Why is it necessary to know many laws, not just the Labor Code?
Labor relations in Vietnam are governed by many different laws, each law regulates a specific aspect: contracts and working conditions, insurance, unions, labor safety... Enterprises just reading the Labor Code is not enough to fully comply.
1. Labor Code 2019
Original document governing labor contracts, working and rest hours, wages, labor discipline, labor disputes, foreign workers working in Vietnam. Effective from January 1, 2021, it is still the most important foundational law.
2. Social Insurance Law 2024
Replaces the 2014 Law on Social Insurance, effective from July 1, 2025. Regulations on compulsory social insurance, voluntary social insurance, sickness - maternity - retirement - death benefits, and conditions for enjoying one-time social insurance.
3. Health Insurance Law
Law No. 25/2008/QH12, has been amended and supplemented by Law No. 46/2014/QH13 and Law No. 51/2024/QH15 (effective from July 1, 2025). Regulating the obligation to participate in compulsory health insurance for employees with labor contracts of 1 full month, payment rates and medical examination and treatment benefits.
4. Employment Law 2025 (including unemployment insurance)
Employment Law No. 74/2025/QH15, effective from January 1, 2026, replaces the 2013 Employment Law. Worth noting: in Vietnam there is no separate "Unemployment Insurance Law" — the unemployment insurance regime (unemployment benefits, training support, job placement consulting) is located in Chapter VII of the Employment Law. This is a point many businesses misunderstand.
5. Trade Union Law 2024
Law No. 50/2024/QH15, effective from July 1, 2025. Regulations on the organization, rights and responsibilities of trade unions, the right of employees to join unions (including foreign workers with contracts of 12 months), union fees (2% of the salary fund as a basis for social insurance payment) and responsibilities of employers.
6. Law on occupational safety and hygiene
Regulates the employer's responsibilities for labor safety training, protective equipment, periodic health examinations, and reporting and handling of occupational accidents.
7. Civil Code & Commercial Law
Additional application for service contract relationships, labor supply and subleasing contracts between businesses and service providers, as well as issues of civil liability and compensation for damages outside of pure labor contracts.
What should businesses do?
For FDI enterprises or hiring personnel in Vietnam, hiring labor in Vietnam without having a separate labor legal department, the safest way is to use EOR services or specialized labor legal consulting to ensure correct and complete updates of the above laws, avoiding the risk of unintentional violations.
Which law is most important for new businesses entering Vietnam? The 2019 Labor Code is a must-understand foundation, followed by the 2024 Social Insurance Law because it is directly related to the monthly financial contribution obligation for employees.
Do these laws change often? The original laws rarely change, but decrees and circulars providing detailed instructions (regional minimum wage, insurance payment rates...) are updated in each period. Businesses should monitor regularly or ask the service unit to update them for them.