Compensation level when unilaterally terminating the labor contract illegal

Compensation level when unilaterally terminating the labor contract illegal activities are clearly regulated by law to protect the legitimate rights of both employees and employers. Terminating a labor contract improperly not only causes economic loss but also affects the production and business activities of the enterprise. In this article, Long Phan Consulting Company details the cases and compensation levels related to this behavior and provides useful solutions.

When is it illegal to unilaterally terminate a labor contract?

Unilateral illegal termination of a labor contract occurs when the termination of the labor contract does not comply with the provisions of Articles 35, 36 and 37 of the Labor Code 2019. Specifically:

The employee unilaterally terminates the labor contract illegally when not ensuring the notice period to the employer according to regulations.

The employer unilaterally terminates the labor contract illegally in the following cases:

• The prescribed notice period is not guaranteed.
• The grounds for termination do not comply with regulations.
• Terminate the contract in cases where unilateral rights are not granted.

Compensation level when unilaterally terminating the labor contract illegally

Compensation levels vary between employees and employers:

For workers

According to Article 40 of the Labor Code 2019, when illegally unilaterally terminating a labor contract, the employee must perform the following obligations:

• Not entitled to severance pay.
• Compensate the employer for half a month’s salary according to the labor contract.
• Compensate an amount of money corresponding to the salary according to the labor contract for days without prior notice.
• Refund of training costs (if any).

For employers

Pursuant to Article 41 of the Labor Code 2019, when unilaterally terminating a labor contract illegally, the employer must compensate and remedy the consequences:

In case the employee wants to return to work:

• Pay salaries, pay social insurance, health insurance, and unemployment insurance during days when employees are not allowed to work.
• Pay the employee an additional amount of money at least equal to 02 months’ salary according to the labor contract.
• If you violate the notice period, you must pay compensation corresponding to the salary for the days without notice.
• After accepting the employee back to work, the employee returns the previously received money.

In case the employee does not want to return to work: In addition to the amount the employer must pay above and the severance allowance, the two parties agree on an additional compensation amount for the employee but at least equal to 02 months’ salary according to the labor contract to terminate the labor contract.

What to do if compensation is not paid when unilaterally terminating the contract illegally?

In case the employer or employee does not fulfill the compensation obligation according to regulations, customers can take the following steps:

• Negotiation: Both sides actively negotiate to find a suitable solution.
• Mediation: Request a labor mediator to conduct mediation.
• File a lawsuit in court or through the Labor Arbitration Council: If conciliation fails, customers can file a lawsuit at the district People’s Court where the employer is headquartered/where the employee works. Or request the Labor Arbitration Council to resolve.

>>> See more: Labor Dispute Resolution Consulting.

Consulting services on compensation level when unilaterally terminating the labor contracts illegally

Long Phan Consulting Company provides professional consulting services on compensation levels in case of unilateral illegal termination of labor contracts. We provide customers with the following services:

• Consulting on cases of unilateral illegal termination of labor contracts;
• Consulting on the rights and obligations of the parties when unilaterally terminating illegally;
• Consulting on compensation level when unilaterally terminating the labor contract illegally;
• Instructions on how to calculate compensation when illegally unilaterally terminating a labor contract;
• Consulting and supporting the collection of documents and evidence to prove compensation levels;
• Assist in drafting and submitting compensation claims;
• Consulting on dispute resolution regarding compensation when illegally unilaterally terminating labor contracts;
• Consulting and answering other related issues.

>>> See more: Consulting services for contract termination cases at Long Phan

Frequently asked questions about compensation level when unilaterally terminating the labor contract illegally

Below are frequently asked questions about compensation level when unilaterally terminating the labor contract illegally that customers can refer to:

How is the notice period before terminating a labor contract calculated?

The notice period is calculated from the date the employer or employee receives notice of termination of the labor contract to the date the labor contract terminates.

What training costs must the employee reimburse when unilaterally terminating the labor contract illegally?

Employees must reimburse vocational training costs paid by the employer, including tuition costs, learning materials, accommodation and travel costs during the training period.

What should be done if the employer intentionally prolongs the salary and insurance payment period for the days the employee is not allowed to work?

You have the right to complain to the state labor management agency or sue in court to request the employer to fulfill its obligations.

Do employees have the right to unilaterally terminate the labor contract without reason?

Yes, according to Article 35 of the Labor Code 2019, employees have the right to unilaterally terminate the labor contract, but must notify the employer in advance.

In case the employer goes bankrupt or dissolves, will the employee receive compensation?

In this case, the employee will be given priority in paying salary debts, severance pay, and social insurance according to the provisions of bankruptcy law.

When an employer changes structure or technology, will employees lose their jobs, will they be compensated?

Yes, in this case, the employee will be entitled to unemployment benefits according to the provisions of law.

Conclude

Understanding the regulations on compensation level when unilaterally terminating the labor contract illegally helps customers protect their legal rights and interests. If you have any questions, please contact Long Phan Consulting Company immediately via the hotline 0906735386 for timely advice and support.