IN WHICH CASES A LABOUR CONTRACT CAN BE TERMINATED? CAN EMPLOYEES OR EMPLOYERS UNILATERALLY TERMINATE THE LABOUR CONTRACT?

1. Cases of termination of the labour contract, including:

The labour contract expires, except for the case where the employee is a member of the leadership board of the employees’ representative organization during the working term of which the labour contract expires;

The works stated in the labour contract have been completed;

Both parties agree to terminate the labour contract;

The employee is sentenced to imprisonment without being eligible for suspension or release under the provisions of the term of imprisonment equal to or shorter than the time the defendant has been detained, executed or banned from the works stated in the labour contract according to the court's effective judgment or decision.

The foreign employee working in Vietnam are expelled according to the court’s effective judgments or decisions or decisions of competent state agencies.

The employee dies; any case lost civil act capacity, missing or died as declared by the Court.

The employer is an individual who dies; is declared by the Court as a legally incapacitated person, missing or died. The employer who is not an individual terminates its operation or is notified by the specialized business registration agency of the People's Committee of the province that there is no legal representative or authorized person to do rights and obligations of the legal representative.

The employee is dismissed for disciplinary reasons.

The employee unilaterally terminates the labour contract in accordance with the labour law.

The employer unilaterally terminates the labour contract in accordance with the labor law.

The employer retrenches the employees in case of change of structure, technology or economic reasons, when dividing, splitting, merger or acquisition; purchasing, leasing, changing the type of business; transfer of ownership, right to use assets of enterprises or cooperatives.

Work permits expire for foreign employees working in Vietnam.

In case the probationary agreement is agreed in the labour contract, the probationer fails to meet the requirements or one party cancels the probation agreement.

2. Cases that the employer is entitled to unilaterally terminate the labour contract, including:

The employee who regularly fails to complete the work stated in the labour contract in which shall be determined according to the criteria for assessment of the work completion issued by the employer. The Regulations on assessment of work completion are issued by the employer, but must consulted by the employee representative organization at the grassroots;

The employee suffering from an illness or accident has treated for 12 consecutive months for employees working under an indefinite term labour contract, or for 6 consecutive months for the employee working under a definite term labour contract from 12 to 36 months or more than half of the term of a labour contract for the employee working under a definite term labour contract with a term of less than 12 months but his/her working capacity has not yet recovered. When the employee's health recovers, the employer considers to continue to enter into a labour contract with the employee;

Due to natural disasters, fires, hazardous pandemics, enemy sabotage or relocation or downsizing of production and business at the request of competent state agencies, but the employer has sought all remedial measures but is still forced to have to reduce the workplace;

The employee is not present at the workplace after 15 days from the expiration of the time limit for suspending the performance of the labour contract;

The employee reaches retirement age as prescribed in Article 169 Labour Code 2019, unless otherwise agreed;

The employee leaves his/her jobs without a legitimate reason for 5 consecutive working days or more;

The employee provides dishonest information as prescribed in Clause 2, Article 16 Labour Code 2019 when entering into labour contracts, affecting the recruitment..

3. The employee has the right to unilaterally terminate the labor contract but must notify the employer in advance:

At least 45 days if working under an indefinite term labour contract;

At least 30 days if working under a definite-term labour contract within a period from 12 months to 36 months;

At least 03 working days if working under a definite-term labor contract within a period less than 12 months;

For a number of specific industries, trades and jobs, the notice period shall comply with the Government's regulations.

4. Cases where the employee has the right to unilaterally terminate a labour contract without prior notice, including:

Not being arranged according to the right job, working location or not guaranteed working conditions as agreed, except for the case where the employee is transferred to another job than the labour contract;

Not being paid in full or on time, except for the case specified in Clause 4, Article 97 of Labour Code 2019 (In the case of force majeure that the employer has tried all remedies but if the salary is not paid on time, it must not be more than 30 days late; if the salary is paid late by 15 days or more, the employer must compensate the employee an amount at least equal to the interest of the late payment amount calculated at the interest rate on mobilizing deposits with a term of 1 month by the bank where the employer opens the account to paying wages to employees announced at the time of salary payment);

Being abused, beaten by the employer or having insulting words or acts, acts affecting health, dignity and honor; forced labour;

Being sexually harassed at work;

Pregnant female employee must take leave as prescribed in Clause 1, Article 138 of Labour Code 2019;

Having reached the retirement age as prescribed in Article 169 of Labour Code 2019, unless otherwise agreed by the parties;

The employer provides untruthful information as prescribed in Clause 1, Article 16 of this Code, affecting the performance of the labour contract.

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