LAWFUL LABOR CONTRACT TERMINATION
FOR BUSINESSES
Figure 1. Thinh Tri Law - Advice on how to legally terminate labor contracts for businesses
In the labor relationship, the employee is always in a weak position, so the law has many provisions to protect the legitimate rights and interests of the employee. If the enterprise wants to terminate the labor contract, it must comply with the law, avoid causing disadvantages to the employee, and the consequences will be administratively sanctioned. In the following article, Thinh Tri Law will present ways to help enterprises legally terminate labor contracts.
KEY CONTENT SUMMARY
1. Cases of terminating the labor contract from the enterprise
2. The employee and the enterprise agree to terminate the labor contract.
3. The enterprise unilaterally terminates the labor contract according to the law.
4. The enterprise terminates the labor contract for reasons of change of structure, technology, economic reasons, epidemic.
5. The enterprise terminates the labor contract with the reason of division, separation, consolidation or merger.
6. The enterprise terminates the labor contract during the probationary period.
- According to the 2019 Labor Code, the employer is entitled to automatically terminate the labor contract with the employee without going through any other procedures.
- The employment contract has expired.
- The employee has completed the work specified in the labor contract.
- The employee is sentenced to prison but not a suspended sentence, , death sentence, or the employee is prohibited from doing the work specified in the contract under a valid court decision.
- Foreign workers are deported.
- The employee dies and is declared by the Court to have lost the capacity for civil acts, the employee is in the state of missing.
- The foreigner's work permit has expired.
→ See also: What is an employment contract?
- An employment contract is essentially an agreement between an employee and an employer. Therefore, the law also respects the voluntary will of the parties in the matter of terminating the labor contract. Therefore, Clause 3, Article 34 of the Labor Code 2019 stipulates the case when the two parties agree to terminate the labor contract if coming to an agreement.
- As a result, enterprises can terminate labor contracts according to their wishes, comply with the law, and satisfy the interests of employees. This is the most peaceful solution, businesses should prioritize this way.
Image 2. Thinh Tri Law - Advising on unilateral termination of contracts for businesses
- In addition to the above agreement, the enterprise can choose to unilaterally terminate the labor contract. Employer who wants to choose to unilaterally terminate the labor contract must meet the following requirements:
⮚ An enterprise can only unilaterally terminate a labor contract in the following cases:
- The employee regularly fails to complete the work as agreed in the contract.
- The employee who is in a state of sickness or accident has been treated for a certain period of time but his working capacity has not yet been restored.
- Due to natural disasters, fires, dangerous epidemics, enemy sabotage, or relocation or downsizing of production and business at the request of state agencies, which have tried all remedies but are still forced to reduce their workplaces.
- The employee does not come to the workplace after 15 days from the expiry date of the temporary suspension of the labor contract.
- The employee has reached full retirement age, unless otherwise agreed by the employee and the employer.
- The employee voluntarily quits his job without a valid reason from 05 consecutive working days.
- Employees provide false and untruthful information when entering into labor contracts, affecting the recruitment of employees.
⮚ Process and procedures for unilaterally terminating a labor contract
Before unilaterally terminating the labor contract, the employer must notify the employee, specifically:
- For normal work:
- Notice at least 45 days in advance: For indefinite labor contracts.
- Notice at least 30 days in advance: For contracts with a term of 12 - 36 months.
- Notice at least 03 working days in advance: For under-12- month labor contract.
- For specific jobs such as aircraft crew members; aircraft maintenance staff…
- Notice at least 120 days: For indefinite labor contracts or labor contracts of 12 months or more.
- Notice at least ¼ of the contract's term: For under-12- month labor contract.
- Pursuant to Clauses 1 and 2, Article 42 of the 2019 Labor Code, the following cases are considered as structural and technological changes:
“1.The following cases are considered as structural and technological changes:
a) Changing organizational structure, reorganizing labor;
b) Change in production and business processes, technology, machinery and equipment associated with the employer's production and business lines;
c) Change of product or product structure.
2. The following cases are considered for economic reasons:
a) An economic crisis or recession;
b) Implement State policies and laws when restructuring the economy or implementing international commitments.”
- Procedures businesses should do before labor contract termination
- Enterprises must develop labor use plans in accordance with the law.
- Enterprises only have employees to leave work when they have discussed with the representative organization of workers at the grassroots and made a 30-day advance notice to the Provincial People's Committee and employees about this issue.
- Pursuant to the 2019 Labor Code stipulating the reasons for the employer to terminate the contract, as follows: division, separation, consolidation, merger, sale, lease, conversion of enterprise type, etc.
- Procedures businesses should do before terminating a labor contract
- Enterprises must develop labor use plans in accordance with the law.
More articles:
➤ The invalid labor contract.
➤ Cases of receiving one-time social insurance.
➤ How many types of labor contracts are there today?
➤ Provisions on the right of unilateral labor contract termination.
- During the probationary period, the enterprise may unilaterally terminate the probationary contract without prior notice to the employee, this behavior is considered legal (specifically in Article 27 of the Labor Code).
- In case the employee's probationary period has ended but the results are not satisfactory, the enterprise is allowed to terminate the lawful labor contract.
- In the following article, Thinh Tri Law has presented ways to help enterprises legally terminate labor contracts.
- Hope this article bring useful information. If you have any problems in the process of terminating the labor contract, please contact us:
THINH TRI LAW LIMITED COMPANY
Hotline: 1800 6365
