Does a person need to compensate for terminating the contract before the notice period when both parties agree to terminate the employment contract in Vietnam?

Does a person need to compensate for terminating the contract before the notice period when both parties agree to terminate the employment contract in Vietnam?

Based on Clause 3 of Article 34 of the 2019 Labor Code regulating cases of termination of an employment contract

3. Both parties agree to terminate the employment contract.

You have submitted a resignation letter until April 30, 2022, and the company has agreed, falling under the case where both parties agree to terminate the employment contract. In this case, neither you nor the company unilaterally terminate, so there is no need to comply with the legal notice period.

Therefore, you are not required to compensate any amount for leaving before the prescribed notification period.

Does a person need to compensate for terminating the contract before the notice period when both parties agree to terminate the employment contract in Vietnam? (Image from the Internet)

What are responsibilities of the parties upon termination of an employment contract in Vietnam?

Based on Article 48 of the 2019 Labor Code, the responsibilities of the parties upon termination of an employment contract are as follows:

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.

Therefore, within 14 days from the date of termination of the employment contract, you are responsible for paying in full all amounts related to the company's rights. And the company is responsible for paying in full all amounts related to your rights, completing the procedures to confirm the time of social insurance, unemployment insurance contributions, providing documents as required by law.

Best Regards!