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The year 2025 marks a pivotal shift in Vietnam’s legal and human resources landscape. A range of new legislative drafts and prevailing enforcement practices reflect a clear policy direction: enhancing employee protection while promoting greater flexibility in labor relations—an evolution that both workers and employers must keep abreast of.
1. The trend toward standardized contracts with more detailed terms
Driven by recent legal guidance and enforcement practices, businesses are increasingly encouraged to formalize employment relationships in writing—even for flexible or short-term work arrangements. Employment contracts are now expected to include more detailed provisions, particularly on:
- Clear job descriptions;
- Flexible working locations;
- Terms regarding intellectual property, personal data protection, and probationary conditions.
These adjustments reflect the digital transformation and modernization of Vietnam’s working environment.
2. Expanded employee entitlements
As companies compete to attract and retain talent, many employers are voluntarily going beyond statutory minimums by offering enhanced benefits. These include:
- Additional annual leave based on seniority;
- Industry-specific limits and flexibility for overtime;
- Parental leave (including paternity), time off for upskilling, or childcare-related leave—policies that are increasingly being implemented, especially in larger corporations.
This signals a shift toward more employee-centric HR strategies across sectors.
3. More flexible contract termination and dispute resolution mechanisms
Practice in 2025 shows that many employers are adopting structured performance evaluations during probation as a basis for contract termination. Meanwhile, employees are advised to fully understand their rights to unilaterally terminate contracts in certain situations, provided proper notice is given.
In parallel, workplace-level mediation, labor arbitration, and judicial procedures are being refined to expedite dispute resolution and minimize risks for both parties.
These evolving legal and policy trends call for constant updates from both businesses and employees. Proactively reviewing contract terms, internal HR protocols, and compliance frameworks will be key to building sustainable and harmonious labor relations in Vietnam’s fast-changing employment market.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam labour law firm for Employment and Labor Law. If you need any advice, please contact us for further information or collaboration.
