Q&A about labor law No. (01)

To help readers understand more about Labor Law and issues related to Labor Law, ANT Legal specifically answers questions related to Labor Law as follows:

Answer No. 01:

 In what cases does a labor contract terminate?

1) Expiry of the labor contract, except in cases where the employee is a member of the leadership board of the employee representative organization at the facility and is in the term of office whose labor contract expires.

2) Completed work according to the labor contract.

3) Both parties agree to terminate the labor contract.

4) The employee is sentenced to imprisonment but is not entitled to a suspended sentence or is not eligible for release under the provisions of a prison term equal to or shorter than the time the defendant was detained, sentenced to death, or prohibited from doing the job stated in the labor contract according to a legally effective judgment or decision of the Court.

5) Foreign workers working in Vietnam are deported according to legally effective court judgments or decisions or decisions of competent state agencies.

6) Death of worker; declared by the Court to have lost civil act capacity, to be missing or to have died.

7) The employer is an individual who dies; declared by the Court to have lost civil act capacity, to be missing or to have died. The employer who is not an individual terminates its operations or is notified by the specialized business registration authority under the Provincial People’s Committee that it does not have a legal representative or person authorized to exercise the rights and obligations of the legal representative.

8) The employee is disciplined and dismissed.

9) The employee unilaterally terminates the labor contract in accordance with labor law regulations.

10) The employer unilaterally terminates the labor contract in accordance with labor law regulations.

11) The employer terminates the employee’s job in case of structural or technological changes or for economic reasons, when dividing, separating, consolidating or merging; selling, leasing, converting business types; Transfer of ownership and rights to use assets of enterprises and cooperatives.

12) Work permit expires for foreign workers working in Vietnam.

13) In case the probation agreement is stated in the labor contract but the probation is not met or one party cancels the probation agreement.

(Article 34, Clause 4, Article 177 Labor Code No. 45/2019/QH14)

Do employees have the right to unilaterally terminate the labor contract?

Employees have the right to unilaterally terminate the labor contract but must notify the employer in advance as follows:

a) At least 45 days if working under an indefinite-term labor contract;

b) At least 30 days if working under a fixed-term labor contract with a term from 12 months to 36 months;

c) At least 03 working days if working under a fixed-term labor contract with a term of less than 12 months.

(Clause 1, Article 35 of Labor Code No. 45/2019/QH14)

In which cases does the employee have the right to unilaterally terminate the labor contract without prior notice?

The employee has the right to unilaterally terminate the labor contract without prior notice in the following cases:

a) Not being assigned to the right job, working location or not ensuring working conditions as agreed, except in the case of transferring the employee to a job different from the labor contract in accordance with regulations;

b) Not being paid the full salary or not paying the salary on time, except in cases where due to force majeure the employer has tried all remedial measures but cannot pay the salary on time according to the provisions of labor law.

c) Being mistreated, beaten, or subjected to humiliating words or actions by the employer, or acts that affect health, dignity, or honor; forced labor;

d) Being sexually harassed at work;

d) Pregnant female employees must quit work if there is confirmation from a competent medical examination and treatment facility that continuing to work will adversely affect the fetus.

e) Full retirement age according to regulations, unless the parties agree otherwise;

g) The employer provides dishonest information according to the provisions of labor law on the obligation to provide information when entering into a labor contract, affecting the implementation of the labor contract.

(Clause 2, Article 35 of Labor Code No. 45/2019/QH14)

Does the employer have the right to unilaterally terminate the labor contract?

The employer has the right to unilaterally terminate the labor contract in the following cases:

a) Employees who regularly fail to complete work according to the labor contract are determined according to the criteria for evaluating the level of work completion in the employer’s regulations;

b) The employee is sick or has an accident and has been treated for 12 consecutive months for those working under an indefinite-term labor contract or has been treated for 06 consecutive months for those working under a fixed-term labor contract with a term of 12 to 36 months or more than half the term of the labor contract for those working under a fixed-term labor contract with a term of less than 12 months but the ability to work has not recovered.

When the employee’s health recovers, the employer will consider continuing to enter into a labor contract with the employee;

c) Due to natural disasters, fires, dangerous epidemics, enemy sabotage, or relocation or contraction of production or business at the request of a competent state authority, the employer has sought all remedial measures but is still forced to reduce the workplace;

d) The employee is not present at the workplace after 15 days from the expiration date of the temporary suspension of the labor contract, unless otherwise agreed upon by both parties or otherwise prescribed by law.

d) The employee reaches the prescribed retirement age, unless otherwise agreed;

e) The employee voluntarily quits his job without a legitimate reason for 5 consecutive working days or more;

g) The employee provides dishonest information according to the provisions of labor law on the obligation to provide information when entering into a labor contract, affecting the recruitment of the employee.

(Clause 1, Article 36 of Labor Code No. 45/2019/QH14)