DRAFTING BILINGUAL LABOR CONTRACTS FOR FOREIGN WORKERS IN VIETNAM

BILINGUAL EMPLOYMENT CONTRACT DRAFTING FOR FOREIGN WORKERS IN VIETNAM – COMPREHENSIVE GUIDE 2025

Implementing unit & consultant: Asia Legal Group – Legal expert for foreign workers & investors in Vietnam.

I. INTRODUCTION: WHY DO FOREIGN WORKERS HAVE BILINGUAL LABOR CONTRACTS?

In recent years, the number of foreign workers working in Vietnam has increased sharply, especially in the fields of technology, engineering, international education, industrial production and FDI enterprises. However, most cases encounter legal problems such as:

Sign the contract only in English → invalid if a dispute occurs.
Terms inconsistent with Vietnam Labor Law → fined by the Labor Inspectorate.
Using a foreign contract form → does not meet the requirements when applying for a work permit or temporary residence card LD1 - LD2.
Inconsistency between the Vietnamese and English versions → in litigation, the Vietnamese version always takes precedence according to the law.

So, Vietnamese - English bilingual labor contract is the most optimal and mandatory requirement to:

Foreign workers understand their rights and obligations correctly.
Enterprises have enough legal documents when applying for a work permit.
Avoid disputes and legal risks due to language differences.
Meets Vietnamese legal regulations according to:
Labor Code 2019,
Decree 152/2020/ND-CP,
Decree 70/2023/ND-CP (amended on foreign labor management).

II. IMPORTANT LEGAL BASIS (UPDATE 2024–2025)

1. Labor Code 2019

Full regulations on: contract type, salary, working hours, mandatory terms, insurance, disciplinary action...

2. Decree 152/2020/ND-CP – Regulations on management of foreign workers

3. Decree 70/2023/ND-CP – Amendment 152

Adjusting the application for a work permit

Require explanation of labor needs before signing the contract

Conditions for work permit exemption

Clearly define corporate responsibilities when signing a contract

Regulations on compulsory social insurance contributions for foreign workers with labor contracts of 1 year or more.

5. Personal Income Tax Law 2007 & amendments

Related to personal income tax deduction in contracts.

III. WHAT IS A BILINGUAL LABOR CONTRACT? WHAT ARE THE STANDARDS?

It is a contract drawn up in writing 2 languages:

Vietnamese (main legal language)
English (for foreign workers to understand easily)

Principle: ➡ The Vietnamese version has higher legal value when there is a dispute (according to Vietnamese law). ➡ Two copies right show the same content, do not contradict.

DRAWING BILINGUAL LABOR CONTRACTS FOR FOREIGN WORKERS IN VIETNAM

IV. REQUIRED PROVISIONS IN BILINGUAL LABOR CONTRACTS

A bilingual contract that meets legal standards and is suitable for a Work Permit application must include:

1. Information of the parties

Full name, passport, residential address abroad & in Vietnam

Enterprise: Tax code, business registration license

2. Job position

Must fit:

Job name is recorded in the explanation of labor needs

Conditions of Work Permit (professional / management / technical)

3. Contract term

By law: max 2 years for foreign workers.

Fits the deadline work permit or license exemption.

4. Salary & allowances

Includes:

Basic salary (gross or net)

Housing, transportation, shift allowances

KPI bonus, Tet bonus

Regulations on salary increases

5. Working time - rest time

8 hours/day, 48 hours/week

Overtime (maximum according to law)

Annual leave: 12–14 days/year

Holidays for foreigners: two holiday systems can be applied (Vietnam + home country)

6. Insurance policy

Social insurance, health insurance, unemployment insurance

Cases of exemption from social insurance (union, internal group)

7. Personal income tax

Deduction liability (enterprise)

Responsibility to declare (employees)

Commitment to residence – non-residence

8. Security – anti-competition

For senior personnel and technology experts.

9. Terms of contract termination

According to the Labor Code 2019.

Special note for foreigners:

When an enterprise revokes the Work Permit, the labor contract automatically terminates.
Must support workers to complete exit procedures.

10. Dispute resolution provisions

Preferred language: Vietnamese

Resolution agency: Vietnamese Court or Labor Arbitration

V. PROCESS FOR DRAFTING THE MOST STANDARD BILINGUAL LABOR CONTRACT 2025

Step 1: Review working conditions of foreign workers

Do they qualify for a Work Permit?

Type of Work Permit: LD1 – LD2 – license exemption?

Qualifications and experience → suitable for the offered position?

Step 2: Check bilingual legal terminology

No free translation. Must use standard legal terms:

Labor contract / Employment contract
Labor discipline / Internal labor regulations
Probation / Probationary period
Mandatory insurance / Social insurance
Work termination permit → automatic termination of contract

Step 3: Draft a contract according to the business's standard form

Vietnamese content → prepared in advance

English version → translated according to legal standards

Step 4: Check compatibility with Work Permit profile

The contract must be in sync with:

Document approving the need to use labor
Job title and description in profile
Salary & benefits are stated in the explanation

Step 5: Final check & signing

The two copies have equal value

Sign 2 Vietnamese copies - 2 English copies (or 2 bilingual copies)

Submission address:

Ho Chi Minh City Department of Labor, Invalids and Social Affairs: 159 Pasteur, District 3

Hanoi Department of Labor, Invalids and Social Affairs: 75 Nguyen Chi Thanh, Dong Da

Other provinces submit to the respective Department of Labor, Invalids and Social Affairs

VI. COMMON MISTAKES WHEN DRAWING BILINGUAL LABOR CONTRACTS (AND HOW TO AVOID THEM)

1. Vietnamese and English content do not match

→ cause dispute, Work Permit is denied.

