Do foreign employees need a work permit in Vietnam?

Yes, with limited exceptions. Foreign employees must obtain a work permit before starting work in Vietnam. Exceptions exist for specific categories — foreign experts on internal transfers within the same group, certain managerial roles in FIEs they own, and others — but the default requirement applies. Employers face penalties for employing foreigners without valid permits, and the foreign employee may face deportation. I review work-permit eligibility as a first step in every foreign-hire engagement.

Can a foreign employer terminate Vietnamese employees at will?

No. Vietnamese law restricts termination to specific statutory grounds: serious misconduct, prolonged inability to perform duties, employee redundancy due to restructuring or technological change, force majeure, and a few others. Procedural requirements (written notice, sometimes consultation with the trade union, severance calculation) accompany substantive grounds. At-will employment is not recognised, and even probationary terminations require compliance with the Labour Code's probation provisions.

What severance is owed when an employee leaves?

Severance allowance: half a month's average salary per year of service for employees who have completed at least 12 months and whose employment ends in covered circumstances (most ordinary terminations, expiry of definite-term contracts, mutual agreement, etc.). Job-loss allowance: one month's average salary per year of service (minimum two months) for redundancy due to restructuring or technological change. There are also unused-leave payouts, deferred bonuses, and notice-pay-in-lieu where applicable. I calculate these precisely in each case.

What is the role of the workplace trade union in termination?

Where a workplace trade union exists, employers must consult the union (typically requesting written opinion within prescribed time) before terminating union officers, and in some cases before terminations for misconduct. Failure to consult is a procedural defect that can invalidate the termination. Where no formal union exists, consultation may be required with the workforce representative. I advise on the precise requirements for each company's structure.

How long do labour disputes take in Vietnam?

Mandatory conciliation at the District People's Committee typically takes 1-3 months. If conciliation fails, the matter proceeds to either the Labour Arbitration Council (typically 6-12 months) or the People's Court (typically 6-18 months at first instance). Many matters settle in conciliation, particularly when the employer's procedural compliance is robust and the negotiation is well-prepared.

Can I sue my Vietnamese employer for wrongful termination as a foreign employee?

Yes. Foreign employees have the same rights to challenge wrongful termination as Vietnamese employees, and the same remedies (reinstatement plus back pay, or damages). The procedural path is identical: conciliation, then court. Practical considerations — your work permit may have been cancelled with the termination, your visa may be running out, you may need to leave Vietnam — make speed important, and I can usually advance a claim from outside the country once the framework is in place.

Practice Area · Labor & Employment

Labor & Employment

Employment disputes, work permits, termination procedures, and labour-law compliance — for foreign employers operating in Vietnam and foreign employees working there.

The Challenge

What Foreign Clients Face

PAIN POINT 01

Termination is procedure-heavy

Vietnamese law requires statutory grounds, prescribed notice, sometimes union consultation, and severance calculations done correctly. Procedural errors invalidate substantively valid terminations.

PAIN POINT 02

Work permits tie employees to employers

Foreign employees' right to work in Vietnam depends on a permit issued for a specific employer and position. Disputes can have immigration consequences that compound the labour issue.

PAIN POINT 03

Disputes follow a tiered process

Conciliation, arbitration, and litigation each apply to different dispute types. Filing in the wrong forum wastes months and can prejudice the substantive case.

About this practice

Labor & Employment in Vietnam

Vietnam's Labour Code is one of the most pro-employee statutes in Southeast Asia. Termination is heavily regulated; severance is mandatory; collective dispute mechanisms are formalised; and the procedural requirements that surround the employment relationship — from contract through dismissal — are stricter than many foreign employers initially appreciate. Compliance is not optional, and the cost of errors compounds quickly.

I represent both sides of the employment relationship: foreign-invested employers managing their Vietnamese workforce, and foreign individuals employed in Vietnam who face workplace disputes or issues with work permits. The technical work is similar; the perspective and strategy differ. For employers, my role is preventive — building compliant employment frameworks and handling difficult terminations cleanly. For employees, my role is protective — ensuring that contracts, terminations, and work-permit issues respect rights granted under Vietnamese law and bilateral treaty.

A foreign employer's typical journey through Vietnamese employment law is straightforward at hiring (with attention to work permits for foreign hires), demanding during ongoing operations (compliance with the Labour Code, social insurance, and trade-union obligations), and most fraught at exit. Termination procedure is where most foreign-employer disputes arise — and where most employer losses occur.

