To switch EOR providers in Vietnam, first establish whether the legal employer changes and whether the incoming arrangement is lawful for the employee’s actual work. Then agree the employment mechanism, settle or document each right, and coordinate payroll and insurance dates. A service cancellation alone does not transfer employment.
Vietnam adds a practical constraint: an arrangement in which one business employs someone and places them under another employer’s direction can fall within regulated labor subleasing. Licensing, permitted jobs and the 12-month limit can determine whether the proposed switch can proceed.
Rules checked October 30, 2026. The examples below are hypothetical.
What changes when you switch EOR in Vietnam?
Compare the employing entity named in the employment contract with the incoming contract, registration details, insurance records and any work permit. A platform brand or invoice name may identify an intermediary. Registration establishes identity; it does not establish the employment route.
The Labor Code distinguishes agreed termination under Article 34(3), specified business transactions under Articles 43 and 44, and labor subleasing under Articles 52 to 58.
| Situation | Legal mechanism to verify | Evidence required | Implication |
|---|---|---|---|
| Platform or service changes; employer stays | Continued employment with administrative changes | Same legal entity, current contract and documented changes | Do not terminate employment merely to move systems. |
| A qualifying business transaction affects employment | Articles 43 and 44 and the applicable labor utilization plan | Transaction documents, affected workforce and plan | Current and successor employers implement the adopted plan; do not assume every employee transfers automatically. |
| Unrelated EOR A and EOR B are different employers | Lawful end of A employment and new B employment, potentially by mutual agreement | Genuine employee agreement, termination documentation, new contract and lawful placement | Settle A’s liabilities and specify B’s commitments separately. |
| Incoming placement cannot satisfy local rules | Reassess the proposed route | Actual duties, supervision, license, assignment history and client eligibility | Defer the switch until a lawful arrangement is established. |
For labor subleasing, Article 53 permits specified purposes, including temporary demand and replacement during maternity leave, and limits the period to 12 months. Decree 145’s job list includes interpretation and translation. Its entry for programming concerns production machinery systems; it should not be treated as general authorization for every software role.
Obtain B’s written explanation of the route, permitted duties and remaining assignment period. A fresh provider name does not establish a fresh statutory clock.
Review the existing service and employee position
Commercial agreement
- Identify the contracting parties, actual employer and any local partner.
- Check notice delivery, renewal, exit charges, outstanding invoices and services continuing after cancellation.
- Establish final payroll cutoffs, record access, deposit reconciliation and refund conditions.
- Name the owners of disputes, corrections, indemnities and filings that survive termination.
Employee arrangements
- Check contract type, start date, amendments, collective terms, probation and actual assignment history.
- Reconcile wages, overtime, leave, expenses, bonus commitments, equity documents and insurance contributions.
- Identify pregnancy, protected leave, pending benefits, disputes and employer-linked immigration permission.
- Compare final and first pay dates, benefit exclusions and the employee’s proposed new terms.
Keep commercial notice separate from employee notice. Under Article 35, ordinary employee resignation generally requires 45 days for an indefinite contract, 30 days for a fixed term of 12 to 36 months, or three working days for a shorter fixed term. Exceptions and special occupations differ. Mutual termination under Article 34(3) depends on agreement; it is not a reason to instruct an employee to resign.
A client’s preference for another provider does not itself supply an employer dismissal ground under Article 36.
Establish transfer and continuity treatment
For a qualifying Article 43 transaction affecting many employees, the labor utilization plan matters. The Labor Code’s Article 44 requires consultation with the workplace employee representative organization where one exists and public notification of the adopted plan within 15 days. An unrelated vendor replacement needs its own legal analysis.
