The court costs for labor lawsuits in Vietnam

The court costs for labor lawsuits in Vietnam (Image from the Internet)

According to Article 38 of the 2012 Labor Code, an employer may unilaterally terminate a labor contract in the following cases:

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- If, as a result of natural disaster, fire or another force majeure event as prescribed by law, the employer, though having applied every remedial measure, has to scale down production and cut jobs;

- The employee is absent from the workplace after the time limit specified in Article 33 of this Code.

Thus, when the company has difficulties during the Covid epidemic and has to reduce production, it will have the right to unilaterally terminate the contract, but when terminating the labor contract, it must notify the employee a period of time in advance.

Pursuant to Clause 2, Article 38 of the 2012 Labor Code, when unilaterally terminating a labor contract, the employer shall notify the employee in advance:

- At least 45 days, for indefinite-term labor contracts;

- At least 30 days, for definite-term labor contracts;

- At least 3 working days, for seasonal or work-specific labor contracts of under 12 months as stipulated at Point b, Clause 1 of this Article.

Therefore, if the company does not notify you in advance of the above specified time, the termination of your labor contract is illegal. If you have the right to complain to the company or file a lawsuit in court for resolution.

When unilaterally terminating a labor contract illegally, the company must bear the following responsibilities:

- To reinstate the employee in accordance with the original labor contract; to pay the wage and social insurance and health insurance premiums for the period during which the employee was not allowed to work, plus at least 2 months’ wage in accordance with the labor contract.

- In case the employee does not wish to return to work, in addition to the compensation stipulated in Clause 1 of this Article, the employer shall pay a severance allowance in accordance with Article 48 of this Code.

- In case the employer does not want to reinstate the employee and the employee agrees, in addition to the compensation stipulated in Clause 1 of this Article and the severance allowance stipulated in Article 48 of this Code, the two parties shall negotiate on an additional compensation which must be at least equal to 2 months’ wage in accordance with the labor contract in order to terminate the labor contract.

- In case the position or job agreed in the labor contract is no longer vacant and the employee still wishes to work, the employer shall pay the compensation stipulated in Clause 1 of this Article and both parties shall negotiate to modify and supplement the labor contract.

- If violating the provision on the time of prior notice, the employer shall compensate the employee an amount equivalent to his/her wage for the working days without prior notice.

About court costs

According to Article 26 of Resolution 326/2016/UBTVQH14 stipulating:

1. The involved parties shall pay for the first-instance civil court costs if their claims are not approved by the court, unless they are eligible for the full remission thereof.

2. Defendants shall bear all first-instance civil court costs in case where the plaintiffs’ claims are wholly accepted by the courts.

3. Plaintiffs shall bear all first-instance civil court costs in case where the plaintiffs’ claims are whole unaccepted by the courts.

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Thus, you only pay court costs when the Court does not accept your lawsuit request. And the court costs will depend on the value of the dispute.

Best regards!