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Termination of labor contracts

VGP – Under the Labor Code 2019, labor contracts would be automatically terminated in three cases.

03/18/2020 10:05

Question: What are cases in which labor contracts would be automatically terminated? 

Answer:  

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./.