Does the Work Permit of a Foreign Worker in Vietnam Expiring Result in the Termination of the Employment Contract?
Requirements for Foreign Workers in Vietnam
According to Article 151 of the Labor Code 2019, the conditions for foreign workers working in Vietnam are as follows:
Conditions for Foreign Workers in Vietnam
1. A foreign worker in Vietnam is a person holding foreign nationality and must meet the following conditions:
a) At least 18 years old and has full civil act capacity;
b) Has professional, technical, and working experience; has adequate health as prescribed by the Minister of Health;
c) Not currently serving a sentence or having a criminal record that has not been expunged, or being prosecuted according to foreign or Vietnamese laws;
d) Has a work permit issued by a competent Vietnamese state authority, except for cases stipulated in Article 154 of this Code.
2. The duration of the labor contract for foreign workers in Vietnam shall not exceed the duration of the work permit. Both parties may agree to enter into multiple fixed-term labor contracts.
3. Foreign workers in Vietnam must comply with Vietnamese labor laws and are protected by Vietnamese law, except where international treaties to which the Socialist Republic of Vietnam is a member provide otherwise.
Thus, the conditions for foreign workers in Vietnam are stipulated as above.
Does the labor contract terminate when the work permit of foreign workers in Vietnam expires? (Image from the Internet)
Does the Labor Contract Terminate When the Work Permit of Foreign Workers in Vietnam Expires?
According to Article 34 of the Labor Code 2019, the cases of labor contract termination are as follows:
Cases of Labor Contract Termination
1. The labor contract expires, except for the case stipulated in Clause 4, Article 177 of this Code.
2. The tasks stated in the labor contract have been completed.
3. Both parties agree to terminate the labor contract.
4. The employee is sentenced to prison without probation, or does not fall into the cases of being released according to Clause 5, Article 328 of the Criminal Procedure Code, sentenced to death or prohibited from performing the work stated in the labor contract by a legally binding court judgment or decision.
5. The foreign employee working in Vietnam is expelled by a legally binding court judgment or decision of a competent state authority.
6. The employee dies; is declared by the court as having lost civil act capacity, missing, or dead.
7. The employer being an individual dies; is declared by the court as having lost civil act capacity, missing, or dead. The non-individual employer ceases to operate or no longer has a legal representative or authorized representative as notified by the competent business registration agency under the People’s Committee of the province.
8. The employee is disciplined with dismissal.
9. The employee unilaterally terminates the labor contract according to the provisions of Article 35 of this Code.
10. The employer unilaterally terminates the labor contract according to the provisions of Article 36 of this Code.
11. The employer gives the employee job termination according to the provisions of Articles 42 and 43 of this Code.
12. The work permit expires for foreign workers in Vietnam as stipulated in Article 156 of this Code.
13. The trial period included in the labor contract does not meet the requirements or one party cancels the trial agreement.
At the same time, pursuant to Article 156 of the Labor Code 2019, it is stipulated as follows:
Cases in Which the Work Permit Expires
1. The work permit expires.
2. The labor contract terminates.
3. The content of the labor contract is not consistent with the content of the issued work permit.
4. Working in violation of the content of the issued work permit.
5. The contract in the fields leading to the issuance of work permits expires or is terminated.
6. There is a written notice from the foreign party terminating the assignment of the foreign worker to work in Vietnam.
7. The enterprise, organization, or Vietnamese partner, or foreign organization in Vietnam using foreign workers ceases operations.
8. The work permit is revoked.
Thus, when the work permit of foreign workers in Vietnam expires, the labor contract is terminated.
Is It Permissible for the Company Not to Notify the Termination of the Labor Contract?
According to the provisions of Clause 1, Article 12 of Decree 12/2022/ND-CP on violations of regulations on modification, supplementation, and termination of labor contracts as follows:
Violation of Regulations on Modification, Supplementation, and Termination of Labor Contracts
1. A fine ranging from 1,000,000 VND to 3,000,000 VND shall be imposed on the employer for failing to notify the employee in writing of the termination of the labor contract when the labor contract terminates according to the provisions of the Labor Code, except for the cases stipulated in Clauses 4, 5, 6, 7, and 8, Article 34 of the Labor Code.
Thus, according to the regulations, the employer will face administrative penalties. Specifically, an administrative fine ranging from 1,000,000 VND to 3,000,000 VND shall be imposed on the employer for failing to notify the employee in writing of the termination of the labor contract when the labor contract terminates according to the provisions of the Labor Code, except for the cases stipulated in Clauses 4, 5, 6, 7, and 8, Article 34 of the Labor Code.
The above fine is the penalty for individuals, and the fine for organizations is double the penalty for individuals.
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