Vietnam: Can employees apply for quitting their jobs before concluded employment contracts expire? How long are employees required to provide prior notices to be quitted their jobs before employment contracts expire?

"Can employees in Vietnam apply for quitting their jobs before concluded employment contracts expire?" - asked Ms. Linh (Binh Duong)

Can employees in Vietnam quit their jobs before concluded employment contracts expire?

Pursuant to Clause 1, Article 35 of the Labor Code 2019 as follows:

The right of an employee to unilaterally terminate the employment contract
1. An employee shall have the right to unilaterally terminate the employment contract, provided he/she notices the employer in advance:
a) at least 45 days in case of an indefinite-term employment contract;
b) at least 30 days in case of an employment contract with a fixed term of 12 – 36 months;
c) at least 03 working days in case of an employment contract with a fixed term of under 12 months;
d) The notice period in certain fields and jobs shall be specified by the government.

Accordingly, an employee shall have the right to unilaterally terminate the employment contract, provided he/she notices the employer in advance:

+ At least 45 days in case of an indefinite-term employment contract;

+ At least 30 days in case of an employment contract with a fixed term of 12 – 36 months;

+ At least 03 working days in case of an employment contract with a fixed term of under 12 months

- The notice period in certain fields and jobs shall follow Clause 1, Article 7 of Decree 145/2020/ND-CP:

+ At least 120 days before the termination date if the employment contract has an indefinite term or a term of at least 12 months;

+ At least one-fourth (1/4) of the employment contract duration if the duration is less than 12 months.

What are the special works and lines of business in Vietnam?

Pursuant to Clause 1, Article 7 of Decree 145/2020/ND-CP, special works and lines of business include:

- Aircrew members; aircraft maintenance technicians, aviation repairmen; flight coordinators;

- Enterprise managers defined by the Law on Enterprises; the Law on Management and use of State Investment in Enterprises;

- Crewmembers working on Vietnamese vessels operating overseas; crewmembers dispatched to foreign vessels by Vietnamese dispatching agencies;

- Other cases prescribed by law.

In what cases can employees in Vietnam unilaterally terminate employment contracts without prior notice?

Pursuant to Clause 2, Article 35 of the Labor Code 2019, an employee is shall have the right to unilaterally terminate the employment contract without prior notice if he/she:

- 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 the Labor Code;

- Is not paid adequately or on schedule, except for the case specified in Clause 4 Article 97 of the Labor Code.

- 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;

- Is sexually harassed in the workplace;

- Is pregnant and has to stop working in accordance with Clause 1 Article 138 of the Labor Code.

- Reaches the retirement age specified in Article 169 of the Labor Code, unless otherwise agreed by the parties; or

- Finds that the employer fails to provide truthful information in accordance with Clause 1 Article 16 of the Labor Code in a manner that affects the performance of the employment contract.

Can enterprises in Vietnam fail to pay salaries to employees in case they quit their jobs before concluded employment contracts expire?

Pursuant to Clause 1, Article 48 of the Labor Code 2019 as follows:

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.

Accordingly, Vietnam enterprises must fully pay employees' salaries if they quit their jobs before concluded employment contracts expire.

The payment period is 14 working days from the date of termination of the employment contract.

The payment period can be extended but not more than 30 days if it falls under the following cases:

- 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, the merger of the enterprise; sale, lease, conversion of the enterprise; transfer of the right to ownership or right to the enjoyment of assets of the enterprise or cooperative;

- Natural disasters, fire, hostility, or major epidemics.

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