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Tied to the work permit

Labour contract template for foreign employees

For hiring foreign nationals to work in Vietnam. The template ties the contract term to the work permit and sets out tax and insurance obligations.

Bilingual copyAdd a second language so the employee understands every clause.Work permitRecords the permit number and term; the contract cannot outlast the permit.Tax and insuranceSets out income tax duties and compulsory insurance contributions.

Choose an industry to add clauses specific to it.

Labour contract with a foreign employee

Labour Code 2019, Articles 151 to 157

For foreign nationals working in Vietnam, with the term tied to the work permit.

10 clauses

Indefinite-term labour contract

Labour Code 2019, Article 20(1)(a)

For stable, long-term positions where neither party sets an end date.

9 clauses

Fixed-term labour contract

Labour Code 2019, Article 20(1)(b)

Has a specific end date, lasts up to 36 months and can be renewed only once.

9 clauses

Probation contract

Labour Code 2019, Articles 24 to 27

A probation agreement before the official contract, with pay of at least 85% of the job's salary.

8 clauses

Labour contract under 12 months

Labour Code 2019, Article 20(1)(b)

For temporary, seasonal or specific work lasting less than a year.

9 clauses

Freelance collaborator contract

Civil Code 2015, Article 513 on service contracts

Task-based collaboration, not an employment relationship unless there is management and supervision.

6 clauses

Piecework contract

Civil Code 2015, Article 542 on processing contracts

Assigns a full scope of work, paid according to the accepted results.

5 clauses

Service contract

Civil Code 2015, Articles 513 to 521

The provider performs services for the client and receives a service fee.

5 clauses

Internship contract

Labour Code 2019 and the training institution's internship rules

Hosts student interns, with or without financial support.

6 clauses

Vocational training contract

Labour Code 2019, Articles 61 to 62

The company pays for training and the trainee commits to working after the course.

5 clauses

Labour contract appendix

Labour Code 2019, Article 22

Amends or supplements part of a labour contract that is in force.

3 clauses

Part-time labour contract

Labour Code 2019, Article 32

Fewer hours than normal working time, with entitlements in proportion to the hours actually worked.

9 clauses

Remote work labour contract

Labour Code 2019, Articles 21 and 105

The employee works mainly away from the office, with rules on equipment, connectivity and security.

10 clauses

Domestic worker labour contract

Labour Code 2019, Articles 161 to 165

A household hires a domestic worker, with specific rules on rest, board and insurance paid with wages.

7 clauses

Labour contract with an executive

Labour Code 2019 and Law on Enterprises 2020

Signed with directors and department heads, with clauses on authority, income and confidentiality.

10 clauses

Consulting contract

Civil Code 2015, Articles 513 to 521

An expert advises within an agreed scope for a consulting fee, outside an employment relationship.

7 clauses

Non-disclosure agreement

Labour Code 2019, Article 21(2)

Signed with the labour contract to protect trade secrets, customer data and technology.

6 clauses

Labour contract termination agreement

Labour Code 2019, Article 34(3)

Both parties agree to end the contract and settle the last day, payments and handover.

6 clauses
Guide

Labour contracts with foreign employees: the work permit comes first, the term follows

8 sectionsAbout 4 min readUpdated 01/10/2026

Hiring a Korean technical director or a Filipino English teacher starts with the same question: whether the work permit (giấy phép lao động) has been issued. A labour contract with a foreign employee differs from an ordinary one in three ways: its term may not be longer than the work permit, it may be signed as a definite-term contract any number of times, and tax and insurance follow separate rules. This article goes through each point under Articles 151 to 157 of the Labour Code 2019 (Bộ luật Lao động 2019).

Conditions for foreigners to work in Vietnam

Under Articles 151 to 157 of the Labour Code 2019, foreigners working in Vietnam must hold a work permit, except in cases certified as not requiring one. The business handles the procedures for issuing and extending the work permit and the temporary residence card; the employee presents the permit before the first day of work. Employing someone without a permit is penalised under current regulations. That is why the template on Việc Hot places the clause on the work permit and legal documents straight after the term clause, so the two sides do not sign first and apply for the permit afterwards.

