How much compensation do I have to pay company if I voluntarily resign my job in Vietnam? Do I have to compensate for training costs when commitments are not fulfilled in Vietnam?

How much compensation do I have to pay company if I voluntarily resign my job in Vietnam?

I had an argument with the department head and was so angry that I resign without informing the company. So how much do I have to compensate the company? Are there many?

Answer:

Clause 1, Article 35 of the 2019 Labor Code stipulates the right of an employee to unilaterally terminates the employment contract as follows:

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.

Therefore, if you resign your job - terminate the employment contract without prior notice to the company, you have violated the notice period and is considered to unilaterally terminate the employment contract illegally in Vietnam.

According to Article 40 of the 2019 Labor Code states that obligations of the employee upon illegal unilateral termination of the employment contract:

The employee who illegally unilaterally terminates his/her employment contract shall:

1. Not receive the severance allowance.

2. Pay the employer a compensation that is worth his/her half a month’s salary plus (+) an amount equal to his/her salary for the remaining notice period from the termination date.

3. The employee shall reimburse the employer with the training costs in accordance with Article 62 of this Code.

Thus, the amount of compensation you must compensate includes half a month's salary according to the employment contract plus the salary for the number of days without notice. You base on the above regulations to do it correctly in Vietnam.

How much compensation do I have to pay company if I voluntarily resign my job in Vietnam? Do I have to compensate for training costs when commitments are not fulfilled in Vietnam? (Image from the Internet)

If employees damage their company's property for less than 10 million, do they have to pay compensation in Vietnam?

Please ask. On the 10th, I accidentally broke the company's coffee grinder. If I'm not mistaken, when I bought it new it only cost 6 million. So I wonder if assets under 10 million like this have to be compensated?

Answer:

Pursuant to Clause 1, Article 129 of the 2019 Labor Code, regulations on compensation for damages are as follows:

1. An employee who causes damage to equipment or otherwise damages the employer’s assets shall have to pay compensation in accordance with labor laws or the employer’s internal labor regulations.

In case the damage caused by an employee is not serious, not deliberate and is worth less than 10 months’ region-based minimum wage announced by the Government, the employee shall have to pay a compensation of not more than his/her 03 months’ salary, which shall be monthly deducted from his/her salary in accordance with Clause 3 Article 102 of this Code.

Thus, according to the above regulations in Vietnam, in principle you must compensate, whether intentional or unintentional. However, the highest compensation for the above behavior is 03 months' salary and is deducted monthly from salary. Unless two parties agree on a lower compensation level, or the company does not force you to compensate.

Do I have to compensate for training costs when commitments are not fulfilled in Vietnam?

I signed a labor contract with a fixed term from January 1, 2020 to January 1, 2023 during my work in September 2020 because to improve my professional skills, the company sent me to study in Korea for a period of 6 months from December 2020 to June 2021. Both sides signed a training contract with a commitment that after completing training, I would commit to working for the company for 3 years. After finishing the training period and returning from the end of the working contract on January 1, 2023 and continuing to work under the training contract, I want to move to another company because of the higher salary. So in this case, if I unilaterally terminate the training contract, will I have to compensate the company for training costs?

Answer:

In Article 62 of the 2019 Labor Code, there are regulations on vocational training contract between an employer and an employee, and occupational training costs, accordingly:

1. Both parties must enter into a vocational training contract in case the employee is provided with advanced training or retraining at home or abroad funded by the employer or sponsorship from the employer’s partner.

The vocational training contract shall be made into 02 copies, each of which shall be kept by a party.

2. A vocational training contract shall have the following major contents:

a) The occupation in which training is provided;

b) Location, time of training and salary for the training period;

c) The work commitment period after training;

d) The training costs and responsibility for reimbursement thereof;

dd) Responsibilities of the employer;

e) Responsibilities of the employee.

3. Training costs include those specified in valid documents on payments for trainers, training materials, training locations, equipment, practice materials, other supportive expenses for the learner, the salary, social insurance, health insurance and unemployment insurance premiums paid for the learner during the training period. In case the employee receives the training overseas, the training costs also include the travelling and living expenses during the training period.

According to the information you provided, you and the company have signed a training contract and have a commitment to working for the company. However, you do not mention the responsibility of the parties as well as the responsibility to reimburse training costs. According to this Article, whether you have to compensate the company for training costs or not when you fail to comply with your commitments, you must review the terms of your responsibilities in the contract in Vietnam.

Best regards!