Does a layoff require compensation for the Company?

Is stopping without warning illegal?

Pursuant to the provisions of Article 39 of the 2019 Labor Code, cases of termination of labor contracts not in accordance with the provisions of Articles 35, 36 and 37 of the 2019 Labor Code are considered illegal unilateral termination of labor contracts.

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Therefore, in case an employee quits without prior notice or does not notify in time as prescribed in Article 35 of the 2019 Labor Code, it is considered illegal unilateral termination of the labor contract.

Does taking a break require compensation for the company?

Pursuant to the provisions of Article 39 of the 2019 Labor Code, in case an employee violates the regulations on the notice period before quitting his job, it is considered illegal to unilaterally terminate the labor contract.

Pursuant to the provisions of Article 40 of the 2019 Labor Code, an employee who unilaterally terminates a labor contract illegally will:

– No severance pay.

– Must compensate the company or business for half a month’s salary according to the labor contract and an amount corresponding to the salary according to the labor contract for days without prior notice.

– Must reimburse companies and enterprises for training costs specified in Article 62 of the 2019 Labor Code.

Based on the above regulations, if an employee takes a leave of absence without prior notice, he or she must compensate the company or enterprise for half a month’s salary according to the labor contract and an amount corresponding to the salary according to the labor contract for the days without notice.

In addition, employees must reimburse companies and businesses for training costs. In which training costs are expenses with valid documents on costs paid to teachers, learning materials, schools, classrooms, machines, equipment, practice materials, other costs to support learners and salaries, social insurance contributions, health insurance, unemployment insurance for learners during their studies. In case the employee is sent for training abroad, the training cost also includes travel costs and living expenses during the training period.

Cases where employees quit without notice

Pursuant to Clause 2, Article 35 of the 2019 Labor Code, the employee has the right to unilaterally terminate the labor contract without prior notice in the following cases:

– Not being arranged according to the correct job, working location or not guaranteed working conditions as agreed, except in cases of not being arranged according to the contract due to the company or business encountering unexpected difficulties (natural disasters, fires, epidemics… according to Article 29 of the 2019 Labor Code).

– Not being paid in full or not paid on time, except in cases where the company or enterprise is due to force majeure as prescribed in Clause 4, Article 97 of the 2019 Labor Code;

– Being mistreated, beaten, or abused by companies or businesses, or subjected to humiliating words or actions, or actions that affect health, dignity, or honor; forced labor;

– Being sexually harassed at work;

– Pregnant female employees must take leave from work as prescribed by a doctor as prescribed in Clause 1, Article 138 of the 2019 Labor Code;

– Full retirement age as prescribed in Article 169 of the 2019 Labor Code, unless otherwise agreed by the parties;

– Companies and enterprises provide dishonest information as prescribed in Clause 1, Article 16 of the 2019 Labor Code, affecting the implementation of labor contracts.

 

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