Legal provisions on the termination of labor contracts

1. Cases of termination of labor contracts

A labor contract will be terminated in one of the following cases:

• The labor contract expires (except for the case where the signed labor contract must be extended until the end of the term for the employee who is a member of the leadership board of the employee representative organization during the term). 

• Completing the work according to the labor contract.

• Both parties agree to terminate the labor contract.

• The employee is sentenced to prison but is not entitled to a suspended sentence or is not in the case of release, death penalty or is prohibited from doing the job specified in the labor contract according to the court judgment or decision that has taken legal effect.

• Foreign employees working in Vietnam are expelled according to the court judgment or decision that has taken legal effect, or decisions of competent state agencies.

• The worker dies; has been declared by the Court to have lost his civil act capacity, is missing or has died.

• The employer dies; has been declared by the Court to have lost his civil act capacity, is missing or has died. The employer who is not an individual, terminates its operation or is notified by the business registration agency of the province People's Committee that there is no legal representative or the person authorized to perform the rights and obligations of the legal representative.

• Disciplinary employees fired.

• The employee unilaterally terminates the labor contract.

• The employer unilaterally terminates the labor contract.

• Employers dismiss employees.

• The work permit expires for foreign workers working in Vietnam.

• In case the probation agreement in the labor contract fails to meet the requirements or one party cancels the probation agreement.

2. Cases when the employee has the right to unilaterally terminate the labor contract

Base on the provisions of Article 35 of the Labor Code, the employee has the right to unilaterally terminate the labor contract but must notify the employer in advance within the time limit as follows:

• For an indefinite-term labor contract: At least 45 days.

• For definite-term labor contracts with a term from 12 months to 36 months: At least 30 days.

• For definite-term labor contracts with a term of less than 12: At least 3 days.

• If the employees work in a particular industry, profession or job, when unilaterally terminates the labor contract, the notice period shall comply with the provisions of Article 7 of Decree 145/2020/ND-CP.

The employee has the right to unilaterally terminate the labor contract without prior notice to the employer in the following cases:

• Not being arranged right according to the job, working location or not guaranteed working conditions as agreed, unless the employee is transferred to another job compared to the labor contract.

• Not being paid in full or on time, except for the case of force majeure that the employer cannot pay the salary on time.

• Being abused, beaten by the employer or having insulting words or acts, acts affecting health, dignity and honor or being forced labor.

• Being sexually harassed at work.

• Pregnant female employees who take leave from work must have certification of competent medical examination or treatment establishments told that continuing to work will adversely affect the fetus.

• Full retirement age, unless parties have another agreement.

• Employers provide untruthful information that affects the performance of the labor contract.

3. Cases where the employer has the right to unilaterally terminate the labor contract

The employer unilaterally terminates the labor contract but must give advance notice to the employee in the following cases:

• The employee regularly fails to complete the work under the labor contract, which is determined according to the criteria for assessing the job completion level in the labor regulations. Regulations on assessment of job completion level are promulgated by the employer, but it must consult the representative organization of employees at the grassroots for the place where there is a representative organization of employees at the establishment.

• The employee suffering from an illness or an accident has received treatment for 12 consecutive months, for employees working under an indefinite-term labor contract; or has received treatment for 6 consecutive months, for employees working under definite-term labor contracts with a term from 12 months to 36 months; or more than half of the term of the labor contract for the employee working under the definite-term labor contract with a term of less than 12 months but the working capacity has not yet recovered.

• When the employee's health recovers, the employer will consider contracting a labor contract with the employee.

• Due to natural disasters, fires, epidemics, enemy sabotage or relocation, downsizing of production and business by the request of competent state agencies, the employer has sought all remedial measures but is still forced to reduce the workplace.

• Employees reach retirement age, unless they have another agreement.

• Employees provide dishonest information when contracting labor contracts, which affect the recruitment.

Notice period:

• For an indefinite-term labor contract: At least 45 days.

• For definite-term labor contracts with a term from 12 months to 36 months: At least 30 days.

• For a definite-term labor contract with a term of less than 12 months, and for an employee who has suffered an illness or an accident that has been treated for 12 consecutive months, for employees working under an indefinite-term labor contract; or has received treatment for 6 consecutive months, for employees working under definite-term labor contracts with a term from 12 months to 36 months; or more than half of the term of the labor contract for the employee working under the definite-term labor contract with a term of less than 12 months but the working capacity has not yet recovered: At least 03 working days.

• The employee is not present at the workplace after 15 days from the expiry date of the suspension period of the labor contract performance.

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

4. Cases when the employer is not allowed to do the right to unilaterally terminate the labor contract

The employer may not do the rights to unilaterally terminate the labor contract in the following cases:

• The employee is sick or suffers from an accident or occupational disease who is being treated under the direction of a competent medical examination and treatment establishment, except for cases when the employee has received treatment for 12 consecutive months, for employees working under an indefinite-term labor contract; or has received treatment for 6 consecutive months, for employees working under definite-term labor contracts with a term from 12 months to 36 months; or more than half of the term of the labor contract for the employee working under the definite-term labor contract with a term of less than 12 months but the employee is unlikely to recover.

• The employee is taking annual leave, taking separate 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.

5. Legal basis

• Labor Code 2019.

• Decree 145/2020/ND-CP dated December 14, 2020 of the Government guiding the Labor Code on labor conditions and labor relations.