Some New Contents in Labor Code 2019

Pursuant to the Labor Code 2019, effective from January 1, 2021, the employer has the right to unilaterally terminate the employment contract or sack the employee when the latter commits a certain mistake.

Specifically, the employer has the right to unilaterally terminate the employment contract if the employee makes the following mistakes:

(1) The employee repeatedly fails to complete his/her job as per the employment contract which is determined by the performance criteria set by the employer.

(2) The employee is not present at the workplace after the employment contract postponement period as specified in Article 31 of the Labor Code 2019:

Article 31. Reinstatement of employees upon expiry of the temporary suspension of the employment contract

Within 15 days from the expiry of the suspension period of the employment contract, the employee shall be present at the workplace and the employer shall reinstate the employee under the employment contract if it is still unexpired, unless otherwise agreed by both parties or prescribed by law.

(3) The employee voluntarily quits his/her job for five or more consecutive working days without having a plausible reason.

(4) The employee provides incorrect information on full name, date of birth, gender, place of residence, education level, occupational skills level, health status, and other related issues that directly relate to contractual requirements that the employer wants when they enter into the employment contract.

When unilaterally terminating the employment contract with the employee committing the above mistakes, the employer will have to comply with notification regulations. If unilaterally ending the employment contract in case (1) or case (4), the employer will notify the employee in advance: At least 45 days for an indefinite contract; at least 30 days for a 12-month to 36-month contract; and at least 03 working days for a less than 12-month contract. For certain industries, occupations and jobs, the notification period shall comply with the Government's regulations. If unilaterally terminating the employment contract in case (2) and case (3), the employer will not have to notify the employee in advance.

The employer has the right to sack the employee if he/she makes the following mistakes:

(1) The employee commits to theft, embezzlement, gambling, intentional violence or drug use at the workplace.

(2) The employee has an act of disclosing the business secret and technology secret, infringing the intellectual property rights of the employer, causing serious damage or threatening to cause particularly serious damage to the employer’s property and interests or committing workplace sexual harassment as defined in the labor regulations.

(3) The employee is disciplined with prolonged salary increase period or dismissal but he/she is recidivist while the discipline is still effective;

Recidivism is the case where the employee repeats the violation that has been disciplined.

(4) The employee intentionally quits his/her job 05 cumulative days within 30 days or 20 cumulative days within 365 days from the first day of intentional leave without a plausible reason.

A plausible reason includes a natural disaster, fire, sickness or taking care of ill relatives certified by a competent medical facility and other cases specified in labor law.

Disciplinary treatment of dismissal to the employee is carried out by law.

 Source: Vietnam Business Forum