Labor contract drafting service in Vietnam (2026)

The year 2026 marks a major turning point in human resource management as Decree No. 337/2025/ND-CP on electronic employment contracts officially enters practice, alongside the Labor Code 2019 and its guiding documents. Using outdated contract templates or copying them from the internet not only causes financial risks but also entangles enterprises in prolonged legal disputes. Understanding this, Viet An Law Firm proudly provides our comprehensive labor contract drafting service in Vietnam (2026) to assist businesses. In addition to our core labor law consulting expertise, this specialized contract drafting service ensures complete compliance with the latest regulations.

What is employment contract drafting?

Based on Article 13 of the Labor Code 2019, an employment contract is an agreement between an employee and an employer regarding paid work, salary, working conditions, and the rights and obligations of each party in the labor relationship.

Therefore, to prepare employment agreements means transforming verbal agreements or memorandums of understanding into a highly binding legal document.

This task requires the drafter to master current legal norms to ensure fairness, legality, and maximum protection of the rights of both parties.

Why is drafting labor contracts correctly crucial for businesses?

03 Reasons to have a lawful employment contract

From a legal standpoint, executing a legally standard employment contract that strictly complies with the Labor Code 2019 is not only an obligatory duty but also helps enterprises balance employee benefits and optimize operational costs. Specifically:

• Avoiding legal risks and administrative fines: Contracts lacking essential clauses (salary level, social insurance, working hours) or having incorrect formats will expose enterprises to penalties from state management agencies or damage brand reputation.
• Preventing and resolving labor disputes: A clear contract transparently defines the rights and obligations of both parties. When conflicts arise regarding illegal dismissal, severance allowance, or training compensation, the contract serves as the highest legal evidence to protect the enterprise’s interests in Court.
• Information confidentiality and anti-competition: Properly integrating confidentiality agreements into the contract prevents the risk of employees leaking business secrets or customer data.

Common types of employment contracts in Vietnam

According to Article 20 of the Labor Code 2019, current law only recognizes 02 main types of employment contracts, including:

• Indefinite-term employment contract: A contract in which the two parties do not define the term and the time of termination of the contract’s validity.
• Definite-term employment contract: A contract in which the two parties define the term and the time of termination of the contract’s validity within a period of no more than 36 months from the effective date.

Furthermore, in terms of format, employment contracts are divided into 02 types as follows:

• Verbal contract: Only concluded for employment contracts with a term of less than 01 month, except for the following cases:
  • Concluding contracts with a group of employees;
  • Concluding contracts with people under 15 years old;
  • Concluding contracts with domestic helpers.
• Written contract: Includes:
  • Paper contracts;
  • Electronic contracts.

Mandatory contents in an employment contract in Vietnam

Contract drafting must strictly comply with the mandatory contents listed in Article 21 of the Labor Code 2019. Below is a summary table of the mandatory contents:

Checklist to prepare employment agreements under Vietnamese law

To build a standard employment contract template, in addition to foundational factors, executors need to expand their review to the following criteria:

Legal capacity of the employee

Checking the identity card and age of the employee is a necessary step to determine their legal capacity and identify necessary documents to complete before signing. For employees under 18 years old, the written consent of their legal representative is mandatory to avoid void contracts.

Salary and benefits

According to Article 90 of the Labor Code 2019, the employee’s salary must not be lower than the regional minimum wage prescribed by the State. Since the regional minimum wage is adjusted periodically, it is mandatory to match it against the latest regulations. Additionally, enterprises need to transparently regulate allowances, payment methods, and contribution rates for Social Insurance (SI), Health Insurance (HI), and Unemployment Insurance (UI).

Information confidentiality and anti-competition

This content is extremely crucial for core personnel who hold vital company data. The clauses must clearly state the scope of confidentiality, the commitment term, and specific compensation sanctions.

Job details

Explicitly add locations, working hours, and rest hours as a basis for job performance evaluation.

Process of legally standard employment contract drafting

Steps to build a legally standard employment contract

Collect and verify subject information

The HR department needs to collect a complete dossier of the employee (ID Card, degrees, professional certificates).

The focus of this step is to assess civil act capacity (whether they are full 18 years old or subject to specific rules for underage labor) and the signing authority of the employer’s representative.

