Vietnam labor law for foreigners: Work permits & Contracts

Navigating Vietnam labour law can be challenging for foreign employees and international businesses. This guide outlines key aspects of Vietnam labor law related to work permits and employment contracts.

Applicability of Vietnam Labor Law to foreigners

Vietnam labor law is an important pillar of compliance for foreign companies and workers in Vietnam. Understanding who is covered under Vietnam’s labor regulations is a critical first step.

Legal basis: Labor Code 2019 & Decree 152/2020

The Labor Code 2019 (Law No. 45/2019/QH14) serves as the foundational legal framework regulating labor relations in the country—including for foreign workers. It takes effect from January 1, 2021, and is the core legislation under the umbrella of business law in Vietnam. For foreigners, this is supplemented by Decree No. 152/2020/ND-CP, which provides specific guidance on work permits and employment contracts for non-Vietnamese workers.

These documents provide information on:

• Define eligibility conditions for foreign employment
• Outline employer responsibilities
• Regulate exemptions and revocations of work permits

Scope: Who is considered a foreign employee?

According to Article 3 of the Labor Code and Article 2 of Decree 152, a foreign employee in Vietnam is defined as a person with foreign nationality working in Vietnam under one of the following forms:

• Labor contract with a local enterprise
• Intra-company transferee from a parent company abroad
• Service provider under a commercial contract
• Representative of a foreign NGO or company branch
• Freelancers and consultants (subject to legal review)

Foreign workers must be at least 18 years old, have professional qualifications, clear criminal records, and be in good health to qualify for legal employment in Vietnam.

Employer obligations when hiring foreigners

Companies operating under business law in Vietnam and hiring foreign staff must comply with the following:

• Justify the need for foreign labor to the Department of Labor, Invalids and Social Affairs (DOLISA)
• Secure pre-approval of foreign labor demand before recruitment
• Register and submit complete work permit applications for each foreign hire
• Sign a valid labor contract only after obtaining the work permit

Failure to follow these obligations may lead to administrative sanctions, permit denials, or legal liabilities.

Work permit in Vietnam: Who needs it and who’s exempted?

Foreigners intending to work legally in Vietnam must hold a valid work permit unless they fall under specific exemption categories. Understanding whether a permit is required helps both employers and expat employees comply with local regulations and avoid potential legal risks.

Mandatory cases requiring a work permit

According to Article 151 of the Labor Code 2019 and Article 4 of Decree 152/2020/ND-CP, a work permit is required for foreigners working in Vietnam under these conditions:

• Working under a labor contract signed with a Vietnamese entity
• Providing professional or technical services to local businesses
• Acting as a manager, executive director, expert, or technical worker
• Being assigned by a foreign company to perform commercial activities in Vietnam

To be eligible, the applicant must:

• Be at least 18 years old
• Have clear criminal records
• Hold qualifications or certifications relevant to the position
• Meet health requirements suitable for the job

Note that the work permit must be obtained before the foreign employee starts working. Violations can lead to fines or even deportation.

Exemptions under Article 154 (e.g., internal transferees, short-term experts)

Under Article 154 of Vietnam’s Labor Code 2019, certain foreign nationals are exempted from the requirement to obtain a work permit, provided they still register their exemption status with the local Department of Labor, Invalids and Social Affairs (DOLISA) at least 3 working days before beginning work. These exemptions are designed to accommodate international business practices, short-term assignments, and diplomatic or humanitarian missions.

Common exemption cases include:

• Owners or contributing members of limited liability companies (LLCs)
• Board members of joint-stock companies
• Internal transferees of multinational companies
• Experts and specialists working less than 30 days at a time, not more than 3 times per year
• Foreigners married to Vietnamese citizens and residing in Vietnam
• Students and trainees working through training agreements between educational institutions
• Foreign lawyers licensed to practice in Vietnam
• Volunteers sent by international NGOs
• Foreigners delivering services under international agreements

Documents proving exemption

Even if a foreigner qualifies for a work permit exemption under Article 154 of the Labor Code 2019, they are still required to notify the Department of Labor, Invalids and Social Affairs (DOLISA) before starting work.

