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Vietnam employment contracts: types, probation, dismissal

Published · 6 min read

Two people review a document at a table while one of them signs it
Photo: Gabrielle Henderson, Unsplash

Dismissing someone in Vietnam needs a ground set by law, notice of between 3 working days and 45 days and, in many cases, a severance allowance. During probation, either side can cancel without notice or compensation (art. 27.2). Data as of 1 October 2026.

Which version of the Code applies

The Labour Code in force is Law 45/2019/QH14, dated 20 November 2019 and effective from 1 January 2021. It is still in force on 1 October 2026. Three later laws amend it (71/2025/QH15, 113/2025/QH15 and 124/2025/QH15), and a consolidated text exists, 18/VBHN-VPQH, dated 12 February 2026. PENDIENTE: confirm those laws do not alter the articles cited here.

This article does not cover senior executives or expatriates on work permits.

Form of the contract

It must be in writing, in two copies (art. 14.1). An electronic contract, made as a data message, has equal value (art. 14.1). An oral contract is valid only for terms under one month (art. 14.2). Decree 337/2025/NĐ-CP governs electronic contracts from 1 January 2026. PENDIENTE: text of the decree, and the article that sets the contract language.

Contract types

An indefinite-term contract has no end date; a definite-term contract sets one.

Type Maximum term Renewals If it expires and is not renewed Article
Indefinite No end date Not applicable Does not expire 20.1
Definite term 36 months One more; after that, indefinite, with legal exceptions If the person keeps working, 30 days to sign a new one; if not, it becomes indefinite 20.1 and 20.2

Probation

Probation can be used once per job (art. 25).

Job category Maximum length Minimum pay Article
Enterprise management 180 days 85% of the wage 25 and 26
College degree (cao đẳng) or higher 60 days 85% 25 and 26
Intermediate level or technical worker 30 days 85% 25 and 26
Other jobs 6 working days 85% 25 and 26

How a contract ends

Notice is the advance warning to the other party. A severance allowance is the payment the employer owes at the end.

Case Employee's notice Employer's notice Compensation Article
Resignation 45 days (indefinite), 30 (12 to 36 months), 3 working days (under 12 months) Not applicable Severance allowance. If the resignation is unlawful, the employee loses it and pays half a month's wage, the missed notice and training costs 34.9, 35, 40, 46
Employer, with a ground Not applicable 45, 30 or 3 working days; none under 36.1.d and 36.1.e Severance allowance, except for unjustified absence. For restructuring: 1 month per year, minimum 2 months 34.10, 36, 42, 46, 47
Expiry None set None set Severance allowance 34.1, 46
Agreement As agreed As agreed Severance allowance plus what is agreed 34.3, 46

The severance allowance is half a month's wage per year worked, with 12 months or more. It uses the 6-month average wage and excludes time covered by unemployment insurance (art. 46). Everything is paid within 14 working days, up to 30 in exceptional cases (art. 48).

Grounds for the employer

Grounds with notice (art. 36.1):

  • Repeated failure to do the work, under criteria in the internal regulations (a).
  • Illness without recovery after 12 months (indefinite), 6 (12 to 36 months) or more than half the term (b).
  • Disaster, epidemic or forced production cuts (c).
  • Not reporting within the period in art. 31 (d).
  • Retirement age, unless agreed otherwise (đ).
  • Unjustified absence of 5 consecutive working days (e).
  • False information at hiring (g).

Economic restructuring (arts. 42 and 43) and disciplinary dismissal (art. 125) also exist, for example for theft, embezzlement or disclosure of secrets.

When termination is not allowed

The employer cannot terminate unilaterally (art. 37.1) while the person is in medical treatment, on annual or approved leave, pregnant, on maternity leave or caring for a child under 12 months. Prolonged illness under art. 36.1.b is the exception.

