Managing Year-End Leave for Companies and Workers in Vietnam

As the end of the year approaches, managing employee leave becomes a critical challenge for companies in Vietnam. Balancing between employees' need for time off and maintaining operational efficiency requires a strategic approach. This article outlines best practices for companies and workers to effectively handle year-end leave, supported by relevant data and statistics.

Understanding Leave Entitlements in Vietnam

According to Vietnamese labour laws, employees who have worked for at least 12 months are entitled to a minimum of 12 days of paid annual leave. Additional leave is granted for specific categories of employees, such as minors, disabled individuals, or those working in hazardous conditions, who receive 14 to 16 days of annual leave. Employees who have been with the same employer for every five years receive an additional day of leave.

Moreover, Vietnam has 11 public holidays, including Tết (Lunar New Year) and National Day, making it one of the countries with relatively high paid leave provisions in the region​.

Given this, many employees prefer to accumulate and use their leave around the holiday season, which can create scheduling conflicts if not managed proactively.

Best Practices for Companies

1. Encourage Early Leave Planning

Encourage employees to submit their leave requests well in advance to avoid a last-minute rush. Implementing a leave calendar can help managers visualise when most employees plan to take time off, ensuring that operations are not disrupted.

2. Implement a Leave Cap Policy

Introduce a leave cap policy that limits the number of employees from the same department or team who can take leave simultaneously. This ensures that critical functions are always covered and minimises potential downtime.

3. Flexible Work Arrangements

Offer flexible work arrangements, such as remote work or flexible hours, during the year-end period. This approach can support employees in balancing their time off without impacting productivity.

4. Incentivize Off-Peak Leave

Consider offering incentives, such as additional paid leave days or bonuses, to employees who take their leave during off-peak periods. This strategy helps distribute leave more evenly throughout the year, preventing end-of-year backlogs.

5. Temporary Workforce Support

If a significant number of employees plan to take leave simultaneously, consider hiring temporary staff or interns to cover essential tasks. This solution can keep the business running smoothly and reduce the pressure on remaining staff.

Best Practices for Employees

1. Plan Leave Proactively

Employees should discuss their leave plans with their managers early to ensure they can secure their preferred dates while aligning with team needs.

2. Utilise Leave Effectively

Use annual leave to recharge and prevent burnout, especially before the busy year-end period. Planning time off strategically can also help in managing personal commitments and maintaining work-life balance.

3. Consider Partial Leave Options

If taking a full week off is not feasible, consider using half-days or shorter periods. This option allows for a mental break without significantly impacting team availability.

Data on Leave Utilisation in Vietnam

In 2023, it was reported that approximately 70% of employees in Vietnam took their full annual leave entitlement. Many companies experienced up to a 30% dip in productivity during the year-end period due to the high volume of leave requests. Such figures highlight the need for structured leave management policies to ensure business continuity.

Final Thoughts

Effective management of year-end leave is essential for both companies and workers. By implementing structured leave policies, encouraging early planning, and offering flexible options, companies can navigate this period smoothly while ensuring that employees have the opportunity to rest and rejuvenate. For employees, thoughtful planning and communication with their employers can contribute to a positive work environment and a well-deserved break.

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