To comply, the employer (or authorized representative) must submit a work permit exemption notification dossier that includes the following documents:

How to apply for a work permit in Vietnam

Foreigners who are not exempt from the work permit requirement must undergo a formal application process regulated by Decree 152/2020/ND-CP. This process involves both the employer and the foreign worker, and must be completed before the start of employment.

Eligibility criteria for applicants

To qualify for a work permit in Vietnam, foreign nationals must meet strict eligibility conditions as outlined in Article 151 of the Labor Code 2019 and Decree 152/2020/ND-CP. These requirements ensure that only individuals with the appropriate skills, experience, and integrity are permitted to work in the country.

To be eligible for a work permit in Vietnam, foreigners must meet conditions such as ensuring skills, experience,…

Foreign individuals must meet the following general conditions:

• Be at least 18 years old
• Have full civil capacity under the law
• Be in good physical and mental health that meets the job requirements
• Have no criminal record, or not be currently facing criminal prosecution

Depending on the job title, there may be additional criteria for qualifications and experience:

All foreign academic or work-related documents must be legalized, translated into Vietnamese, and notarized. And there are special cases to note:

• Foreigners previously expelled from Vietnam are not eligible for reapplication unless approved by authorities.
• Applicants must be assigned to a job relevant to their expertise and matching their employment history.
• Health certificate must be issued by a licensed Vietnamese medical facility or legalized if from abroad.

Required documents (employee vs employer)

Applying for a work permit in Vietnam involves a joint effort between the foreign applicant and the sponsoring employer. Each party must prepare specific documents to meet the legal and administrative requirements outlined in Decree 152/2020/ND-CP.

Documents from the foreign employee

All foreign documents must be translated into Vietnamese, certified, and consular legalized (except cases under treaty exemption).

Documents from the foreign employer

Here is a breakdown of all documents required from the employer, clearly categorized to help streamline the work permit application process:

All documents must be compiled into one dossier and submitted to DOLISA at least 15 working days before the employee’s expected start date.

Application steps & timeline

The work permit application process in Vietnam typically involves 5 key steps, most of which must be initiated by the employer. To avoid delays or legal risks, it’s essential to follow the correct sequence and meet submission deadlines set by DOLISA (Department of Labor, Invalids and Social Affairs).

Here’s a step-by-step guide with expected timelines:

Processing time & cost

Understanding the expected timeline and expenses involved in applying for a work permit is crucial for effective planning—especially for companies onboarding foreign professionals under tight schedules.

As for the cost of a work permit, these fees are per person and may vary depending on the region or service provider.

Employment contract requirements for foreign workers

Once a work permit is issued, employers in Vietnam must enter into a written employment contract with the foreign employee. This contract must comply with the Labor Code 2019 and accurately reflect the details approved in the work permit.

A compliant contract is not only a legal requirement but also protects the rights and obligations of both parties throughout the employment period.

When must a labor contract be signed?

According to Vietnamese labor regulations, a foreign worker must sign a written labor contract with the employer after being granted a valid work permit. This contract serves as the official legal agreement between both parties and must be submitted to the authorities for record-keeping.

Timeline for contract signing

• For foreigners who require a work permit: The labor contract must be signed only after the work permit is issued by DOLISA. It must be submitted to DOLISA within 5 working days from the date of signing.
• For exempted foreign workers (under Article 154): The labor contract should be signed before the expected employment start date. It must be attached to the notification of exemption dossier.

The importance of contract timing

• Signing the contract before obtaining the work permit (unless exempted) is considered illegal under Vietnamese labor law.
• Violations may result in fines up to 75 million VND for employers and permit revocation or deportation for employees.
• In case of inspection, labor authorities may request both the contract and permit to verify consistency.

Types of labor contracts under Vietnamese law

Vietnamese labor law recognizes two primary types of labor contracts, but only one is applicable to foreign workers. Employers must choose the appropriate contract type based on the employee’s role and the validity of their work permit or exemption status.

Required content and clauses

According to Article 21 of the Labor Code 2019, every employment contract signed with a foreign worker must be in written form and include a set of mandatory clauses to ensure legal validity and protect both parties.

These clauses define the rights, obligations, and working conditions agreed upon between the employer and the foreign employee.

