Cases of suspension of employment contract in Vietnam

Vietnam: Mrs. Phung Thi Thuy Lieu (vthl@foster...) takes maternity leave from January 2, 2014 to June 1, 2014. The first 1-year-term employment contract of Mrs. Lieu expired on February 15, 2014. The Company has made a contract addendum to suspend the employment contract for Mrs. Lieu to sign before her leave.

When Mrs. Lieu returned to work, the Company signed the second employment contract from June 2, 2014, to June 1, 2016. Mrs. Lieu inquired whether the Company’s actions were in compliance.

Lawyer Le Van Dai, from Khanh Hung Law Office - Hanoi Bar Association, responded to Mrs. Lieu's query as follows:

According to the provisions of Article 32 of the Labor Code 2012, the cases for suspension of the employment contract include:

- The employee is performing military service.

- The employee is detained or held in custody in accordance with criminal procedure laws.

- The employee is required to comply with a decision to be taken to a reformatory, compulsory detoxification center, or compulsory educational institution.

- Pregnant female workers as stipulated in Article 156 of this Code. Female workers who are pregnant and have certification from an authorized medical facility confirming that continuing to work would adversely affect the fetus have the right to temporarily suspend the employment contract. The notice period that the female worker must give to the employer depends on the duration prescribed by the authorized medical facility.

- Other cases as agreed upon by both parties.

In the case of Ms. Phung Thi Thuy Lieu, she took maternity leave for 6 months from January 2, 2014, to June 1, 2014, while the one-year fixed-term employment contract (first term) was set to expire on February 15, 2014. The act of the Company and Mrs. Lieu signing an appendix to temporarily suspend the employment contract before her maternity leave and before the one-year fixed-term contract expired, does not affect her social insurance benefits during her maternity leave (as maternity leave benefits are paid by social insurance). The suspension of the employment contract is advantageous for her because after her maternity leave, upon the expiration of the suspension period, she returned to work and the Company signed the second employment contract with a term of 2 years from June 2, 2014, to June 1, 2016.

The case where the Company and Mrs. Lieu signed an appendix to temporarily suspend the first employment contract (as mentioned above) is a suspension of the employment contract by mutual agreement, in accordance with Clause 5, Article 32 of the Labor Code.

Lawyer Le Van Dai

Khanh Hung Law Office – Hanoi Bar Association

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