Whether you are an employee needing temporary leave without pay, or an HR professional handling unpaid leave requests and concerned about legal compliance, procedures, or potential risks — this article provides useful and reliable insights. KMC offers a comprehensive, accurate overview of Vietnamese regulations on unpaid leave, from both the employer’s and employee’s perspectives.
Legal Classification of Unpaid Leave under Vietnamese Law
Unpaid Leave for Personal Reasons
This type of leave applies to significant family events, such as:
- Death of close relatives: grandparents (maternal or paternal), siblings.
- Marriage of close relatives: parents, brothers, or sisters.
In these cases, the employee must inform the employer in advance. However, the law does not prescribe a specific notification method, so employees may flexibly choose the most suitable means — such as a phone call, email, or text message — as long as the employer receives the notice in time.
Unpaid Leave by Mutual Agreement
Beyond personal events, employees may also take unpaid leave based on mutual agreement with the employer. The employee should discuss the matter directly with their line manager, send an email, or use any other method accepted by the company.
The most critical point is obtaining the employer’s explicit consent prior to taking leave. Therefore, early communication is essential to avoid misunderstandings or disputes.
Impact of Unpaid Leave Regulations on Social Insurance (SI) Contributions
Leave of 14 or More Working Days per Month
Pursuant to Clause 3, Article 85 of the Law on Social Insurance 2014 and Clause 4, Article 42 of Decision No. 595/QĐ-BHXH, if an employee takes unpaid leave for 14 or more working days in a month, they are not required to pay social insurance contributions for that month.
Moreover, the period of unpaid leave is not counted toward the employee’s total time of social insurance contribution for the purpose of calculating future social insurance benefits (except for special cases such as maternity leave). This provision ensures fairness, as employees who do not work during a given period do not accumulate corresponding entitlements.
Example: If an employee takes 15 days of unpaid leave in September, both the employee and the employer are exempted from paying social insurance contributions for that month. This rule applies only to the month in which the unpaid leave occurs; other months remain unaffected.
Leave of Less Than 14 Working Days
Conversely, if the total unpaid leave in a month is less than 14 working days, the employee is still required to participate in and pay social insurance contributions as usual.
Procedure for Receiving and Processing Unpaid Leave Requests for FDI Enterprises
Preparation and Submission of the Request
Employees are required to submit an unpaid leave request at least five working days in advance; however, this timeline may be applied flexibly depending on the company’s internal regulations.
In urgent cases, the employee may first make a verbal notification and then submit a written request afterward. It is mandatory that the employee immediately informs their direct supervisor, such as the department head or the HR department.
Review and Verification by the Direct Supervisor
The direct supervisor will review the request to determine whether the stated reason is reasonable and whether the employee’s tasks can be appropriately delegated (for example, identifying a substitute or contingency plan).
If the supervisor confirms that the employee’s absence will not disrupt the team’s operations, the request will be endorsed for approval.
Approval and Issuance of Decision
The competent authority — such as the HR Manager, Department Head, or the Board of Directors — will review and make the final decision.
If the request is approved, an official written decision on unpaid leave will be issued and communicated to the employee.
In cases where the request is denied, the company will provide a written explanation, stating the reasons for rejection (e.g., during peak business periods).
In practice, the review and approval process typically takes three to five working days.
Work Handover and Commencement of Leave
Prior to taking leave, the employee must complete the handover of all ongoing tasks, files, and documents to designated colleagues or the direct supervisor to ensure work continuity.
Unpaid Leave Application Form and Writing Guidelines
Notes Before Writing
Clear Structure
An unpaid leave application must have a clear and formal structure, including:
- National header, title, and recipient line (“To:” section)
- Personal information
- Main content (reason for leave, duration, work handover)
- Closing statement of commitment and applicant’s signature
Specific Reason
TInstead of using vague wording such as “personal matters,” provide a concise but specific explanation, e.g. “medical treatment as prescribed by a doctor” or “urgent family matters.”
This helps the manager or HR department consider and approve your request more easily.
Leave Period
Clearly state the starting and ending dates of your leave, calculated based on working days.
Work Handover
List detailed information on the tasks handed over, such as:
“Project X report handed over to Mr. A.”
Professional Tone and Format
Your application should demonstrate professionalism through polite language, no spelling or formatting errors, and a clean layout.
If submitting a hard copy, use a properly formatted page with standard margins and a readable font such as Times New Roman, size 12–14.
After Submission
Once HR or your direct supervisor has approved your request in writing, retain a copy for your records.
3 application forms
Below are 3 standard application forms. You can copy them and modify them to fit your own situation.
Sample 1: Unpaid Leave Application for Medical Treatment
Reason for leave: I request unpaid leave for medical examination and treatment [briefly describe, e.g. “as prescribed by the physician at Hospital X”].
Sample 2: Unpaid Leave Application for Family Reasons
Reason for leave: I need to resolve urgent personal matters. [Provide a brief, clear explanation, e.g. “My parents are seriously ill and require my care.”]
Sample 3: Unpaid Leave Application for Personal Matters
Reason for leave: I need to attend to personal matters. [Provide a concise explanation, e.g. “to participate in a personal training course” or “to complete administrative procedures.”]
Understanding the legal and procedural regulations on unpaid leave is essential for both employers and employees to avoid potential labor disputes.
If you require specialized consultation on unpaid leave management, you may contact KMC’s HR and Payroll Advisory Service.
With over 25 years of professional experience, our experts can assist you in resolving employment-related issues effectively and in full compliance with Vietnamese labor law.
