Unilateral Termination of Labor Contract

Translated Legal Document

"I have worked for 1 year at Hospital X under a 1-year employment contract. Last month, I signed a new 1-year employment contract. Now, I feel that the job is not suitable (as I prefer teaching at a University Hospital), and I have secured a job at the University Hospital. Thus, is it lawful for me to terminate this employment contract unilaterally? First, what procedures do I need to follow, and how long will it take to process my resignation? What if Hospital X does not process my resignation?"

Lawyer Lai Xuan Cuong - Quoc Thai Law Office responds:

Since your employment contract is a fixed-term contract, to unilaterally terminate this employment contract lawfully, you need to comply with the conditions stipulated in Article 37 of the 2012 Labor Code.

a. You are not assigned the correct job, working location, or not ensured the working conditions agreed upon in the employment contract;

b. You are not paid in full or paid late as agreed upon in the employment contract;

c. You are ill-treated, sexually harassed, or coerced into labor;

d. You or your family have difficult circumstances that prevent you from continuing the employment contract;

e. You are elected to a position specializing in duties in an elected body or are appointed to hold an office in the state apparatus;

f. Female employees are pregnant and must take leave according to the instructions of a qualified health facility;

g. The employee is sick, injured, and has been treated for 90 consecutive days for those working under a fixed-term employment contract, and a quarter of the contract term for those working under a seasonal or specific job contract of less than 12 months, but the labor capacity has not recovered.

If you fall under one of the above cases, you have the right to unilaterally terminate the employment contract with Hospital X, but you must notify the employer in advance as follows:

a. At least 3 working days for the cases stipulated at points a, b, c, and g, clause 1 of this Article;

b. At least 30 days for a fixed-term employment contract; at least 3 working days for a seasonal or specific job contract of less than 12 months for the cases stipulated at points d and e, clause 1 of this Article;

c. For the case stipulated at point f, clause 1 of this Article, the notice period to the employer shall comply with the period specified in Article 156 of this Code (the period prescribed by a qualified medical institution).

Additionally, Clause 3, Article 36 of the 2012 Labor Code stipulates: The employment contract expires when both parties agree to terminate the employment contract. Therefore, if you reach an agreement with the employer to terminate the employment contract, it is also considered a lawful termination.

Other than the cases mentioned above, if you unilaterally terminate the employment contract, it will be considered an unlawful termination. Consequently, you will have to compensate the employer with half a month's salary as per the employment contract and an amount equivalent to the violation of the notice period; compensate for training costs (if any), and you will not receive severance pay (if any), and will not be eligible for unemployment benefits.

Article 47 of the 2012 Labor Code stipulates the responsibilities of the employer when terminating the employment contract: Within 7 working days from the date of termination of the employment contract, both parties are responsible for fully settling amounts related to each party’s interests; in special cases, it can be extended but not more than 30 days. The employer is responsible for completing the procedures to confirm and return the Social Insurance book and other documents that the employer has kept from the employee.

According to Vietnam Legal News

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