Know Your Rights: What Foreign Workers in Vietnam Should Be Aware Of

Recent court ruling in Da Nang sets an important precedent for labor rights protection

A Vietnamese court recently ruled in favor of a worker whose employment was wrongfully terminated, ordering the employer to pay significant compensation. The case is a powerful reminder for all foreign workers in Vietnam: knowing your rights under local labor laws is essential to protect yourself and ensure fair treatment.

The Case: A Wake-Up Call for Employees and Employers

On May 27, the People’s Court of Son Tra District in Da Nang heard a labor dispute between a local company, Hoang Viet Quan Co., Ltd., and Ms. H.T.N., a Vietnamese worker whose employment was unilaterally terminated.

The company had signed a labor contract with Ms. N. on August 7, 2024, and later terminated the contract on November 29, citing underperformance. However, the court found that the termination did not comply with Vietnamese labor law and ordered the company to compensate the employee.

The compensation package included Six months’ salary; Social, health, and unemployment insurance contributions for the period the employee was unable to work; An additional two months’ salary as stated in the labor contract

The total compensation amounted to over VND 36.8 million (approx. USD 1,450), which the company is required to pay upon the court decision taking effect.

Key Takeaways for Foreign Workers in Vietnam

According to Sophie Dao, Lawyer and Senior Partner at GBS – Global Business Services, a firm specializing in supporting foreign investors and professionals in Vietnam:

“This case reinforces that Vietnam’s labor laws are designed to protect all workers—local and foreign—against unfair treatment or unilateral contract termination. But you must know your rights to enforce them.”

Here’s what every foreign professional working in Vietnam should keep in mind:

1. Ensure You Have a Written Labor Contract

• Your contract should clearly define job scope, salary, working hours, benefits, and termination clauses.
• It must comply with Vietnam’s Labor Code and be registered with the relevant authorities if required.

 2. Termination Must Follow Due Process

• Employers must justify termination with valid reasons, follow warning protocols, and respect notice periods (typically 30–45 days).
• Unlawful termination can lead to court-mandated compensation of up to 2 months’ salary, back pay, and insurance contributions.

 3. Social Insurance and Work Permit Are Your Rights

• Foreign workers are entitled to health insurance, social insurance, and unemployment insurance, depending on their residency status and work permit.
• Make sure your employer registers your work permit and pays into the insurance system.

 4. Seek Legal Assistance When in Doubt

• If you face unfair treatment, contract violations, or illegal termination, seek help from a legal advisor, your embassy, or local labor federations.
• Vietnam’s courts are increasingly siding with employees in cases of labor rights violations.

Final Thought

While Vietnam offers growing opportunities for international talent in sectors like manufacturing, fintech, and semiconductors, protecting your rights starts with knowledge and preparation. Whether you’re signing your first contract or facing an employment dispute, don’t hesitate to ask questions or seek legal advice.

For foreign workers looking to better understand their employment rights in Vietnam, GBS provides legal advisory and dispute resolution support. You can contact them at info@gbs.com.vn for confidential consultations.

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Source: Vietnam Insider