Find your employer of record in Vietnam / Viet Nam

• Monthly allotment for meals (non-taxable).
• Transportation costs (to and from the office; such as train or bus fares, and regular gasoline) each month (taxable).
• Membership in a gym.
• Internet (taxable).

Before traveling to Vietnam to start work, most foreign nationals need to get a work permit. The Vietnamese work permit is a statutory document. It gives the holder permission to work for and be obtain payments by businesses there. Companies can hire an Employer of Record in Vietnam to provide their employees with the respective visa.

However, under some conditions, a visitor may operate in Vietnam without a permit but with a work permit waiver certificate. This document, which is up to two years old and serves as the foundation for requesting a temporary resident card, is equal to the work permit. 

In the region, the standard rate for the VAT is 10%. With an Employer of Record in Vietnam, businesses can abide by tax regulations.

Termination Process

Unless an employer can demonstrate sufficient justification for termination without notice, Vietnam's conventional termination procedure goes according to the standards of the Labour Law (due to misbehavior, etc.)

Written termination notice must be sent to the appropriate governmental authorities.

All workers have the following rights upon the end of the employment agreement:

• The remaining pay for the working days during that month.
• A severance payment when they quit their job due to the termination of their employment contract due to structural, technological, or economic changes; separation, division, convergence, or merger; lease, sale, or type conversion; transfer of ownership, or the right to use property; and have been working with the employer on a regular basis for at least one year.
• Any unused time off (pro-rata) is allowed.

Additionally, the employer must pay the remaining wage within 14 working days of the date the labor contract was over (Article 48 of the Labour Code 2019). Although this time frame may see an extention, it cannot go above 30 days.

If an employee demands copies of papers important to the performance of their job, the employer must pay the costs of duplicating and shipping those documents, as well as the fees associated with sending notices of termination to the appropriate government agencies.

Notice Period

Notice periods in Vietnam are typically around 30 and 45 days, but vary depending on the type of agreement:

• A seasonal contract is for three working days.
• 30 days for a permanent labor agreement (between 1-3 years).
• 45 days for a labor contract that is indefinite.

Severance Pay

Severance compensation is mandatory in Vietnam if applicable and is decided by the employee's contract conditions and duration of service.

For each year of service, statutory severance compensation is at 50.00% of the employee's regular monthly salary rate. Assume, however, that the compensation payment is being made because of shifts in the company's technology, structure, or economic factors. In that situation, the severance pay is one month's salary for every year of service.

Furthermore, if a person leaves their job before becoming eligible for a pension, they can obtain a severance payment. With an Employer of Record in Vietnam, companies can deal with these payments and more.

Probation Period

The probationary term in Vietnam for permanent employees typically ranges from 6 to 60 days and is depending on the intricacy and level of competence needed to perform the function. It must be agreed in writing that the employee's pay during the probationary term will not be under 85.00% of the full-time pay for the position.

Employees covered by seasonal labor agreements are exempt from probation.

Paid Time Offs

In Vietnam, paid leave is stated in the contractual relationship as a minimum of twelve days per year, plus any public holidays. For every 5 years of service that have been completed, this rises by one day.

Public Holidays

There are 13 national holidays throughout the year.

Vacation Holidays

There are 12 vacation holidays throughout the year.

Sick Days

Every employee is entitled to a maximum of 30 paid sick days annually, with the potential for an additional 60 days under special circumstances. The Social Insurance Authority covers sick time.

According on the salary earned in the month before to the absence due to illness, the social security fund calculates the sick pay at a rate of 75.00% of the monthly wage.

Within 48 hours of the initial day of illness, all employees are required to submit a medical certification.