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Benefits of unilaterally terminating labor contract legally in Vietnam

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Unlike other types of civil contracts, the termination of the labor contract will result in the employee having no job and no income. This situation, when prolonged, can lead to many social disasters. For employers, the illegal termination of the labor contract will lead to a disturbance in the company’s personnel. Employees, when illegally terminate the contract, will have to pay compensation. In contrast, legal unilaterally termination of the contract will bring many benefits to workers. So, in this article, LSX legal firm would like to provide you with information regarding: “Benefits of unilaterally terminating labor contract legally in Vietnam”

  • Labor Code 2019

Time limit for notice when the employee unilaterally terminates the labor contract

Clause 1, Article 35 of the Labor Code 2019 provides for the notice period when the employee unilaterally terminates the labor contract.

Article 35. The right of an employee to unilaterally terminates the employment contract

1. 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 shall be specified by the government.

In what cases can the employee unilaterally terminates the labor contract without noticing the employer?

Clause 2, Article 35 of the Labor Code 2019 stipulates some cases where no prior notice required when the employee unilaterally terminates the labor contract:

Article 35. The right of an employee to unilaterally terminates the employment contract

2. An employee is 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.

Benefits of unilaterally terminating labor contract legally in Vietnam

The Law on Employment 2013 stipulates that employees who are paying unemployment insurance premiums are entitled to unemployment allowance in case of unilateral termination of labor contracts when fully meeting the following conditions:

Terminating the labor contract or working contract, except for the following cases:

  • He/she unilaterally terminates the labor contract or working contract in contravention of law;
  • He/she receives monthly pension or working capacity loss allowance.

Having paid unemployment insurance premiums for at least full 12 months within 24 months before terminating the labor contract or working contract, for the case specified at Points a and b, Clause 1, Article 43 of this Law; or having paid unemployment insurance premiums for at least full 12 months within 36 months before terminating the labor contract, for the case specified at Point c, Clause 1, Article 43 of the Law on Employment.

Submitted a dossier for receipt of unemployment allowance to an employment service center.

Not yet found any job after 15 days from the date of submission of the dossier for receipt of unemployment allowance, except for the following cases:

  • Firstly, he/she performs the military or public security obligation;
  • Secondly, he/she attends a training course of full 12 months or longer;
  • Thirdly, he/she serves a decision on the application of the measure to send him/her to a reformatory, compulsory education institution, or compulsory detoxification establishment;
  • Fourthly, he/she is kept in temporary detention or serves a prison sentence;
  • Fifthly, he/she goes abroad for settlement or as a guest worker;
  • Lastly, he/she dies.

The monthly unemployment allowance: 60% of the average monthly salary on which unemployment insurance premiums based for the 06 consecutive months before unemployment.

Clause 1, Article 48 of the Labor Code 2019 stipulates that 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.
Thus, if the employer still owes money related to the employee’s benefits, the employer must pay in full.

Receive confirmation of the time of payment of social insurance and receive other documents

According to Article 48 of the Labor Code 2019, the employer must complete the procedures to confirm the time of payment of social insurance and unemployment insurance premium of the employee and return it together with the original documents of the employee (if any).
On the other hand, the employee can request the employer to provide copies of documents related to the working process.

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Contact LSX

Finally, hope this article is useful for you to answer the question about “Benefits of unilaterally terminating labor contract legally in Vietnam”. If you need any further information, please contact  LSX Law firm+84846175333 or Email: [email protected]

When will employer start to pay social insurance for employee?

Employers shall pay unemployment insurance premiums for workers to social insurance organizations within 30 days from the effective date of labor contracts or working contracts.

When will employee obliged to participate in unemployment insurance?

a/ Labor contracts or working contracts of indefinite time;
b/ Labor contracts or working contracts of definite time;
c/ Seasonal or job-based working contracts with a term of between full 3 months and under 12 months.
In case a worker has signed and is performing more than one labor contract specified in this Clause, the worker and the employer under the labor contract signed first shall participate in unemployment insurance.

What are the unemployment insurance benefits?

1. Unemployment allowance.
2. Job counseling and recommendation support.
3. Vocational training support.
4. Support for training and retraining to improve qualifications of occupational skills for job maintenance for workers.

Conclusion: So the above is Benefits of unilaterally terminating labor contract legally in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com

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