If an employee is dismissed, will their employment contract be terminated in Vietnam?

If an employee is dismissed, will their employment contract be terminated in Vietnam? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. If an employee is dismissed, will their employment contract be terminated in Vietnam?

According to Article 34 of the Labor Code 2019, cases of termination of an employment contract include:

- The employment contract expires, except for the case specified in Clause 4 Article 177 of the Labor Code 2019.

- The tasks stated in the employment contract have been completed.

- Both parties agree to terminate the employment contract.

- The employee is sentenced to imprisonment without being eligible for suspension or release as prescribed in Clause 5 Article 328 of the Criminal Procedure Code, capital punishment or is prohibited from performing the work stated in the employment contract by an effective verdict or judgment of the court.

- The foreign employee working in Vietnam is expelled by an effective verdict or judgment of the court or a decision of a competent authority.

- The employee dies; is declared by the court as a legally incapacitated person, missing or dead.

- The employer that is a natural person dies; is declared by the court as a legally incapacitated person, missing or dead.

The employer that is not a natural person ceases to operate, or a business registration authority affiliated to the People’s Committee of the province (hereinafter referred to as “provincial business registration authority”) issues a notice that the employer does not have a legal representative or a person authorized to exercise the legal representative’s rights and obligations.

- The employee is dismissed for disciplinary reasons.

- The employee unilaterally terminates the employment contract in accordance with Article 35 of the Labor Code 2019.

- The employer unilaterally terminates the employment contract in accordance with Article 36 of the Labor Code 2019.

- The employer allows the employee to resigns in accordance with Article 42 and Article 43 of the Labor Code 2019.

- The work permit or a foreign employee expires according to Article 156 of the Labor Code 2019.

- The employee fails to perform his/her tasks during the probationary period under the employment contract or gives up the probation.

Thus, according to the above regulations, the employee who is dismissed for disciplinary reasons shall fall under the case of termination of the labor contract.

2. Cases of applying dismissal for disciplinary reasons

According to Article 125 of the Labor Code 2019, an employer may dismiss an employee for disciplinary reasons in the following circumstances:

- The employee commits an act of theft, embezzlement, gambling, deliberate infliction of injuries or uses drug at the workplace;

- The employee discloses technological or business secrets or infringing the intellectual property rights of the employer, or commits acts which are seriously detrimental or posing seriously detrimental threat to the assets or interests of the employer, or commits sexual harassment in the workplace against the internal labor regulations;

- The employee repeats a violation which was disciplined by deferment of pay rise or demotion and has not been absolved. A repeated violation means a violation which was disciplined and is repeated before it is absolved in accordance with Article 126 of the Labor Code 2019.

- The employee fails to go to work for a total period of 05 days in 30 days, or for a total period of 20 days in 365 days from the first day he/she fails to go to work without acceptable excuses.

Justified reasons include natural disasters, fires; the employee or his/her family member suffers from illness with a certification by a competent health facility; and other reasons as stipulated in the internal labor regulations.

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