Vietnam Severance Pay for Foreign Workers: What Expats Must Know Before Leaving
Leaving a job in Vietnam is complicated enough without a language barrier standing between you and the money you are legally owed. Many foreign workers assume that because they do not pay into Vietnam’s unemployment insurance fund, they are not entitled to severance pay (trợ cấp thôi việc). That assumption is wrong — and it can cost you months of salary. Under Vietnam’s Labor Code 2019 and Decree 145/2020/ND-CP, foreign employees working legally in Vietnam are covered by the same severance pay rules as Vietnamese employees. The catch is that the process is document-heavy, the terminology is Vietnamese, and employers do not always volunteer the information. This guide breaks down the exact legal conditions, the calculation formula, the documents you need, and a copy-paste cover letter you can adapt for your own claim.
Am I Eligible? The Three Conditions That Decide Your Severance Pay
Vietnam’s Ministry of Home Affairs has confirmed that foreign workers fall within the scope of the Labor Code 2019 under Clause 3, Article 2. Eligibility for severance pay is governed by Article 46 of the Labor Code 2019 and Article 8 of Decree 145/2020/ND-CP. You must meet all three of the following conditions to qualify:
- You worked regularly for the employer for at least 12 months. Short-term contracts or sporadic work do not count. The 12-month threshold is measured by total actual working time, which now includes probation period time under Decree 145/2020.
- Your labor contract terminated under one of the qualifying clauses. The specific clauses are 1, 2, 3, 4, 6, 7, 9, and 10 of Article 34 of the Labor Code 2019. These generally cover contract expiration, completion of work, mutual agreement, and certain employer-initiated terminations. Resignation with proper notice also typically falls within these clauses.
- You are not excluded by the two disqualifying exceptions. You do not receive severance pay if you are eligible for a pension under social insurance law, or if you abandoned your job without a legitimate reason for 5 or more consecutive working days (Article 36(1)(e)).
How Severance Pay Is Calculated for Foreign Workers (The Formula)
The calculation has two variables: your qualifying working time and your salary base.
Working time for severance purposes is the total actual time you worked for the employer, minus the time you participated in unemployment insurance and minus any time for which the employer already paid you severance or job-loss allowance. Because foreign workers in Vietnam do not participate in unemployment insurance, the subtraction for unemployment insurance time is typically zero. That means your entire actual working period — including probation — counts toward severance.
The salary base is the average salary of the 6 consecutive months under your labor contract immediately before termination.
The formula:
Severance Pay = (1/2) × (Average Monthly Salary of Last 6 Months) × (Number of Qualifying Working Years)Each full year of qualifying work earns you half a month’s salary. Partial years are handled according to the rounding rules in Decree 145/2020. If your exact salary history is unclear, request a written breakdown from your employer’s HR department and cross-check it against your payslips before signing anything.
Documents You Should Prepare for a Severance Pay Claim
The official legal texts do not prescribe a single fixed form number for foreign workers to claim severance pay. In practice, the claim is made through a written request to the employer, supported by a document package. The following checklist is based on the standard evidentiary requirements referenced in official guidance and administrative practice. Always confirm the current local requirements with the employer’s HR department or the provincial labor authority before submission.
- Labor contract (original or certified copy) — Hợp đồng lao động
- Work permit and any renewals — Giấy phép lao động
- Passport identification page and visa/residence card copies
- Payslips for the last 6 months before termination — Bảng lương 6 tháng liền kề
- Bank statements showing salary deposits for the same period
- Termination decision or notice — Quyết định chấm dứt hợp đồng lao động
- Social insurance contribution record (if any) — Sổ bảo hiểm xã hội
- Written severance pay request letter (template provided below)
Key Vietnamese Terms Translation Table for Your Claim
Use this table to identify the correct terms in your documents. Mismatched terminology is a common cause of delay.
| English | Vietnamese | Where It Appears |
|---|---|---|
| Severance pay | Trợ cấp thôi việc | Labor Code Art. 46; termination decision |
| Job-loss allowance | Trợ cấp mất việc làm | Labor Code Art. 47 (distinct from severance) |
| Labor contract | Hợp đồng lao động | Your employment agreement |
| Termination of labor contract | Chấm dứt hợp đồng lao động | Termination notice/decision |
| Work permit | Giấy phép lao động | Your work authorization |
| Probation period | Thời gian thử việc | Contract; counted in working time |
| Unemployment insurance | Bảo hiểm thất nghiệp | Foreign workers not subject to this |
Copyable Request Letter for Severance Pay (Bilingual Format)
Below is a bilingual request letter you can adapt. Replace the placeholders in brackets with your information. Keep a signed copy and send it by a method that provides proof of delivery.
