Prior notice period upon unilateral termination of employment contracts in special works and lines of business in Vietnam

Prior notice period upon unilateral termination of employment contracts in special works and lines of business in Vietnam (Internet image) 

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

1. Prior notice period upon unilateral termination of employment contracts in special works and lines of business in Vietnam

According to Article 7 of Decree 145/2020/ND-CP, apecial works and lines of business and prior notice period upon unilateral termination of employment contracts prescribed in Point d Clause 1 Article 35 and Point d Clause 2 Article 36 of the Labor Code are elaborated as follows:

- Special works and lines of business include:

= Aircrew members; aircraft maintenance technicians, aviation repairmen; flight coordinators;

= Enterprise managers defined by the Law on Enterprises; the Law on Management and use of State Investment in Enterprises;

= Crewmembers working on Vietnamese vessels operating overseas; crewmembers dispatched to foreign vessels by Vietnamese dispatching agencies;

= Other cases prescribed by law.

- When an employee mentioned in Clause 1 of Article 7 of Decree 145/2020/ND-CP or his/her employer unilaterally terminates the employment contract, a prior notice shall be provided:

= At least 120 days before the termination date if the employment contract has an indefinite term or a term of at least 12 months;

= At least one fourth (1/4) of the employment contract duration if the duration is less than 12 months.

2. Regulations on settlement of partially invalidated employment contracts in Vietnam

According to Article 9 of Decree 145/2020/ND-CP, a partially invalidated employment contract prescribed in Clause 1 Article 51 of the Labor Code shall be settled as follows:

- When part of the employment contract is invalidated, the employer and the employee shall revise the invalidated content to ensure its conformity with the collective bargaining agreement and the law.

- Rights, obligations and interests of both parties during the period from first day on which the employee works under the partially invalidated employment contract to the day on which the contract is revised shall be settled in accordance with the effective collective bargaining agreement or, if such a collective bargaining agreement is not available, in accordance with law.

In case the salary under the invalidated employment contract is lower than the minimum salary prescribed by labor laws or the effective collective bargaining agreement, both parties shall negotiate the salary to ensure conformity with regulations. The employer shall pay the difference between the initial salary and the re-negotiated salary for the actual work period under the invalidated employment contract.

- In case both parties cannot reach a consensus on revision of the invalidated content:

= The employment contract will be terminated;

= Rights, obligations and interests of both parties during the period from first day on which the employee works under the partially invalidated employment contract to the day on which the contract is terminated shall be settled in accordance with Clause 2 of Article 9 of Decree 145/2020/ND-CP;

= Severance allowance shall be provided in accordance with Article 8 of Decree 145/2020/ND-CP.

= The work period under the invalidated employment contract shall be included in the actual work period as the basis for provision of benefits as prescribed by law.

- Other issues relevant to partially invalidated employment contracts shall be settled by court in accordance with the Civil Procedure Code.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE