Recently, LSX legal firm received a question from our customer: I joined a company for a time and I wonder whether can make an agreement to terminate the contract with an indefinite term? How does the law regulate the responsibility of terminating an indefinite term labor contract? In this article, we would like to provide you with: “Termination of indefinite term contract in Vietnam”
Legal ground
- Labor Code 2019
Indefinite term labor contract
According to current regulations, an employment contract is a document expressing the relationship between an employer and an employee, it is the basic ground for determining whether or not there is an employment relationship. The signing of a labor contract ensures the rights and interests of employees as well as employers.
An indefinite-term employment contract means a contract in which the two parties neither fix the term nor the time of termination of the contract. The parties are not bound by time, this contract is usually long-term, applied to jobs with a regular and continuous nature, with undetermined ending time, or jobs with a duration of more than 36 months.
Contents of an indefinite term contract
An indefinite term contract takes effect from the date of signing by the parties; unless otherwise agreed by both parties. The labor contract must have the following main contents:
- The employer’s name, address; full name, and position of the person who concludes the contract on the employer’s side;
- Full name, date of birth, gender, residence, identity card number, or passport number of the person who concludes the contract on the employee’s side;
- The job and workplace;
- Duration of the employment contract;
- Job (or position)-based salary, the form of salary payment, the due date for payment of salary, allowances, and other additional payments;
- Regimes for promotion and pay rise;
- Working hours, rest periods;
- Personal protective equipment for the employee;
- Social insurance, health insurance, and unemployment insurance;
- Basic training and advanced training, occupational skill development.
Cases of termination of labor contracts with indefinite term
Article 34 Labor Code 2019 on cases of contract termination for an indefinite term:
- 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; 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 dismissed for disciplinary reasons.
- The employee unilaterally terminates the employment contract in accordance with Article 35 of this Code.
- The employer unilaterally terminates the employment contract in accordance with Article 36 of this Code.
- The employer allows the employee to resign in accordance with Article 42 and Article 43 of this Code.
- The work permit of a foreign employee expires according to Article 156 of this Labor Code.
How many days in advance should the employee notice the employer about the termination of the contract?
According to Article 35 of the Labor Code 2019:
Article 35. The right of an employee to unilaterally terminates the employment contract
An employee shall have the right to unilaterally terminate the employment contract, provided he/she notices the employee in advance:
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 case of an employment contract with a fixed term of under 12 months;
d) The notice period in certain fields and jobs specified by the government.
An employee shall have the right to unilaterally terminate the employment contract without prior notice if he/she:
a) Not assigned to the work or workplace or not provided with the working conditions as agreed in the employment contract, except for the cases specified in Article 29 of this Labor Code;
b) Not paid adequately or on schedule, except for the case specified in Clause 4 Article 97 of this Code.
c) Maltreated, assaulted, physically or verbally insulted by the employer in a manner that affects the employee’s health, dignity, or honor; is forced to work against his/her will;
d) Sexually harassed in the workplace;
dd) Pregnant and has to stop working in accordance with Clause 1 Article 138 of this Labor Code.
e) Reaches the retirement age specified in Article 169 of this Labor Code, unless otherwise agreed by the parties; or
g) Finds that the employer fails to provide truthful information in accordance with Clause 1 Article 16 of this Labor Code in a manner that affects the performance of the employment contract.
Responsibility when terminating labor contracts with indefinite term
Depending on the case of termination of the labor contract, the employee or the employer must ensure the conditions of 45 days advance notice when wanting to terminate the labor contract with an indefinite term.
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 extend, 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 the 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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Contact LSX
Finally, hope this article is useful for you to answer the question about “Termination of indefinite term contract in Vietnam”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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Related questions
(1) In writing.
(2) Data messages through electronic means.
(3) In oral.
The duration of the contract is indefinite.
Employees have the right to fully participate in social insurance, health insurance and unemployment insurance.
– Employees can unilaterally terminate the contract without reason to find another suitable job.
– There is no compensation or loss of any fee when unilaterally terminating the contract without reason.
– Receive severance allowance despite of leaving work for any reason.
Conclusion: So the above is Termination of indefinite term contract in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
