An Employer of Record (EOR) is a local company that legally employs staff on behalf of a business with no entity in that country. The EOR signs the labor contract, pays salary, and files tax and insurance. The client company still chooses the people and directs their daily work.
How an EOR works
Three parties are involved: your company, the EOR and the employee. You sign a service agreement with the EOR, and the EOR signs a labor contract with the employee.
- You choose the person and agree the role, salary and start date.
- The EOR prepares a Vietnamese labor contract and registers the employee for insurance and tax.
- The employee starts work and reports to you. Onboarding takes 3–5 working days at Eor.vn.
- Each month the EOR runs payroll, pays salary in VND, files returns and sends you one invoice.
- When the job ends, the EOR handles termination and final pay under Vietnamese law.
Who does what
| Task | Your company | EOR |
|---|---|---|
| Choosing the person | Yes | No |
| Daily work and goals | Yes | No |
| Labor contract | Agrees terms | Signs as employer |
| Salary and payslips | Approves amounts | Calculates and pays |
| Insurance and personal income tax | Funds them | Registers, files and pays |
| Termination | Decides | Carries out lawfully |
What an EOR covers in Vietnam
- Labor contracts that follow the 2019 Labor Code.
- Monthly payroll in VND and personal income tax filings.
- Social, health and unemployment insurance and the trade union fund: about 23.5% on top of gross salary.
- Annual leave, public holidays and maternity records.
- Work permits for foreign staff.
- Lawful termination and final settlement.
The details are in our hiring guide, payroll guide and work permit guide.
EOR, PEO, contractor: what is the difference?
| Option | Do you need a Vietnamese entity? | Who is the legal employer? | Main risk |
|---|---|---|---|
| Employer of Record | No | The EOR | You cannot sell locally through it |
| PEO | Yes | You, sharing HR tasks with the provider | Does not help if you have no entity |
| Independent contractor | No | Nobody | Can be treated as employment |
| Own company | Yes | Your company | Fixed cost and months of setup |
Contractors need care in Vietnam. Under Article 13 of the 2019 Labor Code, an agreement with paid work under one party's management counts as a labor contract, whatever it is called.
When an EOR is the wrong choice
An EOR does not suit you if you need to sell to Vietnamese customers, hold a sector licence, or plan a large long-term team. In those cases a company is the better route. Our EOR vs entity guide shows where the numbers cross.
How much does an EOR cost?
You pay three things: the salary, statutory costs of about 23.5%, and the EOR fee. Our fee is US$99–199 per employee per month depending on headcount. See the worked example on the pricing page, and compare providers in our Top 10 list.
Legal basis
- Labor Code 2019 (No. 45/2019/QH14), Article 13: definition of a labor contract
- Law on Social Insurance 2024 and Law on Employment 2025: employer insurance contributions
- Law on Trade Unions 2024: 2% trade union fund
