Careful: Prison Sentence for Terminating Employees to Avoid Lunar New Year Bonuses

06:03, 11/07/2024

Employers may be subject to criminal liability if they terminate or issue dismissal decisions for employees with the intention of avoiding Lunar New Year 2019 bonus payments.

The content above is specified in Article 162 of the Criminal Code 2015 (amended and supplemented in 2017):

Article 162. Crime of forcing officials and public employees to resign or unlawfully dismissing employees

1. Any person who, for personal gain or other personal motives, commits one of the following acts causing serious consequences, shall be fined from VND 10,000,000 to VND 100,000,000, placed on probation for up to 1 year, or imprisoned for between 3 months and 1 year:

a) Unlawfully deciding to force dismissal of officials and public employees;

b) Unlawfully dismissing employees;

c) Coercing or threatening to force officials, public employees, or workers to resign.

2. Committing the crime in one of the following cases shall be fined from VND 100,000,000 to VND 200,000,000 or imprisoned for between 1 year and 3 years:

a) Against 2 or more persons;

b) Against a woman known to be pregnant;

c) Against a person raising a child under 12 months old;

d) Causing the person forced to resign or dismissed to commit suicide;

dd) Causing very serious or particularly serious consequences.

3. The offender may also be prohibited from holding certain posts for 1 year to 5 years.

With this regulation, if the objective aspect demonstrates that the act of dismissal is unlawful and for reasons of personal gain or other personal motives, for example, dismissing an employee to avoid giving a year-end bonus, the employer could face criminal liability with the highest penalty being imprisonment from 3 months to 1 year.

Unlawful dismissal is an act of dismissal that does not comply with the provisions on unilateral termination of the contract under Article 38 of the Labor Code 2012.

Duy Thinh

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