Use a rights schedule that distinguishes statutory obligations from additional contractual recognition.
| Item | Statutory treatment to verify | Recognition or settlement needed | Who confirms |
|---|---|---|---|
| Prior service | Business-transaction rules and the statutory purpose for which service matters | Record original service and B’s specific policy commitments; avoid a blanket continuity promise | A, B and employment adviser |
| Probation | Applicable Labor Code limits and whether probation is proposed | Agree no new probation where that is the intended protection | B and employee |
| Annual leave | Article 113 requires payment for unused entitlement on departure; entitlements vary by category | A settles the closing balance; B separately documents new or enhanced leave | A payroll, B and employee |
| Seniority leave | Article 114 adds a day for each five years with one employer | Specify any more generous recognition by B | B |
| Notice and severance | Mechanism, service and unemployment-insurance history determine treatment | Calculate A’s liability; identify any additional agreed payment | A |
| Protected leave and benefits | Employment protections and benefit eligibility require separate checks | Confirm pending claims, contribution history and coverage dates | Both employers and benefit administrators |
| Bonus and equity | Relevant contract, policy and plan conditions | Allocate accrued amounts and obtain required plan approvals | A, client and plan administrator |
| Work permission | Employer, role, location and authorization category matter | Obtain the required new permission or confirmed exemption procedure before work for B | B, employee and responsible authority |
Article 46 severance generally applies after at least 12 months of regular service for specified termination grounds, including mutual agreement. It uses half a month’s salary per qualifying year, excludes unemployment-insured and previously settled periods, and uses the preceding six-month average. Do not presume either a full-tenure payment or a zero balance.
Article 48 normally requires termination-related payments within 14 working days. Only specified circumstances allow extension, up to 30 days. A disputed commercial refund does not extend that employee settlement period.
Set one coordinated cutover calendar
Worked case: a Vietnamese interpreter
Assume a Vietnamese citizen works on a qualifying temporary interpretation assignment from April 1, 2026, to March 31, 2027. A and B are separate, appropriately licensed employers. The actual duties, client eligibility and written subleasing arrangements have been checked. The proposed route is mutual termination with A on November 30 and fresh employment with B on December 1, covering the remaining four months.
These are scenario conditions, not findings about a particular provider. There is no business sale or merger. B agrees no probation and recognizes April 1 for specified internal benefits, without describing every statutory right as continuous.
Assume the commercial agreement requires 30 calendar days’ notice, received Friday, October 30, for a Monday, November 30 service end. It also permits deferral by agreement. Assume A’s final input cutoff is November 27 and its agreed November payday is December 4; an earlier contractual payday would still apply. B’s first input cutoff is December 23, and it requires cleared first-cycle funding by December 28.
| Milestone | Dependency | Outgoing EOR | Incoming EOR | Client or employee action | Completion evidence |
|---|---|---|---|---|---|
| October 30: commercial notice | Terms and deferral option reviewed | A acknowledges service dates | B provides proposed route | Client delivers notice without ordering employee exit | Receipt and commercial schedule |
| By November 18: verified handover | Lawful, secure sharing agreed | A supplies contract, balances and contribution history | B reconciles identity, duties and payroll inputs | Employee checks personal details; client owns exceptions | Reconciled minimum record set |
| November 20: readiness gate | Route, terms, benefits and funding capacity confirmed | A confirms settlement process | B confirms permitted arrangement, agreed documents, December 1 coverage arrangements and payroll owner | Client reserves funding; employee receives final terms | Written readiness record; unresolved dependency means defer |
| November 23: agree employee exit | Readiness gate passed and voluntary consent obtained | A and employee sign November 30 mutual termination; A issues written termination notification | B and employee sign December 1 contract | Employee accepts specific terms after review | Signed documents and notification |
| November 27 to 30: close A period | Final changes reconciled | A closes November 1 to 30 earnings and leave | B records A values as history | Client funds A’s confirmed liabilities | Approved final calculation and payment instructions |
| December 1: B employment begins | Documents and arrangements effective | A handles November insurance exit and outstanding duties | B starts December 1 to 31 wage period and applicable enrollments | Employee receives access and contacts | Start confirmation and enrollment acknowledgments |
| December 4: A settlement target | Actual settlement calculation approved | A pays final wages and leave, plus anything else due | B excludes those amounts from new earnings | Employee receives itemized statement | Payment evidence; target precedes the ordinary 14-working-day limit |
| December 23 to 31: first B payroll | Final inputs approved; cleared funding by December 28 | A resolves historical queries | B tests, then pays December wages on December 31 | Client authorizes one live payment file | Payslip, bank evidence and reconciled liability register |
Vietnam’s November 24 holiday falls on Tuesday in 2026. Keep it out of working-day processing assumptions. The example uses a Monday to Friday office schedule; December 4 is the fourth working day after November 30. Check the actual employer and bank calendars.
