Easily manage employment in Vietnam

In Vietnam, employers can legally terminate employees for poor performance, long-term illness, serious misconduct, or business restructuring. Retrenchments require a labor usage plan, consultation with employee representatives, and at least 30 days’ notice to staff and provincial authorities. Misconduct-related dismissals (e.g., theft, violence, harassment) are also allowed. Employees with over 12 months’ service may qualify for a job loss allowance unless covered by unemployment insurance. Wrongful termination can lead to reinstatement and compensation obligations.

Employers must provide prior notice three days in advance for employees bound by seasonal contracts (i.e., contracts lasting less than a year); 30 days for indefinite labor contracts (i.e., contracts lasting between one to three years); or 45 days for indefinite labor contracts.

Employees are entitled to a severance package equivalent to half month’s wages for every year worked if they are terminated under valid grounds except for misconduct of the employee or other circumstances stipulated under law.

Probation periods in Vietnam are not mandatory and can last anywhere from six to 60 days, depending on the skill level required for the position. Employees must be paid at least 85% of their normal wages during the probation period and should be notified of the probation outcome at least three days before the test period ends.