Are you managing an FDI enterprise in Vietnam and struggling with recruitment, workforce building, and developing high-quality human resources for your company? In this article, KMC will walk you through the career path from probation to official employment and provide guidance on building a high-quality workforce that contributes to the sustainable growth and development of your business.
What is a Full-time Employee?
A full-time employee is a staff member directly employed by the company under an indefinite-term contract until retirement. At the beginning, salary is specified in the contract, and later it increases either according to years of service or based on performance evaluation during salary review periods.
Because the employment contract is indefinite, the job is generally considered stable, except in cases where the economy declines, or the company fails to grow, in which case job security may be affected.
Especially for FDI enterprises, full-time employees play a key role in helping to:
- Reduce re-training costs by 40% thanks to long-term talent retention
- Increase labor productivity by 31% (Nielsen Report 2024)
- Ensure cross-border legal compliance when expanding business
What is a Contract Employee?
A contract employee is a worker hired by the company under a fixed-term employment contract, usually lasting from 1 to 3 years. When the contract ends, both parties will negotiate to decide whether to extend the contract or not.
Because the responsibilities of contract employees are lighter compared to full-time employees, they are often easier to recruit than permanent staff. This type of contract is fixed-term and usually renegotiated at the time of renewal, which allows employees to negotiate better working conditions with the company after each renewal. If, upon contract expiration, the employee and the company cannot reach an agreement, the employee will need to look for a new job.
5 Golden Steps to Transition from Probation to Full-time Employment
Finding high-quality talent and turning probationary employees into official staff is a long journey for any enterprise. Below, KMC shares the standard ISO process adopted by 80% of Japanese enterprises in Vietnam:
Step 1: Set Evaluation Criteria from Day One (0–30 days)
Right from the recruitment stage through the first working days, FDI enterprises should clearly define:
- 4 core professional KPIs
- 3 company culture criteria (especially crucial for Japanese enterprises)
- A clear A–B–C evaluation scale
Step 2: Continuous Corporate Culture Training (Day 15–45)
Potential employees at FDI companies need to internalize:
- Cross-cultural code of conduct
- Matrix reporting procedures (especially with foreign managers)
- Internal ISO standards
Therefore, within the first month starting from the second working week, companies must focus on integrating corporate culture training throughout the probation and actual working process.
Step 3: Comprehensive Mid-term Evaluation (Day 30)
To decide whether to promote a probationary employee to official staff after the probation period, the enterprise must conduct a comprehensive review using a standardized employee profile form combined with evaluations of:
- Work performance (50%)
- Teamwork and cooperation (30%)
- Learning attitude (20%)
Step 4: Prepare Professional Legal Documentation (Day 45–55)
To ensure employee rights and obligations, the company must proceed with contract signing. A standard full-time employee file for FDI enterprises includes:
- Official offer letter
- Indefinite-term employment contract
- Appointment letter (if applicable)
Salary and benefits adjustment annex
Step 5: Reporting and Final Decision (Day 60)
After a certain working period, the company makes the final decision to either sign an official employment contract or extend on a fixed-term basis. The process includes:
- Reviewing the final evaluation dossier
- Approving the appointment decision
- Organizing a welcome briefing for the new member
3 Common Mistakes in Employee Transition at FDI Enterprises
From numerous real-life examples applied across different companies, KMC has summarized several common mistakes in the recruitment process and in building a team of full-time employees for enterprises, including:
- Lack of transparency in evaluation criteria: leading to complaints from unsuccessful candidates
- Using outdated contract templates: violating Article 23 of the amended Labor Code
- Overlooking additional background checks: creating unpredictable corporate security risks
Any of these mistakes can lead to legal issues, significantly affect brand reputation, and even hinder the long-term development roadmap of the enterprise.
Comprehensive Solutions from KMC for FDI Enterprises
Transforming probationary employees into full-time staff is not merely an administrative procedure. It is an art of retaining talent and optimizing resources in a multinational environment.
If you are a manager in charge of recruitment and training, and you wish to optimize HR strategy while building a team of high-quality full-time employees for your enterprise, contact KMC today. With extensive experience advising hundreds of Japanese companies in Vietnam, KMC deeply understands the unique challenges you are facing.
KMC supports enterprises with a comprehensive HR solution, including:
- Drafting standardized bilingual labor contracts (English–Japanese–Vietnamese)
- Consulting on probation evaluation policies in accordance with Japanese standards
- Reviewing legal risks prior to signing decisions
- Automatically updating changes in Vietnam’s 2025 Labor Law
With guidance from experienced consultants and lawyers who are well-versed in the latest regulations on taxation, accounting, and HR management, we deliver professional solutions to every corporate issue, helping resolve potential legal risks while ensuring optimal benefits for both the enterprise and its employees.
📞 Contact our hotline at +84 91 988 9331 for direct consultation and support from KMC experts.
See Also: The Importance of Human Resources
