Vietnam Contract Rule: 30 DaysVietnam Contract Rule: 30 Days
Compliance

Vietnam Contract Rule: 30 Days

Vietnam Contract Rule: 30 Days


Hiring in Vietnam is not just about finding the right talent, it also requires careful attention to contract management.


One of the most overlooked aspects is what happens when a fixed-term contract expires.


Under Vietnam’s labor framework, if an employee continues working after their contract ends, both parties are expected to sign a new agreement within 30 days. During this period, the terms of the expired contract still apply.


However, if no new contract is signed after those 30 days, the situation changes.


The employment relationship may automatically be treated as an indefinite-term contract, even if that was not the original intention.


Why This Matters


At first glance, this may seem like a small administrative detail. In practice, it can significantly affect how companies manage their workforce.


Indefinite-term contracts come with different legal obligations, particularly when it comes to termination. Employers may face stricter requirements, longer notice periods, and higher potential costs.


For companies that rely on fixed-term contracts for flexibility, this automatic conversion can create unexpected long-term commitments.


A Common Oversight


Many companies assume that fixed-term contracts can simply be extended multiple times without issue. In reality, Vietnam’s labor regulations are more structured.


A fixed-term contract can only be renewed once. If the employee continues working beyond that, an indefinite-term contract is typically required.


Without proper tracking and timely action, it is easy for companies to unintentionally shift into a different contractual arrangement.


Planning Ahead


Managing contract timelines is not just a legal requirement, it is part of effective workforce planning.


Having clear visibility on contract expiry dates and renewal limits can help companies avoid unnecessary risk and maintain greater control over their hiring strategy.

Need Help Navigating Global Employment?

Remoly provides EOR and global payroll services covering 100+ countries.
Our global employment experts offer real-time compliance support and localized solutions.

Contact Us for a Free Consultation

Remoly — Your Global EOR & Employer of Record Partner

Serving 100+ Countries & Regions Worldwide

* This article is for informational purposes only and does not constitute legal advice. For specific compliance guidance, consult a qualified professional.

Related Articles

Compliance
Taiwan’s Next Step: The Proposed Two-Year Digital Nomad Visa and Residency Fast Track
Read More
Compliance
Ultimate Guide to Healthcare in Spain: Public vs. Private Options Explained
Read More
Compliance
Are Employers of Record in Singapore Allowed to Apply for Work Passes?
Read More