Training one foreign expert (international certifications, production-line training at the manufacturer, group management programs) is expensive — and it is also the amount employers most often lose when the expert resigns early, because the legal basis for claiming it back must be built before the training happens; it cannot be retrofitted after the person has left.
The legal foundation: the vocational training contract (Article 62)
Article 62 of the 2019 Labor Code provides: where an employee is trained at the employer’s expense, the parties must sign a vocational training contract (a separate document or a full clause within the labor contract) with core content: the occupation/skills trained, the location, the training duration, the training costs, the post-training service commitment period, and the reimbursement responsibility on breach. This document decides the entire recovery right later.
What counts into the claimable costs
- Only items within the training-cost definition in Clause 3, Article 62 and with valid vouchers: tuition, trainers, materials, training facilities, salary and insurance during study leave (if the employer kept paying);
- Not automatically included: recruitment costs, work permit costs, joining relocation, assignment allowances — if recovery is wanted for these, they belong in a separate agreement with objective repayment conditions, and their enforceability is less certain than a training contract’s;
- For training organized by the parent company abroad: for the Vietnamese company to claim reimbursement, there must be a clear inter-company cost allocation/assignment document — “group” costs do not automatically become the Vietnamese company’s costs.
Calculating the amount: the time pro-rata principle
The training contract should pre-state the formula: reimbursement = total valid costs × the proportion of the commitment period unfulfilled. The pro-rata formula is both easy to enforce and robust in disputes, because it reflects exactly the benefit the employer did not receive. Avoid two extremes: unconditional 100% claims (easily treated as an unreasonable penalty clause) and no formula at all (leaving every number to be fought over when the event happens).
Enforcement against an expert who has left the country
The weakest point of training-cost claims against foreign staff is cross-border enforcement — once the expert resigns and leaves Vietnam, recovery depends on assets remaining in Vietnam (final salary, unpaid settlements — within lawful wage-deduction limits) and a workable dispute clause. Practical prevention: absorb training costs progressively against the commitment (e.g. the company bears the cost year by year of service), retain part of the final settlement until handover is complete, and set feasible commitment periods (12–24 months post-training is the common range) instead of unrealistic long commitments.
Frequently Asked Questions
Must a foreign expert reimburse training costs when resigning early?
Only if a training-contract basis exists: under Article 62 of the 2019 Labor Code, when an employee is trained to raise qualifications or occupational skills at the employer’s expense (including partner-sponsored funds), the parties sign a vocational training contract containing the period the employee commits to work after training and the cost-reimbursement responsibility. Leaving before the commitment period ends (or unilaterally terminating unlawfully) triggers the repayment duty under that contract. Without a written training contract, the employer has almost no basis to claim training costs.
Which amounts count as training costs that can be claimed back?
Under Clause 3, Article 62 of the Labor Code: expenses with valid vouchers — fees for trainers, learning materials, premises, machinery and equipment, practice materials, other learner-support costs, and salary plus social and health insurance contributions for the learner during training (if any). Two practical consequences: (1) costs without valid vouchers cannot be claimed; (2) items such as recruitment costs, work permit costs or joining flights are not automatically “training costs” — recovering them needs a separate clear and lawful agreement, not bundling into the training contract.
How is the reimbursement amount calculated?
The law leaves it to the parties’ training contract; the most common and reasonable practice is pro-rating by the unfulfilled commitment time: total valid training costs × (months of commitment outstanding / total commitment months). For example, with a 24-month commitment and 18 months served, 25% is repaid. An agreement demanding 100% repayment regardless of time served is easily disputed for reasonableness before resolution bodies. Employers must also remember: the repayment duty attaches to the employee’s breach of commitment — if the employer terminates unlawfully or breaks its own promises, the claim basis collapses.
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FLAT Law Firm advises FDI companies and foreign employees on work permits, visas and temporary residence cards in Vietnam. Contact us for advice on your specific case.
This content is general information only and is not a substitute for legal advice on a specific case.
This article has been quality-reviewed by the FLAW AI Legal Council
