What are provisions on compensation for damages under the Labor Code in Vietnam? Is leaving work without notice subject to compensation in Vietnam?

What are provisions on compensation for damages under the Labor Code in Vietnam?

The expert asked a few questions about compensation for damages in the field of labor. Specifically as follows: What are provisions on compensation for damages according to the 2019 Labor Code? Thank you very much.

Answer:

In Article 129 of the 2019 Labor Code, there are regulations on compensation for damage, 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.

2. An employee who loses the employer’s equipment or assets, or consumes the materials beyond the set limits shall pay a compensation for damage in full or in part at the market price or as stipulated in the internal labor regulations or the responsibility contract (if any). In case this is caused by a natural disaster, fire, war, major epidemic, calamity, or another force majeure event which is unforeseeable and insurmountable, and all necessary measures and possibilities for avoidance have been taken, the compensation shall not required.

What are provisions on compensation for damages under the Labor Code in Vietnam? When can I resign my job immediately without compensation in Vietnam? (Image from the Internet)

Is leaving work without notice subject to compensation in Vietnam?

According to the 2012 Labor Code, in case of illegal unilateral contract termination, compensation will be required. So according to the new regulations, if I resign my job without notice, will I have to pay compensation?

Answer:

Clause 2, Article 40 of the 2019 Labor Code stipulates 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.

Regarding the notice period, it is implemented according to Clause 1, Article 35 of the 2019 Labor Code.

In Clause 2, Article 35 of the 2019 Labor Code, there is a list of cases where employees have the right to quit their job without prior notice:

1. Not being arranged according to the correct job, working location or not guaranteed working conditions as agreed (except Article 29);

2. Not being paid in full or not paid on time (except Clause 4, Article 97);

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Thus, when an employee resigns his job without notice and falls into the cases listed in Clause 2, Article 35 of the 2019 Labor Code, he or she terminates the contract in accordance with the law in Vietnam, so there is no obligation to compensate.

In the remaining cases, if you quit your job without notice, it is considered illegal unilaterally and you must compensate the employer: Half a month's salary according to the contract and an amount corresponding to the salary according to the labor contract for days without prior notice in Vietnam.

When can I resign my job immediately without compensation in Vietnam? 

According to the Labor Law, when can an employee quit their job immediately without compensation? Thank.

Answer: According to the effective Labor Code 2019, there are 7 cases where employees can resign their job immediately without having to pay compensation, including:

- Not being arranged according to the correct job, working location or not guaranteed working conditions as agreed, except for the cases specified in Article 29 of this Code;

- Not being paid in full or not paid on time, except for the cases specified in Clause 4, Article 97 of this Code;

- Being mistreated, beaten, or subjected to humiliating words or actions by the employer, or acts that affect health, dignity, or honor; forced labor;

- Being sexually harassed at work;

- Pregnant female employees must leave work according to the provisions of Clause 1, Article 138 of this Code;

- Full retirement age as prescribed in Article 169 of this Code, unless the parties agree otherwise;

- The employer provides dishonest information as prescribed in Clause 1, Article 16 of this Code, affecting the implementation of the labor contract (Clause 2, Article 35).

Summary: To determine whether an employee has the right to quit without notice, it is necessary to determine the time of resigning. This means that at the present time, if employees want to quit their job, they are required to give notice in advance. From 2021, when falling into the 7 cases listed above, employees will be able to resign their job immediately without having to pay compensation in Vietnam.

Best regards!