Does expiration of employment contracts not automatically mean termination of employment contracts in Vietnam?

Does expiration of employment contracts not automatically mean termination of employment contracts in Vietnam?

Let me ask: According to labor law, all cases where the employment contract expires will automatically terminate the employment contract, right?

Reply:

Pursuant to Clause 1, Article 34 of the 2019 Labor Code, regulations on cases of termination of an employment contract:

1. The employment contract expires, except for the case specified in Clause 4 Article 177 of this Code.

Referring to Clause 4, Article 177 of the 2019 Labor Code, there are cases:

4. 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.

Thus, if it is necessary to extend the employment contract that has been signed until the end of the employee's term as prescribed above, the employment contract will not automatically be terminated and on the contrary, if this is not the case, in principle it will automatically terminate in Vietnam.

Does expiration of employment contracts not automatically mean termination of employment contracts in Vietnam? (Image from the Internet)

Do employers have right to unilaterally terminate employment contracts when their employees work overtime in Vietnam?

My company recruits a technical department employee. However, for more than 2 months this employee has been working ineffectively, often neglecting work. It is known that in addition to working at the company, that employee also works overtime. I want to ask whether we have right to unilaterally terminate the employment contract when the employee works overtime? In the contract is not mentioned.

Reply:

Pursuant to Point a, Clause 1, Article 36 of the 2019 Labor Code stipulates as follows:

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);

Thus, in the contract, the two parties did not agree in advance about this outside work, so you cannot use the reason they work overtime to unilaterally terminate it. However, you absolutely have this right when the employee regularly fails to complete the work according to the employment contract as determined by the criteria for evaluating the level of work completion in the employer's regulations in Vietnam.

Does an enterprise that illegally unilaterally terminates an employment contract have to pay severance allowance in Vietnam?

The company I work for illegally terminated my labor contract. I am currently going through the procedures to complain. In case they illegally terminate the contract and I don't want to work anymore, will I be paid severance allowance?

Reply:

Pursuant to Clause 2, Article 41 of the 2019 Labor Code, obligations of the employer upon illegal unilateral termination of the employment contract are as follows:

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.

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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.

Thus, as you mentioned, in case the employer illegally terminates the employment contract and you do not want to continue working, the employer must pay you severance allowance according to the law regulations in Vietnam.

Best regards!