Insights | Ascentium Vietnam

Probation Contracts in Vietnam: 2026 Complete Guide

Written by Ascentium Content Team | 7 April 2025

Probation contracts in Vietnam give employers and employees a defined period to assess whether a role is the right fit before moving into ongoing employment. Employers need to get the probation period, salary, contract terms and termination process right from the start.

This guide explains the key rules for probation periods in Vietnam, including contract requirements, salary and benefits, employer obligations, termination rights and common compliance issues.

Understanding Probation Contracts in Vietnam

Probation contracts represent a fundamental component of Vietnam's employment framework, allowing both parties to assess compatibility before committing to a long-term working relationship. Under the Labor Code 2019, probation serves as a mutual evaluation period where employers assess employee skills, performance, and cultural fit, while employees determine workplace suitability.

A probation period gives both parties time to assess skills, qualifications and suitability for the role before continuing the employment relationship. It provides flexibility while keeping the employee protections required under Vietnam’s labour rules.

Probation can be agreed only once for the same job. This prevents repeated probation periods while giving employers a clear framework for assessing new employees.

Key Elements of a Probation Contract

A well-structured probation contract helps employers and employees understand the role, probation period, pay and working conditions from the start. Vietnamese law requires key details about both parties, the job and the terms of probation to be clearly set out.

Probation can be included within an employment contract or set out in a separate probation agreement. Understanding the different formats available for probation agreements helps organisations align with current social insurance and labor regulations.

Essential Contract Components

According to Article 24 of the Labor Code 2019, probation contracts must should clearly set out the key terms of employment, including:

  • Employer information: Company name, address, and detail of the authorized representative.
  • Employee information: Full name, date of birth, gender,  residential address, and identification documents.
  • Job description and workplace location
  • Agreed duration of the probation period.
  • Probation Salary structure and payment terms
  • Working hours and rest periods
  • Personal protective equipment requirements

Contract Format Options

Vietnamese law provides two distinct ways for structuring probation arrangements:

  • Probation within labor contract: Probation terms are included directly in the employment contract, If the employee successfully completes probation, the same contract continues.
  • Separate probation contract: A standalone agreement covers only the probation period. If the employee successfully completes probation, a separate employment contract must then be signed.

The contract format can affect social insurance obligations. Where probation is included in an employment contract, compulsory contributions may apply, while separate probation agreements may be treated differently.

Probation Periods and Duration Limits in Vietnam

Probation periods in Vietnam vary by job level, with maximum limits ranging from 6 working days to 180 days. The Labour Code also limits probation to once for the same job and sets specific rules for short-term employment contracts.Employers should define clear evaluation criteria and keep appropriate records throughout the probation period.

Maximum Probation Periods by Job Category

The Labor Code 2019 establishes clear maximum probation periods based on job complexity and required qualifications:

  • 180 days: Enterprise executive positions as defined by the Law on Enterprises
  • 60 days: Positions requiring college-level or higher professional qualifications
  • 30 days: Technical positions requiring intermediate vocational certificates or skilled roles
  • 6 working days: Other positions

Probation Restrictions and Limitations

Single probation rule: Probation can only be agreed once for the same job, giving both the employer and employee one defined period to assess whether the role is the right fit.

Contract duration requirements: Probation does not apply to employment contracts with terms shorter than one month, Rest day calculations: Probation periods are calculated based on actual working days, excluding weekends and holidays.

Clear performance criteria, regular feedback and appropriate records can help employers assess probation consistently and communicate outcomes clearly.

Salary and Benefits During Probation in Vietnam

Salary and benefits during the probation period are important for both employers and foreign professionals in Vietnam.Employees are protected by minimum probation salary requirements, while pay levels can also vary by region and role. Employers must also consider social insurance obligations and personal income tax withholding on probationary wages where applicable, so the right compensation and deductions are clear from the start.

Minimum Salary Requirements

Article 26 of the Labor Code 2019 mandates that probationary salary must be at least 85% of the regular position salary. This gives employees a clear minimum pay protection while allowing employers some flexibility during the probation period.

2025 Regional Minimum Wage Context

When setting probation salary in Vietnam, employers should also account for the applicable 2026 regional minimum wage:

  • Region I: VND 5,310,000/month
  • Region II: VND 4,730,000/month
  • Region III: VND 4,140,000/month
  • Region IV: VND 3,700,000/month

Social Insurance and Tax Implications

Under the current Social Insurance Law, compulsory social insurance can apply where a probation arrangement involves paid work, salary and employer management or supervision, even if the agreement is described differently. Employers should therefore check the substance of the arrangement, not only the contract title.

Personal income tax obligations apply to probationary wages, with a 10% withholding rate for contracts under three months with payments exceeding VND 5,000,000 or more per pament. However, employees may claim refunds during annual tax finalisation if total income falls below taxable thresholds.

Termination of Probation Contracts in Vietnam

Termination of probation contracts in Vietnam offers both employers and employees a high degree of flexibility, making it an important aspect of the hiring process. Under the Labor Code 2019, either party can end the probation period without prior notice or compensation.

