Introduction
Vietnam’s employment landscape is shaped by a legal system designed to protect employees while preserving operational flexibility for employers. Employment relationships in Vietnam are governed by the 2019 Labour Code (the “Labour Code”) and its guiding regulations. The Labour Code provides a comprehensive and transparent legal framework defining the rights and obligations of both employers and employees, with the overarching goal of ensuring fairness, stability, and harmony in the workplace.
In comparison to certain other jurisdictions in the region, Vietnamese labour law provides a relatively high level of protection to employees. The Labour Code adopts a mandatory and employee-protective approach, whereby employers and employees may not agree on terms and conditions that are less favourable to the employees than the conditions prescribed in labour legislation. However, the parties remain free to agree on terms that are more favourable to employees.
At the same time, the Labour Code also recognizes the operational needs of employers by providing clear grounds and procedures for workforce management measures, including termination of employment, restructuring, disciplinary dismissal, and redundancy arrangements, all of which must be implemented in strict compliance with applicable statutory requirements.
