Can employees in Vietnam unilaterally terminate the employment contract if the employer delays salary payment?
Can employees in Vietnam unilaterally terminate the employment contract if the employer delays salary payment?
According to Clause 2, Article 35 of the Labor Code 2019:
The right of an employee to unilaterally terminates the employment contract
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2. An employee is shall have the right to unilaterally terminate the employment contract without prior notice if he/she:
a) is not assigned to the work or workplace or not provided with the working conditions as agreed in the employment contract, except for the cases specified in Article 29 of this Labor Code;
b) is not paid adequately or on schedule, except for the case specified in Clause 4 Article 97 of this Code.
c) is maltreated, assaulted, physically or verbally insulted by the employer in a manner that affects the employee’s health, dignity or honor; is forced to work against his/her will;
d) is sexually harassed in the workplace;
dd) is pregnant and has to stop working in accordance with Clause 1 Article 138 of this Labor Code.
e) reaches the retirement age specified in Article 169 of this Labor Code, unless otherwise agreed by the parties; or
g) finds that the employer fails to provide truthful information in accordance with Clause 1 Article 16 of this Labor Code in a manner that affects the performance of the employment contract.
In cases where the employer does not pay salary adequately or on schedule, the employee has the right to unilaterally terminate the employment contract without prior notice, except in cases of force majeure where the employer has taken all remedial measures but still cannot pay salary on schedule, the delay period must not exceed 30 days;
In case a salary is paid at least 15 days behind schedule, the employer shall pay the employee compensation that is worth at least the interest on the amount paid behind schedule at the latest 1-month interest rate quoted by the bank at which the employee’s salary account is opened.
Can employees in Vietnam unilaterally terminate the employment contract if the employer delays salary payment?
What obligations does an employee have when unilaterally terminating the employment contract illegally?
Under Article 40 of the Labor Code 2019:
Obligations of the employee upon illegal unilateral termination of the employment contract
The employee who illegally unilaterally terminates his/her employment contract shall:
1. Not receive the severance allowance.
2. Pay the employer a compensation that is worth his/her half a month’s salary plus (+) an amount equal to his/her salary for the remaining notice period from the termination date.
3. The employee shall reimburse the employer with the training costs in accordance with Article 62 of this Code.
Thus, in the case of unilaterally terminating the employment contract illegally, the employee has the following obligations:
- Not receive the severance allowance.
- Pay the employer compensation that is worth his/her half a month’s salary plus (+) an amount equal to his/her salary for the remaining notice period from the termination date.
- The employee shall reimburse the employer with the training costs in accordance with Article 62 of this Code.
What are the responsibilities of parties upon termination of an employment contract in Vietnam?
Under Article 48 of the Labor Code 2019:
Responsibilities of the parties upon termination of an employment contract
1. Within 14 working days following the termination of an employment contract, both parties shall settle all payments in respect of the rights and interests of each party. In the following cases, such period may be extended, but shall not exceed 30 days:
a) Shutdown of business operation of the employer that is not a natural person;
b) Changes in the organizational structure, technology or changes due to economic reasons;
c) Full division, partial division, consolidation, merger of the enterprise; sale, lease, conversion of the enterprise; transfer of the right to ownership or right to enjoyment of assets of the enterprise or cooperative;
d) Natural disasters, fire, hostility or major epidemics.
2. Priority shall be given to payment of the employees’ salaries, social insurance, health insurance, unemployment insurance, severance allowance and other benefits under the collective bargaining agreement and employment contracts in case of shutdown, dissolution or bankruptcy of an enterprise or cooperative.
3. The employer has the responsibility to:
a) Complete the procedures for verification of duration of participation in social insurance and unemployment insurance, return them and original copies of the employee’s other documents (if any);
b) Provide copies of the documents relevant to the employee’s work if requested by the employee. The employer shall pay the cost of copying and sending the documents.
Thus, when the parties terminate the employment contract, they must complete responsibilities according to the stipulated provisions.
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