Mandatory Employment Documentation for Enterprises: What Businesses Need to Prepare and Maintain (2026)

Mandatory employment documentation is often overlooked during the operational phase of a business. Many companies focus primarily on signing employment contracts while neglecting to establish a comprehensive human resources documentation system in accordance with legal requirements. This oversight can expose businesses to significant risks during labor inspections, tax audits, social insurance reviews, or employment-related disputes.

In practice, a complete employment documentation system serves not only as a compliance tool but also as an effective mechanism for controlling labor costs, standardizing HR management processes, and providing legal protection throughout every stage of the employment relationship. Below are the key categories of documents that businesses should regularly review and update.

Documents Establishing the Foundation of Labor Management

Every employment relationship begins with internal policies and regulations established and publicly communicated within the company. These documents form the foundation of labor management and help businesses define operational principles from the moment employees are recruited and engaged.

Internal Labor Regulations – The Basis for Workplace Order and Discipline

Within human resource management, internal labor regulations outline workplace rules, employees’ rights and obligations, and the responsibilities of the employer.

For enterprises employing ten or more employees, internal labor regulations must be prepared in writing. Before issuance, the employer is required to consult with the employee representative organization at the workplace, if such an organization exists.

After being officially issued, the regulations must be registered with the competent authority within ten days. The document only becomes legally effective once the registration dossier has been duly received and processed in accordance with statutory requirements.

Many businesses encounter difficulties when handling employee violations because their labor regulations have either not been established or have not been registered properly. Consequently, this is one of the first documents that enterprises should prioritize when reviewing their employment records.

Salary Scale and Salary Table – The Foundation of a Transparent Compensation System

If internal labor regulations serve as a tool for managing employee conduct, salary scales and salary tables function as the primary mechanism for managing employee compensation.

Businesses are responsible for developing salary scales and salary tables to provide a basis for recruitment, salary negotiations in employment contracts, and the actual payment of wages.

During the development process, employers should consult the employee representative organization at the workplace, where applicable.

Before implementation, salary scales and salary tables must be publicly disclosed at the workplace to ensure transparency.

Although businesses are no longer required to submit salary scales and salary tables to state authorities, these documents must still be maintained and made available upon request by competent agencies.

Labor Management Register – A Comprehensive Overview of the Workforce

Unlike internal labor regulations and salary structures, which primarily establish internal policies, the labor management register records actual information about employees working within the enterprise.

The register may be maintained in either paper or electronic form. It should contain employees’ personal information as well as records of their entire employment history, from the commencement of employment to the termination of the employment relationship.

Timely updates to workforce information enable businesses to manage employee numbers effectively while ensuring readiness for inspections conducted by competent authorities.

Documents Supporting Payroll Expenses and Employer Obligations

After establishing the labor management framework, businesses must develop documentation reflecting payroll activities and compliance with tax and social insurance obligations.

These records are frequently reviewed by tax authorities and social insurance agencies when assessing the legitimacy of personnel-related expenses.

Salary, Bonus, and Performance Evaluation Policies

Many companies provide bonuses or allowances without issuing formal written policies governing such payments. This often creates challenges when explaining personnel expenses during tax finalization procedures.

A comprehensive salary and bonus policy should clearly specify salary calculation methods, bonus mechanisms, allowances, performance evaluation criteria, and payment schedules.

When properly issued and consistently implemented, these policies become important evidence supporting the legitimacy of employee-related expenditures.

Individual Employee Files – The Basis for Determining Rights and Obligations

Each employee should have a dedicated personnel file maintained throughout their period of employment.

Such files generally include employment contracts, contract appendices, identification documents, professional qualifications where required for the position, salary adjustment decisions, appointment decisions, and social insurance participation records.

Maintaining complete personnel files not only supports HR administration but also enables businesses to demonstrate the legality of employment relationships in the event of disputes.

Personal Income Tax and Social Insurance Records

In addition to paying salaries, employers are responsible for declaring and fulfilling personal income tax and social insurance obligations on behalf of employees in accordance with legal requirements.

Businesses should therefore maintain records including tax identification numbers, dependent registration documents, personal income tax declarations where applicable, tax withholding certificates, and documents supporting annual tax finalization procedures.

