▷ The Law on Employment 2025 (Law No. 74/2025/QH15), adopted on 16 June 2025, entered into force on 1 January 2026 and replaced the Law on Employment of 2013. This new law mainly regulates employment support policies, labour market information, vocational skills development and unemployment insurance. It does not modify the rules on termination of employment, which continue to be governed by the Labour Code 2019 and Decree No. 145/2020/ND-CP.
▷ In addition, Decree No. 337/2025/ND-CP on electronic labour contracts entered into force on 1 January 2026. It regulates the conclusion and storage of electronic employment contracts and establishes a legal framework for electronic labour contracts, granting them equal validity to paper contracts, but does not affect the rules on termination of employment or the substantive rules governing fixed-term contracts.

▶ Labour Code (LC)
→ Section 1 LC indicates that: The Labour Code sets forth labour standards; rights, obligations and responsibilities of employees, employers, internal representative organizations of employees, representative organizations of employers in labour relations and other relations directly related to labour relations; and state management of labour.
→ Under section 3(5) LC, “labour relation” means a social relation which arises in respect of the employment and salary payment between an employee and an employer, their representative organizations and competent authorities. Labour relations include individual labour relations and collective labour relations.

▶ Labour Code (LC)
→ Section 2 LC lists the subjects of application as:
1. Employees, apprentices, trainees and other workers without labour relations;
2. Employers;
3. Foreign employees who work in Vietnam;
4. Other agencies, organisations and individuals directly related to labour relations.
→ Section 3 LC provides definitions, including for:
1. “employee” means a person who works for an employee under an agreement, is paid, managed and supervised by the employer.
2. “employer” means an enterprise, agency, organization, cooperative, household or individual who employs other people under agreements. An employee that is an individual shall have full legal capacity.
▷ The Labour Code 2019 does not contain a general exclusion of civil servants from its scope of application. However, civil servants (công chức) and public employees (viên chức) are governed by separate specialised laws (Law on Cadres and Civil Servants and Law on Public Employees) and do not work under a labour contract as defined in the Labour Code. Therefore, the dismissal provisions of the Labour Code do not apply to them.
▷ Note: The previous exclusions under section 179(2) (employees who do housework in the form of piecework) and section 185(2) (home-based work in the form of processing) of the 2012 Labour Code have been deleted.

▶ Labour Code (LC)
The 2019 LC classifies employment contracts into two types: indefinite-term and fixed-term.
▶ Labour Code
→ Section 20 LC provides that:
1. An employment contract shall be concluded in one of the following types:
a) An indefinite-term employment contract is a contract in which the two parties neither fix the term nor the time of termination of the contract;
b) A fixed-term employment contract is a contract in which the two parties fix the term of the contract for a duration of up to 36 months from the date of its conclusion.
2. If an employee keeps working when an employment contract mentioned in Point b Clause 1 of this section expires:
a) Within 30 days from the expiration date of the employment contract, both parties shall conclude a new employment contract. Before such a new employment contract is concluded, the parties’ rights, obligations and interests specified in the old employment contract shall remain effective;
b) If a new employment contract is not concluded after the 30-day period, the existing employment contract mentioned in Point b Clause 1 of this section shall become an employment contract of indefinite term;
c) The parties may enter into 01 more fixed-term employment contract. If the employee keeps working upon expiration of this second fixed-term employment contract, the third employment contract shall be of indefinite term, except for employment contracts with directors of state-invested enterprises and the cases specified in Clause 1 section 149, Clause 2 section 151 and Clause 4 section 177 of this Labour Code.

▶ Labour Code (LC)
→ Section 20 LC regulates the types and maximum duration of employment contracts but does not anymore require the existence of objective and material reasons for the conclusion of a fixed-term contract.
→ The main restrictions are the maximum term of 36 months and the limitation to only one successive fixed-term contract. After the second fixed-term contract, an indefinite-term contract must be concluded if the employee continues working.

▶ Labour Code (LC)
→ Section 20(2) LC provides that if the employee continues working after the expiry of a fixed-term contract, the parties may conclude only one additional fixed-term contract. After that, if the employee continues working, an indefinite-term contract must be entered into.
▻ If the parties fail to conclude a new contract within 30 days after the expiry of the fixed-term contract, the contract is automatically converted into an indefinite-term contract.