However, employers are still legally required to provide written results at the end of the probation period to determine next steps. This section explains how to properly conclude a probation, avoid legal risks, and smoothly transition employees to full-time roles when applicable.

Flexible Termination Rights

Under Article 27 of the Labor Code 2019 either the employer or employee may end the probation arrangement during the probation period:

  • No prior notice required for termination by either party.
  • No compensation obligations for probation termination.
  • Immediate termination is permitted if performance standards are not met.

Employer Notification Obligations

Employers must inform employees in writing of probation results upon period completion. This notification must clearly state whether the employee has met performance standards and outline next steps whether, contract continuation or termination.

Post-Probation Transition

If probation is successful, the employer must continue the existing employment contract where probation was included in it, or sign an employment contract where a separate probation agreement was used. If the employee does not pass probation, the relevant contract ends.

Employer Obligations and Penalties During Probation

Employers in Vietnam must adhere to strict legal obligations when managing probation contracts to avoid costly penalties and ensure fair treatment of employees. From proper documentation and performance tracking to providing safe working conditions and adequate support, compliance is essential throughout the probation period. With enforcement tightening in 2025 under Decree 12/2022, labour inspectors are increasing audits and issuing fines for even minor violations. This section outlines key employer responsibilities and the financial risks of non-compliance in today's regulatory environment.

Mandatory Compliance Requirements

  • Documentation standards: Employers should keep clear records of probation terms, performance assessments and the final probation outcome.
  • Fair treatment obligations: Probationary employees retain rights to safe working conditions, non-discrimination, and equal treatment throughout the probation period.
  • Training and support: Employers must provide adequate onboarding, training, and supervision to enable probationary employees to succeed in their roles.

Violation Penalties and Enforcement

Under Decree 283/2026/NĐ-CP, employers that do not follow Vietnam’s probation rules may face penalties depending on the type of violation.

  • Exceeding maximum probation periods: VND 2,000,000 - 5,000,000 fine
  • Failure to notify probation results: VND 500,000 - 1,000,000 fine
  • Multiple probation violations: VND 4,000,000 - 10,000,000 fine
  • Improper contract termination: VND 1,000,000 - 3,000,000 fine

Administrative enforcement has intensified under Decree 283/2026/NĐ-CP, with labor inspectors conducting more frequent workplace audits and imposing stricter penalties for non-compliance.

Probation Rules for Different Job Types in Vietnam

Executive and Managerial Positions

Enterprise managers covered by the Law on Enterprises may have a probation period of up to 180 days. These positions require extensive evaluation of strategic thinking, leadership capabilities, and cultural alignment.

Executive probation often involves more detailed documentation and structured performance frameworks, while termination decisions may require board-level approval depending on the company’s governance structure.

Technical and Professional Roles

Roles requiring college-level or higher professional or technical qualifications may have a probation period of up to 60 days. This gives employers time to assess both technical capability and how well the employee works with the wider team

Roles in sectors like IT, engineering, and professional services may require specialised evaluation criteria and a longer onboarding processes.

General Labour Positions

6-working day probations for basic positions provide rapid evaluation while minimising administrative burden. These short periods require efficient onboarding and clear performance standards.

Streamlined processes for general labour positions focus on basic competency assessment and workplace safety orientation rather than complex skill evaluation.

Common Probation Contract Issues and Solutions

Frequent Compliance Problems

Employers must not extend probation beyond the statutory maximum for the role. Clear HR policies and reliable tracking can help ensure probation periods end on time.

> Solution: Implement clear HR policies with automated tracking systems to prevent duration violations.

Multiple probation attempts continue despite legal prohibitions, particularly in competitive industries where employers seek extended evaluation periods.

> Solution: Keep clear employee records and apply a one-probation-per-role policy to prevent repeat probation arrangements.

Inadequate result notification occurs when employers fail to provide timely written notification of probation outcomes.

> Solution: Develop standardised notification procedures with documented delivery confirmation.

Best Practice Recommendations

Structured evaluation frameworks help ensure fair, consistent probation assessment while providing legal protection against discrimination claims.

Regular feedback mechanisms during probation improve employee performance and reduce termination rates while demonstrating good faith evaluation efforts.

Clear communication protocols from probation start through result notification reduce disputes and improve overall employment relationships.

How Ascentium Vietnam Can Help?

Probation contracts in Vietnam give employers and employees a clear period to assess whether the role is the right fit. Getting the basics right, from probation length and pay to contract terms and the final outcome, helps keep the process clear and compliant from the start.

For employers, a well-managed probation period is also about setting clear expectations, giving useful feedback and making the next step easy to understand. That creates a better experience for the employee while giving HR teams greater confidence in their hiring decisions.

At Ascentium, we help you understand the probation and employment requirements that apply in Vietnam, structure the right arrangements and manage the related HR and payroll obligations. You get clear answers, practical guidance and support you can count on as your team grows.

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