Issue 021225 – Vocational Training and Internship for Employment with Employers

Dear Valued Clients,

Vocational training and internship for employment with an employer (“Employer”) is the process by which an employee (“Employee”) is trained and practices the necessary professional skills before officially joining the workforce. This is an important step, detailed in the 2019 Labor Code (“Labor Code”), helping Employees enhance their skills, become familiar with the work environment, and assisting Employers in selecting and training suitable personnel to ensure production and business efficiency. The following article aims to provide our clients with key points regarding vocational training and internship for employment with Employers.

1. General Regulations on Vocational Training and Internship

1.1. Definition of Vocational Training and Internship

Vocational training and internship is the process in which Employees are trained by Employers to work in the enterprise.

According to Article 61 of the Labor Code, vocational training and internship are defined as follows:

• Vocational training for employment with an Employer refers to the Employer recruiting individuals for professional training at the workplace. The training duration follows the program for each level as stipulated in the 2014 Law on Vocational Education.
• Internship for employment with an Employer refers to the Employer recruiting individuals to practice job tasks and develop skills according to their position at the workplace. The internship period shall not exceed three months.

1.2. Conditions for Trainees and Interns

Case 1: For regular professions and jobs (Article 61.4 of the 2019 Labor Code)

• Must be at least 14 years old: Individuals under 14 are still undergoing basic general education. Vietnamese law prioritizes the physical and mental development of children. Conducting vocational training before the age of 14 would not allow sufficient time for basic education, vocational training, and recreation.
• Must have health suitable for vocational training or internship: As there are no specific legal regulations for assessing health suitability, Employers may set health requirements appropriate for the job.

Case 2: For professions or jobs listed as heavy, hazardous, or dangerous (issued by the Minister of Labor – Invalids and Social Affairs, excluding art, physical education, and sports) (Article 61.4 of the 2019 Labor Code)

• Persons under 18 are prohibited from engaging in heavy, hazardous, or dangerous jobs as regulated in Circular No. 11/2020/TT-BLĐTBXH dated November 12, 2020. However, fields such as art, physical education, and sports requiring long-term and continuous training may be considered exceptions.

1.3. Conditions for Employers to Organize Vocational Training and Internship

• No tuition fees may be charged: If Employees undergo vocational training or internship to work for the Employer, the Employer may not charge tuition fees; otherwise, the Employer must register as a vocational education provider (Article 61.3 of the 2019 Labor Code).
• Cover training costs: According to Article 62.3 of the Labor Code, training costs include: documented payments to instructors, study materials, classrooms, machines, equipment, practice materials, other support costs for trainees, and salaries, social insurance, health insurance, and unemployment insurance during the training period. For overseas training, costs also include travel and living expenses.
• Sign a training contract: According to Article 61.3 of the Labor Code, without a training contract, the activity cannot be considered vocational training or internship. Moreover, without an employment contract, there is no legal employment relationship. Consequently, the rights of trainees or interns may be seriously affected.
• Prohibition of abuse: Employers must not exploit vocational training or internships for profit, labor exploitation, or coerce trainees or interns into illegal activities (Article 8.4 of the 2019 Labor Code).

2. Rights and Obligations of the Parties

2.1. Rights and Obligations of Employers

2.1.1. Rights

• Recruit trainees or interns: Employers may decide selection criteria and the number of trainees, without discrimination (Article 61, Labor Code).
• Sign vocational training contracts: Employers may require Employees to sign a training contract if training involves costs (Article 62, Labor Code).
• Recover training costs: Employers may request reimbursement if Employees quit, fail to work as committed, or unilaterally terminate illegally.
• Manage and evaluate training results: Employers may decide training programs, duration, and evaluation.
• Terminate training: Employers may stop training if Employees fail to meet requirements or violate discipline.

2.1.2. Obligations

• Do not charge tuition fees: Charging tuition fees for vocational training/internship for Employees to work in the enterprise is strictly prohibited (Article 61.1, Labor Code).
• Pay wages during internship: Employers must pay wages for practical work according to agreements (Article 61.2, Labor Code).
• Ensure training conditions and occupational safety: Employers must provide facilities, machinery, and occupational health and safety.
• Sign employment contracts upon successful completion: After training/internship, Employees meeting the requirements must be signed into employment contracts (Article 61.3, Labor Code).
• Do not exploit trainees as full employees: Assignments during vocational training should only involve basic practical work, not tasks creating full employee value.

2.2. Rights and Obligations of Employees in Training/Internship

2.2.1. Rights

• No tuition fees.
• Receive wages during internship.
• Ensure occupational safety and hygiene: provision of protective equipment and safety instructions.
• Sign employment contracts upon meeting requirements.
• Protection against discrimination and harassment.

2.2.2. Obligations

• Comply with rules, training programs, and schedules.
• Follow occupational safety regulations strictly.
• Reimburse training costs if breaching commitments: Employees must repay costs if quitting during the commitment period or failing to complete the post-training work period.
• Protect training property and equipment; compensate for damages caused.

3. Duration of Vocational Training and Internship

3.1. Vocational Training Duration

• According to Article 61.1 of the Labor Code, training duration follows the program specified under the Law on Vocational Education.
• Specific duration by level (Article 33, Law on Vocational Education 2014, amended 2019):
  • Elementary level: 3 months to less than 1 year, with at least 300 hours of actual study.
  • Intermediate level (year-based, for graduates from grade 8 or higher): 1–2 years.
  • Intermediate level (credit-based): sufficient credits accumulated.
  • College level (year-based):
    • 2–3 years for high school graduates.
    • 1–2 years for intermediate graduates in the same field with high school graduation or equivalent.
  • College level (credit-based): sufficient credits accumulated.

3.2. Internship Duration: Maximum of 3 months (Article 61.2, Labor Code).

4. Vocational Training and Internship Contracts

According to Article 62.2 of the Labor Code, basic contract contents include:

• Profession;
• Location, duration, and wages during training;
• Post-training work commitment period;
• Training costs and reimbursement obligations;
• Responsibilities of Employer;
• Responsibilities of Employee.

Regarding Employee responsibilities, contracts may include compensation obligations for failing to fulfill commitments, including reimbursement of training costs.

5. Wages and Allowances
According to Article 61.5 of the Labor Code: “During vocational training or internship, if trainees or interns directly participate in work or perform labor, the Employer shall pay wages at the rate agreed by both parties.”

Therefore, during vocational training or internship, Employees may be paid if they directly participate in work. The wage rate is mutually agreed and is not bound by regional minimum wage. Employers are prohibited from exploiting vocational training as a pretext to collect money from Employees. Administrative penalties apply under Decree 12/2022/NĐ-CP, including reimbursement of any collected tuition fees, and fines ranging based on the number of affected Employees, with organizational fines being double the individual fines.

6. Employment Contracts After Completion

According to Article 61.6 of the Labor Code: “Upon completion of vocational training or internship, the parties must sign an employment contract if conditions prescribed by this Code are met.”

Whether Employers must sign an employment contract with interns after the internship depends on whether the Employee meets the legal requirements under the 2019 Labor Code. This differs from probation periods: vocational training requires signing a contract if conditions are met, ensuring fair wages and social insurance benefits, and preventing the misuse of vocational training or internship as a substitute for probation or cheap labor.

Vocational training and internships are common activities and must comply with legal regulations to protect the rights of both Employees and Employers. Employees are not required to pay tuition fees but must reimburse training costs if breaching post-training work commitments.

Sincerely,
ENT Law LLC