Quitting Without Notice: Must the Employee Compensate the Company?

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Short answer: Yes, if “quitting abruptly” constitutes an unlawful unilateral termination of the labor contract. An employee who quits without giving proper advance notice, and does not fall within the cases allowing resignation without notice, must compensate the employer half a month’s salary under the labor contract, plus an amount corresponding to the salary for the days of notice not given, and reimburse training costs (if any). Conversely, if the employee resigns in accordance with Article 35 of the Labor Code 2019, no compensation is required.

Legal basis

  • Article 35 of the Labor Code 2019 — the employee’s right to unilaterally terminate the labor contract;
  • Article 40 of the Labor Code 2019 — obligations upon unlawful unilateral termination of the labor contract;
  • Article 62 of the Labor Code 2019 — training costs.

When is “quitting abruptly” unlawful?

  • Employees have the right to unilaterally terminate the labor contract but must give advance notice: at least 45 days (indefinite-term labor contract), 30 days (definite-term labor contract of 12–36 months), 03 working days (labor contract under 12 months);
  • Some cases allow resignation without notice: not being assigned the agreed job, being mistreated, being sexually harassed, not being paid on time…
  • Quitting without notice outside these special cases = unlawful.

Compensation for unlawful resignation

  • Half a month’s salary under the labor contract;
  • An amount corresponding to the salary under the labor contract for the days of notice not given;
  • Reimbursement of training costs to the employer (if sent for training with a commitment);
  • In addition, the employee must hand over work as prescribed.

What should employees do to resign lawfully?

  1. Check whether they fall within a case allowing resignation without notice;
  2. Send a written notice (email, letter) and keep proof of sending;
  3. Give sufficient notice according to the contract type;
  4. Fully hand over work and assets before the last day.

Where it is necessary to determine the appropriate course of action for your specific situation, you should consult a lawyer in advance for dossier review and advice on handling options.

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Related articles

  • Lawful unilateral termination of a labor contract
  • Compensation for training costs upon resignation
  • Severance allowance and job-loss allowance

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