Date: [DD/MM/YYYY] To: [Company Legal Name]
Address: [Company Registered Address]
Attention: Human Resources Department / [HR Manager Name] RE: REQUEST FOR SEVERANCE PAY (TRỢ CẤP THÔI VIỆC) Dear [HR Manager Name / Human Resources Department], I, [Applicant Full Name], passport number [Passport Number], am a foreign employee who has worked for [Company Legal Name] under labor contract number [Contract Number] dated [Contract Date]. My employment terminated on [Termination Date] under [state the clause, e.g., mutual agreement / contract expiration]. I have worked continuously for the company for [Total Months] months, exceeding the 12-month threshold required under Article 46 of the Labor Code 2019. Pursuant to Article 46 of the Labor Code 2019 and Article 8 of Decree 145/2020/ND-CP, I respectfully request payment of severance pay calculated as: - Qualifying working time: [Number] years ([Number] months)
- Average monthly salary of the last 6 months: [Amount] VND
- Severance pay due: (1/2) × [Average Salary] × [Years] = [Calculated Amount] VND Please transfer the amount to my bank account:
Bank: [Bank Name]
Account Number: [Account Number]
Account Holder: [Name as on Bank Account] I have attached copies of my labor contract, payslips for the last 6 months, and termination notice for your reference. I request a written response within [e.g., 10] working days from receipt of this letter. Sincerely,
[Signature]
[Applicant Full Name]
[Phone Number]
[Email Address]
Common Mistakes That Delay or Block Severance Pay Claims
- Assuming you are not eligible because you are foreign. Clause 3, Article 2 of the Labor Code 2019 explicitly brings foreign workers within the law’s scope.
- Confusing severance pay with job-loss allowance. These are two different payments under Articles 46 and 47. Claim the correct one based on your termination circumstances.
- Not documenting your probation period. Probation time now counts toward the 12-month threshold and the total working-time calculation. If your contract is silent on probation dates, request confirmation from HR.
- Signing a termination settlement without reviewing the severance line item. Once you sign a final settlement that omits severance, recovering it later becomes far more difficult.
- Failing to keep copies of everything. Vietnamese labor disputes often turn on documentary evidence. Keep payslips, bank statements, the labor contract, and all termination correspondence.
Frequently Asked Questions
Q1: Are foreign workers in Vietnam entitled to severance pay at all?
Yes. Article 46 of the Labor Code 2019 applies to foreign workers under Clause 3, Article 2 of the same law. The Ministry of Home Affairs has confirmed that foreign employees who meet the conditions — 12 months of regular work and termination under the qualifying clauses — are entitled to severance pay.
Q2: How is severance pay calculated if I never paid unemployment insurance?
Because foreign workers are not subject to unemployment insurance under Article 43 of the Employment Law, the subtraction for unemployment insurance time is zero. Your entire actual working period, including probation, counts toward severance. The formula is: half a month’s salary multiplied by the number of qualifying working years.
Q3: What is the salary base used for the calculation?
The salary base is the average monthly salary of the 6 consecutive months under your labor contract immediately before termination. If your salary changed during that period, the average is calculated across the full six months.
Q4: Can my employer refuse to pay severance pay?
An employer cannot lawfully refuse if you meet the statutory conditions. The two situations where severance pay is excluded are: (1) you are eligible for a pension under social insurance law, or (2) you abandoned work without a legitimate reason for 5 or more consecutive working days. Outside these exceptions, the obligation is mandatory.
Q5: Is there a specific form I must submit to request severance pay?
The official legal texts cited in this guide do not prescribe a single fixed form number for foreign workers. The standard practice is a written request letter supported by the documentation listed above. Confirm the current local requirements with your employer or the provincial labor authority.