Timeline of an employment relationship in Vietnam in five milestones: day 0, signing of the written contract (art. 14); days 1 to 180 at most (60 with a higher degree), probation cancellable without notice (art. 27.2); month 36 at most, the definite-term contract expires and there are 30 days to sign a new one or it becomes indefinite (art. 20.2); termination with notice of 45 days (indefinite), 30 (12 to 36 months) or 3 working days (under 12 months) (arts. 35 and 36); 14 working days later, payment of what is owed, up to 30 (art. 48).

Working hours and overtime

Normal working time is 8 hours a day and 48 a week (art. 105). Overtime needs consent, cannot exceed 50% of daily hours (12 hours in total on weekly schedules), 40 a month and 200 a year (art. 107.2). Article 107.3 raises the cap to 300 a year in specific cases, such as export electronics, telecoms, highly skilled work with no supply in the labour market, and emergencies, with written notice to the provincial agency. The list does not name software. PENDIENTE: whether it applies to a development team, and which article of Decree 145/2020/NĐ-CP develops it.

Minimum pay is 150% on a working day, 200% on a weekly rest day and 300% on a public holiday (art. 98). In Spain the limit is 80 hours a year (art. 35.2 of the Statute).

Leave, public holidays and Tết

Annual leave is 12 working days (art. 113), plus 1 day per 5 years of service (art. 114). Article 112 sets 11 public holidays, 5 of them for Tết. Spain gives 30 calendar days (art. 38.1) and up to 14 public holidays (art. 37.2).

Tết in 2027 falls on 6 February. The Government sets the exact dates each year. A team delivering to Europe should place the Tết week in its calendar before January.

Three differences from Spain

Spanish rule: Workers' Statute (Royal Legislative Decree 2/2015, BOE).

Probation is shorter

Article 14 of the Statute allows 6 months for degree-holding technicians and 2 for others. In Vietnam, a job requiring a higher degree gets 60 days and one with no qualification requirement gets 6 working days (art. 25).

The Code asks for no ground for a fixed-term contract

In Spain, article 15 presumes an indefinite contract and limits temporary ones to production circumstances (6 months, 12 by collective agreement) or substitution. Vietnam's article 20 allows 36 months and one renewal without that requirement.

Severance is calculated differently

In Spain, unfair dismissal pays 33 days per year, capped at 24 monthly payments (art. 56.1). Objective dismissal pays 20 days, capped at 12, with 15 days of notice (art. 53.1). In Vietnam, the severance allowance is half a month per year and excludes time covered by unemployment insurance (art. 46). Unlawful dismissal costs back pay and at least 2 months' wages (art. 41).

FAQ

What happens if the person does not work out?

During probation, either side cancels without notice or compensation (art. 27.2). After that, poor performance is a valid ground (art. 36.1.a) if the internal regulations set criteria. Notice is 45 days (indefinite), 30 (12 to 36 months) or 3 working days (under 12 months).

The severance allowance follows: half a month per countable year (art. 46). Example: average wage of 100 and 3 countable years gives 150, within 14 working days (art. 48). Unemployment insurance contributions reduce the countable time.

If the dismissal is unlawful (art. 39), there is reinstatement, back pay and at least 2 months' wages (art. 41.1). If the person does not return, art. 41.2 adds a severance payment. PENDIENTE: whether it refers to art. 46 or 47.

Can I ask for unlimited overtime?

No. It needs consent, 40 hours a month and 200 a year (art. 107).

Is an electronic contract valid?

Yes, as a data message (art. 14.1).

Can I dismiss someone who is pregnant or on sick leave?

Not on your own decision (art. 37.1), except prolonged illness (art. 36.1.b).

This article is general information and not legal advice. A lawyer practising in Vietnam should review each case before a contract is signed or ended.

Closing

Before signing the first contract, ask a lawyer in Vietnam to check your template against articles 14, 20, 25, 36 and 107. Then write to Vantu to adapt the contract and the Tết calendar to your own team in Vietnam.

Sources

Consulted on 1 October 2026.