Additional Cases Where Enterprises Have the Right to Unilaterally Terminate Labor Contracts

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To be specific, according to this Draft, the employer has the right to unilaterally terminate the labor contract in the following cases:

1. The employee frequently fails to complete the work according to the labor contract as determined by the evaluation criteria of work completion in the regulations of the employer; (The Draft adds conditions to determine that the employee frequently fails to complete the work as per the labor contract compared to current regulations).

2. The employee has been sick or suffered an accident and has been treated continuously for 12 months for those working under an indefinite-term labor contract, continuously treated for 06 months for employees working under a definite-term labor contract from 12 months to 36 months, and more than half of the term of the labor contract for those working under a definite-term labor contract of under 12 months such that the working capacity has not been restored. (The Draft specifies the term of the definite-term labor contract in this case, whereas current regulations only provide a general rule for employees working under a definite-term labor contract).

When the health of the employee recovers, the employer shall consider continuing to enter into a labor contract with the employee;

3. Due to natural disasters, fires, epidemics, enemy sabotage, or relocation, and downsizing of production and business upon request of a competent state agency, the employer has taken all remedial measures but is still forced to reduce jobs; (The Draft has detailed the force majeure cases in which the employer is entitled to unilaterally terminate the labor contract compared to the 2012 Labor Code).

4. The employee is not present at the workplace after the period specified in Article 32 of the Draft;

5.* The employee reaches the retirement age as prescribed in Article 171 of the Draft, unless otherwise agreed;* (This is a new case added in the Draft).

6.* The employee voluntarily leaves the job without a legitimate reason for 05 consecutive working days or more;* (This is a new case added in the Draft).*

7.* The employee provides false personal information when entering into the labor contract, affecting the recruitment of the employee.* (This is also a new case added in the Draft).*

Thus, the Draft has added 03 new cases in which the employer is entitled to unilaterally terminate the labor contract compared to the current regulations, and more clearly and specifically stipulates cases previously prescribed in the 2012 Labor Code.

Nguyen Trinh

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