What is the minimum probationary salary of an employee in Vietnam?

What is the minimum probationary salary of an employee in Vietnam? (Picture from internet)

Regarding this issue, LawNet would like to answer as follows:

1. What is the maximum probationary period for an employee in Vietnam?

According to Article 25 of the Labor Code 2019, the probationary period shall be negotiated by the parties on the basis of the nature and complexity of the job. Only one probationary period is allowed for a job and the probation shall not exceed:

- 180 days for the position of enterprise executive prescribed by the Law on Enterprises, the Law on management and use of state investment in enterprises;

- 60 days for positions that require a junior college degree or above;

- 30 days for positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees;

- 06 working days for other jobs.

2. Main contents of probation contract in Vietnam

Specifically, in Clause 2, Article 24 of the Labor Code 2019, the probation contract must include the probation period and the contents specified in Points a, b, c, dd, g and h Clause 1 Article 21 of the Labor Code 2019:

- The employer’s name, address; full name and position of the person who concludes the contract on the employer’s side;

- Full name, date of birth, gender, residence, identity card number or passport number of the person who concludes the contract on the employee’s side;

- The job and workplace;

- Working hours, rest periods;

- Personal protective equipment for the employee;

3. Probationary salary

Pursuant to Article 26 of the Labor Code 2019 stipulates that the probationary salary shall be negotiated by both parties and shall not be lower than 85% of the offered salary.

4. Regulations on termination of probationary period in Vietnam

According to Article 27 of the Labor Code 2019, regulations on termination of probationary period are as follows:

- Upon the expiry of the probationary period, the employer shall inform the employee of the probation result.

If the result is satisfactory, the employer shall keep implementing the concluded employment contract, if there is one, or conclude the employment contract.

If the result is not satisfactory, the employer may terminate the concluded employment contract or the probation contract.

- During the probationary period, either party has the right to terminate the concluded probation contract or employment contract without prior notice and compensation obligation.

5. Types of employment contracts in Vietnam

Types of employment contracts are specified in Article 20 of the Labor Code 2019 as follows:

- An employment contract shall be concluded in one of the following types:

+ An indefinite-term employment contract is a contract in which the two parties neither fix the term nor the time of termination of the contract;

+ A fixed-term employment contract is a contract in which the two parties fix the term of the contract for a duration of up to 36 months from the date of its conclusion.

- If an employee keeps working when an employment contract mentioned in Point b Clause 1 of Article 20 of the Labor Code 2019 expires:

+ Within 30 days from the expiration date of the employment contract, both parties shall conclude a new employment contract. Before such a new employment contract is concluded, the parties’ rights, obligations and interests specified in the old employment contract shall remain effective;

+ If a new employment contract is not concluded after the 30-day period, the existing employment contract mentioned in Point b Clause 1 of Article 20 of the Labor Code 2019 shall become an employment contract of indefinite term;

+ The parties may enter into 01 more fixed-term employment contract. If the employee keeps working upon expiration of this second fixed-term employment contract, the third employment contract shall be of indefinite term, except for employment contracts with directors of state-invested enterprises and the cases specified in Clause 1 Article 149, Clause 2 Article 151 and Clause 4 Article 177 of the Labor Code 2019.

Ho Quoc Tuan

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