Employment Contracts

Vietnam’s dynamic labor market and growing foreign investment have increased the demand for clear and compliant employment agreements. For foreign companies operating in Vietnam, understanding the legal framework governing employment contracts is essential to avoid disputes and ensure smooth business operations.

1. Types of Employment Contracts in Vietnam

a. Indefinite-term Contracts
These contracts have no fixed end date and are typically used for long-term employment. They offer stability for employees and may require formal termination procedures in accordance with Vietnamese labor law.

b. Definite-term Contracts
Definite-term contracts are signed for a specific duration, usually up to 36 months. These are suitable for project-based work or temporary positions. Employers must comply with renewal limits to avoid unintentional conversion into an indefinite-term contract.

Short-term work and contract classification: A short assignment should be classified under the current Labour Code rather than an obsolete seasonal-contract category. Foreign employees may have additional contract-duration and work-authorization conditions. Review the actual relationship and required written terms before choosing the contract form.

2. Key Requirements of Employment Contracts

Employment contracts in Vietnam must comply with the Labor Code 2019 and include:

• Names of the employer and employee, and their addresses

• Job title, description, and place of work

• Terms of employment (type, duration, and working hours)

• Remuneration and benefits

• Rights and obligations of both parties

• Conditions for termination and notice periods

Properly drafted contracts help prevent misunderstandings and labor disputes, especially in cross-border employment scenarios.

3. Common Challenges for Foreign Employers

Foreign companies often face challenges such as:

• Understanding local labor regulations and compliance requirements

• Language barriers in drafting contracts and communicating terms

• Handling probation periods, termination, and severance obligations

• Managing labor disputes and claims before the labor authorities or courts

4. Jurion & Partners’ Employment Contract Services

At Jurion & Partners, we provide comprehensive legal services to assist foreign companies in drafting, reviewing, and managing employment contracts in Vietnam.

Our services include:

• Drafting employment contracts that comply with Vietnamese labor law

• Reviewing existing contracts to identify and mitigate risks

• Advising on employee benefits, probation, and termination procedures

• Assisting in labor dispute resolution, negotiation, and litigation

• Reviewing confidentiality, intellectual-property and proposed non-compete terms for their legal basis, scope and enforceability in the particular arrangement.

>> View more: Terminating Labor Contracts with Foreign Workers in Vietnam

>> View more: Lawyer Advise On International Sales Contract Disputes