Vietnam labor laws are consolidated in the Labour Code, Law No. 45/2019/QH14, passed by the National Assembly on 20 November 2019 and in force since January 2021. It sets the floor for every employment relationship in Vietnam: contract types, probation, working hours, overtime, leave, termination notice and severance. For a foreign company the code matters twice over, once because any Vietnamese hire must be employed on its terms, and once because the legal employer, whether your own entity or an employer of record, carries the obligations it creates. The figures below are quoted from the code's English translation and a maintained practitioner guide, both linked in the sources.
Contracts and probation
The code recognises indefinite-term contracts and definite-term contracts of up to 36 months, with limits on renewal. Probation is capped by role under Article 25: up to 180 days for enterprise executive positions, 60 days for positions requiring a junior college degree or above, 30 days for technician and vocational roles, and 6 working days for other jobs, with only one probation allowed per job. Probationary pay must be at least 85% of the offered salary. These caps are statutory, so a contract template imported from another country fails in Vietnam unless someone has rebuilt it against the code.
Working hours, overtime and leave
Normal working hours may not exceed 8 hours per day or 48 hours per week under Article 105, with a 10-hour daily cap where hours are set weekly, and the state encourages 40-hour weeks. Overtime is consent-based and capped under Article 107: no more than 40 hours in a month and 200 hours in a year, extendable to 300 hours only in listed sectors such as textiles, garments and electronics. Annual leave under Article 113 starts at 12 working days after 12 months' service, rising to 14 days for minors, disabled employees and laborious or hazardous work, and 16 days for the most demanding categories, with untaken days paid out on termination.
Ending employment: notice and severance
An employee resigning gives at least 45 days' notice on an indefinite-term contract, 30 days on a 12-to-36-month contract, and 3 working days on a contract shorter than 12 months, under Article 35; the code also lists situations, such as unpaid wages or mistreatment, where no notice is required. On qualifying terminations, Article 46 obliges the employer to pay severance of half a month's salary per year of service to employees with at least 12 months' service, with the qualifying period reduced by time covered by unemployment insurance. Getting that offset calculation right is one of the most common failure points in practice.
What this means for hiring through an EOR
An employer of record in Vietnam signs the local contract, applies these caps and entitlements, withholds personal income tax and remits the mandatory social, health and unemployment insurance contributions that attach to Vietnamese employment. Using one does not make the Labour Code optional; it moves the compliance duty onto a party whose business is carrying it. When comparing vendors, ask how their contract template handles probation caps by role, the overtime consent and cap mechanics, and the severance offset against unemployment insurance. This page describes the statute; it is not legal advice, and the code and your contract control.
Questions people ask about vietnam labor laws
What is the standard work week in Vietnam?
Up to 48 hours, at no more than 8 hours per day, under Article 105 of the Labour Code. The state encourages employers to run 40-hour weeks, and many foreign employers do.
How much notice must an employee give to resign in Vietnam?
At least 45 days on an indefinite-term contract, 30 days on a fixed term of 12 to 36 months, and 3 working days on a term under 12 months, with statutory exceptions where no notice is required.
What severance does Vietnamese law require?
For qualifying terminations, half a month's salary per year of service for employees with at least 12 months' service, with the qualifying period reduced by time already covered by unemployment insurance contributions.
Can probation be extended if the employer is unsure?
No. The code allows only one probationary period per job, capped by role category, from 180 days for enterprise executives down to 6 working days for other jobs, and probation pay must be at least 85% of the offered salary.