VIETNAM LABOR CODE - 2021

TYPES OF EMPLOYMENT CONTRACTS – PROBATIONARY – CASES OF TERMINATION

TYPES OF EMPLOYMENT CONTRACTS

An employment contract shall be concluded in one of the following types:

1. An indefinite-term employment contract is a contract in which the two parties neither fix the term nor the time of termination of the contract;
2. A fixed-term employment contract is a contract in which the two parties fix the term of the contract for a duration of up to 36 months from the date of its conclusion.

If an employee keeps working when an employment of fixed-term contract expires:

Within 30 days from the expiration date of the employment contract, both parties shall conclude a new employment contract. Before such a new employment contract is concluded, the parties’ rights, obligations and interests specified in the old employment contract shall remain effective;

If a new employment contract is not concluded after the 30-day period, the existing employment contract fixed-term shall become an employment contract of indefinite term;

The parties may enter into 01 more fixed-term employment contract. If the employee keeps working upon expiration of this second fixed-term employment contract, the third employment contract shall be of indefinite term.

PROBATIONARY PERIOD

The probationary period shall be negotiated by the parties on the basis of the nature and complexity of the job. Only one probationary period is allowed for a job and the probation shall not exceed:

1. 180 days for the position of enterprise executive prescribed by the Law on Enterprises;
2. 60 days for positions that require a junior college degree or above;
3. 30 days for positions that require a secondary vocational certificate, professional secondary school; positions of or for technicians, and skilled employees;
4. 06 working days for other jobs.

TYPICAL CASES OF TERMINATION OF AN EMPLOYMENT CONTRACT

1. The employment contract expires.
2. The tasks stated in the employment contract have been completed.
3. Both parties agree to terminate the employment contract.
4. The employee is dismissed for disciplinary reasons.
5. The employee unilaterally terminates the employment contract in accordance with the law.
6. The employer unilaterally terminates the employment contract in accordance with the law.
7. The employer allows the employee to resigns in accordance with the law.
8. The work permit or a foreign employee expires according to the law.
9. The employee fails to perform his/her tasks during the probationary period under the employment contract or gives up the probation.

THE RIGHT OF AN EMPLOYEE TO UNILATERALLY TERMINATES THE EMPLOYMENT CONTRACT

An employee shall have the right to unilaterally terminate the employment contract, provided he/she notices the employee in advance:

1. At least 45 days in case of an indefinite-term employment contract;
2. At least 30 days in case of an employment contract with a fixed term of 12 – 36 months;
3. At least 03 working days in case of an employment contract with a fixed term of under 12 months;
4. The notice period in certain fields and jobs shall be specified by the government.

THE RIGHT OF AN EMPLOYER TO UNILATERALLY TERMINATES THE EMPLOYMENT CONTRACT

1. An employer shall have the right to unilaterally terminate an employment contract in one of the following circumstances:
2. The employee repeatedly fails to perform his/her work according to the criteria for assessment of employees’ fulfillment of duties established by the employer. The criteria for assessment of employees’ fulfillment of duties shall be established by the employer with consideration taken of opinions offered by the representative organization of employees;
3. The employee is sick or has an accident and remains unable to work after having received treatment for a period of 12 consecutive months in the case of an indefinite-term employment contract…
4. In the event of a natural disaster, fire, major epidemic, hostility, relocation or downsizing requested by a competent authority, the employer has to lay off employees after all possibilities have been exhausted;
5. The employee quits his/her fails to go to work without acceptable excuses for at least 05 consecutive working days;
6. The employee fails to provide truthful information during the conclusion of the employment contract in accordance with the law and in a manner that affects the recruitment.

When unilaterally terminating the employment contract in any of the cases, the employer shall inform the employer in advance:

1. At least 45 days in case of an indefinite-term employment contract;
2. At least 30 days in case of an employment contract with a fixed term of 12 – 36 months;
3. At least 03 working days in the case of an employment contract with a fixed term of less than 12 months and in other cases.

Please contact with our expertises for tailored solutions that shall be fully complied with the laws but also fully protect interests of enterprises, in fair manners.

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