10 Most Common staffing agency regulations vietnam 2026

Vietnam is becoming an attractive destination for foreign investors, especially from Japan, South Korea, and Europe. However, according to reports from the Ministry of Labour, Invalids and Social Affairs Inspectorate (MOLISA) and the Department of Occupational Safety, over 65% of FDI enterprises experience labor and occupational safety violations within the first 1-3 years of operation.

These labor dispatch law compliance vietnam often stem from differences in legal systems, management culture, interpretations of the law, or a lack of personnel knowledgeable about Vietnamese regulations.

I) Below are 10 of the most common staffing compliance risks for FDI, compiled from official sources and experience in supporting FDI enterprises in Vietnam.

1. Failure to Establish and Register Internal Labor Regulations

According to Vietnamese law, businesses with 10 or more employees are required to have written Internal Labor Regulations and register them with the Department of Internal Affairs.
Many FDI companies mistakenly believe that the parent company's internal regulations can be applied in Vietnam, leading to significant risks in case of disputes.
Consequences:

• Ineffective labor disciplinary procedures
• Increased risk of losing lawsuits
• Administrative penalties

Licensed staffing service requirements 2026 

2. Using Labor Contracts Incorrectly

Common mistakes:

• Failure to sign contracts on time
• Misuse of seasonal contracts
• Signing contracts in English without a Vietnamese translation
• Failure to inform employees of the contract type

According to the 2019 Labor Code, labor contracts must fully reflect the benefits, rights, and obligations of employees in Vietnam.

3. Violations of Working Hours and Overtime Calculation Regulations

Vietnam has very strict regulations on overtime:

• Maximum 40 hours/month
• Maximum 200 hours/year (some industries allow 300 hours)

Many businesses, accustomed to high overtime rates, easily violate these regulations:

• Incorrect calculation of overtime percentages
• Lack of written consent from employees
• Failure to provide compensatory leave after overtime

According to MOLISA, 46% of violations by FDI enterprises fall under the working hours and rest periods category.

4. Failure to conduct regular workplace dialogues

Licensed staffing service requirements:

• Businesses must conduct regular dialogues 1–4 times/year
• Establish a Dialogue Committee according to the correct structure

Many FDI enterprises do not organize dialogues due to misunderstanding the regulations → this is considered a violation of labor relations.

5. Failure to register salary scales or incorrect salary structure

Businesses must:

• Establish salary scales
• Publish them internally
• Maintain records according to prescribed forms

Incorrect basic salary, failure to categorize positions, or lack of appropriate allowances → leading to complaints, disputes, or retroactive collection of social insurance contributions. 

Labor dispatch law compliance vietnam

6. Violations of regulations on social insurance, health insurance, and unemployment insurance

Common violations:

• Incorrect calculation of social insurance contributions
• Failure to pay in full or late
• Failure to register employees for participation at the correct time

According to the Vietnam Social Insurance Agency, thousands of FDI enterprises are inspected and penalized each year.

7. Lack of Occupational Safety and Health (OSH) Records

FDI enterprises, especially in manufacturing, often lack:

• Risk assessment records
• Accident logbooks
• Periodic OSH reports
• Safety training records for each group of employees

According to the Department of Occupational Safety, OSH deficiencies are the leading cause of penalties in FDI manufacturing enterprises.

8. Failure to establish or improper cooperation with the grassroots trade union

Many FDI enterprises:

• Do not fully understand the rights and responsibilities of the trade union
• Fear “complications”
• Do not organize employee conferences

Vietnamese Trade Union Law clearly stipulates the responsibility of enterprises to cooperate.

9. Failure to submit labor reports on time

Including:

• Reports on workplace accidents
• Reports on labor utilization every 6 months and annually
• Reports on labor changes

Forgetting to submit reports is the most common mistake made by newly established FDI businesses.

10. Incorrect labor disciplinary procedures

Japanese businesses often apply shitsuke (Japanese-style internal discipline) but it is not legally compatible with Vietnam.
Errors include:

• Failure to create a violation report
• Failure to notify the Trade Union
• Failure to invite all relevant parties to disciplinary meetings
• Failure to provide evidence to prove the fault

Incorrect disciplinary action → invalid decisions, causing significant losses to the business in case of disputes.

II) Faro Vietnam offers comprehensive solutions to help businesses prevent and remedy problems: 

1.    Standardize all labor records and processes according to the law

• Develop, review, and register labor regulations in accordance with staffing agency regulations vietnam 2026
• Draft labor contracts suitable for each position and type of business
• Complete salary scales, temporary staffing legal framework on salary, bonuses, and allowances in accordance with the law

2.    Strictly control wages, overtime, and social insurance

• Review and adjust overtime calculation methods to ensure correct rates and limits on overtime hours
• Verify that social insurance, health insurance, and unemployment insurance contributions are paid to the correct subjects, at the correct rates, and at the correct time
• Prevent retroactive collection, penalties for late payments, and labor disputes

3.    Establish a systematic labor relations management system

• Organize and guide regular workplace dialogues
• Advise and support businesses in coordinating correctly Regulations with the Trade Union
• Establish transparent internal communication processes to reduce labor conflicts

4.    Complete occupational safety and health records and comply with mandatory reporting requirements

• Establish and review occupational safety and health (OSH) records
• Remind and submit periodic labor reports on time and in the correct format
• Reduce risks during inspections and audits by relevant authorities

5.    Advise and support in handling labor disciplinary actions according to proper procedures

• Develop labor dispatch advisory services that are legally sound and based on evidence
• Minimize the risk of losing lawsuits, compensation claims, and prolonged disputes

Faro Vietnam

• Email: service@farovietnam.com.vn

HANOI HEAD OFFICE

• Tel: + 84 24 3974 3091

HO CHI MINH CITY OFFICE

• Tel: + 84 28 3821 4654

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