In Vietnam, there are many factors to consider when hiring employees. Background checks, terms of employment, minimum wage, laws on discrimination, and harassment are just a few of the considerations. Employment relationships are currently regulated using the 2012 Labor Code but will be supplanted by a new code coming into effect on 1st January 2021. Employment Contract
Depending on the terms of the contract, employees can be divided into three categories:
Those who are working under open-ended, or more commonly known as indefinite-term employment contracts.
Those who are working under fixed, or more commonly known as definite-term employment contracts. These last for a duration of 36 months in total, renewable once for the same duration within 30 days of its expiry. Those who are working under seasonal or defined-job employment contracts. These last for a duration of fewer than 12 months.
According to the employment laws in Vietnam, all employers must abide by the minimum salary rules that are established by the government. This includes cooperatives, farms, households, enterprises, and anyone who is hiring employees based on employment contracts. Today, four regional minimum wages are followed in Vietnam. The lowest starts from VND 3,070,000 and goes up to VND 4,420,000 a month, based on which area the business is established. Trained workers are required to be paid 7% higher than the minimum salary. In Vietnam, there is no required method of paying salaries. This depends on the mutual agreement between the employer and the employee. However, salaries must be paid in a timely manner and in full.
In Vietnam, regular working hours cannot be more than eight hours a day. This means that no worker should work for more than 48 hours per week under usual working conditions. For those working in hazardous conditions that can impact their health and well-being, the maximum number of working hours must be six per day. However, based on the requirements of the employer, working hours can be decided on an hourly, weekly, or daily basis. In this case, working hours can go up to ten a day. However, the total number of hours per week should not be more than 48.
After childbirth, a female employee can take six months of maternity leave. However, in case she gives birth to more than one child at the same time, she is given an extra leave of one month, depending on how many children she has given birth to. During maternity leave, Vietnamese nationals who are working must receive their entire monthly salary. However, since 1st July 2019, the maximum wage has been limited to twenty times the minimum wage, making it VND 29.8 million.
If a male employee’s wife gives birth in a natural manner, he is entitled to take five days off from work. However, if she gives birth via cesarean, he can take up to seven days of leave from work. If the couple has twins and the wife gives birth naturally, he can avail ten days of paternity leave. If the wife has twins via cesarean, the male employee is entitled to take fourteen days off from work.
If you wish to know more about the latest changes in Vietnam’s labor laws, click here