The contract term is tied to the work permit

  1. Apply for the work permitThe business files the application with the employee's criminal record certificate, qualifications and health certificate.
  2. Receive the work permitThe permit states the position, place of work and expiry date. The template reminds you that a permit lasts up to 2 years and can be extended once.
  3. Sign the labour contractThe term may not exceed the permit. The editor warns you if you enter more than 24 months.
  4. Permit about to expireExtend it or apply for a new one before the expiry date, then sign a new contract.

Income tax and insurance for foreign employees

Foreigners working under labour contracts join compulsory social insurance and health insurance under the rules that apply to them; unemployment insurance currently applies to Vietnamese citizens, so the template does not include it among the deductions. Personal income tax depends on tax residence: residents are taxed on the 5-bracket progressive schedule from 5% to 35% under the Personal Income Tax Law 2025 (Luật Thuế thu nhập cá nhân 2025), with a deduction of 15.5 million VND a month for the taxpayer from the 2026 tax period; non-residents are taxed differently. The business withholds the tax at source before paying the salary.

ItemVietnamese employeeForeign employee
TermVietnamese employeeUp to 36 months; one further definite-term contractForeign employeeNo longer than the permit; may be signed repeatedly
DocumentsVietnamese employeeID card numberForeign employeePassport, nationality, work permit number and expiry date
Unemployment insuranceVietnamese employeeYes, 1% from each sideForeign employeeNot covered
Personal income taxVietnamese employeeProgressive schedule, family deductionForeign employeeDepends on tax residence, withheld at source
LanguageVietnamese employeeVietnameseForeign employeePreferably bilingual, stating which version prevails if they differ

Clauses a labour contract template for foreign employees should include

Besides the core terms under Article 21, the contract should include the passport number and nationality; the permit number, the position on the permit and its expiry date; what happens if the permit is revoked or not extended; any housing, flights home and children's school fees, stating which side bears the tax on them; and the currency of payment and the exchange rate if the parties agree on payment in foreign currency as permitted by current regulations.

A term clause written the right way

Article 2. Type of contract: definite term of 24 months, from 1 November 2026 to 31 October 2028, not exceeding the term of Work Permit No. 1234/GPLD issued on 20 October 2026 for the position of Technical Director.

When the work permit expires, this contract ends; the two parties will sign a new contract once the permit has been extended or reissued.

What foreign employees should check before signing

  • The legal entity signing the contract is the one that sponsored the permit; the position in the contract matches the position on the permit.
  • The term is no longer than the permit; the start date is not earlier than the date the permit takes effect.
  • The salary is clearly stated as gross or net, with the currency and how tax is withheld; housing and flights state which side bears the tax.
  • The two language versions match and a sentence states which one prevails.
  • Nobody keeps your passport: Article 17 prohibits holding original identity documents.

To see how much tax is actually withheld under the 2026 schedule, enter your salary in the personal income tax calculator.

Common employer mistakes when hiring foreigners

Signing the contract and letting the person start work before the permit is issued is the costliest mistake: the business is fined and has to redo the paperwork. The second is writing a 36-month term out of habit when the permit has only 18 months left. The third is letting the permit lapse partway through and only then extending it, which leaves the contract in a gap. The fourth is using an English-only contract sent over by the parent company, which lacks the core terms under Article 21 and has no Vietnamese version for the official procedures. The last is not withholding tax in the belief that foreigners file their own tax returns.

Drafting a labour contract with a foreign employee on Việc Hot

  1. Choose the template and the industry

    Education adds clauses on qualifications and certificates; manufacturing adds safety and shift work; management adds confidentiality and authority.

  2. Fill in both parties and choose a second language

    Enter the nationality, passport, permit number and term. Choose "Second language" to print a bilingual version; the template text and amounts in words are translated, while the content you enter stays as you typed it.

  3. Review the term warnings, then print

    The "Notes and checks" tab flags a term of more than 24 months or a missing place of work. Print directly or send the link.

Frequently asked questions

The contract term may not exceed the work permit, so in practice the two sides sign a definite-term contract for each permit period; Article 20 allows this to be repeated.

The law does not require it, but a bilingual version helps the employee understand the terms correctly, and a Vietnamese version is needed for procedures in Vietnam. State clearly which version prevails if the meanings differ.

They are not covered. Foreigners join compulsory social insurance and health insurance under separate rules, so the deductions from their pay are lower than for Vietnamese employees.

The contract may not run beyond the permit. The business needs to extend the permit or apply for a new one before the expiry date and then sign a new contract; letting the employee work after the permit has expired is a violation.

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