Currently, many businesses (enterprises) for some reason often terminate labor contracts (labor contracts) ahead of time with employees (employees), but enterprises should note the following to avoid be sanctioned or penalized for violating the law:

1. Conditions for early termination of labor contracts

The employer has the right to unilaterally terminate the labor contract in the following cases:

1.1 The employee regularly fails to complete the work according to the labor contract;

The employer must specify the criteria for assessing the level of job completion in the enterprise’s regulations, as a basis for evaluating employees who regularly fail to complete the work according to the labor contract. Regulations on assessment of task completion are promulgated by the employer after consulting the representative organization of the labor collective at the grassroots level.

1.2 An employee suffering from an illness or an accident  has received treatment for 12 consecutive months, for employees working under an indefinite term labor contract, for 06 consecutive months of treatment, for employees working under a definite term labor contract and for more than half of the term. Labor contracts for employees working under seasonal labor contracts or according to a certain job with a term of less than 12 months but their working capacity has not yet recovered.

When the employee’s health recovers, the employee is considered to continue entering into the labor contract;

1.3 Due to a natural disaster, fire  or other force majeure reasons as prescribed by law, the employer has tried all remedies but is still forced to reduce production and reduce working places;

Other force majeure reasons in one of the following cases:

– Due to enemy sabotage, epidemic;

– Relocating or narrowing production and business locations at the request of competent state agencies.

1.4 The employee is not present at the workplace  after the time limit specified in Article 33 of the Labor Code.

Within 15 days from the date of expiration of the period of suspension of the labor contract for the cases specified in Article 32 of the Labor Code, the employee must be present at the workplace and the employer must accept the employee back to work. unless otherwise agreed by both parties.

1.5 In case of change in structure and technology that affects the employment of many employees, the employer is responsible for formulating and implementing the labor use plan according to the provisions of Article 46 of the Labor Code, if If the employer is unable to find a new job and must dismiss the employee, he/she must pay a job loss allowance to the employee according to the provisions of Article 49 of the Labor Code.

Changes in structure and technology include the following cases:

– Changing organizational structure, reorganizing labor;

-Change products, product structure;

-Change the production and business processes, technologies, machines and equipment associated with the employer’s production and business lines.

1.6 In case for economic reasons  many employees are at risk of losing their jobs or having to quit their jobs, the employer must develop and implement a labor use plan according to the provisions of Article 46 of the Labor Code. If the employer cannot solve the job but must dismiss the employee, he/she must pay the unemployment allowance to the employee according to the provisions of Article 49 of the Labor Code..

Economic reasons fall into one of the following cases:

– economic crisis or recession;

-Implement the State’s policies when restructuring the economy or implementing international commitments.

1.7 In case of merger, consolidation, division or separation of enterprises or cooperatives, the next employer shall be responsible for continuing to use the existing number of employees and for amending and supplementing the labor contract.

In case the existing number of employees is not used up, the next employer is responsible for formulating and implementing the labor use plan as prescribed in Article 46 of the Labor Code. In case the employer dismisses the employee according to the provisions of this Article, the employer must pay the unemployment allowance to the employee according to the provisions of Article 49 of the Labor Code.

2. Notice period before termination of labor contract

– At least 45 days for an indefinite term labor contract;

– At least 30 days for definite-term labor contracts;

– At least 03 working days for the case specified at Point b, Clause 1 of this Article and for seasonal labor contracts or for a certain job with a term of less than 12 months.

– Particularly for the case of dismissal due to structural changes, economic changes or mergers and acquisitions, enterprises must follow the instructions in Decree 05/2015/ND-CP guiding the Labor Code (amended, supplemented by Decree 148/2018/ND-CP).

3. Payment of unemployment benefits

Employers are responsible for paying job loss allowances as prescribed in Article 49 of the Labor Code to employees who have worked for them regularly for full 12 months or more and lose their jobs due to changes in structure or technology. or for economic reasons or due to merger, consolidation, division or separation of enterprises or cooperatives.

Working time to calculate unemployment benefit is the total time the employee has actually worked for the employer minus the time the employee has participated in unemployment insurance according to the provisions of law and the working time. previously paid unemployment benefits (if any) by the employer. In there:

– The time the employee has actually worked for the employer, including: the time the employee has actually worked for the employer under the labor contract; time being sent by the employer to attend school; the period of leave to enjoy the sickness and maternity benefits in accordance with the law on social insurance; time off work for treatment, occupational rehabilitation in case of occupational accident or occupational disease, which is paid by the employer in accordance with the law on occupational safety and sanitation; weekly leave according to Article 110, full pay leave according to Article 111, Article 112, Article 115 and Clause 1 Article 116 of the Labor Code; time off work for trade union activities in accordance with the law on trade unions; time off from work to perform civic duties as prescribed by law, which is paid by the employer; time off work, leave without fault of the employee; the period of temporary suspension from work according to Article 129 of the Labor Code.

– The time the employee has participated in unemployment insurance includes: The time the employer has paid unemployment insurance premiums, the time is counted as the time of payment of unemployment insurance according to the provisions of the law on insurance. unemployment, the time the employer has paid at the same time as the employee’s salary period an amount equivalent to the unemployment insurance premium in accordance with the law on labor and unemployment insurance;

-The working time to calculate the employee’s job loss allowance is calculated by year (full 12 months); in case of odd months, from full 01 month to under 06 months is calculated as 1/2 year; from full 06 months or more is counted as 01 working year.”

The salary used to calculate the unemployment allowance is the average salary according to the labor contract of the preceding 06 months before the employee loses his/her job.

4. Cases in which the right to unilaterally terminate the labor contract cannot be exercised

4.1 The employee falls ill or suffers from an occupational accident or an occupational disease and is undergoing treatment or nursing under a decision of a competent medical examination and treatment establishment.

4.2 Employees are taking annual leave,  personal leave and other leave agreed by the employer.

4.3 An employer may not dismiss  or unilaterally terminate a female employee’s labor contract for reasons of marriage, pregnancy, maternity leave, or raising a child under 12 months of age, unless the employer is a female employee. the individual dies, is declared by the Court to have lost his civil act capacity, is missing or is dead, or the non-individual employer terminates his/her operation.

4.4 Employees take maternity leave  in accordance with the law on social insurance