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Viet Nam - Substantive requirements for dismissals

Substantive requirements for dismissals (justified and prohibited grounds) - Viet Nam - 2012    

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Obligation to provide reasons to the employee: Yes
  • Art. 43 LC: The employer shall state in writing the reasons for the termination of the labour contract in the worker's labour book and shall be responsible for returning the labour book to the employee.

Valid grounds (justified dismissal): worker's conduct; worker's capacity; economic reasons
  • Art. 38 LC and art. 12, Decree 2003
    Article 38 LC
    "1. An employer shall have the right to terminate unilaterally a labour contract in the following circumstances:
    (a) The employee repeatedly fails to perform the work in accordance with the terms of the contract;
    (b) An employee is disciplined in the form of dismissal in accordance with the provisions of article 85 of this Code;
    (c) Where an employee suffers illness and remains unable to work after having received treatment for a period of twelve (12) consecutive months in the case of an indefinite term labour contract, or six consecutive months in the case of a definite term contract with a duration of twelve (12) months to thirty six (36) months, or more than half the duration of the contract in the case of a contract for a specific or seasonal job. Upon the recovery of the employee, the employer shall consider the continuation of the labour contract;
    (d) The employer is forced to reduce production and employment after trying all measures to recover from a natural disaster, a fire, or another event of force majeure as stipulated by the Government;
    (dd) The enterprise, body, or organization ceases operation."

    Art. 12 Decree 2003: "The provision that employers are entitled to unilaterally terminate their labor contracts in cases prescribed at Points a and d, Clause 1, Article 38 of the amended and supplemented Labor Code is stipulated as follows:
    1. Laborers constantly fail to fulfill their tasks under labor contracts, meaning that they fail to fulfill the labor norms or assigned tasks due to subjective reasons, and are booked or warned in writing at least twice in a month, but later still fail to redress their shortcomings.
    The extent of failure to fulfill the work shall be inscribed in labor contracts, collective labor agreements or labor regulations of the units.
    2. Force majeure reasons mean the cases where due to the requests of competent State bodies of the provincial or higher level, to enemy sabotage or epidemics which cannot be overcome, the production and/or business are subject to change or shrink."

Prohibited grounds: marital status; pregnancy; maternity leave; family responsibilities; temporary work injury or illness; race; sex; religion; social origin; trade union membership and activities; lawfully taking leave
  • Prohibited grounds for dismissal: art. 39 and 111 LC.

    See also:
    - the general prohibition of discrimination in employment based on sex, race, social class, belief or religion (art. 5 LC).
    - the prohibition of discriminatory treatment towards a worker who joins a trade union. (art. 1, 2) of the Trade Union law, 1990)

Workers enjoying special protection: workers' representatives; pregnant women and/or women on maternity leave; workers with family responsibilities; workers on temporary leave following an occupational disease or a work injury
  • Art. 39, Art. 111: Prohibition to dismiss:
    - a worker under treatment as a result of sickness, labour accident or occupational disease except in case of force majeure;
    - pregnant women, women on maternity leave, and women taking care of a child under 12 months of age, except for business reasons.
    Art. 155(4) LC: In order to dismiss a member of the executive committee of the local trade union, the employer must obtain the consent from this committee.