Responsibilities of parties when terminating the labor contract today

Terminating the labor contract sets out clear responsibilities for both employees and employers, to ensure that rights and obligations are enforced in accordance with the law. Carrying out responsibilities properly during this period helps protect economic rights, creates favorable conditions for workers when looking for new jobs and minimizes legal disputes for businesses. Refer to the article below to better understand this issue!

Cases of terminating the labor contracts

Article 34 of the Labor Code 2019 stipulates 14 cases of termination of labor contracts. Accurately determining the grounds for terminating the labor contract helps the parties follow the correct order and procedures according to regulations. Cases of termination of labor contracts include:

• Expiration of the labor contract, except for the case specified in Clause 4, Article 177 of the Labor Code 2019.
• Completed work according to labor contract.
• Both parties agree to terminating the labor contract.
• The employee is sentenced to imprisonment but is not entitled to a suspended sentence or is not eligible for release as prescribed in Clause 5, Article 328 of the Criminal Procedure Code 2015, death penalty or is prohibited from doing the work specified in the law. Labor contracts according to court judgments and decisions that have come into legal effect.
• Foreign workers working in Vietnam are deported according to legally effective court judgments or decisions or decisions of competent state agencies.
• Workers die; declared by the Court to have lost civil act capacity, to be missing or to have died.
• The employer is a deceased individual; declared by the Court to have lost civil act capacity, to be missing or to have died. Employers who are not individuals terminate their operations or are notified by the specialized business registration agency of the Provincial People’s Committee that they do not have a legal representative or authorized person to act. rights and obligations of the legal representative.
• The employee was disciplined and fired.
• The employee unilaterally terminates the labor contract according to the provisions of Article 35 of the Labor Code 2019.
• The employer unilaterally terminates the labor contract according to the provisions of Article 36 of the Labor Code 2019.
• The employer terminates the employee’s job according to the provisions of Article 42 and Article 43 of the Labor Code 2019.
• Work permits expire for foreign workers working in Vietnam according to the provisions of Article 156 of the Labor Code 2019.
• In case the probation agreement is written in the labor contract but the probation is not met or one party cancels the probation agreement.

Responsibilities of the parties when terminating the labor contract

For employers

Pursuant to Article 48 of the Labor Code 2019, the employer’s responsibilities when terminating a labor contract with an employee are as follows:

1. Within 14 working days from the date of termination of the labor contract, the employer and employee are responsible for paying all amounts related to each party’s benefits, except in the following cases: The following can be extended but must not exceed 30 days. Specifically:

• The employer is not an individual terminating operations;
• The employer changes structure, technology or for economic reasons;
• Division, separation, consolidation, merger; selling, leasing, converting business types; transfer of ownership and rights to use assets of enterprises and cooperatives;
• Due to natural disasters, fires, enemy attacks or dangerous epidemics.

2. Wages, social insurance, health insurance, unemployment insurance, severance pay and other benefits of employees according to the collective labor agreement and labor contract are given priority for payment in school. In case an enterprise or cooperative terminates its operations, is dissolved or goes bankrupt.
3. In addition, after terminating the labor contract, the employer is also responsible for:

• Complete the procedure to confirm the time of social insurance and unemployment insurance payment and return it along with the original documents if the employer has kept the employee’s;
• Provide copies of documents related to the employee’s work history if the employee requests. The cost of copying and sending documents is paid by the employer.

For workers

Pursuant to Article 35 of the Labor Code 2019. In case the employee unilaterally terminates the labor contract, it is necessary to ensure the notice period to the employer as follows:

• At least 45 days if working under an indefinite-term labor contract;
• At least 30 days if working under a fixed-term labor contract with a term from 12 months to 36 months;
• At least 03 working days if working under a fixed-term labor contract with a term of less than 12 months;
• For some specific industries, occupations, and jobs, the notice period is implemented according to the Government’s regulations.

