Cases of suspension of labor contract in Vietnam

mmmmIn the relationship between employees and employers, there is always a labor contract as the basis for the rights and obligations of both parties. Any breach of the labor contract by either party entails liability following the contractual terms and relevant legal provisions. In addition to regulations on rights, duties, and entitlements of the parties involved, Vietnamese labor law also stipulates specific cases of suspension of labor contract in Vietnam. In this article, Viet An Law would like to introduce to clients the Cases of suspension of labor contract in Vietnam according to current regulations.

Regulation on suspension of labor contract in Vietnam

Suspension of a labor contract refers to the temporary cessation of the employment relationship for a specific period, based either on statutory grounds or mutual agreement between the employee and employer.

According to Clause 1, Article 30 of the Labor Code 2019, the following constitute lawful cases of suspension of labor contract in Vietnam:

• The employee performs military service or joins the militia as required by law;
• The employee is held in custody or detention by criminal procedural law;
• The employee is subject to a decision mandating entry into a reformatory, compulsory detoxification facility, or compulsory education institution;
• Female employees who are pregnant under the provisions of the Labor Code 2019;
• The Employee appointed as the business manager of a single-member limited liability company in which the State holds 100% of the charter capital;
• The employee is authorized to exercise the rights and responsibilities of the state capital representative at an enterprise;
• The employee is authorized to exercise the rights and responsibilities of an enterprise to its capital contribution in another enterprise;
• Other cases as agreed upon by both parties.

Note: During the suspension period, the employee is not entitled to wages or benefits stipulated in the labor contract, unless otherwise agreed or prescribed by law.

Maximum duration of labor contract suspension

Currently, the law does not have specific regulations on the maximum time for temporary suspension of the labor contract, but only specifies the valid cases in which temporary implementation of the contract is allowed.

In doing so, it can be understood that the time for temporary suspension will depend on each specific temporary case, depending on the agreement of the employee and the employer.

For example, in the case where an employee temporarily suspends the performance of the labor contract due to military service or participation in the Militia. In this case, the employee will be allowed to suspend the performance of the labor contract for a period equal to the period of participation in military service or the Militia, which is from 24 to 30 months.

In the case of temporary suspension of the labor contract by agreement of both parties, the temporary suspension period will be agreed upon by both parties.

In addition, the employer can stipulate the maximum period of temporary suspension of the contract in the Labor Regulations and Collective Labor Agreement. However, the maximum period must be by the provisions of current law.

Employee’s obligation to resume work after suspension

Once the suspension period ends, within 15 days, the employee must return to the workplace, and the employer is obliged to reinstate the employee under the previously concluded labor contract, provided the contract is still valid.

Exceptions may apply where otherwise agreed or stipulated by law.

If the employee fails to return within 15 days, the employer has the right to terminate the labor contract unilaterally without prior notice. However, this does not apply if the employee is a pregnant woman or a mother raising a child under 12 months of age, in which case, unilateral termination is prohibited by law.

Administrative penalties for violations related to contract suspension

According to Article 11 of Decree 12/2022/ND-CP, in case the conditions prescribed by law are met but the employer does not reinstate the employee after the expiration of the suspension period of the labor contract, employees will be subject to administrative sanctions. Those conditions are:

• The suspension period has expired.
• The employee returns to the workplace within the prescribed time;
• The labor contract remains valid.

Except where otherwise agreed or provided by law.

In case of not accepting the employee back, the employer will be fined from VND 3,000,000 to VND 7,000,000.

In addition, the employer must take remedial measures to accept the employee back to work after the suspension period of the labor contract expires and pay the employee full salary for the days when the employee is not accepted back to work after the suspension period of the labor contract expires.

Therefore, businesses should pay attention to the provisions of the law to avoid being administratively sanctioned for not accepting employees back to work.

The above is all the advice from Viet An Law on cases of suspension of labor contract in Vietnam. If clients need further advice on labor law, please contact us to receive the most timely support.