▶ Labour Code (LC)
→ Section 20(1)(b) indicates that: A fixed-term employment contract is a contract in which the two parties fix the term of the contract for a duration of up to 36 months from the date of its conclusion.
→ Section 20(2)(c) LC provides that the parties may enter into only one additional fixed-term employment contract (of 36 months maximum). If the employee continues working after the expiry of this second fixed-term contract, the third employment contract shall be of indefinite term (except for the limited cases specified in the Code).

▶ Labour Code (LC)
→ Section 24 LC provides that:
1. An employer and an employee may include the contents of the probation in the employment contract or enter into a separate probation contract.
2. The probation contract must include the probation period and the contents specified in Points a, b, c, dd, g and h of Clause 1 of section 21 of this Code.
3. Probation is not allowed if the employee works under an employment contract with a duration of less than 01 month.
→ Section 25 LC provides that: The probationary period shall be negotiated by the parties on the basis of the nature and complexity of the job. Only one probationary period is allowed for a job and the probation shall not exceed:
1. 180 days for the position of enterprise executive prescribed by the Law on Enterprises, the Law on management and use of state investment in enterprises;
2. 60 days for positions that require a junior college degree or above;
3. 30 days for positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees;
4. 06 working days for other jobs.

▶ Labour Code
→ The Labour Code 2019 does not contain a general exclusion of public employees. However, civil servants and public employees are governed by separate legislation and are therefore not covered by the dismissal provisions of the Labour Code.

▶ Labour Code (LC)
→ Section 36 LC requires the employer to give advance notice when unilaterally terminating the employment contract (except in the cases under points d and e). However, the provision does not expressly require the employer to state the reasons for the termination in the notice.

▶ Labour Code (LC)
▷ Non-discrimination
Section 3(8) LC defines “labour discrimination” as discrimination on the grounds of race, skin colour, nationality, ethnicity, gender, age, pregnancy, marital status, religion, opinion, disability, family responsibility, HIV infection, establishment of or participation in trade union or internal employee organization in a manner that affects the equality of opportunity of employment.
→ Section 8(1) LC prohibits "labour discrimination".
▷ Leave, sickness
→ Section 37 LC provides that an employer is prohibited from unilaterally terminating a labour contract in the following cases:
1. The employee is suffering from an illness or work accident, occupational disease and is being treated or nursed under the decision of a competent health institution, except for the cases stipulated in Point b Clause 1 section 36 of this Labour Code.
2. The employee is on annual leave, personal leave or any other type of leave permitted by the employer.
3. The employee is pregnant, on maternal leave or raising a child under 12 months of age.
▷ Maternity and pregnancy
→ Section 137(3) LC provides that: The employer must not dismiss an employee or unilaterally terminate the employment contract with an employee due to his/her marriage, pregnancy, maternity leave, or nursing a child under 12 months of age, except for cases where the employer that is a natural person dies or is declared incapacitated, missing or dead by the court, or the employer that is not a natural person ceases its business operation, declared by a provincial business registration authority that it does not have a legal representative or a person authorized to perform the legal representative’s rights and obligations.
Upon expiration of the employment contract with female employee who is pregnant or nursing a child under 12 months of age, conclusion of a new employment contract shall be given priority
▷ Trade union activities
→ Under section 175(1)(b) LC, any act of discrimination against employees or members of the management board of the representative organization of employees due to the establishment, operation or participation in the representative organization of employees is prohibited, including: Disciplining or unilaterally terminating an employment contract; refusing to conclude or renew an employment contract; reassigning an employee.
▶ Law on Trade Union (LTU) 2024
→ Section 10(2)(b) LTU lists among the "prohibited acts": dismissal, disciplinary action, unilaterally terminating an employment contract or work agreement; failing to continue or renew an employment contract or work agreement; transferring an employee to another job;
→ Section 28 LTU states that:
1. In cases where a labour contract or employment contract expires, and the employee is a non-professional trade union official still serving their term in the trade union, the labour contract or employment contract may be extended until the end of their term in the trade union.
2. Employers are not permitted to unilaterally terminate employment contracts, dismiss, force dismissal, or transfer non-professional trade union officials to other jobs without the written agreement of the directly superior trade union. If an agreement cannot be reached, both parties must report to the competent authority. After 30 days from the date of notification to the competent authority, the employer has the right to make a decision and shall be responsible for that decision.
3. In cases where a non-professional trade union official is unlawfully dismissed, forced to resign, or fired by their employer, the trade union is responsible for requesting intervention from competent state agencies or acting as their legal representative to initiate a labour lawsuit in court to protect the legitimate rights and interests of the trade union official, unless the trade union official refuses.
If a non-professional trade union official is unable to return to their previous job, they will receive support from the trade union in finding new employment, and during the period of unemployment, they will receive financial support from the trade union's financial resources as prescribed by the Vietnam General Confederation of Labour.

