Regulations on noticing termination of employment contracts in Vietnam

Regulations on noticing termination of employment contracts in Vietnam (Internet image)

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

1. Regulations on noticing termination of employment contracts in Vietnam

Regulations on notification of termination of labor contracts according to Article 45 of the Labor Code 2019 are as follows:

- The employer shall send a written notice to the employee of the termination of his/her employment contract, except for the cases specified in Clauses 4, 5, 6, 7, 8 Article 34 of the Labor Code 2019.

+ 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.

- In case an employer that is not a natural person shuts down business operation, the date of termination of the employment contract is the same date of the notice of business shutdown.

In case the 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 according to Clause 7 Article 34 of the Labor Code 2019, the date of termination of the employment contract is the same date of the notice.

2. Responsibilities of the parties upon termination of an employment contract in Vietnam

Responsibilities of the parties upon termination of an employment contract in Vietnam under Article 48 of the Labor Code 2019 are as follows:

- Within 14 working days following the termination of an employment contract, both parties shall settle all payments in respect of the rights and interests of each party. In the following cases, such period may be extended, but shall not exceed 30 days:

+ Shutdown of business operation of the employer that is not a natural person;

+ Changes in the organizational structure, technology or changes due to economic reasons;

+ Full division, partial division, consolidation, merger of the enterprise; sale, lease, conversion of the enterprise; transfer of the right to ownership or right to enjoyment of assets of the enterprise or cooperative;

+ Natural disasters, fire, hostility or major epidemics.

- Priority shall be given to payment of the employees’ salaries, social insurance, health insurance, unemployment insurance, severance allowance and other benefits under the collective bargaining agreement and employment contracts in case of shutdown, dissolution or bankruptcy of an enterprise or cooperative.

- The employer has the responsibility to:

+ Complete the procedures for verification of duration of participation in social insurance and unemployment insurance, return them and original copies of the employee’s other documents (if any);

+ Provide copies of the documents relevant to the employee’s work if requested by the employee. The employer shall pay the cost of copying and sending the documents.

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