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Employer’s right to unilaterally terminate the labor contract in accordance with Vietnamese law

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Labor Code 2019

The employer unilaterally terminates the contract

Pursuant to Article 36 of the Labor Code, the employer also has the right to unilaterally terminate the labor contract, but the enterprise can only exercise this right in the following cases:

– Employees regularly do not complete the work according to the labor contract. This will determine according to the criteria for assessing the level of work completed in the employer’s regulations.

– The employee falls an illness or accident but his working capacity has not yet recovered.

Specifically, the treatment period to consider contract termination in this case determined as follows:

  • Indefinite labor contract: 12 consecutive months.
  • Labor contract from 12 – 36 months: 06 consecutive months.
  • Labor contract under 12 months: Over half of the contract term.

Due to natural disasters, fires, dangerous epidemics, enemy sabotage or relocation or narrowing of production and business at the request of competent agencies, but have tried all remedies but still have to reduce working places…

– The employee is not present at the workplace after 15 days from the expiration of the contract suspension period or after the time agreed by the parties.

– Employees reach full retirement age, unless otherwise agreed.

– The employee voluntarily quits without a valid reason for 05 consecutive working days or more.

Justifiable reasons:  natural disaster, fire, illness, self, sick relatives certified by medical examination and treatment establishments and other cases in the labor regulations.

– The employee provides dishonest information about that person when entering into a contract, affecting the recruitment of employees.

Procedures for unilateral termination of labor contract

When an employer unilaterally terminates a contract with an employee, he/she must also carry out prior notice procedures.

At least 120 days notice:

If signing a labor contract with an indefinite term or with a term of 12 months with an employee doing a particular job.

Notice an equal to the term of the contract:

If you sign a labor contract of fewer than 12 months with an employee doing a particular job.

At least 45 days notice:

If signing an indefinite term labor contract with the employee.

At least 30 days notice:

If signing a labor contract with a term of 12 – 36 months with the employee.

At least 03 working days notice:

If signing a labor contract of fewer than 12 months with the employee. The employee falls ill and accident but his health has not yet recovered.

Without prior notice:

If the employee is not present at the workplace after the contract suspension period. The employee voluntarily quits his job without a valid reason from 05 consecutive working days.

Related articles:

Employee’s right to unilaterally terminate the labor contract in accordance with Vietnamese law

Procedures for terminating labor contracts with foreigners

Related questions:

Obligations The employer unilaterally terminates the contract illegally?

Employers need to get workers back and compensate:
+ Wages, payment of compulsory insurance in days when employees are not allowed to work.
+ Pay an amount corresponding to salary in unannounced days (if the notice period is violated).
+ Pay the employee an additional amount equal to at least 2 months’ salary.
– If the employee does not want to work, in addition to the above amounts, the employer must also pay severance allowance to the employee.
– If the employee does not want to receive it and the employee agrees, then compensate the employee at least equal to 02 months’ salary.

In which case the employer is not allowed to exercise the right to unilaterally terminate the labor contract?

– The employee is sick or has an accident or occupational disease who is being treated or nursed under the direction of the medical examination and treatment establishment.
– The employee is taking annual leave, personal leave and other leave agreed by the employer.
– Pregnant female employees; the employee is on maternity leave or raising a child under 12 months old.

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