Human resources and labor management in Vietnam currently plays a pivotal role in the sustainable development of enterprises. Compliance with labor laws, proper drafting of labor contracts, and adherence to correct procedures when disputes arise are mandatory requirements. To safeguard the legitimate rights and interests of both employees and employers, seeking legal advice from qualified lawyers is a necessary and effective solution.

I. Overview of human resources and labor management in Vietnam in the current period

Human resources and labor management in Vietnam has become increasingly professional and legally oriented, in response to the rapid development of the economy. HR management not only covers recruitment, training, and performance evaluation, but also ensures compliance with labor regulations relating to working hours, wages and bonuses, social insurance, and occupational safety.

In practice, many enterprises encounter difficulties in properly drafting labor contracts, handling dismissals and compensation, or resolving disputes arising from internal violations. Therefore, a thorough understanding of labor law regulations is essential to protect the interests of both employees and employers.

1. Concept of human resources and labor management in Vietnam

Human resources and labor management in Vietnam refers to the process of organizing, administering, and supervising activities related to employees within an enterprise in order to achieve efficient and sustainable business objectives. HR management includes recruitment, execution of labor contracts, work assignment, training, performance evaluation, salary payment, rewards and disciplinary measures, insurance arrangements, and termination of labor contracts.

Such a process must comply with the provisions of the Vietnamese Labor Code and relevant legal instruments to ensure the lawful rights and interests of both employees and employers.

2. Practical example of issues related to human resources and labor management in Vietnam

A garment company in Binh Duong unilaterally terminated labor contracts with a large number of workers due to “staff reduction” but failed to provide the statutory 30-day prior notice as required by the Labor Code. The employees were neither compensated nor assisted in job placement. Subsequently, many workers filed complaints with the Department of Labor, War Invalids and Social Affairs and requested dispute resolution. Such a case highlights the importance of complying with lawful dismissal procedures and properly protecting employees’ rights.

3. Prohibited acts in human resources and labor management under Vietnamese law

Pursuant to Article 8 of the Labor Code 2019, the following acts are strictly prohibited:

  • Discrimination in labor.
  • Ill-treatment of employees or forced labor.
  • Sexual harassment in the workplace.
  • Abuse of vocational training or apprenticeship activities for profiteering, labor exploitation, or inducing learners into unlawful activities.
  • Employing workers who have not been trained or who do not possess national occupational skill certificates for jobs requiring trained labor or such certificates.
  • Deceiving or recruiting employees through fraudulent promises or other means for the purpose of human trafficking, exploitation, forced labor, or abuse of employment services or overseas employment activities.
  • Illegal employment of underage workers.

Accordingly, employers are strictly prohibited from engaging in any of the above acts. These principles serve as a fundamental legal basis to protect employees’ rights and maintain a safe and healthy working environment.

III. Legal regulations relating to human resources and labor management in Vietnam

1. Main regulations to be noted in human resources and labor management

Pursuant to the Labor Code 2019, the following are major labor law provisions that employees should be aware of: 

