Key Considerations When an Employee Unilaterally Terminates a Labor Contract in Violation of the Law
2026/02/09
- Tran Ha My
Introduction
In labor relations, the termination of employment contracts occurs frequently. However, if such termination is not carried out in compliance with applicable laws and regulations, it may give rise to various legal risks. In practice, there are not a few cases where employees unilaterally terminate labor contracts in violation of the law, adversely affecting the employer’s business operations as well as its legitimate rights and interests. Therefore, it is essential to clearly understand what constitutes unlawful unilateral termination of a labor contract and to fully grasp the employer’s rights in such situations. This article outlines such conduct and discusses other legal issues that employers should be aware of.
1. What Constitutes Unlawful Unilateral Termination by an Employee
One of the fundamental rights of employees is the right to unilaterally terminate a labor contract. However, this right is recognized only when the employee complies with the statutory requirements regarding prior notice. If the employee fails to comply with the required notice period, such termination will be deemed an unlawful unilateral termination.
Accordingly, while employees may unilaterally terminate a labor contract without providing reasons, they are required to comply with the prescribed notice periods depending on the type of contract and the nature of the job, as follows:
| Type of Labor Contract | Special Occupations/Positions | Other Cases |
|---|---|---|
| Indefinite-term contract | At least 120 days | At least 45 days |
| Fixed-term contract (12–36 months) | At least 120 days | At least 30 days |
| Fixed-term contract (less than 12 months) | At least one-quarter of the contract term | At least 3 working days |
Special occupations/positions include, for example, flight crew members, aircraft maintenance technicians, crew members working on Vietnamese vessels operating overseas, and seafarers assigned by Vietnamese enterprises to work on foreign vessels. In addition, managerial personnel such as the Chairman or members of the Members’ Council, the Chairman of the company, the Chairman or members of the Board of Directors, the Director or General Director, and other managerial positions stipulated in the company’s charter are subject to similar notice periods as those applicable to special occupations.
On the other hand, employees are entitled to unilaterally terminate a labor contract without prior notice in certain cases, such as where they are not assigned to the job or workplace as agreed in the contract, where working conditions are not guaranteed as agreed, where they are subjected to sexual harassment in the workplace, or where the employer provides inaccurate information that affects the performance of the labor contract.
In conclusion, if an employee terminates a labor contract without complying with the required notice period, or with an insufficient notice period, such termination shall be deemed unlawful. Furthermore, where the employer can prove that the employee does not fall under any exception to the notice requirement, or where the employee resigns for personal reasons without complying with the required notice period, such conduct will also be considered a violation of the law on unilateral termination of labor contracts.
2. Legal Obligations of Employees
Where an employee unilaterally terminates a labor contract in violation of the law, the employee is subject to certain statutory obligations. In addition to losing certain entitlements, the employee must compensate for damages caused by the violation and reimburse costs incurred by the employer. The main obligations are as follows:
The employee is not entitled to severance allowance
This serves both as a legal consequence of unlawful unilateral termination and as a mechanism to encourage compliance with regulations on contract termination. From the employer’s perspective, this also means that severance costs do not arise.
The employee must pay compensation to the employer
The compensation includes:
・An amount equivalent to half of one month’s salary under the labor contract, and
・An amount equivalent to the salary corresponding to the days of insufficient notice
In calculating compensation, the employer should determine the number of non-notice days based on the notice periods described in Section 1, on a case-by-case basis.
The employee must reimburse training costs
Training costs include expenses supported by valid documentation, such as payments to instructors, costs of training materials, school/class fees, costs of equipment and training materials, other learning support expenses, salary during the training period, and contributions to social insurance, health insurance, and unemployment insurance. Where the employee participates in overseas training, training costs also include travel and living expenses during the training period. Furthermore, even if the training costs were borne by a third party or partner of the employer, the employee is still obligated to reimburse such costs if the labor contract is unilaterally terminated unlawfully.
3. Other Important Considerations
Even if an employee unlawfully unilaterally terminates a labor contract, the employer remains responsible for paying:
・Salary for days actually worked but not yet paid, and
・Salary corresponding to unused annual leave
In practice, employees often provide advance notice of resignation but fail to meet the statutory notice period. However, if the employer agrees to the employee’s requested resignation date, the termination of the labor contract is considered to be by mutual agreement and will not be regarded as an unlawful unilateral termination by the employee.
In such cases, both parties should follow the procedures for termination by mutual agreement, and the employer must fulfill all obligations as in the case of lawful termination.
Conclusion
Where an employee unlawfully unilaterally terminates a labor contract, the employee will be subject to certain legal obligations. Therefore, it is important for employers to accurately understand what constitutes unlawful unilateral termination and to fully grasp the obligations imposed on employees in such situations.
References
・Labor Code 2019
・Decree No. 145/2020/ND-CP
・Law on Enterprises 2020
