In Vietnam, unemployment insurance is a type of social insurance aimed at providing support to employees when their employment contracts with enterprises are terminated and they are unable to find new employment within a certain period of time. This support is provided based on the contributions that employees have made to the Unemployment Insurance Fund.
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“Quitting a job without notice” is a commonly used term in practice, which has been legally formalized as "illegal unilateral termination of employment contract". So, what cases are considered as illegal unilateral termination of employment contracts?
According to the Labor Code 2012 of Vietnam, employees shall have the right to unilaterally terminate employment contracts when they meet two conditions simultaneously: (1) having a valid reason and (2) providing prior notice, specifically:
An employee working under a definite-term employment contract, a seasonal employment contract or performing a certain job of under 12 months:
- At least 3 working days in advance in the following cases:
+ He/she is not assigned to the job or workplace or is not given the working conditions as agreed in the employment contract;
+ He/she is not paid in full or on time as agreed in the employment 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 employment contract, or for a quarter of the contract’s term, in case he/she works under an employment contract for a seasonal job or a specific job of under 12 months.
- At least 30 days in advance for a definite-term employment contract; at least 3 working days for a seasonal or work-specific labor or a specific job of under 12 months in the following cases:
+ He/she is unable to continue performing the employment contract due to personal or family difficulties;
+ He/she is elected to perform a full-time duty in a people-elected office or is appointed to hold a position in the state apparatus;
- Based on the time limit set by the authorized medical facility, a female employee who is pregnant and must take leave as prescribed by a competent health establishment may unilaterally terminate the employment contract.
An employee working under an indefinite-term employment contract:
An employee working under an indefinite-term employment contract may unilaterally terminate the employment contract provided that he/she informs such to the employer at least 45 days in advance, except the case specified in Article 156 of the Labor Code 2012 where the female employee to give advance notice to the employer, depending on the period determined by the competent health establishment.
However, from 2021 - when the Labor Code 2019 officially comes into force, an employee shall have the right to unilaterally terminate the employment contract without stating the reason, 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;
- The notice period in certain fields and jobs shall be specified by the government.
Moreover, an employee is shall have the right to unilaterally terminate the employment contract without prior notice if he/she:
- is not assigned to the work or workplace or not provided with the working conditions as agreed in the employment contract, except for the cases specified in Article 29 of this Code;
- is not paid adequately or on schedule, except for the case specified in Clause 4 Article 97 of this Code;
- is maltreated, assaulted, physically or verbally insulted by the employer in a manner that affects the employee’s health, dignity or honor; is forced to work against his/her will;
- is sexually harassed in the workplace;
- is pregnant and has to stop working in accordance with Clause 1 Article 138 of this Code;
- reaches the retirement age specified in Article 169 of this Code, unless otherwise agreed by the parties; or
- finds that the employer fails to provide truthful information in accordance with Clause 1 Article 16 of this Code in a manner that affects the performance of the employment contract.
=> From 2021, in cases where employees quit their jobs without meeting the conditions for prior notice mentioned above, it will be considered as illegal unilateral termination of the employment contract, which is also known as "quitting a job without notice”.
According to Clause 1 Article 49 of the Law on Employment 2013 of Vietnam, one of the conditions for unemployment allowance receipt is to terminate the labor contract or working contract, except the following cases:
- He/she unilaterally terminates the labor contract or working contract in contravention of law;
- He/she receives monthly pension or working capacity loss allowance.
Therefore, if an employee quits their job without notice, he/she will not be eligible for unemployment benefits. Starting from 2021, if employees want to unilaterally terminate their employment contracts while ensuring they receive all the benefits, including unemployment benefits, they must meet the conditions for prior notice to the employer as stipulated by the law.
Thuy Tram
