Hire, Manage & Pay Your
Employees in Vietnam
Under One Service Provider
Traditional methods of expanding to a new market involve starting from scratch in
a new country with unknown variables which hinder your entry process. We give you the option to
hire, manage & Pay your Vietnam team under one service provider with decades of experience
throughout the entire APAC region.
Employer of Record (EOR): Hire & Pay
Your Vietnam Team From Anywhere
Employer of Record (EOR) is a legal employer of the individuals who work for you, and as a result, far less oversight and effort is required. When a worker wants to work for your company and you use EOR services, that worker will sign the contract with the EOR provider and not with your firm. This means that you can get your Vietnam set up and working for you from the comfort of your own headquarters.
There is no minimum number of employees that you can hire through an EOR. On top of payroll processing, benefits administration, and employee contracts, EORs are responsible for all legal compliance paperwork, including registering with the labor department, paying personal income taxes, and handling immigration needs. This allows you to hire globally without worrying about local labor rules, tax filing, or any updates to compliance regulations.
As legal employers, EORs assume complete legal responsibility for your business’s contractors and employees within Vietnam. You will not be responsible for any compliance violations that occur. In addition, EORs provide comprehensive insurance, including general liability, workers’ compensation, social insurance, and other types of insurance required by the nation of residency of each employee. EORs also assumes all obligations in regard to the client company’s employment structure.
Professional Employer Organization (PEO): Outsource the entire process of hiring and paying your employees in Vietnam
When you choose a Professional Employer Organization (PEO) service, your company and the PEO are the co-employers of your employees, which means the people recruited are still the employees of your company. However, the PEO provider takes care of recruitment needs, labor department regulations, and payroll. You are still legally accountable for your workers, and the PEO’s function is to assist you with your day-to-day HR tasks. The PEO shares responsibilities and liabilities with your organization. Because the PEO is another employer of the people who work for your company besides you, you must have your business registered in Vietnam. In general, a PEO service can be more suitable for your needs if you intend to maintain a local presence and want to keep full legal accountability for your workforce without dealing with any of the headhunting, bureaucracy & payroll needs.
What to know about Vietnam’s Labor Rules
Working Hours
Regular working hours are limited to 8 hours per day or 48 hours per week.
An employer has the authority to choose the daily or weekly working hours and inform the
staff. When working on a weekly basis, the daily working hours must not exceed 10 hours
and the weekly working hours must not exceed 48 hours.
Employers are encouraged by the State to implement 40-hour workweeks
National Holidays
All Employees shall be entitled to fully paid days off on the following public holidays:
Tet Holiday (Lunar New Year) Days off & Bonus
The Tet falls at the beginning of the Lunar Calendar, and most businesses take 5 days off for this holiday. The exact days are decided by the Prime Minister of Vietnam.
Tet holiday can be a disruptive time for a company’s workforce. This is the most important holiday of the year and often times employees will take extra days off. Furthermore, the turnover rate during this time tends to increase significantly.
Tet Bonus Pay
It is not required but it is expected to pay Vietnamese employees a special bonus for the Tet holiday, usually calculated as the 13th month’s salary.
Maternity & Paternity Leave
According to article 39 of the labor code, a female employee is entitled to 06 months of prenatal and postnatal leave; the prenatal leave period shall not exceed 02 months.
Under the regulations on Paternity leave the father is entitled to 5-14 days off for the birth of his child.
