Key Documents for Employee Onboarding in Vietnam

onboarding-process

Expanding your business into Vietnam requires meticulous attention to local labor laws and onboarding requirements to ensure compliance and foster positive employee experiences. Here’s a guide to the essential documents and steps involved in onboarding employees in Vietnam.

Onboarding Process: Step-by-Step Explanation

Step 1: Job Offer and Acceptance 📩

Trigger: After identifying and selecting the ideal candidate.
Action:

  • Job Title: Clearly state the employee’s position and reporting structure.
  • Compensation: Outline salary details, bonuses, and any additional incentive plans.
  • Start Date: Provide a clear and agreed-upon start date.
  • Working Hours: Specify expected working hours, including any overtime or flexible work policies.
  • Benefits Overview: Include health insurance, social insurance, and any additional employee benefits.
  • Probation Period: State any probationary period (typically up to 60 days for most positions in Vietnam).

Outcome: Once the offer is accepted, move forward with drafting the employment contract.


Step 2: Employment Contract 📝

When It’s Used: Immediately following offer acceptance.
Action: Draft a formal employment contract, adhering to Vietnamese labor laws. Include:

  • Job Description: Define the employee’s role, responsibilities, and key performance expectations.
  • Compensation Details: Specify base salary, bonuses, allowances, and any applicable overtime pay rates.
  • Leave Entitlements:
    • Annual Leave: A minimum of 12 days per year, increasing with years of service.
    • Public Holidays: Vietnam observes 11 national holidays annually.
    • Sick Leave: Paid leave based on contributions to social insurance.
    • Parental Leave: Maternity leave of six months; paternity leave varies from 5 to 14 days.
  • Working Hours: Typically 8 hours per day, 48 hours per week.
  • Termination Conditions: Specify notice periods and reasons for termination.

Outcome: Both parties sign the contract, formalizing the employment relationship.


Step 3: Tax and Social Security Registration 💰

When It’s Used: Prior to the employee’s start date.
Action: Register the employee with Vietnam’s tax and social security systems:

  • Social Insurance Enrollment: Mandatory contributions for health, unemployment, and pensions.
  • Tax Code Registration: Obtain a personal tax code for proper tax withholding.
  • Employer Contributions: Ensure compliance with contributions for social insurance (17.5%), health insurance (3%), and unemployment insurance (1%).

Outcome: Full compliance with Vietnam’s tax and social security regulations.


Step 4: Health and Safety Induction 🦺

When It’s Used: On or before the employee’s first day.
Action: Conduct health and safety training to comply with workplace safety standards:

  • Safety Guidelines: Provide an overview of emergency protocols and safety practices.
  • Emergency Procedures: Introduce fire exits, emergency contacts, and first aid locations.
  • Personal Protective Equipment (PPE): Supply necessary equipment based on the employee’s role.

Outcome: Employees are equipped with knowledge and resources to ensure safety at work.


Step 5: Payroll and Benefits Enrollment 📊

When It’s Used: Within the employee’s first week.
Action: Set up payroll and benefits systems:

  • Bank Details: Collect the employee’s bank information for salary deposits.
  • Benefits Enrollment: Register the employee for mandatory and company-provided benefits.
  • Overtime Policy: Clarify overtime pay rates and conditions.

Outcome: Employees are successfully enrolled in payroll and benefits programs.


Step 6: Workplace Policies and Training 📚

When It’s Used: Within the first month.
Action: Introduce employees to workplace policies and training:

  • Code of Conduct: Outline expectations for behavior and ethics.
  • Training Programs: Provide job-specific training and compliance guidelines.
  • Performance Metrics: Set performance targets and evaluation processes.
  • Flexible Work Options: Discuss any available remote or flexible work arrangements.

Outcome: Employees are well-versed in company policies and expectations.


Step 7: Probation and Feedback Period 📅

When It’s Used: During the probation period (usually 30–60 days).
Action: Monitor performance and provide regular feedback:

  • Performance Reviews: Conduct evaluations to assess employee fit and contributions.
  • Guidance and Adjustments: Offer coaching and adjust roles as necessary.
  • Employment Confirmation: Confirm the employee’s position post-probation or provide constructive feedback.

Outcome: Completion of probation, resulting in either permanent employment or feedback for improvement.


Summary Table of Key Onboarding Steps in Vietnam

StepAction/Details
Step 1: Job Offer & AcceptanceJob Title, Compensation, Start Date, Working Hours, Benefits, Probation Period
Step 2: Employment ContractJob Description, Compensation, Leave (Annual, Sick), Public Holidays, Termination, Working Hours
Step 3: Tax & Social SecurityRegister for Social Insurance, Tax Code, Employer Contributions
Step 4: Health & SafetySafety Induction, Emergency Procedures, PPE
Step 5: Payroll & BenefitsBank Details, Benefits Enrollment, Overtime Pay
Step 6: Policies & TrainingCode of Conduct, Job-Specific and Compliance Training, Performance Metrics
Step 7: Probation & FeedbackPerformance Reviews, Role Adjustments, Employment Confirmation

Key Takeaways
  • Employment contracts in Vietnam must include detailed terms on compensation, benefits, and responsibilities.
  • Compliance with Vietnam’s social insurance and tax systems is mandatory.
  • Employers must provide safety training, benefits registration, and performance evaluation during onboarding.

How GlobainePEO Can Help with Onboarding in Vietnam 🌐

GlobainePEO specializes in managing employee onboarding in Vietnam, from drafting compliant employment contracts to handling tax and social security registrations. Partnering with GlobainePEO ensures a seamless onboarding process, enabling your business to expand in Vietnam confidently and efficiently.

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