Termination of Labor Contracts with Regular Employees Who Do Not Complete Their Work?

In the event that an employee is incapable of performing their duties and does not exhibit satisfactory work results, does the enterprise have the right to terminate the labor contract? If so, is the enterprise required to give prior notice to the employee regarding the termination of the labor contract?

Lawyer Sa Thi My Hanh, YouMe Limited Liability Law Company, responded:

At point a) Clause 1 Article 38 of the Labor Code 2012 stipulates that the employer has the right to unilaterally terminate the labor contract in the following case:

a) The employee frequently does not complete the work according to the labor contract;

Specifically, according to Clause 1 Article 12 of Decree 05/2015/ND-CP of the Government of Vietnam, detailing and guiding the implementation of several contents of the Labor Code, the case of unilateral termination of the labor contract by the employer due to the employee frequently not completing the work according to the labor contract is stipulated as follows:

The employer must specifically stipulate criteria for evaluating the level of work completion within the enterprise's regulations, as a basis for assessing employees frequently not completing the work according to the labor contract. The evaluation regulations on the level of task completion are issued by the employer after consulting the organization's representative of the labor collective at the workplace.

According to Clause 2 Article 38 of the Labor Code, when unilaterally terminating the labor contract, the employer must notify the employee in advance:

a) At least 45 days for an indefinite-term labor contract;

b) At least 30 days for a definite-term labor contract;

c) At least 03 working days for the cases stipulated at point b Clause 1 of this Article and for a seasonal labor contract or under a specific task of less than 12 months.

Thus, the employer has the right to unilaterally terminate the labor contract in case the employee frequently does not complete the work according to the labor contract and must notify the employee in advance about the contract termination.

According to Lao Dong Newspaper

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