5 Things To Consider When Employing Labor In Vietnam


Decreasing salary, keeping official copies of personal documents, transferring employees to a different job, etc., are some of the acts of violation enterprises often commit during the course of employing staff.

(1) Probation

In the event where there is an agreement on probation period between the enterprise and an employee, such agreement may be made into a probationary contract.

A probation period of no more than 60 days will apply to jobs with professional titles requiring academic or technical qualifications at the level of junior college or higher. On the contrary, the trial period for positions demanding academic or technical qualifications at the level of vocational or professional secondary school and positions of technical worker or professional staff member must not exceed 30 days. 

As prescribed in the Labor Code, probation period can only apply once to one job and enterprises are not permitted to lengthen such period even when the employee requests. It is also necessary to know that in an older provision of laws, enterprises were required to hold responsibility for announcing the results of the trial period to the employee when such period expired; in the event where the employee kept working without receiving any notifications, he/she would be, undoubtedly, considered official staff. However, as such provision became abolished, current labor laws only generally stipulate, without detailed instructions, that the employer must enter into labor contract with the employee once his/her performance during probation period is deemed satisfactory. Therefore, it is essential for enterprises to pay special attention to their mechanism on qualified trial period determination when signing probationary contracts with employees. In addition, the requirements of a qualified trial period should be openly discussed with employees to guarantee transparency and objectiveness, also to prevent any conflicts that might arise when the employees fail to meet the requirements set by the enterprise.

(2) Labor regulations

Enterprises with more than 10 employees must have their regulations in writing registered at provincial state labor-management authorities. Labor regulations must be notified to employees and the fundamental contents must be displayed where necessary at the workplace. However in reality, PLF has become aware of the fact that plenty of enterprises tend to forget to notify their employees of the labor regulations after registering them with competent authorities. Consequently, it becomes rather difficult for enterprises to apply them to disciplinary punishment for employees’ violation of labor regulations; because without any dissemination held by the enterprise, it is impossible for the employees to correctly comply with the labor regulations.   

(3) Transferring employees to another job different from the labor contract

Enterprises are permitted to temporarily transfer employees to work at a different job from the labor contract in a number of cases prescribed by laws for no more than 60 cumulative working days in a year. In addition, the employees must be notified of such change at least 03 working days.

If the wages of the previous job is higher than that of the current job, the former wages must remain unchanged for 30 working days. Furthermore, the new job’s salary must be at least 85% of the old job’s but not lower than the regional minimum wages stipulated by the Government.   

(4) Decreasing salary

Enterprises are not entitled to applying financial penalty or salary decrease in lieu of disciplinary punishment to breach of labor regulations.

In case where employees happen to break tools and equipment or negligently commit other acts causing the enterprise to experience a not too severe material loss, which costs no more than 10 months of regional minimum wage, the enterprise has the right to deduct salaries of such employees for damages. The maximum compensation is 3 months’ wages and a deduction of no more than 30% of monthly salary after income tax and social, medical, and unemployment insurance are remitted.

(5) Keeping official copies of documents

During the course of entering into and implementing labor contracts, enterprises must not keep any official copies of employees’ personal documents, qualifications and certificates.

PLF Law Firm 

Share on facebook
Share on twitter
Share on linkedin
We'd love to meet you and let you the perfect solution