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Vietnam Labor Code 2019: What Foreign Employers Must Know

An in-depth analysis of Vietnam's Labor Code 2019 and its implications for foreign-invested enterprises managing local and expat staff.

Published: 2023-08-20
Vietnam Labor Code 2019: What Foreign Employers Must Know

Vietnam's Labor Code sets strict protective baselines for employment relationships. Foreign employers must observe critical statutory standards:

  • Contract Classification: Limited strictly to indefinite-term and definite-term (maximum 36 months, renewable once before converting to indefinite).
  • Internal Labor Regulations (ILR): Mandatory registration with local labor departments for enterprises employing 10 or more staff.
  • Overtime Limitations: Capped at 40 hours per month and 200 hours per calendar year (extended to 300 hours for designated industries).
  • Termination Protocols: Unilateral termination by employers is strictly regulated and requires statutory notice periods and severance calculations.
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