Fixed-term contract regulations vietnam 2026

A labor contract is an agreement between an employee and an employer regarding paid work, wages, working conditions, and the rights and obligations of each party in the employment relationship. If the two parties agree using a different name but the content reflects paid work, wages, and the management, direction, and supervision of one party, it is considered a labor contract.

This article Faro Vietnam will summarize the important regulations on labor contracts that employees and businesses need to know:

• Forms of labor contracts.
• Types of labor contracts.
• Content of labor contracts.
• Termination of labor contracts.
• Amendments and additions to labor contracts.

1.  Employment Contract Forms in 2026

According to Article 14 of the 2019 Labor Code, contract duration limits vietnam labor law must be concluded in writing and made in two copies, one for the employee and one for the employer, except in the following cases:

Employment contracts concluded through electronic means in the form of data messages as prescribed by law on electronic transactions have the same value as fixed-term contract regulations vietnam 2026

Note: Before hiring an employee, the employer must conclude an employment contract with the employee.
 

Termination risks fixed-term employment

2.  Regulations on Types of Employment Contracts

According to Article 20 of the 2019 Labor Code, there are two types of employment contracts:

• Indefinite-term employment contract: a contract in which the two parties do not specify the term or the time of termination of the contract;
• A fixed-term employment contract is a contract in which both parties determine the duration and termination date of the contract, which shall not exceed 36 months from the effective date of the contract.

When a fixed-term employment contract expires and the employee continues to work, the following procedures shall apply:

• Within 30 days from the expiration date of the employment contract, both parties must sign a new employment contract; during the period before a new contract is signed, the rights, obligations, and benefits of both parties shall be governed by the previously concluded contract;
• If, after 30 days from the expiration date of the employment contract, both parties do not sign a new employment contract, the employment contract advisory vietnam concluded as stipulated in point b, clause 1 of this Article shall become an indefinite-term employment contract;
• If both parties sign a new fixed-term employment contract, it can only be renewal rules for fixed-term contracts once. After that, if the employee continues to work, an indefinite-term employment contract must be signed, except for employment contracts for those hired as directors in state-owned enterprises and cases stipulated in Clause 1, Article 149, Clause 2, Article 151, and Clause 4, Article 177 of this Law.

 
Fixed-term contract regulations vietnam 2026

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3.    What are the contents of an employment contract?

An employment contract must contain the following main contents:

• Name and address of the employer and the full name and title of the person signing the employment contract on the employer's side;
• Full name, date of birth, gender, place of residence, Citizen Identity Card number, National Identity Card number, or passport number of the person signing the employment contract on the employee's side;
• Job and workplace;
• Duration of the termination risks fixed-term employment;
• Salary based on job or position, payment method, payment schedule, salary allowances and other additional benefits;
• Promotion and salary increase system;
• Working hours and rest periods;
• Provision of personal protective equipment for employees;
• Social insurance, health insurance, and unemployment insurance;
• Training, professional development, and skill enhancement.

Note: The employer and employee may agree on the terms of the probationary period to be included in the employment contract or to enter into a separate probationary contract.

To navigate these requirements effectively, businesses need more than just legal knowledge, they need practical support. From managing fixed-term contract compliance audit 2026 to handling renewals and termination risks, staying compliant can quickly become complex. 
This is where Faro comes in, offering hands-on employment contract advisory in Vietnam, helping companies review contracts, run compliance audits, and ensure every agreement aligns with current labor law while keeping operations smooth and low-risk.
Contact Faro as below:
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• Email: service@farovietnam.com.vn

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