Why it matters

Why expert local counsel matters here

The 2019 Labour Code (effective 2021) made several pro-employee adjustments and tightened termination grounds. Where many foreign employers come from at-will or near-at-will systems, Vietnamese law requires specific statutory grounds for termination, written notice in prescribed form, and (in many cases) consultation with the company's trade union or worker representative. Failure to follow procedure — even where the substantive ground is sound — typically results in the termination being declared unlawful, with reinstatement plus back pay as the employee's preferred remedy.

Equally, foreign employees working in Vietnam need a valid work permit (with limited statutory exceptions). The work permit is tied to a specific employer and position, and changes require formal amendments. Disputes over work permits — whether at issuance, renewal, or termination — can have immigration consequences that extend well beyond the immediate employer relationship. I work closely with our network of immigration specialists where a labour matter has work-permit implications.

Most labour disputes in Vietnam follow a tiered procedure: internal negotiation, then conciliation through the labour conciliator at the District People's Committee, then either arbitration through the Labour Arbitration Council or litigation at the People's Court. The right forum depends on the type of dispute. Knowing which fork to take, and when, often determines outcome more than the substance of the underlying grievance.

Key Vietnamese Laws

Labour Code 2019 (Law 45/2019/QH14): The foundational statute governing all employment relationships — formation, term, performance, discipline, termination, and dispute resolution.
Decree 145/2020 on Labour Code Implementation: Detailed implementing regulations on contract types, working hours, leave, compensation, severance, and enforcement.
Decree 152/2020 on Foreign Workers: Work-permit procedures for foreign nationals employed in Vietnam — eligibility, application, renewal, and exemptions.
Law on Social Insurance 2014 (Law 58/2014/QH13): Mandatory social, health, and unemployment insurance contributions — for both Vietnamese and (since 2018) foreign employees.
Trade Union Law 2012 (Law 12/2012/QH13): Trade-union formation, recognition, and the role of the workplace trade union in disciplinary and termination procedures.

Who I Help

Built for International Clients

My practice is structured around the specific needs of clients who are new to — or unfamiliar with — Vietnam's legal system.

Foreign-Invested Employers

FIEs and foreign-owned operations managing a Vietnamese workforce — drafting contracts, handling discipline and terminations, and defending labour claims.

Employment-contract templates and updates
Disciplinary and termination procedures
Labour-dispute defence
Restructuring and redundancy programmes

Foreign Employees

Foreign nationals employed in Vietnam facing wrongful-termination claims, work-permit issues, compensation disputes, or discrimination concerns.

Wrongful-termination claims
Severance and compensation disputes
Work-permit renewal and disputes
Cross-border employment matters

HR and Compliance Functions

In-house HR teams at FIEs needing on-call Vietnamese employment counsel for difficult cases, audit support, and policy development.

Employment-policy review
Internal investigations
Compliance audits
Training on Vietnamese employment law

Detailed Services

What I Handle in This Practice Area

For employers

Definite-term and indefinite-term contracts, probationary contracts, and contracts for foreign employees — drafted to be enforceable, compliant with the Labour Code, and aligned with the company's commercial interests.

For employees

How We Work

A Clear Process from Day One

No surprises, no hidden steps. Here's exactly what happens after you reach out.

Initial review

Confidential review of the employment situation, the contract, and the relevant Labour Code provisions. Written assessment within 5 business days.

1 week

Pre-dispute strategy

Drafting written notices, conducting investigations, preparing for consultation with worker representatives, or preparing the employee's formal grievance.

2-4 weeks

Conciliation or filing

Mandatory conciliation at the District People's Committee, followed by Labour Arbitration Council or court filing as appropriate. Most matters resolve in conciliation if well-prepared.

1-6 months

Final outcome

Settlement, arbitration award, or court judgment — with implementation including severance payment, reinstatement, work-permit changes, and any required regulatory filings.

1-3 months

Featured Case

LaborJapan$200K

Employment Termination Dispute for Japanese Manufacturer

Outcome

“Confidential settlement at favourable terms for the employer. No other employees pursued similar claims, and the company implemented improved HR procedures based on our recommendations.”

Read Full Case Study

Common Questions

Frequently Asked Questions

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Labor & Employment in Vietnam