Termination of labor contracts
VGP – Under the Labor Code 2019, labor contracts would be automatically terminated in three cases.
Question: What are cases in which labor contracts would be automatically terminated?
The Labor Code 2012 stipulated ten cases of termination of a labor contract including:
1. The labor contract expires, except the case specified in Clause 6, Article 192 of this Code;
2. The work stated in the labor contract has been completed;
3. Both parties agree to terminate the labor contract;
4. The employee fully meets the requirements on the time of payment of social insurance premiums and the age of retirement stated in Article 187 of this Code;
5. The employee is sentenced to imprisonment or death or is prohibited from performing the job stated in the labor contract under a legally effective judgment or ruling of a court;
6. The employee dies or is declared by a court to have lost civil act capacity, be missing or dead;
7. The individual employer dies or is declared by a court to have lost civil act capacity, be missing or dead; the institutional employer terminates operation;
8. The employee is dismissed under Clause 3, Article 125 of this Code;
9. The employee unilaterally terminates the labor contract under Article 37 of this Code;
10. The employer unilaterally terminates the labor contract under Article 38 of this Code; the employer lays off the employee due to structural or technological changes or because of economic reasons, merger, consolidation or division of the enterprise or cooperative.
In a addition, the Labor Code 2019 regulates three more cases:
1. Foreign employees working in Viet Nam who are expelled under the decision or ruling of the Courts or the competent State Authorities;
2. Foreign employee working in Vietnam whose work permits expire;
3. Probation as stated in the labor contracts does not meet the requirements or is terminated by either party.
It is important to note that the employee serving a suspended sentence are not reason for termination of labor contracts./.