Vietnam training cost reimbursement: rules for employers

Vietnam training cost reimbursement starts with a signed training contract. The Labor Code 45/2019/QH14, passed on 20 November 2019 and in force since 1 January 2021, says the employer and the employee must sign one when the employer pays for the employee's training. If a company pays for an employee to train and wants the money back when that person leaves early, the contract is where that duty is written down. Without it, a repayment demand is weak.

When the rule applies

Article 62 of the Labor Code covers an employee who is trained to raise their skills or retrained, at home or abroad, with money from the employer. It also covers money that a partner gave to the employer for that training. In these cases the two sides must sign a training contract. It is made in two copies, and each side keeps one.

The same article lets the contract set a repayment duty. So repayment is not automatic. It is something both sides agree to in writing, with the cost and the terms stated up front.

Sources: Labor Code 45/2019/QH14, Article 62, clause 1, and its final provisions on the start date (1 January 2021), as archived by the Wayback Machine in 2023.

What the training contract must say

The training contract is its own written agreement. It is not a casual email. Article 62, clause 2, lists the main points it must contain.

• The profession or skill being taught.
• Where the training takes place, how long it lasts, and the pay during training.
• How long the employee promises to keep working after training.
• The cost of the training and the duty to repay it.
• The duties of the employer.
• The duties of the employee.

Each point should be specific. Write the course name, the dates and the provider. A vague line such as "training as needed" is hard to enforce later.

Sources: Labor Code 45/2019/QH14, Article 62, clause 2, for the contents of the training contract.

What counts as training cost

Only real, documented costs count. Article 62, clause 3, says training cost means spending backed by valid papers. It names fees paid to teachers, learning materials, schools and classrooms, machines, equipment and practice materials, and other support for the learner. It also names the wages the employer pays the learner during study, plus the social, health and unemployment insurance it pays.

For training abroad, the cost also includes travel and living costs during the course. Keep invoices and receipts in a file for each person. If the company cannot show the paper, it should not expect to recover the amount.

Do not add costs the law does not list. An inflated figure can turn a fair claim into a dispute.

Sources: Labor Code 45/2019/QH14, Article 62, clause 3, for the cost items.

How to write the repayment terms

A clear clause protects both sides. The employee should know what happens before signing, and the employer should know what it can claim. A good clause answers four questions.

• What is the total cost, and how is it split by item?
• How long must the employee stay after training?
• If the employee leaves sooner, how is the repayment worked out?
• When and how is the money paid?

One option is to reduce the amount owed for each month the employee stays. It is easy to explain and shares the risk. The law leaves the exact method to the parties, so state it plainly. The stay period should fit the real cost and length of the course. A very long stay period for a short, cheap course is likely to look unreasonable.

Both sides should sign and each keep a copy. Give the employee time to read it. If the employee is a foreign national, offer a version in a language they understand well.

Sources: Labor Code 45/2019/QH14, Article 62, clauses 1 and 2, for the two copies and the duty to state cost and repayment.

If the employee quits without notice

Article 40, clause 3, says an employee who ends a labour contract against the law must repay the training cost under Article 62. The same article also removes severance pay and adds other payments. So the training contract matters most when an employee leaves in breach of the rules.

Sources: Labor Code 45/2019/QH14, Article 40, clauses 1 to 3.

Practical steps for employers

Follow a simple order. First, decide whether the course really is skills improvement or retraining. Second, get quotes and keep invoices. Third, draft the contract and check each item against Article 62. Fourth, sign before the course begins. Fifth, record wages and insurance paid during the course. Sixth, review the file if the employee resigns.

When an employee leaves, talk first. Show the contract and the cost record. Many cases can end with an agreed payment plan, which is faster than a formal claim. The paper trail matters most if the parties cannot agree.

This article is general information about labour rules, not legal advice. For a specific contract or dispute, speak to a qualified Vietnamese labour lawyer.

Sources

• Labor Code 45/2019/QH14, National Assembly of Vietnam, passed 20 November 2019, in force 1 January 2021: Articles 40 and 62 (Vietnamese text, archived on the Wayback Machine in 2023).