I. Cases where the Company has the right to unilaterally terminate the contract with the Employee
Pursuant to Clause 1, Article 36 Labor code 2019:
“a) The employee repeatedly fails to perform his/her work according to the criteria for assessment of employees’ fulfillment of duties established by the employer. The criteria for assessment of employees’ fulfillment of duties shall be established by the employer with consideration taken of opinions offered by the representative organization of employees (if any);
b) The employee is sick or has an accident and remains unable to work after having treatment for a period of 12 consecutive months in the case of an indefinite-term employment contract, for 06 consecutive months in the case of an employment contract with a fixed term of 12 – 36 months, or more than half the duration of the contract in case of an employment contract with a fixed term of less than 12 months.
Upon recovery, the employer may consider concluding another employment contract with the employee;
c) Due to natural disasters, fires, dangerous epidemics, enemy sabotage or relocation or downsizing of production and business at the request of competent state agencies, the employer has sought all remedies but still forced to reduce workplaces;
d) The employee is not present at the workplace after the time limit specified this Labor Code;
đ) The employee reaches the retirement age specified, unless otherwise agreed by the parties;
e) The employee is not present at work without acceptable excuses for at least 05 consecutive working days;
g) The employee fails to provide truthful information during the conclusion of the employment contract in a manner that affects the recruitment”.
Notes: For the days when the employer violates the notification obligation, the employee will receive the corresponding salary.
Step 1. In general principles, employers take responsibilities to notify employees of the unilaterally termination of labor contract, specifically:
“a) at least 45 days in case of an indefinite-term employment contract;
b) at least 30 days in case of an employment contract with a fixed term of 12 – 36 months;
c) at least 03 working days in the case of an employment contract with a fixed term of less than 12 months and in the cases employees get sick or have accidents as above mention;
d) The notice period in certain fields and jobs shall be specified by the government”.
Step 2. The employee continues to perform the job until the contract is terminated and the work is handed over (if there is a prior agreement) and the employer only pays the salary, bonus and other amounts (severance / redundancy allowances). 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.
Step 3. On the last day of the contract, the parties sign the handover minutes and complete the procedures by signing salary and bonus documents (if any), ending the validity of the labor contract.
III. Form of notifications
Employers have obligations to send a written notice to the employee of the termination of his/her employment contract, except for the following cases (Clause 1, Article 45, Labor code 2019):
a. The employee is sentenced to imprisonment without being eligible for suspension or release as prescribed in 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.
b. The foreign employee working in Vietnam is expelled by an effective verdict or judgment of the court or a decision of a competent authority.
c. The employee dies; is declared by the court as a legally incapacitated person, missing or dead.
d. 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.
đ. The employee is dismissed for disciplinary reasons.
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