Vietnam: Employees shall have the right to unilaterally terminate the employment contract without any reason from January 01, 2021

From January 01, 2021, the Labor Code 2019 of Vietnam will officially take effect, according to which there will be many changes compared to the Labor Code 2012. In particular, employees shall have the right to unilaterally terminate the employment contract without any reason.

chấm dứt hợp đồng lao động, Bộ luật Lao động 2019

According to Article 37 of the Labor Code 2012 of Vietnam (expires from January 01, 2021), when unilaterally terminating the labor contract prior to its expiry, the employee shall inform such to the employer:

- At least 3 working days in advance in cases that:

+ He/she is not assigned to the job or workplace or is not given the working conditions as agreed in the labor contract;

+ He/she is not paid in full or on time as agreed in the labor contract;

+ He/she is maltreated, sexually harassed or is subject to forced labor;

+ If he/she is sick or has an accident and remains unable to work after having received treatment for 90 consecutive days, in case he/she works under a definite-term labor contract, or for a quarter of the contract’s term, in case he/she works under a labor contract for a seasonal job or a specific job of under 12 months.

- At least 30 days in advance for a definite-term labor contract; at least 3 working days for a seasonal or work-specific labor or a specific job of under 12 months in cases that the employee is unable to continue performing the labor contract due to personal or family difficulties or is elected to perform a full-time duty in a people-elected office or is appointed to hold a position in the state apparatus.

- In case a female employee who is pregnant and must take leave as prescribed by a competent health establishment, the period for the female employee to give advance notice to the employer depends on the period determined by the competent health establishment.

- An employee working under an indefinite-term labor contract may unilaterally terminate the labor contract provided that he/she informs the employer at least 45 days in advance.

According to this regulation, the Labor Code 2012 of Vietnam (expires from January 01, 2021) stipulates that the employee may unilaterally terminate the labor contract only when there is a specific reason in accordance with the provisions of law, and he/she must also ensure the notice period for the employer.

In comparison, according to Article 35 of the Labor Code 2019 of Vietnam (effective from January 01, 2021), an employee shall have the right to unilaterally terminate the employment contract, provided he/she notices the employer in advance:

- At least 45 days in case of an indefinite-term employment contract;

- At least 30 days in case of an employment contract with a fixed term of 12 – 36 months;

- At least 03 working days in case of an employment contract with a fixed term of under 12 months;

Note: The notice period in certain fields and jobs shall be specified by the Government.

Thus, in comparison with the Labor Code 2012, from January 01, 2021, employee shall have the right to unilaterally terminate the employment contract without any reason, provided he/she notices the employer in advance.

Note: According to Article 20 of the Labor Code 2019 of Vietnam, there are 02 types of employment contract, including: 

- An indefinite-term employment contract is a contract in which the two parties neither fix the term nor the time of termination of the contract;

- A fixed-term employment contract is a contract in which the two parties fix the term of the contract for a duration of up to 36 months from the date of its conclusion.

Thus, from January 01, 2021, seasonal employment contracts will no longer exist, employees and employers are only allowed to conclude one of two types:  indefinite-term employment contract or fixed-term employment contract.

>>> View more: From 2021, how does the employee terminate the labor contract in accordance with Vietnam’s law?

Le Vy

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