For a covered employee, Social Insurance Law Article 28 requires the employer’s compulsory-insurance registration submission within 30 days of becoming subject to participation. File promptly at cutover; that window is not a promise of immediate health coverage. B must confirm applicable health-insurance activation and any interim arrangement before the gate passes. In this example, supplemental cover ends with A on November 30 and starts with B on December 1 by express insurer confirmation.
Reconcile transition costs and cash
An outgoing refund and incoming payroll funding are different cash flows. Do not finance B’s first payroll with a refund that has no confirmed payment date.
| Fee, liability or funding item | When due | Responsible party | Refund or settlement treatment |
|---|---|---|---|
| Service notice and exit charges | Actual agreement dates | Client under commercial terms | Reconcile separately from employee pay |
| A wages, overtime and expenses | Applicable wage and settlement dates | A as employer; client funding as agreed | Itemize paid and outstanding amounts |
| Unused leave | On departure settlement | A | Pay the verified statutory balance; do not silently replace it with B leave |
| Notice, severance or additional settlement | If the selected mechanism and facts trigger it | A; contractual cost allocation separately | Document calculation and exclusions |
| Benefit overlap or replacement | Confirmed coverage dates | Relevant employer and client | Identify deliberate overlap and any waiting period |
| Deposit and final invoice | Contractual reconciliation date | A and client | Verify deductions and refund timing |
| B first-cycle funding | Agreed incoming cutoff | Client funds; B runs payroll | Keep separate from A’s closing balance and historical YTD data |
One leave balance, one settlement
In the interpreter case, assume A verifies four unused days through November 30. October contractual monthly salary is VND 22,000,000 and A’s applicable daily-pay calculation uses 22 normal working days. October 2026 has 22 Monday to Friday weekdays.
Decree 145, Articles 54 and 67 provides the daily-wage framework and bases unused-leave settlement on the contractual salary of the month immediately preceding departure.
The illustrative calculation is VND 22,000,000 ÷ 22 × 4 = VND 4,000,000. A’s assumed full November gross wages of VND 22,000,000 plus leave give VND 26,000,000 before any applicable payroll treatment, excluding employer contributions, expenses or other liabilities. This is not a net-pay estimate.
A pays the leave amount by the December 4 target. B imports four days as a settled historical balance with zero unpaid carryover. Any extra leave B grants is a separately identified benefit. December gross salary is a new VND 22,000,000 wage period; the client funds B’s approved invoice, including its separately calculated charges, by December 28. A’s VND 26,000,000 is not added to that funding request.
Test the first payroll and close the old arrangement
Treat each item as pass or fail. A calculation can run in parallel for checking; release only the authorized live wage payments.
- Periods: A pays November and its closing settlement; B pays December. Neither system recreates the other’s wage period.
- Historical values: Prior gross pay, taxable amounts, withholding and contributions reconcile to statements. Imported YTD data remains distinct from B’s live earnings.
- Tax: Each payer owns its applicable withholding and filings. Assign year-end reconciliation and employee certificates explicitly; a file import does not transfer those duties. Check the current withholding rules.
- Insurance: Reconcile the worker’s existing identifier, contribution history, A’s exit and B’s enrollment. Check pending claims and actual coverage activation.
- Balances: Confirm wages, leave, bonus, expenses and any severance have one settlement owner.
- Payment controls: Match the employee bank details, approved file and bank confirmation. Block duplicate payment instructions.
- Closure: Retain filing receipts, lawful records, final invoices and refund reconciliation. Commercial account closure must leave an owner for later corrections.
