Advice on Termination Labour Contract

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Can you give me some information regarding terminating of a labour contract.

As an exmployee what rights do I have if my employer terminates my employment after signing a 12 month contract.


Regarding your queries, please find the hereunder our opinion for your references.

As per the information provided by you, your employer and you entered into a Labour Contract with the term of 12 months. Currently, you would like to know the rights of an employee if the employer terminates the contract before expiration.

Under Vietnam Labour laws, the termination of labour contract before expiration are prescribed in some cases, such as based on an agreement between the employee and the employer to terminate the labour contract; a dismissal of the employee under a disciplinary procedure; a restructure of the company or based on the right of the employer to terminate the labour contract unilaterally.

The rights of the employee when being terminated labour contract before expiration are depended on each specific case. As per your email, we do not have enough information to determine in which case you are terminated labour contract before expiration, and whether the termination is lawful or illegal under the laws.

However, if there are not sufficient grounds or lawful reasons for termination, the termination is considered as an illegal unilateral termination of the labour contract. In this case, the employee has the rights as follows:

- The employee shall be re-employed under the concluded labour contract and paid the compensation, including the salary, social insurance, medical insurance for the days the employee is banned from working plus the salary of at least 02 months under the labour contract

- In case the employee does not wish to continue working, the employee shall be paid the severance pay apart from the compensation

- In case the employer does not wish to re-employ the employee and the employee agrees, both parties shall reach the agreement on the extra compensation equal to the salary of at least 02 months under the labour contract apart from the compensation and the severance pay.

- If no vacancy for the position in the labor contract is available but the employee still wishes to continue working, both parties must negotiate to amend and supplement the labour contract apart from the compensation.


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