Terminating Labor Contracts with Foreign Workers in Vietnam

I. Overview of Terminating Labor Contracts with Foreign Workers

Terminating a labor contract is a sensitive and complex issue in the labor field, especially when the employee is a foreign worker. Labor contracts between a Vietnamese employer and a foreign worker may be terminated for various reasons, including contract expiration, mutual agreement, or disciplinary issues. However, this process not only requires strict adherence to the law but also necessitates a thorough understanding of the specific regulations regarding foreign workers. This article, Apolo Lawyers - Solicitors & Litigators (Tel: (+84) 903.419.479) will delve into the legal regulations related to disputes due to termination of labor contracts with foreigners in Vietnam, the challenges they may encounter, and introduce legal consulting services for divorce disputes.

Terminating Labor Contracts with Foreign Workers in Vietnam 

II. Cases of Labor Contract Termination under Vietnamese Law

1. Termination by Mutual Agreement:

When both parties agree to terminate the labor contract, it is considered a lawful termination. However, the employer must ensure that all related payments, such as salary, severance pay, and other benefits, are made on time and in accordance with the law. Particularly for foreign workers, attention must be paid to administrative procedures related to contract termination.

2. Termination Due to Contract Expiration:

When a fixed-term labor contract expires and the parties do not renew it, the contract will automatically terminate. In this case, the employer must notify the employee at least 15 days before the expiration date, as required by law. Additionally, the employer must ensure that the entitlements of employee, such as social insurance, unemployment insurance, and other allowances, are fully settled.

3. Termination Due to Economic Reasons:

In an economic downturn, businesses may need to reduce staff to maintain operations. In this situation, the employer has the right to terminate the labor contract with a foreign worker, but must follow legal procedures, including prior notice, settlement of benefits, and providing valid reasons, all in compliance with the law.

Terminating Labor Contracts with Foreign Workers in Vietnam 

4. Termination Due to Disciplinary Violations:

When an employee commits a serious disciplinary violation, such as unauthorized absenteeism or breaches of safety regulations, the employer has the right to terminate the labor contract. However, this requires a clear, transparent disciplinary process that complies with legal steps. The employer must gather sufficient evidence and ensure the employee is informed and given an opportunity to explain before a termination decision is made.

5. Termination Due to Force Majeure:

In certain special cases, such as natural disasters, epidemics, or other force majeure events, the labor contract may be terminated without prior notice. However, both the employer and the employee must clearly agree on how to handle rights and responsibilities in such cases.

III. The Responsibilities of Employer Regarding the Work Permit of Foreign Workers upon Termination

When terminating a labor contract with a foreign worker, the employer is responsible not only for paying the benefits such as salary and severance pay but also for ensuring the proper handling of the work of worker permit and visa procedures.

1. Notification to Relevant Authorities:

The employer is responsible for notifying relevant authorities about the termination of the labor contract with the foreign worker. This is to ensure that government agencies can update the information and adjust the work of worker permit status accordingly.

2. Work Permit Revocation:

Upon the termination of the labor contract, the employer must collect the work permit issued to the foreign worker and return it to the relevant authorities as required by law. This prevents the unauthorized use of the work permit or the emergence of related legal issues.

3. Visa Procedure Support:

In addition to revoking the work permit, the employer should also assist the foreign worker with visa procedures, especially if the worker needs to leave Vietnam or switch to a new job. This support includes providing necessary documents and ensuring the worker has sufficient time to complete the procedures.

4. Ensuring Insurance Benefits:

The employer must ensure that the social insurance and health insurance benefits of the foreign worker are fully settled before the contract termination. This includes the full payment of insurance contributions and assisting the worker in finalizing the insurance procedures.

Terminating Labor Contracts with Foreign Workers in Vietnam 

IV. Common Labor Disputes and Resolution Methods

The process of terminating a labor contract, especially when involving foreign workers, often carries the risk of labor disputes. These disputes may arise from employees feeling that the right have been violated, or from employers not fully complying with legal regulations when terminating the contract.

1. Disputes Over Entitlements Upon Termination:

Foreign workers often face challenges in ensuring the right when a labor contract is terminated. Common disputes include unpaid wages, severance pay, or not receiving social insurance benefits as stipulated by law.

2. Disputes Over Disciplinary Violations:

When an employee is terminated due to disciplinary violations, they may disagree with the decision of the  employer and request a review of the case. These disputes often involve the gathering of evidence and whether the disciplinary measures applied are legally appropriate.

3. Disputes Over Termination Conditions:

Foreign workers may argue that the contract termination was unlawful or unfair, particularly in cases where the reasons for termination involve force majeure or economic reasons. Correctly identifying the conditions and reasons for termination is crucial in resolving disputes.

V. Introduction to Legal Services Supporting Labor Dispute Resolution

To effectively resolve labor disputes and protect your rights, both employees and employers can seek professional legal services. We offer legal consulting and representation services in labor disputes involving foreign workers. Our experienced legal team not only understands Vietnamese labor law but also has the ability to handle complex cases involving foreign elements.

Our services include:

• Legal Consulting: We provide legal solutions tailored to each specific case, helping businesses and employees understand the rights and obligations when terminating labor contracts.
• Legal Representation: In case of disputes, we are ready to represent our clients before the relevant authorities, from mediation to litigation in court.
• Support in Work Permit and Visa Procedures: For foreign workers, we offer assistance with work permit and visa procedures, helping them resolve legal issues quickly and efficiently.

Apolo Lawyers is a legal consulting service provider with a team of high quality and professional lawyers and litigation attorneys, ensuring to provide customers with a full package of legal services. For more detailed information, please contact:

Apolo Lawyers - Solicitors & Litigators

Address: No 108 Tran Dinh Xu Street, Nguyen Cu Trinh Ward, District 1, Ho Chi Minh City

Tel: (+84) 28 66.701.709 / (+84) 28 35.059.349

Mobile & WhatsApp 1: (+84) 939.486.086 / Mobile & WhatsApp 2: (+84) 908.043.086

Email: contact@apolo.com.vn

Website: www.apolo.com.vn

View more: Legal Landscape Termination of Labor Contracts

View more: Resolving Labor Disputes and Safeguarding Employee Rights