For many foreign workers in Vietnam, labor law only becomes visible when something goes wrong. Contracts are signed quickly, assumptions are made based on past experience, and advice is often taken from colleagues whose legal situations may be very different.

This article focuses on key labor rules that foreign workers most commonly misunderstand. It does not attempt to summarize the entire Labor Code, but instead highlights practical points that matter in real working situations.

All references below are to the 2019 Labor Code of Vietnam (Law No. 45/2019/QH14) unless stated otherwise.

Estimated reading time: 7 minutes

Under Article 13, a labor contract exists whenever there is paid work under the management or supervision of an employer, regardless of the label used. This means that informal arrangements or “service agreements” may still be treated as labor contracts in practice.

Article 14 requires labor contracts to be made in writing, with limited exceptions. For foreign workers, written contracts are effectively mandatory, as they are required for work permits, visas, and compliance checks.

Article 20 prohibits employers from requiring employees to perform work outside the agreed contract type or scope without proper amendment. This becomes relevant when job duties slowly expand over time.

Probation is governed by Article 25. Probation periods are limited as follows:

Probation may only be applied once for each job. During probation, wages must be at least 85 percent of the agreed salary.

Article 21 requires labor contracts to clearly state job title, duties, and working conditions. These details matter because they form the legal basis for evaluating compliance.

For foreign workers, Article 151 establishes that employment must comply with Vietnamese law and relevant permits. While work permits are governed primarily by Decree 152/2020/ND-CP, labor contracts must still align with the approved role.

A common issue arises when foreign employees are asked to take on duties not listed in their contract or permit, such as additional teaching subjects, administrative work, or assignments at multiple locations. Even when accepted informally, this can create compliance problems during inspections.

Article 34 lists lawful grounds for termination of a labor contract. These include contract expiry, mutual agreement, unilateral termination under legal conditions, and other specific cases.

Article 35 governs unilateral termination by employees. In most cases, employees must give advance notice:

Immediate resignation without notice is allowed only in specific situations, such as non-payment of wages or unsafe working conditions.

Article 36 governs unilateral termination by employers and imposes similarly strict conditions. Termination without proper grounds or notice may trigger compensation obligations.

For foreign workers, improper termination can also affect visa and work permit timelines, making notice periods particularly important.

Article 94 requires employers to pay wages directly, fully, and on time. Delays are permitted only in limited circumstances and may require compensation.

Article 95 requires employers to provide employees with clear information about wage calculation, including payslips or equivalent records. Foreign workers should understand what is being paid, what is being deducted, and why.

Personal income tax and social insurance obligations are governed by separate laws, but wage transparency under the Labor Code supports compliance in those systems.

Article 168 confirms that foreign workers working in Vietnam under labor contracts are subject to social insurance obligations in accordance with government regulations.

In practice, this means that many foreign employees are now required to contribute to social insurance, depending on contract type and duration, with certain exemptions. These requirements are implemented through separate decrees but anchored in the Labor Code.

Foreign workers should ensure they understand whether contributions apply to them and how these are reflected in their salary.

One consistent trend in recent years is more procedural enforcement. Authorities increasingly expect contracts, permits, and payroll records to align clearly with legal requirements.

While inspections may be infrequent, when they do occur, verbal agreements and informal practices carry little weight. Keeping copies of contracts, amendments, and payment records is a simple but effective safeguard.