Language & translation requirements

Under Vietnamese labor law, employment contracts with foreign workers must be clear, mutually understandable, and legally enforceable. This chooses language and translation accuracy especially important in cross-border employment.

Primary requirement: Written contract in Vietnamese

• All labor contracts in Vietnam must be in writing and in Vietnamese, the official language of the country.
• This version is legally mandatory and is used for all government and labor authority purposes, including: work permit registration, labor inspection and dispute resolution or legal proceedings.

Bilingual contracts (Vietnamese + foreign language)

• If the foreign employee does not speak Vietnamese, a bilingual contract must be used—typically Vietnamese and English.
• Both language versions must reflect the same content word for word.
• In case of discrepancies between the two versions: The Vietnamese version shall prevail in legal interpretation (as per general legal practice in Vietnam).

Formatting & legal considerations

• Both versions should be laid out side-by-side or section by section, ensuring easy comparison.
• Each party (employer and employee) must receive one signed and stamped original copy of the full bilingual contract.
• Any additional annexes or amendments must also follow the same language format and be signed accordingly.

Ensuring accurate bilingual contracts not only safeguards legal compliance but also builds mutual trust between employers and foreign employees.

Termination and severance pay

The termination of an employment contract with a foreign worker in Vietnam must strictly follow the provisions of the Labor Code 2019, ensuring that both parties are protected and compliant with the law.

Legal grounds for termination

A labor contract with a foreigner may be terminated in the following cases:

• Expiration of the contract or work permit
• Mutual agreement between the employer and employee
• Unilateral termination (with proper justification and notice)
• Disciplinary dismissal (as defined by law)
• Force majeure (natural disaster, fire, pandemic, etc.)
• Employer ceases operation or restructures business

All terminations must be reported to DOLISA within 15 working days of contract end.

Below is the minimum notice period for termination of contract

And foreign employees are entitled to severance allowance if they:

• Have worked for 12 months or more
• Are not dismissed for disciplinary violations
• Are not receiving retirement or unemployment benefits

With calculation: ½ month’s salary × number of years worked

• Salary used for calculation is the average monthly salary of the last 6 working months
• Time less than 12 months is rounded as follows: if ≥6 month than count as 1 year; if <6 months than not counted

Rights and obligations of foreign employees in Vietnam

Under the Labor Code 2019, foreign employees working in Vietnam are entitled to equal treatment as their Vietnamese counterparts in terms of employment rights, protections, and responsibilities. Whether hired through a labor contract or transferred internally from a foreign parent company, expats must comply with Vietnamese labor laws while also enjoying full access to salary, insurance, leave, and workplace protections.

Salary, working hours, and overtime rules

Foreign employees working in Vietnam are entitled to the same protections and standards as local workers under the Labor Code 2019. This includes full compliance with national labor regulations on wages, working time, and overtime compensation.

Salary regulations for foreign employees

• No separate minimum wage applies to foreigners—employers must follow the regional minimum wage set by the government based on the office location (e.g., HCMC, Hanoi, industrial zones).
• Wages must be stated clearly in the employment contract, including: gross or net amount; currency (usually VND or USD); frequency (typically monthly) and payment method.
• Foreigners must receive equal pay for equal work and cannot be paid below the local standard for the same position.

Standard working hours

• The legal working time is not more than 8 hours/day and 48 hours/week (Article 105).
• Enterprises can choose a 5-day or 6-day workweek, depending on internal policy.
• For roles involving high risk or heavy labor, working hours may be shortened (per Article 105.2).

Overtime rules

• Overtime refers to working beyond normal hours, requested by the employer and agreed by the employee.
• Maximum overtime is: 50 hours/month; 200 hours/year, extendable to 300 hours/year in special sectors (e.g., manufacturing, export)
• Overtime must be paid at a higher rate: 150% on weekdays; 200% on weekends and 300% on public holidays or paid leave days.

Leave entitlements and holidays

Foreign employees in Vietnam are entitled to the same types of leave and public holidays as local employees, as stipulated in the Labor Code 2019. Employers must ensure full compliance with these policies to avoid violations and maintain workplace equity.

