The same US–Vietnamese group: in the US dismissing an employee can take an afternoon (at-will employment); in Viet Nam a procedurally wrong dismissal can force the company to reinstate the worker with compensation. The two countries’ labour laws follow opposite philosophies — and a global HR policy must “translate” both.
1. The US: hire-and-fire freedom within anti-discrimination bounds
Most US states apply at-will employment: either side may end the relationship at any time, for any reason — except prohibited ones. And the “except” is the important part: federal and state laws bar dismissals based on race, sex, age, disability or religion (Title VII, ADA, ADEA…), and bar retaliation against whistleblowers. Reality: US dismissals face few procedural hurdles but very high discrimination-litigation risk — one email, one inconsistent performance review can become evidence.
2. Viet Nam: protecting workers through strict procedure
The 2019 Labour Code goes the opposite way: restricting employers’ unilateral termination — allowed only in statutory cases (Article 36), with proper notice, and dismissals as discipline must follow disciplinary procedure (meeting, minutes, workers’ representative organisation participating). Unlawful dismissal: the employer must reinstate the worker, pay wages for days not worked, and compensate. The shock for US businesses: in Viet Nam, “poor performance” is not an automatic dismissal ground — there must be an appraisal regulation, warnings, retraining without improvement.
3. HR policy for the two-country model
US–Vietnamese groups need: (a) two separate procedures — never apply US-style dismissal to the Vietnamese subsidiary or vice versa; (b) train US managers on Vietnamese disciplinary procedure before they appraise Vietnamese staff; (c) a globally uniform anti-discrimination and anti-harassment policy (the US standard is usually higher; applying it group-wide costs nothing); (d) labour contracts for US experts working in Viet Nam must satisfy both systems (work permits under Decree 219/2025 replacing 152/2020, social insurance under Law 41/2024). Labour law has no “global version” — only correctly translated local versions.
Conclusion
US at-will and Vietnamese strict procedure are not sides to pick — they are both to understand. Groups that “translate” both countries’ labour philosophies into one HR policy operate successfully in both places.
Frequently Asked Questions
What does at-will employment mean?
Either side may end the employment relationship at any time, for any reason — except prohibited reasons such as discrimination (race, sex, age, disability, religion) and retaliation against whistleblowers.
Can poor performance justify instant dismissal in Viet Nam?
No. There must be an appraisal regulation, warnings, retraining without improvement; disciplinary dismissal must follow procedure (meeting, minutes, workers’ representative organisation) under the 2019 Labour Code.
What follows an unlawful dismissal in Viet Nam?
The employer must reinstate the worker, pay wages for days not worked, and compensate as provided by the 2019 Labour Code.
What must US experts working in Viet Nam comply with?
Work permits under Decree 219/2025 (replacing 152/2020), social insurance under Law 41/2024, and labour contracts under the 2019 Labour Code — never transplant the US procedure wholesale.
This article has been quality-reviewed by the FLAW AI Legal Council