Vietnam
Vietnam, known for its stunning landscapes, rich history, and rapidly growing economy, offers great opportunities for businesses looking to expand internationally. TCWGlobal simplifies the process of hiring in Vietnam, offering comprehensive solutions for building your contingent workforce.
Fixed term contracts are permitted in Vietnam. There is a 3 year (36 month) maximum, but no minimum. It can only be renewed once. Both employer and employee must inform the other 30 days in advance of terminating a fixed-term contract. In some cases it may require longer notice.
Probationary periods are permitted in Vietnam. Only one probationary period is allowed, and the maximum amount is negotiated by the parties, based on the nature and complexity of the work to be performed ranging from a maximum of 30 days for skilled worker or technicians to up to 180 days for enterprise executive position. However, in some cases it may be less than 30 days. During the probationary period, either party can terminate the contract with without any notice or compensation, but justification is required. The worker’s salary during the probationary period can be equal to no less than 85% if agreed upon by the two parties.
Workers in Vietnam recognize 11 paid public holidays. If the holiday falls on the weekend, it is recognized on the next working day. Work performed on a public holiday is payable at 300%.2024:New Year's Day - January 1 Lunar New Year - February 9-15Hungs Kings Commemoration Day - April 18Reunification Day - April 30International Labour Day - May 1 Independence Day - September 3
Workers are entitled to 12 days of paid vacation per year. Workers who have worked less than 12 months are entitled to one day of vacation for each month of service. Workers are entitled to one additional vacation day per year for every 5 years of service. The worker can be allowed to carry over unused leave or required to use all leave during the year. Any unused leave is payable at termination.
Sick leave is payable by the government for 30 to 60 days depending upon length of service. A medical certificate is required within 48 hours from start of sick leave.
A standard workweek is 8 hours per day and 48 hours per week. Workers who work six consecutive hours a day are entitled to a paid rest break of at least 30 minutes. If night work is to be performed, it should be stated in the contract and limited to 8 hours per day to avoid premium payments. Paid rest breaks for working hours of 10:00 p.m. to 6:00 a.m. require at least 45 minutes. Workers are entitled to at least 24 hours of rest per week or 4 days per month.
Overtime is considered any hours worked above the standard workweek. It is payable at 150% if worked on a weekday or 200% if worked on a weekend. In all cases, overtime cannot exceed 12 hours per day, 40 hours per month, and 200 hours per year.
A 13th month payment is not mandatory in Vietnam, but it is customary to provide to workers at Lunar New Year.
Termination requires good cause and at least 45 days' written notice. If the Worker has been employed for more than 12 months, they may be entitled to severance. When due, severance must be at least 50% of the Worker's monthly wage (calculated based on gross earnings in the preceding six months) multiplied by the years of service.
Workers are required to observe the same notice requirements as employers.
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