Decree No. 337/2025/ND-CP is promulgating Vietnam’s framework and guidelines for managing labor contracts electronically. The platform of the national electronic labor contract, which is supervised by the Ministry of Home Affairs, supports the system.
The amendments to the laws are significant for companies that have operations in Vietnam and are of multinational nature. While paper employment contracts are still legally valid, an employer that decides to adopt an electronic contract needs to make sure that its HR software, digital-signature system and procedures for verifying personnel satisfy Vietnam’s conditions.
What the New E-Contract Framework Requires?
For an electronic labour contract to have the same legal force as any other written document there would be a number of conditions. Employers using digital contracts need to be registered on the national platform, have a unique number for the contract and secure compliant digital signatures and timestamping.
Another important one is identity verification. Vietnamese workers will be required to provide Level-2 VNeID authentication whereas foreign workers and authorised representatives will have to submit valid identification and relevant immigration documents or work-permit documents.
Why Global HR Platforms May Need Localisation?
Recruitment, induction and employment records are equally managed using HR platforms across the globe by many offshore businesses. But general electronic signing and scanning models or routing the electronic signing including simple ‘Click to accept’ may not meet Vietnam’s standard and requirements of the legal way to conduct electronic labour contracts.
Foreign employers are advised to thus assess their own HRM applications to ensure that they can be integrated with and push the necessary data to the national platform via a partner HR outsourcing service provider that has been approved for e-contracting in Vietnam. Even if the company’s global HR system is in place, local integration might be required.
Foreign Employees Need Particular Attention
Staff members living abroad add to the compliance challenge due to the need to ensure identity and employment status is verified. Employers should ensure the proper digitization of those details needed for the entry in and out of passport, visa and work-permit information.
Applicable language requirements should be used for contracts involving foreign workers. For companies that need to do additional documentation in a second language, they should make sure they use the appropriate phraseology in the translated version and inform employees what is being signed.
Four HR System Updates Employers Should Make
First, check out your e-signature provider. Ensure that the service has been correctly licensed and offers the required platform connectivity, as well as ability to meet Vietnam’s electronic-contract needs.
Secondly, examine corporate identification papers. Companies should make sure to have a digital identity and a signer of authority for individuals that are going to sign employment contracts using digital means.
Thirdly, make maps of legacy contracts and new hires; and current and old paper-only contracts should not be blindly scanned and put on the Web, without determining the proper authentication and evidentiary procedure.
Last, but not least, boost data governance. HR teams should assess the consent of their employees and how other systems and technology partners use or share personal information, as well as access controls.
What Does This Means for Multinational Employers?
Vietnam’s e-contract is more than a step off the paper trail. It marks a step toward digitization whereby contract data can be mapped onto other employment, labor, tax and socio-economic data.
The focus for foreign employers is on meeting local needs in a wider global HR system. Those organizations that examine their systems, vendor and signing processes before they begin can minimize the danger of bad documentation and upset.
FAQs
Do paper contracts still exist in Vietnam?
Yes. Paper contracts may continue to be used, if the employer wants to use an electronic contract, which is required by the applicable rules of the electronic contract.
Are companies allowed to employ an e-signature software that is readily available worldwide?
Not necessarily. Employers are encouraged to check the eligibility of their provider to handle Vietnam’s digital signature, authentication and platform-integration demands.
Are there any special requirements for foreign employees?
Yes. Employers are responsible for determining foreign employees and authorised representatives are legally recognised with the appropriate paper or electronic immigration and/or digital credentials.
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