contract must be indefinite-term. If the employer offers a third definite-term contract, it is automatically deemed an indefinite-term contract by law. This rule applies regardless of any gap between contracts.

Do freelancers need employment contracts in Vietnam?

Freelancers engaged under civil/commercial contracts (governed by the Civil Code 2015) do not require employment contracts. The engagement must genuinely be an independent contractor relationship. If the relationship meets the three criteria of employment under Article 13 of the Labor Code (management/direction, wages, agreed conditions), an employment contract is required regardless of the freelancer label.

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