▶ Labour Code (LC)
▷ Marriage, pregnancy and maternity
→ Sections 37(3) and 137(3) LC protect female employees against dismissal or unilateral termination of the labour contract due to marriage, pregnancy, maternity leave, or nursing a child under 12 months of age.
▷ Union representatives
→ Under section 175(1)(b) LC, any act of discrimination against employees or members of the management board of the representative organization of employees due to the establishment, operation or participation in the representative organization of employees is prohibited, including: Disciplining or unilaterally terminating an employment contract; refusing to conclude or renew an employment contract; reassigning an employee.
▶ Law on Trade Union (LTU) 2024
→ Section 28(2) states that: Employers are not permitted to unilaterally terminate employment contracts, dismiss, force dismissal, or transfer non-professional trade union officials to other jobs without the written agreement of the directly superior trade union. If an agreement cannot be reached, both parties must report to the competent authority. After 30 days from the date of notification to the competent authority, the employer has the right to make a decision and shall be responsible for that decision.

▶ Labour Code (LC)
→ Section 36(2) LC provides that when unilaterally terminating a labour contract, the employer shall inform the employee in advance. The Code does not specify that the notification must be in writing.
▻ New Exception: Under section 36(3) LC, when unilaterally terminating the employment contract in the cases mentioned in Point (d) and Point (e) Clause 1 [unjustified absence] of this section, the employer is not required to inform the employee in advance .

▶ Labour Code (LC)
→ Section 36(2) LC provides that when unilaterally terminating a labour contract, the employer shall notify the employee in advance:
a) At least 45 days, for indefinite-term labour contracts;
b) At least 30 days, for fixed-term labour contracts (12 to 36 months);
c) At least 3 working days, for fixed-term labour contracts of under 12 months and incapacity to work after prolonged sick leave (12 months).
d) The notice period in certain fields and jobs shall be specified by the Government.
→ Section 36(3) LC provides that when unilaterally terminating the employment contract under points d or e of Clause 1 [unjustified absence], the employer is not required to inform the employee in advance.

▶ Labour Code (LC)
▷ The LC regulates the employer’s obligations in case of changes in structure, technology or changes due to economic reasons that affect the employment of a large number of employees (§ 42 LC). However, the Code does not define a specific numerical threshold as before (e.g. 2 or more employees). In practice, the procedure applies when the change affects the employment of "many employees".
→ Section 42(1-4) provides that:
1. Changes in structure and technology include:
a) Changes in the organizational structure, personnel rearrangement;
b) Changes in processes, technology, equipment associated with the employer’s business lines;
c) Changes in products or product structure.
2. Changes due to economic reasons include:
a) Economic crisis or economic depression;
b) Changes in law and state policies upon restructuring of the economy or implementation of international commitments.
3. If the change affects the employment of a large number of employees, the employer shall develop and implement a labour utilization plan prescribed in section 44 of this Labour Code. In case of new vacancies, priority shall be given to retraining of the existing employees for continued employment.
4. If a change due to economic reasons threatens to cause a large number of employees to lose their jobs, the employer shall develop and implement a labour utilization plan as prescribed in section 44 of this Code. (...).

▶ Labour Code (LC)
→ Under section 42(6) LC, the dismissal of employees in cases of changes in structure and technology or due to economic reasons shall only be implemented after a discussion with the representative organisation of employees (if any).
→ Under section 42(4) LC, if a change due to economic reasons threatens to cause a large number of employees to lose their jobs, the employer shall develop and implement a labour utilization plan as prescribed in section 44 of this Code.
→ Section 44(2) LC stipulates that during the development of the labour utilization plan, the employer shall discuss with the representative organisation of employees (if any).

