What is the responsibility of the employer upon non-renewal of an employment contract in Vietnam?
- What is the responsibility of the employer upon non-renewal of an employment contract in Vietnam?
- How many times can a fixed-term employment contract be signed?
- What are the responsibilities of the parties upon termination of an employment contract in Vietnam?
- What is the form of notice of non-renewal of an employment contract in 2023?
What is the responsibility of the employer upon non-renewal of an employment contract in Vietnam?
Pursuant to the provisions of Article 45 of the 2019 Labor Code in Vietnam as follows:
Noticing termination of employment contracts
1. The employer shall send a written notice to the employee of the termination of his/her employment contract, except for the cases specified in Clauses 4, 5, 6, 7, 8 Article 34 of this Labor Code.
2. In case an employer that is not a natural person shuts down business operation, the date of termination of the employment contract is the same date of the notice of business shutdown.
In case the provincial business registration authority issues a notice that the employer does not have a legal representative or a person authorized to exercise the legal representative’s rights and obligations according to Clause 7 Article 34 of this Labor Code, the date of termination of the employment contract is the same date of the notice.
According to the above provisions, when the employer does not want to renew the employment contract with the employee, the employer is responsible for notifying the employee in writing of the non-renewal of the employment contract.
What is the responsibility of the employer upon non-renewal of an employment contract in Vietnam?
How many times can a fixed-term employment contract be signed?
Pursuant to Clause 2, Article 20 of the 2019 Labor Code in Vietnam as follows:
Type of employment contracts
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If an employee keeps working when an employment contract mentioned in Point b Clause 1 of this Article expires:
a) Within 30 days from the expiration date of the employment contract, both parties shall conclude a new employment contract. Before such a new employment contract is concluded, the parties’ rights, obligations and interests specified in the old employment contract shall remain effective;
b) If a new employment contract is not concluded after the 30-day period, the existing employment contract mentioned in Point b Clause 1 of this Article shall become an employment contract of indefinite term;
c) The parties may enter into 01 more fixed-term employment contract. If the employee keeps working upon expiration of this second fixed-term employment contract, the third employment contract shall be of indefinite term, except for employment contracts with directors of state-invested enterprises and the cases specified in Clause 1 Article 149, Clause 2 Article 151 and Clause 4 Article 177 of this Labor Code.
Thus, a fixed-term employment contract is normally only signed a maximum of 02 times, except for the following cases:
- Directors of state-invested enterprises;
- Elderly employees;
- Foreign employees working in Vietnam;
- In case the employment contract with an employee that is a member of the management board of the internal employee representative organization expires before the end of his/her term of office, the existing contract shall be extended until the end of the term of office.
What are the responsibilities of the parties upon termination of an employment contract in Vietnam?
Pursuant to the provisions of Article 48 of the 2019 Labor Code in Vietnam, the responsibilities of the parties upon termination of an employment contract are as follows:
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:
- Shutdown of business operation of the employer that is not a natural person;
- Changes in the organizational structure, technology or changes due to economic reasons;
- 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;
- Natural disasters, fire, hostility or major epidemics.
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.
The employer has the responsibility to:
- 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);
- 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.
What is the form of notice of non-renewal of an employment contract in 2023?
As analyzed above, when the contract period expires, if the employee does not renew the employment contract with the employee, it is required to notify the employee in writing.
The common form of notice of non-renewal of an employment contract in 2023 is prescribed as follows:
Download the form of notice of non-renewal of an employment contract: Here.
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