Public holidays

Vietnam recognizes 11 official public holidays each year. Foreign workers are entitled to paid leave on these days.

Foreign employees may request to substitute Vietnamese holidays with their national holidays, subject to employer approval and equivalent leave arrangements.

Annual leave (paid vacation)

• Foreign employees with full 12 months of service are entitled to 12 days of paid annual leave per year (Article 113).
• For employees with less than 12 months, annual leave is calculated proportionally: Leave days = Number of working months/12 * 12

Sick leave

• Paid by social insurance, not the employer
• Applicable if the foreign employee participates in the Vietnamese social insurance scheme
• Allowance rate: 75% of salary (average 6-month salary before leave)
• Number of sick days per year depends on working conditions and insurance status

Personal leave (with and without pay)

• 3 days paid leave for marriage
• 1 day paid leave for child’s marriage
• 3 days paid leave upon death of immediate family
• Up to unpaid leave if mutually agreed between employee and employer

Compulsory social & health insurance

Foreign employees working in Vietnam under labor contracts of at least 1 year are required to participate in compulsory social insurance (SI) and health insurance (HI), similar to local employees. This ensures protection in cases such as sickness, maternity, occupational injury, and retirement.

According to Decree 143/2018/ND-CP, foreign employees must participate in Vietnam’s SI & HI schemes if they:

• Have a valid work permit, practice certificate, or license
• Are employed under a labor contract of 12 months or more
• Are not on internal assignment from a foreign parent company (in certain exemption cases)

Contribution rates (2023–2025)

The contribution is calculated based on the employee’s monthly salary, capped at 20 times the base salary (currently 36 million VND, subject to change).

Benefits covered

Social Insurance includes:

• Sickness allowance
• Maternity benefits
• Occupational accidents and diseases
• Retirement pension
• Survivor allowance

Health Insurance covers:

• Outpatient and inpatient medical expenses at public hospitals
• Partial reimbursement at registered private clinics

Foreign employees are not required to contribute if they:

• Are internally transferred from an overseas parent company
• Have reached retirement age under Vietnamese law (60 for men, 55 for women)
• Are working under a labor contract of less than 12 months

Equality in treatment compared to local workers

According to the Labor Code 2019, foreign employees working in Vietnam under valid work permits or exemptions are entitled to the same rights, protections, and obligations as Vietnamese nationals performing the same roles. This principle ensures fairness in the workplace and legal consistency across the labor market.

Equal legal status

Foreign employees are protected under the same labor laws as locals regarding:

• Employment contracts
• Wages and benefits
• Working hours and rest time
• Leave entitlements
• Overtime compensation
• Occupational safety and health
• Social and health insurance (when applicable)

Equal obligations

Foreigners must also comply fully with internal company regulations and Vietnamese law, including:

• Respecting workplace policies
• Observing tax and insurance duties
• Complying with disciplinary procedures, if applicable
• Reporting personal/legal changes (e.g., visa, marital status) to HR or relevant authorities

Penalties for violating labor laws in Vietnam

Vietnam strictly enforces its labor laws, especially when it comes to the employment of foreign nationals. Both employers and employees may be penalized for violations under Vietnam labor law, such as unlicensed employment, non-compliant labor contracts, and failure to register or report social insurance.

These penalties are defined within the broader regulatory framework of business law in Vietnam, and apply equally to Vietnamese and foreign companies operating in the country.

Sanctions for unlicensed employment

According to Decree 12/2022/NĐ-CP and Article 151, Labor Code 2019, foreign workers who are not exempted and still work in Vietnam without a valid permit are in direct violation of Vietnam labour law. Typical penalties include:

Employer fines and liability

Under both Vietnam labor law and Vietnam labour law, employers who violate regulations related to the hiring and management of foreign workers are subject to strict administrative penalties. These fines are designed to ensure compliance with business law in Vietnam and uphold legal labor standards in the country.

Additional liabilities beyond administrative fines

• Permit denial or revocation: Serious violations may result in authorities revoking previously issued work permits or rejecting new applications for foreign labor.
• Operational suspension: In cases of repeated or intentional violations, DOLISA may recommend temporary suspension of the employer’s business operations.
• Legal disputes: Improper termination or contract handling can expose the employer to lawsuits, compensation claims, or arbitration.
• Reputational risk: Violations of Vietnam labour law may lead to public reporting, making the company less attractive to skilled international talent.