  • Employers are prohibited from retaining originals of employees’ personal identification documents (Clause 1, Article 17).
  • Each job may be subject to probation only once. The probation period depends on the nature of the job (Article 25):
    + Up to 180 days for enterprise managers;
    + Up to 60 days for jobs requiring college-level qualifications or higher;
    + Up to 30 days for jobs requiring intermediate qualifications, skilled workers, or professional staff;
    + Up to 6 working days for other jobs.
  • Probationary salary must be at least 85% of the official salary (Article 26).
  • Employers must notify employees of probation results upon expiration of the probation period (Article 27).
  • Employees may terminate employment at any time during probation without compensation (Article 27).
  • Wages must be paid in full and on time. If payment is delayed by more than 15 days, interest must be paid based on bank interest rates (Article 94 and Clause 4, Article 97).
  • Overtime, night work, and work on holidays and public holidays must be paid as follows (Article 98):
    + At least 150% for overtime on normal working days;
    + At least 200% on weekly rest days;
    + At least 300% on public holidays, exclusive of holiday wages.
    + Night work entitles employees to an additional payment of at least 30% of the normal wage.
  • Employees are entitled to 11 public holidays and 12 days of annual leave with full pay (Articles 112 and 113).
  • Employers may not impose fines or deduct wages as disciplinary measures (Clause 2, Article 127).
  • Female employees are entitled to a 30-minute break during menstruation and a 60-minute break per working day if nursing a child under 12 months (Clause 4, Article 137).
  • Female employees are entitled to maternity leave of six months, with prenatal leave not exceeding two months (Article 139).
  • Labor contracts may be temporarily suspended in certain cases (Clause 1, Article 30), including military service, detention, compulsory rehabilitation, pregnancy, appointment to state-owned enterprise management positions, or other agreed circumstances.
  • Employees may resign if wages are unpaid in full or if they are sexually harassed (Clause 2, Article 35).
  • Employers must complete and return social insurance records upon termination of employment (Clause 3, Article 48 and Article 13 of the Law on Social Insurance 2024).
  • Employees are entitled to severance allowance upon termination (Clause 1, Article 46).

These provisions constitute an important legal framework for ensuring lawful and transparent labor relations.

2. Requirements regarding the form of labor contracts

Pursuant to Article 14 of the Labor Code 2019:

  • Labor contracts must be made in writing in two copies, one for each party;
  • Electronic labor contracts concluded via data messages have the same legal validity as written contracts;
  • Verbal labor contracts are permitted only for contracts with a term of less than one month and are not applicable to seasonal work, underage workers, or domestic workers.

Compliance with the prescribed form of labor contracts is mandatory to ensure legal validity and protection of the parties’ rights.

3. Main considerations when implementing employee dismissal procedures

When dismissing employees, HR managers must observe the following:

  • Lawful grounds for dismissal under Article 125 of the Labor Code;
  • Collection of evidence and preparation of violation records under Decree 145/2020/ND-CP;
  • Organization of disciplinary meetings with proper notice and participation;
  • Issuance of dismissal decisions within the statutory time limits;
  • Compliance with notice periods depending on contract type;
  • Full settlement of wages, allowances, unused leave, and return of social insurance records;
  • Prohibition of dismissal during protected periods such as illness, maternity leave, or childcare for children under 12 months.

IV. Questions regarding human resources and labor management in Vietnam

1. Employer obligations in the event of a workplace accident

Employers must provide first aid, cover medical expenses, report and document the accident, compensate or provide allowances depending on injury severity, arrange suitable work post-treatment, and submit required documents for social insurance benefits.

2. Protection of employees’ rights under labor contracts

Employees’ rights are comprehensively protected with respect to employment freedom, wages, working conditions, insurance, representative organizations, occupational safety, and lawful termination or strike actions.

3. Employees’ right to file complaints or denunciations

Employees may file internal complaints, complaints with competent state authorities, request labor mediation, or initiate court proceedings within statutory time to protect their lawful rights.

4. Procedures for labor dispute resolution in Vietnam

Labor disputes are resolved through labor mediators, labor arbitration councils, or the People’s Courts, depending on the nature of the dispute, with specific time limits and procedural requirements prescribed by law.

5. Employer’s rights when employees violate internal regulations

Employers may apply disciplinary measures based on duly registered internal regulations, provided that evidence is collected, proper procedures are followed, lawful forms of discipline are applied, and employees’ rights are not infringed.

V. Should enterprises seek legal counsel for human resources and labor management in Vietnam?

Given the complexity and frequent changes in labor legislation, engaging legal counsel is essential to ensure compliance, minimize legal risks, and effectively manage labor relations. NPLaw lawyers can assist with drafting internal regulations, labor contracts, handling violations, and resolving disputes in a lawful and efficient manner.