questions and answers

A labor contract shall be terminated in the following cases:

(i) The labor contract expires, unless that labor contract is required to be extended until the end of tenure for an employee who is a member of board of an employees’ representative organization which has their labor contract expire.

(ii) The work stated in the labor contract has been completed.

(ii) Both parties agree to terminate the labor contract.

(iv) The employee is sentenced to imprisonment but is not entitled to a suspended sentence or does not qualify for being released as prescribed in Article 328.5 of the Criminal Procedure Code.  The labor contract is also terminated if the employee has been sentenced to death or is prohibited from performing the job stated in the labor contract pursuant to an effective judgment or decision of the Court.

(v) A foreign employee working in Vietnam is expelled pursuant to an effective judgment or decision of the Court or the decision of a competent State agency.

(vi) The employee dies, the Court declares the employee to have lost civil capacity to act, or is missing or dead.

(vii) The individual employer dies or is declared by the Court to have lost civil capacity to act, or is missing or dead. In addition, the contract is terminated if an employer who is not an individual ends its operations or is declared by the business registration agency of the People’s Committee at provincial level to have no legal representative or authorized person to perform the rights and obligations of the legal representative.

(viii) The employee is dismissed as a form of discipline.

(ix) The employee unilaterally terminates the labor contract.

(x) The employer unilaterally terminates the labor contract.

(xi) The employer lays off the employee due to structural and technological changes or due to economic reasons.  These include splitting, separating, consolidation, merger, selling, leasing, or converting the type of enterprise as well as transferring asset ownership or the right to use the assets of an enterprise or a cooperative.

(xii) The work permit of a foreign employee working in Vietnam expires.

(xiii) If the probation is unsatisfactory to the requirements stated in the labor contract or one party cancels the probation agreement.