Vietnam: In case of illegal unilateral termination of the employment contracts, which allowances must employees return to their employers after the reinstatement?
- Vietnam: In case of illegal unilateral termination of the employment contracts, which allowances must employees return to their employers after the reinstatement?
- What are the cases where employers have the right to unilaterally terminate the employment contracts in Vietnam?
- What are the contents of employment contracts in Vietnam?
Vietnam: In case of illegal unilateral termination of the employment contracts, which allowances must employees return to their employers after the reinstatement?
Pursuant to Article 41 of the 2019 Labor Code, the obligations of the employer upon illegal unilateral termination of the employment contract are specifically as follows:
Obligations of the employer upon illegal unilateral termination of the employment contract
1. The employer that illegally unilaterally terminates an employment contract with an employee shall reinstate the employee in accordance with the original employment contract, and pay the salary, social insurance, health insurance and unemployment insurance premiums for the period during which the employee was not allowed to work, plus at least 02 months’ salary specified in the employment contract.
After the reinstatement, the employee must return the severance allowance or redundancy allowance (if any) to the employer.
Where there is no longer a vacancy for the position or work as agreed in the employment contract and the employee still wishes to work, the employer shall negotiate revisions to the employment contract.
Where the employer fails to comply with the provisions on notice period in Clause 2 Article 36 of this Labor Code, the employer shall pay a compensation that is worth the employee’s salary for the remaining notice period from the termination date.
2. In case the employee does not wish to return to work, in addition to the compensation prescribed in Clause 1 of this Article, the employer shall pay a severance allowance in accordance with Article 46 of this Code in order to terminate the employment contract.
3. Where the employer does not wish to reinstate the employee and the employee agrees, in addition to the compensation mentioned in Clause 1 of this Article and the severance allowance mentioned in Article 46 of this Labor Code, both parties shall negotiate an additional compensation which shall be at least 2 months’ salary under the employment contract in order to terminate the employment contract.
Accordingly, if the employee's contract is unilaterally terminated illegally and then reinstated, he or she must return the severance allowance or redundancy allowance (if any) to the employer.
Vietnam: Which allowances must employees return to their employers after the reinstatement?
What are the cases where employers have the right to unilaterally terminate the employment contracts in Vietnam?
Pursuant to Article 36 of the 2019 Labor Code, it is stipulated as follows:
The right of an employer to unilaterally terminates the employment contract
1. An employer shall have the right to unilaterally terminate an employment contract in one of the following circumstances:
a) The employee repeatedly fails to perform his/her work according to the criteria for assessment of employees’ fulfillment of duties established by the employer. The criteria for assessment of employees’ fulfillment of duties shall be established by the employer with consideration taken of opinions offered by the representative organization of employees (if any);
b) The employee is sick or has an accident and remains unable to work after having received treatment for a period of 12 consecutive months in the case of an indefinite-term employment contract, for 06 consecutive months in the case of an employment contract with a fixed term of 12 – 36 months, or more than half the duration of the contract in case of an employment contract with a fixed term of less than 12 months.
Upon recovery, the employer may consider concluding another employment contract with the employee;
c) In the event of a natural disaster, fire, major epidemic, hostility, relocation or downsizing requested by a competent authority, the employer has to lay off employees after all possibilities have been exhausted;
d) The employee is not present at the workplace after the time limit specified in Article 31 of this Labor Code;
dd) The employee reaches the retirement age specified in Article 169 of this Labor Code, unless otherwise agreed by the parties;
e) The employee is not present at work without acceptable excuses for at least 05 consecutive working days;
g) The employee fails to provide truthful information during the conclusion of the employment contract in accordance with Clause 2 Article 16 of this Labor Code in a manner that affects the recruitment.
2. When unilaterally terminating the employment contract in any of the cases specified in Point a, b, c, dd and g Clause 1 of this Article, the employer shall inform the employee 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 the case of an employment contract with a fixed term of less than 12 months and in the cases stipulated in Point b Clause 1 of this Article;
d) The notice period in certain fields and jobs shall be specified by the government.
3. When unilaterally terminating the employment contract in the cases mentioned in Point d and Point e Clause 1 of this Article, the employer is not required to inform the employee in advance.
Thus, the employer has the right to unilaterally terminate the employment contract in the above cases.
What are the contents of employment contracts in Vietnam?
Pursuant to Clause 1, Article 21 of the 2019 Labor Code, An employment contract shall have the following major contents:
- The employer’s name, address; full name and position of the person who concludes the contract on the employer’s side;
- Full name, date of birth, gender, residence, identity card number or passport number of the person who concludes the contract on the employee’s side;
- The job and workplace;
- Duration of the employment contract;
- Job- or position-based salary, form of salary payment, due date for payment of salary, allowances and other additional payments;
- Regimes for promotion and pay rise;
- Working hours, rest periods;
- Personal protective equipment for the employee;
- Social insurance, health insurance and unemployment insurance;
- Basic training and advanced training, occupational skill development.
LawNet