Preventative steps to avoid liability

• Submit labor demand plans at least 30 working days in advance
• Align work permits, job descriptions, and contracts accurately
• Retain full documentation for every foreign employee
• Assign compliance responsibility to HR or legal teams with training in business law in Vietnam

Risk of deportation or blacklist

Foreign nationals who work in Vietnam without meeting the legal requirements—whether due to the absence of a work permit or incorrect employer procedures—are at risk of deportation and being blacklisted from re-entering the country. These consequences are clearly outlined under Vietnam labor law, and form part of the broader compliance framework under business law in Vietnam.

According to Decree 152/2020/ND-CP and Article 31 of Decree 12/2022/ND-CP, a foreigner may face deportation if they:

• Work without a valid work permit and are not exempted
• Use fraudulent documents to obtain a work permit
• Continue working after their permit expires or is revoked
• Violate immigration regulations tied to labor authorization

In such cases, the Department of Labor will notify the Ministry of Public Security, who will initiate deportation procedures through the Vietnam Immigration Department.

If a foreigner violates the following, he/she will be blacklisted – 1 internal immigration record:

• Re-entering Vietnam for a specific period (usually 1 to 3 years)
• Applying for a new work permit or visa
• Holding legal employment or doing business under Vietnam labour law

This list is shared across immigration checkpoints and consular offices globally.

If violated, may face the following legal consequences:

So to avoid those risks:

• Ensure your work permit or exemption letter is approved before starting work
• Do not work under a tourist, business, or dependent visa without proper labor clearance
• Keep personal legal documents valid and updated (passport, TRC, visa)
• Request written confirmation from your employer about your legal work status

FAQs on Vietnam labor law for foreigners

Foreign employees and international companies often have specific concerns when navigating the complexities of Vietnam labor law. This section answers the most frequently asked questions related to work permits, contract terms, employee rights, and legal protections.

Can I work in Vietnam without a permit?

No. Under Vietnam labor law, all foreign nationals working in Vietnam must obtain a valid work permit unless they qualify for exemption under Article 154 of the Labor Code 2019. Working without a permit is a violation of both vietnam labour law and immigration regulations, and may result in:

• Fines up to 25 million VND
• Deportation and blacklisting
• Permit denial in future applications

How many times can a permit be renewed?

A work permit in Vietnam is typically valid for up to 2 years and may be renewed only once for an additional period of up to 2 years, in accordance with Decree 152/2020/ND-CP.

After one renewal, the employer must apply for a new permit with a new labor demand plan. Continuous extensions beyond two terms are not allowed under Vietnam labour law unless the role or employer changes substantially.

What happens if the contract ends early?

If a labor contract ends before the work permit expires, the employer must:

• Notify DOLISA within 15 working days
• Complete procedures to terminate the work permit

Early termination is allowed under Vietnam labor law, provided that:

• The notice period and contract clauses are followed
• Severance or compensation (if applicable) is properly settled

Unilateral termination without valid reasons may expose the employer or employee to legal liability under business law in Vietnam.

Can a foreign employee sue an employer in Vietnam?

Yes. Foreign workers have the same legal standing as Vietnamese employees to file a complaint or lawsuit against their employer under Vietnam labour law.

Disputes may be resolved through:

• Internal mediation at the enterprise level
• Labor Arbitration Councils (if established)
• Filing a case in the Vietnamese labor courts

Employees are encouraged to retain a written bilingual labor contract, record all communications, and consult a legal professional familiar with business law in Vietnam when preparing a claim.

Understanding and complying with Vietnam labor law is essential for any foreigner working in Vietnam and for businesses operating under business law in Vietnam. By staying informed about work permits and contracts, both employers and expats can ensure full compliance with vietnam labour law and avoid costly legal risks.

Maison Office

Maison Office is a professional office rental agency. Our consulting team, with over 10 years of experience, will help you quickly find the most suitable office space. Contact us now at 0988.902.468!

maisonoffice.vn