Call us now:
Cases of Termination of Employment Contracts in Vietnam.
What is Employment Contract Termination?
Employment contract termination refers to the ending of the labor relationship between the employee and the employer in accordance with the conditions and regulations set forth by law. When an employment contract is terminated, the rights and obligations of both parties concerning the job cease to be effective. Employment contract termination can occur in various situations, including the expiration of the contract, when either party wishes to terminate the contract early, or due to legal events such as the employee’s death or the cessation of the employer’s business operations.
Cases of Termination of Employment Contracts in Vietnam
Employment contract termination refers to the process of ending the labor relationship between the employee and the employer. According to the 2019 Labor Code, an employment contract can be terminated in the following cases:
1/ Expiration of the employment contract
A fixed-term employment contract will automatically terminate when the time specified in the contract expires. However, if after the contract expires the employee continues to work and neither party signs a new contract, the old contract will become an indefinite-term employment contract.
2/ Completion of the work specified in the contract
For fixed-term contracts where the parties agree to perform seasonal work or work with a term shorter than 12 months, both parties may agree that the contract will terminate when the employee completes the agreed-upon work.
3/ Mutual Agreement to Terminate the Employment Contract
The employee and the employer may agree to terminate the employment contract at any time. This agreement must be made voluntarily and mutually between both parties. It is advisable to formalize the agreement in writing to avoid future disputes.
4/ The Employee is Sentenced to Prison or Prohibited from Performing the Work Stipulated in the Contract
The employment contract will terminate if the employee is sentenced to prison without a suspended sentence, or is prohibited from performing the work specified in the employment contract according to a legally effective court judgment or decision.
5/ The Employee is a Foreign National Expelled from Vietnam
For foreign employees working in Vietnam, the employment contract will terminate if the employee is expelled from Vietnamese territory under a final court judgment or decision, or by an order from a competent state authority.
6/ The Employee Dies, Loses Civil Capacity, or is Declared Missing
The employment contract will terminate if the employee dies, is declared missing by the court, or loses civil capacity.
7/ The Employer (an Individual) Dies or Loses Civil Capacity; The Employer (an Organization) Ceases Operations
If the employer is an individual who dies or is declared legally incapacitated, missing, or deceased, the employment contract will terminate. In the case of an employer who is an organization, the contract will terminate when the organization ceases operations.
8/ The Employee is Dismissed as a Disciplinary Measure
The employment contract will terminate when the employee is dismissed as a disciplinary measure. Dismissal is the most severe form of discipline, applied when the employee commits serious violations of legal regulations or workplace rules.
9/ The Employee Unilaterally Terminates the Employment Contract
The employee has the right to unilaterally terminate the employment contract with prior notice, as required by law. However, in certain special cases such as mistreatment, unpaid wages, or sexual harassment, the employee may terminate the contract immediately without notice.
10/ The Employer Unilaterally Terminates the Employment Contract
The employer has the right to unilaterally terminate the employment contract for legitimate reasons, such as the employee failing to perform their job as stipulated in the contract, prolonged illness, or due to natural disasters or fire forcing a reduction in operations. The employer must comply with notice periods and other legal conditions when unilaterally terminating the contract.
11/ The Employee is Terminated by the Employer According to Regulations
The employment contract will terminate when the employer dismisses the employee in accordance with legal regulations, such as during restructuring, downsizing, or for other economic reasons.
12/ Expiration of Work Permit
For foreign employees working in Vietnam, the employment contract will terminate when the foreign employee’s work permit expires, unless the work permit is renewed in a timely manner.
13/ Failure to Meet Probation Requirements or Cancellation of the Probation Agreement (If Stipulated in the Employment Contract)
If a probation agreement is stipulated in the employment contract, the contract may be terminated if the employee fails to meet the probation requirements or if either party cancels the probation agreement. During the probation period, either party has the right to terminate the contract without prior notice if they feel the arrangement is unsuitable.
Contact Us Now:
DCNH LAW
Address: 38B Tran Nhat Duat, Phuoc Hoa ward, Nha Trang city, Khanh Hoa province, Vietnam.
Phone: (+84) 343320223 – 974278893
Email: [email protected]
