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The Right Of An Employer To Unilaterally Terminate The Labor Contract

Termination of a labor contract due to the will of one party is easy to cause disagreements, imbalance of interests or even lead to a labor dispute between the employer and the employee. Therefore, the law has strict provisions on the right to unilaterally terminate a labor contract in which the employee and the employer can unilaterally terminate the contract in accordance with the provisions of law.

Regarding the right to unilaterally terminate the labor contract of the employee

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The Labor Code 2012 specifies in Article 37 as follows: An employee working under a definite-term labor contract, a seasonal labor contract or performing a certain job of under 12 months may unilaterally terminate the labor contract prior to its expiry in the following cases:

  • The employee is not assigned to the job or workplace or is not given the working conditions as agreed in the labor contract.
  • The employee is not paid in full or on time as agreed in the labor contract.
  • The employee is maltreated, sexually harassed or is subject to forced labor. Specifically: In the event of being beaten by the employer or verbally abusive, behavior affecting health, dignity, honor or forced labor; be sexually harassed at work.
  • The employee is unable to continue performing the labor contract due to personal or family difficulties. In this case, the instructions are as follows:
  • Must take leave to take care of a spouse, natural father, natural mother, father-in-law, mother-in-law, mother-in-law, natural child or adopted child who is sick or in an accident.
  • Go abroad to live or work.
  • Families facing difficulties due to natural disasters, fires, enemy sabotage, epidemics or displacement, employees have sought all measures but cannot continue to perform labor contracts.
  • The employee is elected to perform a full-time duty in a people-elected office or is appointed to hold a position in the state apparatus.
  • A female employee who is pregnant and must take leave as prescribed by a competent health establishment.
  • If the employee is sick or has an accident and remains unable to work after having received treatment for 90 consecutive days, in case he/she works under a definite-term labor contract, or for a quarter of the contract’s term, in case he/she works under a labor contract for a seasonal job or a specific job of under 12 months.

When unilaterally terminating the labor contract, the employee shall inform such to the employer

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  • At least 3 working days in advance, in the case specified at Point a, b, c or g, Clause 1 Article 37 of this Article.
  • At least 30 days in advance for a definite-term labor contract; at least 3 working days for a seasonal or work-specific labor or a specific job of under 12 months in the case specified at Point d or dd, Clause 1 of Article 37.
  • In case a pregnant female employee must take leave as directed by the competent health establishment, the period for the female employee to give advance notice to the employer depends on the period determined by the competent health establishment.

In addition, the employee working under an indefinite – term labor contract has the right to unilaterally terminate the labor contract but must notify the employer at least 45 days in advance. Except for the case a pregnant employee has a certificate of a competent health establishment which states that continued work will adversely affect her pregnancy, she may unilaterally terminate the labor contract or temporarily postpone the performance of the labor contract.

Thus, for the employee to unilaterally terminate the labor contract in accordance with the provisions of the law for a definite-term labor contract, a seasonal labor contract or performing a certain job of under 12 months, this person must satisfy two conditions:

  • Is the case of unilateral termination of labor contract and prior notice within the prescribed time limit.
  • However, if the employee is working under an indefinite term contract, he or she has the right to unilaterally terminate the employment contract (without the reason being satisfied) provided that this person guarantees prior notice as stipulated by law.

Readers can contact Lac Duy & Associates to receive timely advice and support with other information such as: unilateral labor contract termination disputes, labor discipline disputes, salary disputes, insurance disputes, job transfer disputes, dismissal disputes … or information about good labor consulting lawyers, salary consulting lawyers, insurance consulting lawyers…

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