Regular reconciliation between personnel records, payroll data, and social insurance information is essential to ensure consistency throughout the documentation system.

Documentation Chain Supporting Legitimate Payroll Expenses

Payroll expenses can only be properly substantiated when a business is able to demonstrate the entire process through which those expenses arise.

The supporting documentation should cover the employee’s actual work performed for the company, records confirming working time or work results, salary policies, tax and social insurance documentation, payroll records, and payment evidence.

In practice, tax authorities rarely review payroll statements or bank transfer records in isolation. Instead, they examine the entire documentation chain to assess the legitimacy of personnel expenses.

As a result, the absence of employment contracts, social insurance records, attendance sheets, or evidence confirming actual work performance may adversely affect the company’s ability to claim deductible expenses for tax purposes.

Businesses should therefore ensure consistency among personnel files, social insurance records, payroll data, and payment documents in order to minimize risks during inspections conducted by tax authorities or other regulatory agencies.

Important Note on Salary Payment Methods from December 15, 2025

Under regulations effective from December 15, 2025, salary payments of VND 5 million or more per payment must be made through non-cash payment methods.

Businesses should review their payroll procedures, implement salary payments through bank accounts, and retain complete transfer documentation for reconciliation, accounting, and future compliance purposes.

Documents for Handling Employment-Related Situations

Employment relationships do not always proceed without issues. During the course of employment, businesses may need to address disciplinary violations or terminate employment contracts.

This stage presents the highest risk of labor disputes and therefore requires particularly careful documentation and strict compliance with legal procedures.

How Should Disciplinary Documentation Be Prepared?

When an employee commits a violation, the employer cannot simply rely on internal findings to issue a disciplinary decision.

The entire disciplinary process must be documented through records including disciplinary meeting notices, meeting minutes, evidence of misconduct, disciplinary decisions, and documents related to the employee representative organization where applicable.

Conditions for Lawful Disciplinary Action

Labor discipline may only be imposed when the employer can prove the employee’s fault and has fully complied with statutory procedures.

In addition, disciplinary action must be taken within the legally prescribed limitation period.

The standard limitation period is six months from the date the violation occurs. For violations involving finance, assets, technological secrets, or business secrets, the limitation period may extend to a maximum of twelve months.

Circumstances Where Disciplinary Action Must Be Deferred

To protect employees in certain special situations, labor laws prohibit employers from conducting disciplinary proceedings under specific circumstances.

These include employees who are on sick leave, recuperation leave, or other approved leave; employees who are under temporary detention or custody; employees who are pregnant, on maternity leave, or raising a child under twelve months of age; employees awaiting the outcome of investigations by competent authorities; and employees who have lost the ability to perceive or control their behavior due to illness.

Employment Termination Documentation and Key Deadlines

When an employment relationship comes to an end, businesses must identify the appropriate legal grounds for termination and complete all related documentation.

Termination files generally include termination notices or mutual termination agreements, handover records for work, assets and documents, benefit settlement records, and documents confirming any remaining obligations between the parties.

Within fourteen working days from the date of employment termination, the employer must complete all payments due to the employee. In exceptional circumstances, this period may be extended but must not exceed thirty days.

At the same time, the employer is required to confirm the employee’s participation period in social insurance and unemployment insurance schemes and return any original documents retained during employment in accordance with legal requirements.

Mandatory Employment Documentation: A Foundation for Business Compliance

Mandatory employment documentation forms a critical foundation for systematic workforce management and compliance with labor, payroll, social insurance, and tax regulations. Establishing a complete documentation system from the outset not only helps businesses minimize legal risks but also creates a solid operational framework for sustainable growth and long-term development.

For newly established enterprises in particular, the standardization of employment documentation should be carried out alongside initial legal and administrative procedures. Doing so helps prevent compliance issues during the employment process and ensures that labor management practices are built on a legally sound foundation from the very beginning.

If you are preparing to start a business or would like to learn more about post-incorporation compliance requirements, consider exploring Green NRJ’s in-depth resources on company formation and corporate management to establish a compliant and efficient operational framework from day one.