Employment contract in Vietnam: Template, Key Clauses and Local Law (2026)

Employment contracts in Vietnam under the 2019 Labour Code Employment in Vietnam is governed by the Labour Code 2019 (Law No. 45/2019/QH14), which took effect on 1 January 2021 and replaced the 2012 Code. It sets out what an employment contract must contain, which contract types are allowed, how probation works, and how either side may end the relationship. A written contract is the norm, and for most roles it is required; the Code does recognise agreement by electronic means with the same validity as paper. ## The two contract types The 2019 Code recognises two types of labour contract. An indefinite-term contract fixes neither a duration nor an end date. A definite-term (fixed-term) contract fixes a term of up to 36 months. A key rule limits renewals: a fixed-term contract can generally be signed and then renewed only once more; if the employee keeps working after a second fixed term, the relationship is treated as indefinite (with narrow exceptions). The 2019 Code removed the old seasonal or specific-job contract category, folding short jobs into these two types. Choose the type deliberately, because the renewal limit converts repeated fixed terms into an indefinite relationship by operation of law. ## Mandatory contents A Vietnamese employment contract must include the core items the Code lists, including: the employer's name and the signatory; the employee's name, date of birth, sex, residence, and identification; the job and workplace; the contract term; the job duties; wage, form of payment, payment date, allowances, and other supplements; regimes for promotion and pay rises; working hours and rest periods; personal protective equipment; social insurance, health insurance, and unemployment insurance; and training. Missing any mandatory item is a compliance gap, so use a checklist against the current Code when drafting. ## Probation Probation is agreed by the parties and is subject to statutory caps by role. The Code allows up to 180 days for enterprise managers, up to 60 days for roles needing a college-level or higher qualification, up to 30 days for roles needing intermediate qualifications or technical workers, and up to 6 working days for other work. Only one probation period is allowed per job, and probation is not permitted for a contract shorter than one month. Probation pay must be agreed but cannot be lower than 85 percent of the full rate for the job. When probation ends the employer must notify the result; if satisfactory, the parties continue under the signed contract. During probation either side may end it without notice and without compensation. ## Working hours Normal working time is capped at 8 hours a day and 48 hours a week. Overtime is permitted within statutory limits and must be paid at premium rates set by the Code. Build the agreed hours, rest periods, and overtime approach into the contract. ## Termination Either party may end an employment contract, but the grounds and notice differ. An employee on an indefinite contract can resign by giving at least 45 days' notice; on a fixed-term contract of 12 to 36 months the notice is at least 30 days; on a shorter fixed term it is at least 3 working days. In defined cases (such as not being paid on time, mistreatment, or pregnancy-related health grounds) an employee may leave without notice. An employer may unilaterally terminate only on grounds the Code lists, which include repeated failure to perform, prolonged illness, force majeure, and the employee's prolonged unexplained absence (for example 5 consecutive working days without a legitimate reason), and must give the matching notice. On lawful termination the employer must settle all payments, generally within 14 working days, extendable in defined situations. ## Sample wording > This Contract is a definite-term labour contract for a term of twelve (12) months, from [start date] to [end date], and may be renewed once in accordance with the Labour Code. The Employee's job title is [role], based at [workplace]. > The Employee's gross monthly wage is [amount], paid on the [day] of each month by bank transfer, together with the allowances set out in Appendix 1. The Employer shall register and contribute social insurance, health insurance, and unemployment insurance as required by law. > The probation period is [number] days, during which the Employee's wage is [at least 85 percent of the full rate]. Either party may terminate during probation without prior notice and without compensation. Adapt these to the role and confirm figures against the current Code; they are a starting point, not legal advice. ## Red flags to avoid Watch for a third consecutive fixed-term contract, which the Code generally does not allow and which converts the relationship to indefinite. Watch for probation that exceeds the cap for the role or is applied twice to the same job, which can draw administrative penalties. Watch for a contract missing a mandatory content item, or a probation wage below 85 percent. And watch for employer termination on a ground the Code does not list, which is unlawful and exposes the company to reinstatement and compensation. ## Social insurance and severance allowance Beyond the contract itself, a Vietnamese employer must register and contribute to compulsory social insurance, health insurance, and unemployment insurance for eligible employees, and these are a material part of the real cost of hiring. On lawful termination that is not for the employee's fault, a severance or job-loss allowance can be due based on length of service, calculated under the Code and net of the periods already covered by unemployment insurance. Build these obligations into your planning from the start, because they are statutory and cannot be contracted away, and a contract that ignores them creates a liability the company carries whether or not it is written down. ## Keeping the workforce contracts straight A growing company in Vietnam quickly holds many employment contracts at different stages: some on first fixed terms, some due for their single renewal, some tipping into indefinite status, each with its own probation end date and notice clock. The real difficulty is not drafting one contract but tracking the whole set so that no renewal deadline is missed and no fixed term silently converts by accident. That is the idea behind a single contract workspace. Adira brings drafting, a per-clause view, version history, and key-date tracking into one place, tuned to how your company contracts, so renewal dates and obligations are visible rather than buried in files. Adira is India-first today, with other jurisdictions on its roadmap, so Vietnam-specific depth should be treated as developing, and local filings and insurance registration confirmed with Vietnamese counsel. This article is general information, not legal advice. For a specific employment contract in Vietnam, confirm the current Labour Code requirements and your wording with a qualified Vietnamese lawyer.