Determine the type of employment contract

Based on the nature of the work and agreement, clearly define one of the two types of contracts to be signed:

• Indefinite-term.
• Definite-term (up to 36 months).

Draft vital clauses

Ensure all mandatory information is included, such as:

• Job and workplace;
• Contract term;
• Salary (matching the 2026 regional minimum wage), payment methods and terms;
• Promotion/salary regimes, SI/HI;
• Working/rest hours;
• Add confidentiality or anti-competition clauses for specific job positions.

Legal review and internal cross-checking

The legal department or a labor lawyer reviews the draft. It is necessary to cross-check the drafted terms with the Internal Labor Regulations, the Collective Labor Agreement of the company, and related legal provisions. The contract must guarantee that benefits are not lower than the minimums set by law and the Collective Labor Agreement.

Execution, signing, and storage

The two parties agree on the content and proceed to sign.

• Paper contracts: Initial each page and sign/stamp fully on the last page. Each party keeps one copy with equal legal validity.
• Electronic contracts: Apply digital signature and eKYC systems complying with Decree No. 337/2025/ND-CP to ensure data integrity and evidential value.

Common mistakes in employment contract drafting in Vietnam

During the process of supporting enterprises, labor lawyers at Viet An Law Firm frequently discover the following common errors:

• Merging a probation contract into an employment contract but applying the wrong salary rate (under 85% of the official salary).
• Regulating compensation for violating the notice period contrary to statutory law.
• Using foreign currency to record salary levels (violating foreign exchange management regulations).
• Lacking clauses on personal data protection according to Decree No. 13/2023/ND-CP.

What risks do enterprises face when using old employment contract templates?

Legal regulations constantly change over time. If enterprises use old contract templates, it can lead to risks such as:

• Wholly or partially void contracts: When disputes arise, the Court will declare clauses that violate current laws void, stripping the enterprise of its legal shield.
• Inability to apply electronic contracts: Old templates lack terms specifying electronic signatures and data encryption under Decree No. 337/2025/ND-CP, causing the contract’s integrity to be rejected before Court.
• Risk of commercial secret leakage: Old templates often lack specific specialization regarding confidentiality commitments.

When do you need a professional contract drafting service in vietnam?

If your business is facing any of the following situations, seeking advice from professional labor law consulting services is essential:

• Starting to recruit senior executives with complex commission and stock option clauses.
• Recruiting foreign workers with work permit barriers.
• Needing to implement an electronic employment contract system simultaneously but not mastering the legal techniques of the database.

Labor contract drafting service in Vietnam (2026) by Viet An Law Firm

Given the complexity of the legal document system, building employment contracts independently often hides many risks. The contract drafting service of Viet An Law Firm, backed by a professional team of labor lawyers, brings absolute peace of mind to enterprises.

• Customized case-by-case: Viet An Law Firm does not use generalized templates but designs them specifically based on the industry and compensation structure of each company.
• Up-to-date with the latest legal provisions: Our experts utilize deep labor law consulting experience to constantly update and adjust employment contracts, ensuring absolute compliance with current laws.
• Maximum protection for enterprises: Establish legal checkpoints through confidentiality, anti-poaching, and non-compete agreements.

Frequently asked questions

Is it permissible to sign a definite-term employment contract multiple times?

According to Article 20 of the Labor Code 2019, employers are only allowed to sign a definite-term contract a maximum of 02 times from the expiration of the first contract. After that, if the employee continues working, an indefinite-term contract must be signed.

Do electronic employment contracts have the same legal value as paper contracts?

According to Article 14 of the Labor Code 2019 and detailed guidance on methods and technical conditions in Decree No. 337/2025/ND-CP, employment contracts concluded through electronic means in the form of data messages have the same legal value as physical paper written contracts.

Can I request a law firm to represent us in contract negotiations?

Customers can completely authorize or invite a labor lawyer at Viet An Law Firm to participate with or represent you in senior human resource negotiation sessions to ensure transparency and the most favorable terms.

We hope the above article has resolved your concerns. To experience a premier employment contract drafting service in Vietnam (2026) and secure your operational compliance through professional drafting labor contracts, please contact Viet An Law Firm today.