Distinguishing the notice of employment agreement termination upon agreement expiration and unilateral termination of employment agreement

Note: For certain industries, professions, or specialized jobs, this notice period may extend up to 120 days. 

without issuance of such notice 

Accordingly, the issuance of the termination notice is an administrative procedure and does not affect the legal validity of the employment agreement termination. 

Accordingly, the issuance of the termination notice is a prerequisite for the unilateral termination of the agreement to be legally valid. 

• If the employment agreement expires and the employee continues working, the failure to issue a notice will not result in an administrative penalty. 

• If the employee does not continue working, the failure to issue a notice will incur a fine ranging from VND 2,000,000 to VND 6,000,000 (for the organizational employer).

In addition to the administrative responsibility, the employer must also bear responsibility to the employee as follows:

1. The employer must allow the employee to return to work and pay the following amounts: 

• Salary, social insurance, health insurance, and unemployment insurance for the days the employee was unable to work;  

• An amount at least equal to 2 months’ salary under the employment agreement; and 

• An amount corresponding to the salary under the employment agreement for the days the employer failed to issue the prior termination notice. 

2. If the employee does not wish to continue working: in addition to the payments in section i, the employer must pay severance allowance. 

3. If the employer does not wish to accept the employee back and the employee agrees: in addition to the payments in sections i and ii, the employer must pay compensation equal to at least 2 months’ salary under the employment agreement.