Internal personnel transfer regulations also require strict legal compliance and strategic talent management. Whether you are an HR manager or a senior executive at a foreign-invested enterprise (FDI) seeking to understand the latest rules on personnel transfer, or looking for optimal solutions to handle cases of internal transfer, including situations where employees oppose the transfer decision, this guide is for you.
In this article, KMC provides a comprehensive overview of internal personnel transfer regulations, covering both legal aspects and management practices, with a particular focus on common scenarios in FDI enterprises and Japanese companies.

Latest Internal Personnel Transfer Regulations 2025

According to the 2019 Labor Code, internal personnel transfer refers to the employer’s act of assigning an employee to perform a different job within the scope of the workplace stated in the labor contract, without altering the essential terms of the contract. This is considered a horizontal move – not a promotion or demotion.

Commonly used legal terms with similar meanings include: personnel reassignment, job rotation, and internal transfer. Regardless of terminology, the legal nature remains governed by the same general provisions.

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Pursuant to Article 29 of the 2019 Labor Code, an enterprise may only assign an employee to perform a job different from that stipulated in the labor contract (i.e., internal personnel transfer) in the following circumstances:

  1. When the enterprise encounters unexpected difficulties due to natural disasters, fire, dangerous epidemics, measures to prevent or remedy occupational accidents, occupational diseases, or incidents relating to electricity or water supply.
  2. Due to production or business requirements of the enterprise.

However, the enterprise must comply with the following rules when assigning an employee to perform a job different from the labor contract:

  • The reassignment must be temporary and may not exceed a cumulative total of 60 working days within one year. If the reassignment exceeds this limit, it may only be implemented with the employee’s prior written consent.
  • The enterprise must specify in its internal labor regulations the circumstances where, due to production or business requirements, employees may be temporarily reassigned to perform different work.
  • When temporarily reassigning an employee, the enterprise must notify the employee at least 03 working days in advance, clearly state the temporary duration, and arrange work that is suitable for the employee’s health and gender.
  • Employees reassigned to different work shall be paid according to the new job. If the wage of the new job is lower than that of the previous job, the enterprise must maintain the employee’s former wage for the first 30 working days.
  • The wage for the new job must be at least 85% of the previous wage but may not be lower than the statutory minimum wage.

If the employee refuses reassignment beyond 60 cumulative working days per year and must suspend work, the enterprise shall be responsible for paying suspension wages in accordance with Article 99 of the 2019 Labor Code.

Standard Personnel Transfer Procedure for FDI Enterprises

In addition to complying with internal personnel transfer regulations, the reassignment of employees must also follow a systematic procedure to ensure legal compliance and achieve the intended effectiveness. For an FDI enterprise, a personnel transfer process should consider the following steps:

  1. Assessment of Needs and Feasibility: Conduct a thorough analysis of the reasons for the transfer, the new position, and its suitability with the employee’s capabilities.
  2. Consultation: Discuss with both the former and new department managers regarding feasibility and potential impacts.
  3. Discussion with the Employee: Clearly present the purpose, benefits, and any changes (if applicable) in working conditions or entitlements.
  4. Issuance of Official Decision: Issue the transfer decision in accordance with standard legal templates.
  5. Record Update and Internal Notification: Complete all HR formalities and inform the relevant stakeholders accordingly.

Handling Cases Where Employees Refuse Personnel Transfer

Many enterprises have faced situations where employees do not agree with internal personnel transfer decisions. In such cases, to ensure the rights of both parties—particularly legal compliance—enterprises, especially FDI business managers, should take note of the following:

According to Article 29 of the 2019 Labor Code:

  • The employer is not permitted to unilaterally change the agreed job position if the employee does not consent.
  • In cases where the transfer involves a position different from that stipulated in the signed labor contract, a supplementary written agreement must be obtained.
  • If the employee refuses and the enterprise still proceeds with the transfer, such action may be considered a breach of the labor contract.

Therefore, when conflicts arise concerning personnel transfer decisions, enterprises should consider the following solutions:

  • Renegotiate the Contract: Propose more favorable terms regarding salary, benefits, or career development opportunities.
  • Clarify Personal Benefits: Demonstrate how the transfer adds value to the employee’s career path.
  • Consider Alternatives: Identify another voluntary candidate or adjust the workforce plan.
  • Seek Legal Counsel: Ensure all actions are strictly compliant with Vietnamese labor law.

Standard Personnel Transfer Decision Template for Enterprises

Each personnel transfer decision must include, at a minimum, the following elements:

  • Clear legal basis (contract provisions, internal labor regulations)
  • Complete information on the employee being transferred
  • Description of the new job position and workplace
  • Effective date of the decision
  • Salary and benefits arrangements (if any changes apply)
  • Signature of the authorized person and acknowledgment by the employee

Ensuring that all necessary information is properly included will guarantee the legal validity of the personnel transfer decision and safeguard the rights and obligations of both parties.

Specialized HR Consulting Services for FDI Enterprises

Every decision related to human resources—including internal personnel transfers—may significantly affect business operations and, in some cases, involve complex legal procedures. Therefore, to ensure legal accuracy, compliance, and to minimize potential risks in HR management—especially in cross-border workforce management—enterprises are strongly advised to engage a professional consulting partner to provide guidance, support, and solutions for internal personnel transfer regulations.

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With extensive experience in advising hundreds of FDI enterprises in Vietnam, KMC fully understands the unique challenges of multinational human resource management. Our team of lawyers and experts have deep expertise in Vietnamese labor law, regulatory compliance, and international best practices. We provide comprehensive and optimal HR solutions, including:

  • Advising on the establishment of HR processes compliant with Vietnamese law and aligned with corporate culture
  • Assisting in drafting multilingual HR documents, contracts, and transfer decisions
  • Resolving complex labor disputes
  • Optimizing compensation policies, personal income tax, and social insurance

If you are an FDI enterprise manager in need of prompt and in-depth support regarding internal personnel transfer regulations, contact our hotline at 081 489 4789 to receive professional and dedicated consultation from KMC experts.

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