Summary of legal regulations on remote work, flexible work in Vietnam: contracts, working hours, labor safety, and insurance.
After Covid-19 pandemic, remote work and flexibility have become trends. Vietnamese law has made some adjustments to keep up. This article summarizes the current legal framework, especially relevant for FDI enterprises operating internationally distributed teams.
1. Concept of Flexible Work Forms
1.1. Fully Remote Work
Employees work from home or chosen location 100% of time. May not visit office for days/months.
1.2. Hybrid Work
Combining office and remote work, e.g., 3 days at office and 2 days from home each week.
1.3. Flexitime
Employees choose start/end times within stipulated framework, as long as total hours met.
1.4. 4-Day Work Week
New model: 4 work days 10 hours/day instead of 5 days 8 hours. Not yet popular in Vietnam.
2. Legal Framework
No specific remote work law in Vietnam. Apply general regulations of:
- Labor Code 2019
- Labor Safety and Hygiene Law 2015
- Social Insurance Law 2014
- Decree 145/2020/NĐ-CP on employment contracts
3. Employment Contracts for Remote Work
3.1. Need Clear Agreement
In employment contract or appendix, clearly state:
- Work form: remote full-time, hybrid, or office
- Work location: where employee registers to work
- Working hours: start, end times, lunch
- Work tools: who provides laptop, internet, office supplies
- Home work costs: electricity, internet — who bears or sharing arrangement
- Reporting, evaluation method
- Employer's monitoring rights
3.2. Changing Work Form
Switching from office to remote (or vice versa) is changing contract terms — must have written agreement of both parties.
4. Working Hours
General rules still apply:
- Maximum 8 hours/day, 48 hours/week (most businesses 40 hours/week)
- Overtime: maximum 200 hours/year (300 hours some industries)
- Break between shifts: at least 30 minutes after 6 working hours
- Break between two shifts: at least 12 hours
For remote work, hard to control hours precisely. Recommendations:
- Apply results-based management instead of hours
- Online timesheet system
- Ensure "right to disconnect" — don't require responses outside hours
5. Labor Safety
Employer still responsible for safety even when employees work from home:
- Ensure safe working environment (advise on setup)
- Provide protective equipment if needed
- Workplace accidents during home work hours may be considered work accidents (case-dependent)
6. Social Insurance, Health Insurance, Unemployment Insurance
Fully applies same as office work:
- BHXH: 25.5% wage (Employer 17.5%, Employee 8%)
- BHYT: 4.5% (Employer 3%, Employee 1.5%)
- BHTN: 2% (Employer 1%, Employee 1%)
7. Personal Income Tax
Tax regulations don't change by work form:
- Wages taxed equally
- Possible preferences for workers in difficult areas (per registered location)
- Home work cost support (if any) must be declared per regulations
8. Company Remote Work Policy
Recommend businesses issue policy including:
- Eligibility: which employees can work remotely
- Working hours: core hours, flexible hours
- Work tools: mandatory software, security standards
- Information security rules: workplace, network, storage
- Reporting and evaluation: KPIs, OKRs, weekly check-ins
- Financial support: internet, electricity, equipment allowances
- Meeting rules: online meeting principles
- Training and development: maintaining connection, learning
- Issue resolution: when disputes or dissatisfaction arise
9. Challenges and Solutions
9.1. Performance Management
Shift from hours-based to results-based management. Apply OKRs, project management systems (Asana, Trello, Jira).
9.2. Company Culture
Organize periodic online and offline events. Encourage camera-on in meetings.
9.3. Information Security
Mandatory VPN for all access. MFA for all accounts. Train employees on phishing.
9.4. Mental Health
Provide psychological counseling. Encourage adequate rest. Avoid "always-on" culture.
10. Cross-Border Remote Work for Foreign Companies
Foreign companies hiring Vietnam-based remote workers face complex issues:
- Employment vs service contract: structure affects taxes and obligations
- Permanent Establishment risk: Vietnam-based employees may create PE for foreign company
- Employer of Record (EOR) services: increasingly popular solution
- Compliance with Vietnamese labor law: even with foreign contracts
This article is for reference only. Please contact a lawyer for accurate advice.
Frequently Asked Questions
Does employer have right to require employees come to office?
Yes if contract specifies office work. If contract has remote provisions, change requires employee agreement or per contract clauses (e.g., "company has right to require office presence when necessary").
Accidents at employee home counted as work accidents?
Possibly, if during working hours and directly related to work. Harder to determine than office accidents. Each case must be examined: time, circumstances, relation to work.
Need to register with labor authority about remote work?
Currently no separate registration requirement. However business still must comply with general labor management requirements (labor reports, labor safety).
Can remote employees request internet cost support?
Law doesn't mandate, this is agreement between parties. However many businesses voluntarily support VND 200-500k/month to facilitate and as recruitment plus.
Can Vietnamese businesses hire foreigners for remote work?
Complex. Issues: (1) Employment vs service contract; (2) Taxes in employee's country; (3) Social insurance; (4) Labor regulations of that country. Recommend hiring via service contracts (B2B) or employer-of-record companies.