What is the latest sample of the Agreement on Termination of Employment contracts between the parties in Vietnam?
- What is the latest sample of the Agreement on Termination of Employment contracts in Vietnam?
- When terminating an employment contract in Vietnam, what are the responsibilities of the employer?
- What are the regulations on salary as the basis for calculation of severance allowance and redundancy allowance upon termination of an employment contract?
- In what cases can the parties extend the period of payment in respect of the rights and interests of each party when terminating the employment contract?
What is the latest sample of the Agreement on Termination of Employment contracts in Vietnam?
At present, the law does not provide for the form of the Agreement to terminate the employment contract. Below is a sample of the Agreement on Termination of Employment contracts in Vietnam (for reference only):
Download the latest sample of the Agreement on Termination of Employment contracts in Vietnam: Click here.
What is the latest sample of the Agreement on Termination of Employment contracts between the parties in Vietnam? (Image from the Internet)
When terminating an employment contract in Vietnam, what are the responsibilities of the employer?
Pursuant to Clause 3, Article 48 of the 2019 Labor Code of Vietnam as follows:
Responsibilities of the parties upon termination of an employment contract in Vietnam
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, according to the above provisions, when terminating a employment contract, the employer has the following responsibilities:
- 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 are the regulations on salary as the basis for calculation of severance allowance and redundancy allowance upon termination of an employment contract?
Pursuant to Clause 5, Article 8 of Decree 145/2020/ND-CP of Vietnam stipulating the salary as the basis for calculation of severance allowance and redundancy allowance as follows:
- The salary as the basis for calculation of severance allowance and redundancy allowance is the average salary of the last 06 months before the employee resigns or loses the job.
- In case the employee works for the employer under consecutive employment contracts as prescribed in Clause 2 Article 20 of the Labor Code, the salary as the basis for calculation of severance allowance and redundancy allowance is the average salary of the last 06 months before the last employment contract is terminated.
- In case the last employment contract is invalidated due to lower salary than the region-based minimum wage announced by the Government or lower than the salary specified in the collective bargaining agreement, the salary as the basis for calculation of severance allowance and redundancy allowance shall be negotiated by both parties but must not be lower than the region-based minimum wage or the salary specified in the collective bargaining agreement.
In what cases can the parties extend the period of payment in respect of the rights and interests of each party when terminating the employment contract?
Pursuant to Clause 1, Article 48 of the 2019 Labor Code of Vietnam, 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.
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