Fix: Use Asia Legal Group's standard bilingual template set.

2. The job description is wrong compared to the Work Permit profile

→ The Department of Labor, Invalids and Social Affairs does not issue licenses.

Fix: Review before signing.

3. Salary is recorded as NET but tax is paid according to GROSS

→ Enterprises have personal income tax arrears.

4. Not clearly stating the clause "The contract ends when the Work Permit expires"

→ Compensation dispute occurs.

5. No clearly defined probationary period (maximum 60 days)

→ Enterprises are fined according to the Labor Code.

6. Not signing with the correct legal representative

→ Contract not valid.

VII. ACTUAL CASE STUDY FROM ASIA LEGAL GROUP

Case 1 – A Japanese business was refused Work Permit twice

Error:

The contract is only available in English
The title says “Technical Supervisor” but in the explanation it says “Engineer”
There is no termination clause under the work permit

How Asia Legal Group handles:

Re-draft the full bilingual contract
Standardize job descriptions → match profiles
Added salary appendix & social insurance terms → After 12 days: granted Work Permit & 2-year temporary residence card.

Case 2 – Australian expert has tax arrears due to signing a NET contract

Error:

The contract records NET salary but the business calculates tax according to GROSS → wrong.

How to handle:

We renegotiated the NET salary terms → accurately recalculated GROSS
Create a new appendix
Adjust tax declaration → Reduce 35% of tax arrears.

Case 3 – American teacher was terminated wrongly

Center error:

Terminate the contract immediately when the Work Permit expires
No prior notice → worker sues

Asia Legal Group supports:

Redraft the contract & legal termination regulations
Support Work Permit extension procedures → Both parties sign a new agreement, avoiding disputes.

VIII. EXPERT EXPERIENCE TO DRAW THE PERFECT BILINGUAL CONTRACT

1. Always use bilingual Vietnamese - English

Not only for understanding but also for use when working with state agencies.

2. Check each English line – avoid mistranslation

Avoid translating using Google Translate → wrong terminology.

3. There must be a Work Permit clause

Most businesses inspected because of the lack of this provision.

4. Clearly state the overtime policy

Foreign workers pay close attention to the issue of overtime.

5. Clearly state Gross – Net salary

Avoid disputes about personal income tax.

6. Information security

Even more important for technology/engineering experts.

7. Sign the correct form and store it according to regulations

May be required when renewing Work Permit.

IX. STANDARD BILINGUAL LABOR CONTRACT FORM (SUMMARY)

(If you want, I can create a full Word/PDF template to use.)

The standard content includes 12 items:

Information of the parties
Contract type
Jobs & titles
Try job
Working time
Salary
Insurance
Obligations & rights
Security
Termination
Dispute resolution
Special provisions for foreign workers

X. IMPLEMENTATION TIME – COST – APPLICATION LOCATION

1. Time to prepare a bilingual contract

Self-composed: 5–7 days

Using Asia Legal Group service: 24–48 hours

2. Cost

Depending on complexity, location, mode.

(Asia Legal Group is committed to transparent and appropriate costs for each business.)

Department of Labor, Invalids and Social Affairs of the province/city where the employee works

4. Documents need to be prepared with the contract

Explain labor needs

Passport

Judicial background

Qualifications & experience

Health certificate

4×6 photo

Bilingual labor contract

XI. WHY SHOULD YOU CHOOSE ASIA LEGAL GROUP?

1. Expert with 15+ years of experience with foreign records

We handle it 1,000+ bilingual contracts per year.

2. Commitment to legal standards - no Work Permit refusal

All contracts are the same Reviewed by Vietnamese lawyers & bilingual experts.

3. Fast processing - professional - absolutely confidential

4. Full support:

➡ You just need to provide the information - we take care of the entire procedure.

XII. CONCLUSION – OPTIMAL SOLUTION FOR FOREIGN WORKERS

For foreigners who want to work legally in Vietnam, Bilingual labor contract is an extremely important part, directly affecting:

Benefits
Tax
Insurance
Work Permit
Temporary residence card
Legal disputes

Drafting "not according to the law" can cause you to lose work opportunities or be denied a license.

Best solution:

👉 Use consulting services - drafting bilingual contracts of Asia Legal Group to ensure Legal standards - Work Permit standards - temporary residence record standards.

Source: Asia Legal Group

Phone number:028 6674 3333 - 0945 009 002 (Deputy General Director)

Website:https://dinhgiaav.com/

Address: 6-8 Phan Huy Thuc, Tan Kieng Ward, District 7, Ho Chi Minh City

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