Step 1: Understand the nature of the problem
According to Vietnamese law, to sign a legal labor contract with an employee in Vietnam, the contracting party must be a legal entity or individual with valid business registration in Vietnam. Foreign businesses that do not have a legal entity here cannot name themselves — this is why the EOR (Employer of Record) model was born.
Step 2: Learn how EOR works
EOR units like Nhân Kiệt sign labor contracts, pay salaries, pay social insurance - health insurance - unemployment insurance and finalize personal income tax on behalf of the enterprise. Foreign enterprises still have full control over the professional work, performance and development orientation of their personnel.
Step 3: Record needs and survey
Provide the EOR unit with: vacancies, quantity, work location in Vietnam, expected salary and allowances, and desired time to hire.
Step 4: Receive consultation and quote
The EOR unit advises on appropriate models (full or partial EOR), work permits if necessary for foreign experts, and sends a transparent fee schedule per person/month.
Step 5: Negotiate and sign a service contract
After agreeing on the price and scope of services, the two parties sign an EOR service contract — this is a contract between the business and the EOR unit, unlike the labor contract which will be signed separately between the EOR unit and the employee.
Step 6: Deploy and operate
The EOR unit signs labor contracts, insurance registration, and tax codes for employees, which usually takes only 1-2 weeks — much faster than the few months needed to establish a company.
Step 7: Make a long-term plan (if necessary)
If the business scale in Vietnam develops later, the enterprise can convert to establishing its own legal entity; A reputable EOR unit will assist in handing over all personnel records without interrupting employee benefits.
Are there any legal risks in hiring personnel in Vietnam through EOR? The risk is largely transferred to the EOR unit because they are the party in charge of the labor contract and are responsible for complying with labor, insurance, and tax laws. Businesses should choose a reputable EOR unit with transparent contracts to ensure the interests of both parties.
Is an investment license required to use EOR services? No. This is the biggest advantage of EOR - businesses do not need an investment license, do not need legal capital, and do not need a registration office to still be able to legally hire personnel in Vietnam.