Vietnam’s Seasonal Labor Regulations: What FDI Businesses Should Know

Date: 2026.04.06

Vietnam’s seasonal labor regulations: What FDI businesses need to know

Vietnam is a high-potential market for FDI businesses—especially Japanese companies—with strong demand for seasonal or short-term hiring in manufacturing, retail, logistics, and events. However, according to reports from the Inspectorate of the Ministry of Labour – Invalids and Social Affairs (MOLISA), violations related to the use of seasonal labor are among the most common mistakes made by FDI businesses in their first year of operation.

To operate legally and avoid risks, businesses need a clear understanding of seasonal/short-term labor rules under the 2019 Labour Code and Decree 145/2020/ND-CP.

1. What was “seasonal labor” in the past? How is it regulated now?

Before 2021, Vietnamese law recognized the concept of a “seasonal contract under 12 months”.
However, the 2019 Labour Code removed the concept of “seasonal labor”.

Currently, there are only two types of labor contracts:

– Fixed-term labor contract (up to 36 months)

– Indefinite-term labor contract

Although the term “seasonal” is no longer used, businesses can still sign short-term contracts if they meet legal conditions.

2. When are FDI businesses allowed to sign short-term contracts?

Under Decree 145/2020/ND-CP and MOLISA guidance, businesses may sign short-term contracts if:

✔ The work is temporary and not regular/ongoing
For example: short-term projects, peak production seasons, events, inventory stocktaking.

✔ The work can be completed within a specific period
Short-term contracts should not be used for stable, long-term positions.

✔ Probation does not exceed 180/60/30 days depending on the role
(According to Article 25 of the 2019 Labour Code)

3. Contracts under 1 month must still be in writing

This is a common misconception among FDI businesses.
According to Article 14 of the Labour Code:
“Any labor agreement is considered a labor contract, whether made verbally or in writing.”

From 2021:

– Contracts under 1 month still require a written contract (except for certain special cases).

– The contract must clearly state rights, obligations, salary, working time, and social insurance regime (if applicable).

Japanese businesses often skip this step → major risk if disputes arise.

4. Do seasonal/short-term workers have to pay social insurance (BHXH)?

Under current regulations:
Employees who sign a labor contract of 01 month or longer → must participate in compulsory SI.
From 01/7/2025 (when the 2024 Social Insurance Law takes effect), employees working under fixed-term/indefinite-term labor contracts of 01 month or longer are subject to compulsory social insurance.

(Before 01/7/2025, labor contracts from 01 to under 03 months only required BHXH and BHYT; and contracts from 03 months or longer required BHXH, BHYT, and BHTN.)

Contracts under 01 month → not subject to compulsory BHXH, but the employer must still fully comply with labor obligations, including:

+ Ensuring occupational safety

+ Paying entitlements as usual

+ Providing support in case of work-related accidents

FDI businesses need to review carefully to avoid violations.

5. Working hours and overtime (OT) rules for seasonal/short-term workers

Many FDI businesses mistakenly think seasonal workers can work more overtime.
However, the law applies the same as for regular employees:

– Maximum OT: 40 hours/month

– 200 hours/year (some industries: 300 hours/year)

– Requires employee consent

– OT pay must be calculated correctly at 150% – 200% – 300%

Labor inspections in 2023–2024 reported that more than 35% of FDI violations were related to incorrect OT calculation or exceeding the legal cap.

6. Rules on termination of seasonal/short-term contracts

The business must:

– Provide proper notice if unilaterally terminating the contract

– Fully settle salary, annual leave, and allowances

– Return the BHXH book (if participating)

– Disciplinary procedures still apply as with regular employees

Confusion around termination is why many FDI companies lose labor disputes.

7. Seasonal labor management records – the first documents inspectors request

Businesses must prepare in full:

– Labor contracts

– Probation agreements

– Personal identification files

– Timesheets/attendance records

– OT consent forms

– Salary and bonus regulations

– Occupational safety and health (ATVSLD) files

– Employee lists reported to the Department of Labour – Invalids and Social Affairs

This is the document set labor inspectors typically check immediately within the first 1–2 years.