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Vietnam working contracts types

Last activity 23 April 2021 by Irasshaimase

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Irasshaimase

I have some questions on the types of working contracts in Vietnam.
I will soon receive an offer from a Vietnamese company, and I'd like to understand better some points before accepting it.

- 1 Type of contracts -
I understand (google helped me) there are three main type:
•    An indefinite term contract
•    A definite term contract of 12 to 36 months
•    A seasonal or fixed term contract of less than 12 months
I will be in the first category.
The point is: are there some other sub-level types of contract?
For instance, in some countries there are different types of contract whether one does a technical job or an executive one, with different rights and duties.

- 2 Probationary Period –
A probationary period is common in most countries but if I understood correctly here in Vietnam during this trial period only 85% of the salary is received.
Is this correct? Will then the rest 15% given once one is successful?

- 3 Bonuses –
As per my (future) contract a 13° month payment is forecasted.
Will I received it only if I conducted a whole year within the company or it will be calculated on how many months I’ve worked?
For instance if I worked for 6 full months then I would receive a 13° month installment which is only half of the others.


If I made some grammar mistakes please forgive me as English is not my mother tongue.
Thanks in advance for any information.

Ciambella

Don't have time to answer all three questions, so here's a short reply for the last two:

- Salary received during probationary period is not a portion of the contractual salary but the full probationary salary.  What that means is if you receive 85% of your contractual salary, that's all you get.  The employer doesn't owe you the other 15% to be paid later. 

- The 13th month salary is a common practice but it's not required by law.  If you work at the company for less than 12 months, it's up to the employer to pay you the amount he deems fit. 

It's strongly suggested that employer and employee should come to an agreement on all issues of salary and the agreement should be written into the contract before the job begins.

Irasshaimase

Thank you Ciambella for your feedback. Very clear.

Karen Huynh

Irasshaimase wrote:

I have some questions on the types of working contracts in Vietnam.
I will soon receive an offer from a Vietnamese company, and I'd like to understand better some points before accepting it.

- 1 Type of contracts -
I understand (google helped me) there are three main type:
•    An indefinite term contract
•    A definite term contract of 12 to 36 months
•    A seasonal or fixed term contract of less than 12 months
I will be in the first category.
The point is: are there some other sub-level types of contract?
For instance, in some countries there are different types of contract whether one does a technical job or an executive one, with different rights and duties.

- 2 Probationary Period –
A probationary period is common in most countries but if I understood correctly here in Vietnam during this trial period only 85% of the salary is received.
Is this correct? Will then the rest 15% given once one is successful?

- 3 Bonuses –
As per my (future) contract a 13° month payment is forecasted.
Will I received it only if I conducted a whole year within the company or it will be calculated on how many months I’ve worked?
For instance if I worked for 6 full months then I would receive a 13° month installment which is only half of the others.


If I made some grammar mistakes please forgive me as English is not my mother tongue.
Thanks in advance for any information.


Hi,

Here is rough information on your 03 questions:
1. Type of contract: as per new law, there are 2 contract types of (i) indefinite term contract and (ii) definite term contract of not exceeding 36 months.
Assume you are a foreigner working in Vietnam. In this case, you would need a work permit prior to enter into a labor contract where the term of such labor contract must not exceed the duration of the work permit granted to you. It is therefore an indefinite labor contract would not be appropriate in this case.
2. Salary in probation period: it shall be agreed upon between the employer and employee but at least equal to 85% of the salary received under the labor contract signed after successfull trial. This means the salary during the probation period may be  from 85% to full salary as agreed upon by the parties.
3. Bonuses: bonus is not required by law therefore it shall be depending on the agreement under the labour contract. Therefore, the payment of 13th month salary would be in accordance with the terms and conditions under yr labor contract.

Irasshaimase

Thank you Karen for your post.

Anything else I should be particularly aware before signing (other than reading the whole contract)?
Also are you aware if there are different types of contract depending on whether one does a technical job or an executive one, with different rights and duties?

Irasshaimase

Also I take the opportunity to ask what do you all think about the work/life balance in Hanoi.
(if needed I'll open a new post but I didn't want to spam)

I'm sure everything depends on the single company but anyway what is the overall working culture? Are people who work in Hanoi used to work a lot of overtime or not?

Thanks

Karen Huynh

Irasshaimase wrote:

Thank you Karen for your post.

Anything else I should be particularly aware before signing (other than reading the whole contract)?
Also are you aware if there are different types of contract depending on whether one does a technical job or an executive one, with different rights and duties?


It is recommended you to read the whole contract for sure before signing. Basically, it should depend on the employee position in the company as well as the company industry to vary the employee's rights and duties under the labor contract.

Irasshaimase wrote:

Also I take the opportunity to ask what do you all think about the work/life balance in Hanoi.
(if needed I'll open a new post but I didn't want to spam)

I'm sure everything depends on the single company but anyway what is the overall working culture? Are people who work in Hanoi used to work a lot of overtime or not?

Thanks


I am living in HCMC and not very sure about work/life balance in Hanoi but think that overtime working may be the company's culture rather than people's :).

Irasshaimase

Karen Huynh wrote:

I am living in HCMC and not very sure about work/life balance in Hanoi but think that overtime working may be the company's culture rather than people's :).


What is your personal experience? Do you work a lot of overtime or not?
I would like to understand Vietnamese culture better :)

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