Understanding Working Hours and Employment Contracts in Vietnam

Standard Working Hours and Overtime Regulations

Vietnam's labor landscape is governed by the Labor Code, which sets clear guidelines for working hours and overtime. The standard workweek runs from Monday to Friday, with eight hours per day. Employees are entitled to one rest day per week, though many businesses operate on a six-day schedule, totaling 48 hours weekly. Breaks are mandatory: at least 30 minutes after six hours of work, or 45 minutes for night shifts. Shift workers must have a 12-hour break between shifts.

Overtime Compensation

Overtime requires mutual agreement and is capped at 50% of daily standard hours, not exceeding four hours daily or 20 hours weekly. With consent, this can extend to eight hours daily or 40 hours weekly, but monthly and annual limits are 60 hours and 300 hours, respectively. Overtime pay rates vary:

Weekdays: At least 150% of normal wage
Weekends: At least 200%
Public holidays/paid leave: At least 300%
Night work (10 PM–6 AM): Extra 30% on base wage
Night overtime: Additional 20% on overtime rate

Employment Contract Essentials

Written employment contracts are mandatory in Vietnam, detailing terms that meet legal standards. Contracts should be bilingual (Vietnamese and English), with salaries in VND. Key inclusions are employer/employee details, job role, contract duration, salary, benefits, working hours, and social insurance. Contracts must avoid unfair practices like withholding documents or demanding deposits.

Vietnam recognizes two contract types:

Indefinite-term contracts: No set end date
Fixed-term contracts: Valid for up to 36 months; renewal rules apply, with conversions to indefinite terms after two consecutive fixed-term contracts

Probation Period Guidelines

Probation is optional, lasting 6–180 days based on role complexity. Probationary pay must be at least 85% of the agreed wage. Post-probation, employers must notify employees of outcomes, leading to formal employment or termination without notice obligations.

Vietnam Labor Law: Working Hours, Contracts, and Probation Rules