If the notice period is not complied with, the employee’s act of unilaterally terminating the contract will be considered illegal as prescribed in Article 39 of the Labor Code 2019. However, the employee has the right to unilaterally terminate the contract. Terminating the labor contract without prior notice in the following cases:

• Not being arranged according to the correct job, working location or not guaranteed working conditions as agreed, except for the cases specified in Article 29 of the Labor Code 2019;
• Not being paid in full or not paid on time, except for the case specified in Clause 4, Article 97 of the Labor Code 2019;
• Being mistreated, beaten, or subjected to humiliating words or actions by the employer, or acts that affect health, dignity, or honor; forced labor;
• Being sexually harassed at work;
• Pregnant female employees must quit work according to the provisions of Clause 1, Article 138 of the Labor Code 2019;
• Full retirement age as prescribed in Article 169 of the Labor Code 2019, unless otherwise agreed by the parties;
• The employer provides dishonest information as prescribed in Clause 1, Article 16 of the Labor Code 2019, affecting the implementation of the labor contract.

In addition, in Article 40 of the Labor Code 2019, when an employee unilaterally terminates the contract illegally, they will not receive severance pay and must bear the following obligations:

• Compensation to the employer: The employee must compensate the employer for half a month’s salary according to the contract and an amount corresponding to the amount of salary for days without notice.
• Reimbursement of training costs: If the employee previously received training and the training costs were paid by the employer, the employee must reimburse these costs according to the provisions of Article 62 of the Labor Code 2019.

Therefore, these regulations aim to ensure the rights and interests of employers, while helping employees clearly understand their responsibilities when unilaterally terminating the contract.

Responsibilities of the employer when terminating the labor contract illegally

According to Article 41 of the Labor Code 2019, when an employer unilaterally terminates a labor contract illegally, they must perform the following obligations to protect the rights of employees. Specifically, these are the following obligations:

• Must accept employees back to work according to the signed labor contract; Must pay salary, social insurance, health insurance, unemployment insurance during the days the employee is not allowed to work and must pay the employee an additional amount of money at least equal to 02 months’ salary according to the labor contract.
• After being reinstated, the employee shall reimburse the employer for severance pay and job loss benefits, if received from the employer.
• In case there is no longer a position or job agreed upon in the labor contract but the employee still wants to work, the two parties will agree to amend and supplement the labor contract.
• In case of violation of the provisions on the notice period specified in Clause 2, Article 36 of the Labor Code 2019, an amount corresponding to the salary according to the labor contract for the days without notice must be paid.
• In case the employee does not want to continue working, in addition to the amount payable specified in Clause 1 of this Article, the employer must pay severance allowance as prescribed in Article 46 of the Labor Code 2019 to terminate the labor contract.
• In case the employer does not want to take back the employee and the employee agrees, in addition to the amount the employer must pay as prescribed in Clause 1 of this Article and the severance allowance as prescribed in Article 46 Labor Code 2019, both 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.

Therefore, employees need to pay attention to these obligations of the employer to protect their rights when the employer terminates the labor contract in contravention of the law.

Consulting services for terminating the labor contracts in accordance with regulations

Long Phan is proud to provide professional consulting services on terminating the labor contracts, supporting businesses and employees with optimal solutions for each specific case. And comprehensive consulting and support services at Long Phan include:

• Consulting on strategies and contract termination options suitable for each specific case.
• Draft and review notification documents, agreements and related legal documents.
• Accompanying businesses in the negotiation process with workers.
• Support in handling disputes and resolving labor complaints.
• Consulting on compliance with insurance, tax and financial obligations upon contract termination.
• Representing to protect the interests of businesses at competent state agencies.

Let Long Phan’s team of experts accompany customers in managing the process of terminating the labor contract in a positive and effective way, ensuring the rights of all parties. Contact Long Phan immediately via the hotline 0906735386 to receive free consultation and receive the most suitable solution, helping businesses and employees conclude cooperation with respect and harmony of interests between parties.