Freelancer employment law Vietnam update

After foreign-invested enterprises enter the Vietnamese market, labor compliance issues are often easily reduced to a single question: how should labor contracts be signed? This is an important question, but not the first step. The first step should be to assess: what kind of workforce the enterprise needs to build in Vietnam, what are the core positions, which positions are significantly affected by order fluctuations, which personnel need to be retained long-term, and which can be supplemented through fixed-term contracts, external support, or gig worker regulation Vietnam 2026.

The foundational framework for labor compliance in Vietnam still needs to refer back to the Labor Code 45/2019/QH14 and related implementing regulations. Enterprises should not simply prepare a single contract template, but should integrate job positions, wages, social insurance, overtime, seconded labor, foreign labor, and internal management regulations into a single, unified human resources plan.
 

Non traditional workforce compliance Vietnam

1. Labor Compliance in Vietnam: First, Identify the Position's Nature

When recruiting in Vietnam, many businesses often ask about salary, contract template, and social insurance rates beforehand. However, in reality, the most common source of risk is not the contract format but freelancer employment law Vietnam update. Each position group has a different compliance focus. 

Sales positions need to pay attention to the right to make commitments to customers and the authority to quote; customer service positions need to focus on communication with consumers and access to data; warehousing positions need to focus on shifts, overtime, and minimum wage; technical positions need to focus on field safety and project responsibilities; while finance and administration involve seals, banking, invoices, social insurance, and personnel record management.

2. Arranging Employment Contracts:

It's not enough to just look at whether a contract is fixed-term or indefinite.

Employment contracts must serve the actual employment relationship, not be a tool to "package" or replace the actual management relationship. If employees are managed daily by the company, use the company's systems, work shifts arranged by the company, are evaluated by the company, and receive a fixed salary, then regardless of whether the document is called a non traditional workforce compliance Vietnam or "service contract" or "cooperation agreement," it can still essentially have the characteristics of an employment relationship.

3. Wages and Minimum Wage:

It's not just about looking at the base salary, but also considering allowances, overtime, and the basis for social insurance contributions.

Complying with wage regulations in Vietnam isn't just about checking if the monthly salary is higher than the minimum wage. Businesses also need to examine the salary structure to see if it's clear: what constitutes the base salary, what are allowances, what's used for social insurance calculations, and what relates to position, performance, overtime, and subsidies.
 

Contractor vs employee Vietnam legal changes

3.1 Minimum Wage Needs to Be Determined Based on Workplace Location and the Latest Regional Standards

Minimum wages in Vietnam are usually divided by region; different provinces, cities, industrial zones, and urban areas may apply different rates. When employing workers in Ho Chi Minh City... In Ho Chi Minh City, Hanoi, Hai Phong, Dong Nai, Bac Ninh, Binh Duong, Da Nang, and other localities, businesses should not use a single, nationwide minimum wage figure. Instead, they should refer to the official government documents on regional minimum wages in Vietnam when publishing articles or preparing budgets, and combine this with the actual business location to determine the applicable level.

Adjusting the minimum wage not only affects the basic salary but can also impact overtime pay, social insurance contributions, and the overall budget for frontline positions. Production, warehousing, retail, customer service, and basic operations positions are generally more significantly affected.

3.2 The salary structure must be explainable:

Basic salary;

• Position allowance or position allowance;
• Travel allowance, meal allowance, accommodation, and similar support;
• Performance bonus;
• Overtime pay;
• Commission or sales bonus;
• Year-end bonus;
• Project bonuses or temporary allowances.

If a business combines all payments into a single lump-sum salary, it may seem simple at first, but later on, it will lack room for explanation when dealing with social insurance, personal income tax, overtime, severance pay, and labor disputes.

3.3 Commissions and bonuses need clearly defined conditions

Sales positions, commercial distribution, cross-border e-commerce operations, and project-based positions often have commissions or bonuses. Businesses need to pre-determine how revenue is confirmed, whether it's based on orders or cash received, how returns and bad debts are handled, how unearned commissions are handled when employees leave, and who has the final approval authority.

In 2026, when building a local workforce in Vietnam, businesses shouldn't just ask "how should the employment contract be signed?". More importantly, they should determine beforehand: whether the position is long-term, whether the employee will be under the direct management of the company, contractor vs employee Vietnam legal changes, whether the salary structure is clear, whether social insurance and overtime can be justified, whether external labor or support is appropriate, and whether the personnel authority and handover process upon termination are manageable.

>>>Xem thêm: HR operations system - hr automation solutions in Vietnam

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

Grow your business with our trusted Human Resource Solutions.