Worker can unilaterally terminate labor contract in Vietnam without reason

In modern society, freedom of labor is one of the basic human rights. This means that workers have the right to choose and decide their work proactively. One of the clear manifestations of the right to freedom of labor is the right to terminate labor contracts unilaterally. Many workers have chosen this method to resolve disagreements or find better opportunities. The following article by Viet An Law will provide necessary information on the issue of worker can unilaterally terminate labor contract in Vietnam without reason according to the Labor Code 2019.

What is a labor contract?

According to Article 13 of the Labor Code 2019 stipulate:

“A labor contract is an agreement between a worker and an employer regarding paid employment, wages, working conditions, and the rights and obligations of each party in the labor relationship.”

A labor contract does not depend on the name but depends on the content of the agreement between the two parties, which shows paid employment, salary, and the management, administration, and supervision of one party over the other party. This helps workers ensure their rights regardless of whether the employer uses any terms to hide the labor relationship, such as agreement, commitment, contract, covenant, agreement…

Labor contracts are divided into 02 types, including:

• Indefinite-term labor contract (a contract in which the two parties do not specify the term or termination date of the contract);
• Fixed-term labor contract (a contract in which both parties determine the term and termination date of the contract within no more than 36 months from the effective date of the contract.

Worker can unilaterally terminate labor contract in Vietnam without reason

Workers have the right to unilaterally terminate the labor contract without any reason as long as the following notice period conditions are met (except for some cases where prior notice is not required by law):

• At least 45 days if working under an indefinite-term labor contract;
• At least 30 days if working under a fixed-term labor contract with a term from 12 months to 36 months;
• At least 03 working days if working under a fixed-term labor contract with a term of less than 12 months.

For workers working in a number of industries, occupations, and specific jobs specified in Article 7 of Decree No. 145/2020/ND-CP, the notice period before quitting is as follows:

• Give at least 120 days’ notice for labor contracts with a term of more than 12 months or contracts with an indefinite term;
• Give notice at least 1/4 of the term of a labor contract with a term of less than 12 months.

Worker can unilaterally terminate labor contract without prior notice

According to Clause 2, Article 35 of the Labor Code 2019 a Worker can unilaterally terminate a labor contract without prior notice in the following cases:

• They are not assigned to the correct job or workplace or are not provided with the working conditions agreed upon, except as prescribed in Article 29 of the Labor Code 2019;
• They are not paid in full or on time, except as specified in Clause 4, Article 97 of the Labor Code 2019;
• They suffer mistreatment, physical abuse; degrading language, actions affecting their health, dignity, and honor, or are subject to forced labor;
• They are sexually harassed at the workplace;
• A pregnant female worker must stop working as per the provision of Clause 1, Article 138 of the Labor Code 2019;
• They reach the retirement age as provided in Article 169 of the Labor Code 2019 unless otherwise agreed by the parties;
• The employer provides false information as specified in Clause 1, Article 16 of the Labor Code 2019, affecting the performance of the labor contract.

Notes on unilateral termination of Labor Contracts

For Female workers

 According to Clause 1, Article 138 of the Labor Code 2019, the rights of pregnant female workers to unilaterally terminate or suspend a labor contract are as follows:

• A pregnant female worker, if certified by a competent medical establishment that continued work would negatively affect her pregnancy, has the right to unilaterally terminate or suspend the labor contract;
• In the event of unilateral termination or suspension, she must inform the employer and provide a medical certificate from a competent health facility confirming that continued work would adversely affect her pregnancy.

For domestic workers

According to Clause 2, Article 162 of the Labor Code 2019, both workers and employers should agree on the terms of the labor contract for domestic workers. Either party may unilaterally terminate the labor contract at any time but must give at least 15 days’ notice.

Dispute resolution

Based on Clause 1, Article 188 of the Labor Code 2019, in cases related to unilateral termination of labor contracts, dispute resolution does not require mediation by a labor conciliator before requesting resolution by the Labor Arbitration Council or the Court.

Consequences for workers who illegally unilaterally terminate contracts

According to Article 40 of the Labor Code 2019, a worker who unilaterally terminates a labor contract in violation of the law will not be entitled to certain benefits and may face penalties as follows:

• The worker will not be eligible for severance allowance;
• The worker must compensate the employer with half a month’s salary as per the labor contract and an amount equivalent to the salary for the days without prior notice;
• The worker must also reimburse the employer for training costs (as specified in Article 62 of the Labor Code 2019).

Above are some important points regarding worker can unilaterally terminate labor contract in Vietnam without reason. For any further questions, please contact Viet An Law for the best consultation and support!