In Vietnam: Is it permissible to verbally conclude employment contract for domestic help?

In Vietnam: Is it permissible to verbally conclude employment contract for domestic help?

Pursuant to Article 162 of the Labor Code in 2019 stipulating employment contracts with domestic workers in Vietnam as follows:

- The employer shall enter into a written employment contract with the domestic worker.

- The duration of the employment contract for the domestic worker is negotiated by both parties. Either party has the right to terminate the employment contract at any time provided that an advance notice of 15 days is given.

- The employment contract shall specify the salary payment method, period, working hours, accommodation.

As regulations above, the employer shall enter into a written employment contract with the domestic worker. In contrast, the employer may be fined for failure to conclude a written employment contract.

What are the fines for failure to conclude a written employment contract with the domestic worker in Vietnam?

Pursuant to Article 30 of the Decree 12/2022/NĐ-CP stipulating violations against regulations on domestic workers in Vietnam as follows:

1. A warning shall be imposed upon an employer for commission of one of the following violations:

a) Failing to enter into a written employment contract with the domestic worker;

b) Failing to pay travel expenses for the domestic worker to return their place of residence at the end of his/her service, except for cases where the domestic worker terminates the employment contract before its expiry date.

2. A fine ranging from VND 1.000.000 to VND 3.000.000 shall be imposed upon an employer for commission of one of the following violations:

a) Failing to notify the communal-level People's Committee of employment or termination of employment of domestic workers as prescribed;

b) Repeating the violation specified in Clause 1 of this Article for which a warning has been imposed.

3. A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed upon an employer for commission of one of the following violations:

a) Keeping personal identity papers of the domestic worker;

b) Failing to pay the domestic worker amounts of his/her social insurance and health insurance premiums in accordance with regulations of law so that the domestic worker can proactively participate in social insurance and health insurance.

4. A fine ranging from VND 50.000.000 to VND 75.000.000 shall be imposed upon an employer for mistreating, sexually harassing, extracting forced labor, or using force or violence against the domestic worker, if not liable to criminal prosecution.

5. Remedial measures

a) The employer that commits the violation specified in Point a Clause 1 of this Article is compelled to conclude written employment contracts with domestic workers;

b) The employer that commits the violation in Point b Clause 1 of this Article is compelled to fully pay travel expenses to domestic workers;

c) The employer that commits the violation in Point a Clause 3 of this Article is compelled to return personal identity papers to domestic workers;

d) The employer that commits the violation in Point b Clause 3 of this Article is compelled to fully pay amounts of social insurance and health insurance premiums to domestic workers.

As regulations above, a warning shall be imposed upon an employer for failing to enter into a written employment contract with the domestic worker. The employer shall be compelled to conclude written employment contracts with domestic workers.

Best regards!