Draft of the Amended Labor Code is expected to come into effect from January 01, 2021. Notably, the Draft includes revisions and additions regarding cases of labor contract termination.
Article table of contents
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To be specific, according to this Draft, from January 01, 2021, there will be 12 cases in which labor contracts will be terminated (the current regulation is 10 cases), specifically including:
1. Expiry of the labor contract.
2. Completion of work according to the labor contract.
3. Mutual agreement to terminate the labor contract.
4. The employee is convicted to imprisonment, the death penalty, or is prohibited from performing the work stated in the labor contract according to a legally effective judgment, decision of the court.
5. The employee dies, is declared by the court to have lost civil capacity, is missing, or is deceased.
6. The employer as an individual dies, is declared by the court to have lost civil capacity, is missing, or is deceased; the employer which is not an individual ceases operations or the legal representative or the person authorized by the legal representative is no longer available. (This is newly added content in the Draft.)
7. The employee is disciplined and dismissed.
8. The employee unilaterally terminates the labor contract according to the provisions of Article 36 of the Draft.
9. The employer unilaterally terminates the labor contract according to the provisions of Article 36 of the Draft.
10. The employer lays off the employee according to the provisions of Article 43, Article 44 of the Draft.
11. The work permit expires for foreign employees working in Vietnam.
12. The trial work agreement stated in the labor contract fails to meet the job requirements or either party cancels the trial work agreement.
Thus, the Draft has added 2 new cases where labor contracts will be terminated alongside the previously stipulated cases in the Labor Code 2012.
Nguyen Trinh
