As Vietnam integrates more deeply into global supply chains and services, the number of foreign employees has risen sharply. With this growth comes an increase in workplace disputes involving expatriates and migrant workers. Examining common patterns helps employers, employees, and regulators improve labor relations and compliance.
1. Background
Foreign workers in Vietnam include highly skilled professionals, technical experts, and employees in hospitality, construction, and manufacturing. They are governed primarily by the Labor Code 2019, the Law on Occupational Safety and Hygiene 2015, and Decree 152/2020/ND-CP on work permits.
While these laws generally grant foreign workers the same rights and obligations as Vietnamese nationals, misunderstandings or non-compliance frequently lead to conflicts.
2. Typical Dispute Scenarios
a. Unlawful Termination
Some employers end contracts prematurely without proper legal grounds or fail to provide statutory notice and severance. This often occurs when business conditions change or when employers incorrectly assume that foreign staff are outside ordinary dismissal protections.
b. Wage and Benefit Claims
Delayed payment of salaries, bonuses, or overtime is a recurring complaint. Foreign staff may also contest the failure to enroll them in compulsory social insurance schemes where applicable, or disputes over housing and relocation allowances promised in contracts.
c. Occupational Safety and Injury Compensation
Migrant workers in construction or manufacturing sometimes face hazardous conditions. Disputes arise if employers deny liability for accidents or fail to pay medical costs and compensation under the Law on Occupational Safety and Hygiene.
d. Work Permit and Visa Issues
When employers delay renewing work permits or residence cards, foreign employees may lose lawful status, making them vulnerable to termination or fines. Conflicts also occur over responsibility for immigration paperwork and related fees.
3. Procedural Challenges
Even when foreign workers have legitimate claims, they may face procedural obstacles:
- Language barriers hinder understanding of labor contracts, internal rules, or dispute-resolution procedures.
- Lack of awareness about available remedies—labor inspectorates, mediation, arbitration councils, or courts—limits pursuit of claims.
- Costs and duration of proceedings discourage litigation, especially for short-term assignees.
- Some fear retaliation or non-renewal of visas if they bring complaints.
Relevant Real-Life Cases
- Judgment 640/2018/LD-PT (Hồ Chí Minh City) – Role of Work Permit in Foreign Employee Dispute
A foreign employee (“Mr. H”) in Ho Chi Minh City signed a 2-year labor contract. After the contract expired, he continued working without a new contract, while his work permit was renewed. A dispute arose when the employer gave notice of termination.
The court held that even though the employee continued working, the contract’s validity is constrained by the term of the work permit. The employer was required to compensate for unpaid wages and leave up to the expiry date of the permit.
This illustrates how the lack of proper work permit & contract duration can limit an employee’s claims.
4. Lessons and Best Practices
For employers:
- Draft bilingual contracts and provide clear onboarding about rights and procedures.
- Maintain accurate payroll, insurance, and work-permit records.
- Offer internal grievance channels to resolve issues early.
For foreign workers:
- Keep copies of contracts, pay slips, and correspondence.
- Seek advice from licensed labor consultants, unions, or diplomatic missions.
- File timely complaints with labor authorities if informal talks fail.
For regulators:
- Strengthen labor-inspection capacity regarding enterprises employing foreigners.
- Promote awareness campaigns in multiple languages.
- Encourage mediation and arbitration services with interpreters.
Conclusion
Disputes between foreign employees and employers in Vietnam stem less from gaps in statutory protection than from implementation failures and communication hurdles. Transparent contracts, proactive compliance, and accessible dispute-resolution services can minimize conflicts and enhance Vietnam’s reputation as a fair and attractive workplace for global talent.
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Nguyễn Hiền Mai