Tell the employee what will happen
By November 18, provide a comparison of A and B terms, proposed documents and pay dates. Explain the statutory leave payment, the limited scope of B’s service recognition, insurance arrangements and where bonus or equity treatment differs. In this example, November 23 is an agreed document-review target, not a statutory consent deadline. Refusal or an unresolved concern returns the plan to the client lead; do not treat silence as agreement.
Give the employee A’s settlement contact, B’s payroll contact and the client escalation owner. Confirm which documents arrive before signing and which payment and contribution records follow afterward.
If A delays or refuses records
The client transition lead owns escalation; A remains responsible for its employment records and obligations. Article 48 requires completion of contribution-confirmation procedures, return of retained original documents and, on employee request, copies concerning employment history.
The minimum verified handover includes identity and payroll identifiers, contracts, actual service and assignment dates, wages and deductions, contribution history, leave and other balances, permission where relevant, and benefit dates. B may reconstruct necessary information from lawful employee and official records only when validated and sufficient. Otherwise defer before signing an irreversible exit, or resolve the existing signed arrangement lawfully before its effective date.
Vietnam’s employee-data rules require attention to lawful processing and retention, including exceptions to deletion at employment end. Agree necessary fields, access controls, employee information, applicable consent and retention duties. For overseas systems, assess cross-border requirements under the current data framework. A record dispute does not justify an unrestricted personnel-file export.
Two employee situations that change the switch
1. Independently authorized worker: the interpreter
The Vietnamese citizen in the worked example needs no foreign-worker permit. The conditional outcome is employment with B from Tuesday, December 1, after voluntary agreement and the November 20 readiness gate. A settles four days’ leave once, B recognizes only the benefits expressly agreed, and the assignment still ends March 31, 2027.
If duties fall outside the permitted list, B lacks the appropriate license, or the assignment history does not support the proposed remaining period, this calendar cannot authorize the placement. Keep the route conditional and reassess employment infrastructure before employee exit.
2. Employer-linked permission: a foreign specialist
Assume a foreign specialist holds an unexpired permit naming A and proposes to work for B in the same position and field. Under Decree 219, Article 20, that situation requires a permit application for the different employer. The existing permit alone does not authorize B employment.
Under Article 22, the application is submitted within 60 days and at least 10 days before the intended start; the authority’s consideration period is 10 working days from a complete dossier. For the employment-contract route, the written contract follows permit issuance and precedes work. A’s current-employment confirmation is part of the Article 20(1) dossier, so obtain it before closing that relationship.
B owns the application and country/case eligibility check. The employee supplies required documents; A coordinates its confirmation and permit closeout; the client keeps the start conditional. Separately verify residence or sponsorship consequences. No work for B should occur during an authorization gap.
Decree 393, enacted October 20, 2026, takes effect December 5, 2026. A switch or pending application crossing that date needs a check of the new rules and transitional treatment. Do not reuse the current filing sequence without that check.
Questions about switching EOR in Vietnam
Must the employee resign?
No universal resignation instruction follows from a provider change. Establish whether the employer stays the same, a qualifying transaction applies, or A employment must lawfully end. Mutual agreement requires the employee’s agreement.
Does a new contract preserve every previous right?
No. Specify which rights continue by law, which A settles and which B grants contractually. A recognized service date alone cannot determine statutory severance, insurance eligibility and every benefit.
Can unused leave simply move to B?
For the fresh-employment example, A pays unused entitlement on departure under Article 113. B documents its own leave entitlement and any enhancement. Keep the settled balance out of B’s unpaid opening balance.
Does changing providers restart the 12-month subleasing period?
Do not assume it does. Retain the complete assignment history and verify the permissible remaining period. The worked example stays within one April-to-March assignment rather than relying on a reset.
Can payroll launch while permission or records are outstanding?
Only a confirmed lawful arrangement with sufficient verified records can pass the readiness gate. A proposed payroll date cannot cure missing work authorization or an unreconciled employee balance.
Borderless AI offers EOR services and describes support for provider transitions. Ask us to assess the employing entity, employee category and proposed Vietnam arrangement before committing to an exit date. Availability and any permission-dependent route must be confirmed for the specific case.
