Question: Our company intends to terminate the labor contract with an employee. Who has the authority to issue the decision on termination of such contract?.
Answer
Pursuant to Clause 2 Article 3 of the Labor Code 2019, "An employer means an enterprise, agency, organization, cooperative, household, or individual that hires or employs a worker under an agreement; in case the employer is an individual, he/she must have full civil act capacity."
At the same time, Article 6 of the Labor Code 2019 stipulates that an employer has the obligation “To perform the labor contract, the collective bargaining agreement and other lawful agreements; and to respect the honor and dignity of the employee.”
From the foregoing provisions, it can be affirmed that the employer is the subject that have the competent to issue a decision on termination of a labor contract. Within an enterprise, such authority directly belongs to the legal representative. In case the legal representative does not directly sign, he/she may authorize in writing another individual.
Consultation: labor law services
