When Should the Employer Send Notice of
Termination of Labour Contract to Employee Before Contract Expiration?
Expiration is one of the circumstances which permit termination of labor contract under
the Labor Code 2012. Accordingly, the employer must inform in writing to the
employee of the terminating date of labor contract at least 15 days prior to
the expiration. Termination of labor relationship in each circumstance must
follow different conditions and procedures to ensure the interests and obligations
of both employee and employer and avoid potential labour disputes in Vietnam.
Labour dispute law firm in Vietnam
Previously, an administrative penalty was applied to violations
of the labor contract termination notice
mentioned above. If the employer fails to inform the employee, the employer
will be subject to a warning or a fine with amount from VND 500,000 to VND
1,000,000. However, the Decree 28/2020/ND-CP issued on March 1st, 2020 by the
Government has repealed sanction for this behavior.
If the employee continues to work upon expiration of labor
contract, both parties will be required to sign a new labor contract within the
next 30 days, otherwise the signed contract will become an indefinite-term.
Failure of the employer to inform the labor contract termination to the
employee does not mean that the labor relationship is automatically extended
after the expiration. If both parties fail to sign a new labor contract within
the next 30 days, but the employee still do normal assigned job and is paid a
full monthly salary, an indefinite-term labor contract is deemed as entered
into by them. Any disputes arising out then will be settled based on provisions
of indefinite term labor contract and laws.
The Labor Code 2019 repealed the employer’s informing
responsibility upon expiration of labor contract except in a few circumstances
such as the employee being sentenced to imprisonment, disciplined, expelled,
..., the employer is required to inform the employee in writing the termination
of the labor contract.
ANT Lawyers – A labour dispute law firm in Vietnam with international standard, local expertise and
strong international network. We focus on customers’ needs and provide clients
with a high quality legal advice and services. For advice or services request,
please contact us via email ant@antlawyers.vn, or call us +84 24 730 86 529.
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