▶ Labour Code (LC)
→ Section 42(6) LC provides that the dismissal of employees shall only be implemented after giving prior notice of 30 days to the People’s Committee of the province and the employees.

▶ Labour Code (LC)
→ Section 42(6) LC requires discussion with the representative organisation of employees (if any) before the dismissal.
→ Section 44(2) LC requires that the labour utilization plan be developed with discussion with the representative organisation of employees (if any). The plan must be made available to the employees within 15 days from the day on which it is adopted.

▶ Labour Code (LC)
▷ Section 42(6) LC requires only prior notification of 30 days to the provincial People’s Committee. There is no requirement for approval or authorisation.

▶ Labour Code (LC)
▷ Section 42(6) and Section 44(2) require discussion/participation of the representative organisation of employees, but do not require their approval or consent.

▶ Labour Code (LC)
▷ The Labour Code 2019 does not establish statutory priority rules (such as social considerations, age or job tenure) for the selection of employees to be dismissed in cases of structural/technological changes or economic reasons.

▶ Labour Code (LC)
→ Section 42(3) LC expressly provides that in case of new vacancies, priority shall be given to retraining of the existing employees for continued employment.

▶ Labour Code (LC)
→ Section 42(3) LC provides that if the change affects the employment of a large number of employees, the employer shall develop and implement a labour utilization plan. In case of new vacancies, priority shall be given to retraining of the existing employees for continued employment.
→ Section 44 LC provides that a labour utilization plan shall include, among other things:
a) The names and number of employees to be retained, employees to be retrained for further employment, and employees to be working on a part-time basis;
b) The names and number of employees to retire;
c) The names and number of employees whose employment contracts have to be terminated;
d) Rights and obligations of the employer, employee and relevant parties regarding implementation of the labour utilization plan;
dd) The measures and financial sources to implement the plan.
2. During development of the labour utilization plan, the employer shall discuss with the representative organization of employees (if any). The labour utilization plan shall be made available to the employees within 15 days from the day on which it is adopted.

▶ Labour Code (LC)
→ Section 46 LC (Severance allowance) provides that:
1. In case an employment contract is terminated as prescribed in Clauses 1, 2, 3, 4, 6, 7, 9 and 10 of section 34 of this Code, the employer is responsible for paying severance allowance to the employee who has worked on a regular basis for a period of at least 12 months. Each year of work will be worth half a month’s salary, except for the cases in which the employee is entitled to receive retirement pension as prescribed by social insurance laws, and the cases specified in Point e of Clause 1 of section 36 of this Labour Code.
2. The qualified period of work as the basis for calculation of severance allowance shall be the total period during which the employee actually worked for the employer minus the period over which the employee participated in the unemployment insurance in accordance with unemployment insurance laws and the period for which severance allowance or redundancy allowance has been paid by the employer.
3. The salary as the basis for calculation of severance allowance shall be the average salary of the last 06 months under the employment contract before the termination. (...).

▶ Labour Code (LC)
→ Section 47 LC (Redundancy allowance) provides that:
1. Where an employment contract is terminated according to Clause 11 section 34 of this Labour Code and the employee has worked on a regular basis for the employer for at least 12 months, the employer shall pay a redundancy allowance to the employee. Each year of work will be worth 01 month’s salary and the total redundancy allowance shall not be smaller than 02 month’s salary.
2. The qualified period of work as the basis for calculation of redundancy allowance shall be the total period during which the employee actually worked for the employer minus the period over which the employee participated in the unemployment insurance in accordance with unemployment insurance laws and the period for which severance allowance or redundancy allowance has been paid by the employer.
3. The salary as the basis for the calculation of redundancy allowance shall be the average salary of the last 06 months under the employment contract before the termination. (...).

▷ The severance allowance (§ 46) is the general payment due upon most forms of termination of the employment contract (after at least 12 months of service).
▷ The redundancy allowance (§ 47) is the higher payment specifically due in cases of structural/technological changes or economic reasons (§§ 42 and 43).
▷ In case of illegal unilateral termination by the employer, section 41 requires reinstatement plus payment of salary and insurance premiums for the period the employee was not allowed to work, plus at least 2 months’ salary. Any severance or redundancy allowance already received must be returned upon reinstatement.