When hiring in Vietnam, both employers and employees navigate a crucial stage before fully committing—the probationary period. This short-term trial phase allows businesses to assess a candidate’s skills, work ethic, and cultural fit, while employees evaluate whether the job and work environment align with their expectations. However, probation in Vietnam is not merely an informal arrangement; it is governed by a well-defined legal framework under the 2019 Labor Code.
Understanding probation laws is essential for compliance, especially for foreign-invested enterprises looking to operate smoothly in Vietnam’s dynamic labor market. This article provides a comprehensive breakdown of probationary regulations, including contract structuring, salary rules, social insurance implications, and termination policies.
1. Structuring a Probationary Contract in Vietnam
Vietnamese labor law allows two ways to formalize a probationary period:
- A separate probationary contract – This is independent of a labor contract and applies solely for the trial phase.
- A labor contract with probation terms – The probationary period is included within the broader employment contract.
While both formats are legally valid, companies often prefer a separate probationary contract. This approach clearly differentiates the probation phase from official employment and helps manage compliance risks, particularly regarding social insurance obligations.
Mandatory Elements of a Probationary Contract
Regardless of format, a probation agreement must specify:
- Employer and employee details (names, addresses, identification numbers)
- Job description and workplace location
- Probationary salary
- Working hours and rest periods
- Protective equipment provided (if applicable)
Importantly, probation is not permitted for jobs lasting less than one month, ensuring that short-term workers receive full employment rights from the start.
2. Duration of Probationary Periods
The law limits the maximum probationary period based on the job’s complexity:
- Up to 180 days for senior executives and managerial positions (as defined by the Enterprise Law).
- Up to 60 days for roles requiring college degrees or higher qualifications.
- Up to 30 days for technical workers, intermediate-level professionals, and skilled employees.
- Up to 6 working days for other positions.
Employers and employees can negotiate a probation period within these limits, but they cannot extend probation beyond the legal maximum. If an employee does not meet expectations within the probationary period, companies cannot impose another probation for the same job—only for a different role within the organization.
3. Salary During Probation
Vietnamese law mandates that probationary salaries must be at least 85% of the official salary for the role. This ensures fair compensation even during the trial phase.
For example:
- If an employee’s official salary is VND 10 million per month, the probation salary must be at least VND 8.5 million.
- If a company fails to meet this minimum requirement, it could face penalties for labor law violations.
Although some businesses offer probationary salaries equal to 100% of the official wage as an incentive, others take a performance-based approach—providing higher salaries after successful completion of probation.
4. Termination and Rights During Probation
The 2019 Labor Code grants both employers and employees the right to terminate a probationary contract at any time, without prior notice or compensation. This provides flexibility for both parties but also means:
- Employers must clearly define performance criteria to make objective hiring decisions at the end of probation.
- Employees should assess their rights and potential risks, ensuring fair treatment and no undue extensions of probation.
Upon probation completion, an employer must immediately notify the employee of the outcome:
- If successful, the employee moves to full employment under the agreed terms.
- If unsuccessful, employment ends without further obligations.
5. Social Insurance and Probation: A Key Compliance Factor
Vietnam’s 2024 Social Insurance Law, taking effect on July 1, 2025, expands social insurance coverage. However, current rules differentiate between:
- Separate probationary contracts – Employees are not required to contribute to social insurance, health insurance, or unemployment insurance.
- Labor contracts with probationary terms – Employees must participate in social insurance from day one.
For companies, this distinction affects cost management and compliance obligations. Many businesses prefer separate probation contracts to defer social insurance contributions until official hiring. However, under current enforcement trends, Vietnamese labor authorities require social insurance payments if a probation clause is embedded within a labor contract. Companies should structure contracts carefully to align with their financial and regulatory strategies.
6. Common Challenges and Legal Risks
1. Extending Probation Illegally
Some employers attempt to extend probation periods beyond the legal limit—this is unlawful. If an employee remains on probation beyond the permitted duration, they automatically become a full employee with full rights and benefits.
2. Using Probation to Delay Benefits
There have been cases where companies restart probation under a different title to avoid granting employment benefits. This practice is legally questionable and can lead to disputes or lawsuits if challenged by the employee.
3. Employee Quitting Without Notice
Employees on probation can legally leave without notice, but doing so abruptly may damage their professional reputation. Employers often mitigate this risk by not assigning critical tasks to probationary employees.
4. Failure to Provide Probationary Salary
Some businesses exploit probationary workers by underpaying or delaying salaries until full employment begins. Employees should be aware that probation salaries must be paid on time, just like regular wages.
7. Best Practices for Businesses
For companies operating in Vietnam, effective probation management involves:
✅ Clearly defining job expectations to fairly assess performance.
✅ Choosing the right contract format (separate probation contract vs. labor contract with probation).
✅ Ensuring legal salary compliance (minimum 85% of full wage).
✅ Following the correct probation duration without illegal extensions.
✅ Understanding social insurance obligations to avoid penalties.
✅ Maintaining fairness to build employer reputation and retain talent.
Conclusion: Probation as a Strategic Tool
Probation in Vietnam serves as a critical hiring mechanism, benefiting both employers and employees by allowing a risk-free trial period. However, navigating Vietnam’s labor laws is crucial to avoid compliance risks and disputes. For businesses, structuring probation correctly ensures a smooth transition to full employment while optimizing workforce selection. For employees, understanding their rights prevents exploitation and unfair treatment.