Good day, everyone.
Today, we at Hnlaw Legal Insight would like to share a topic that has drawn considerable attention from both employers and employees: When does an employer have the legal right to terminate an employment contract, and where is the line between a lawful termination and an unlawful dismissal?
Under the 2019 Labor Code of Vietnam, an employer may unilaterally terminate an employment contract in certain cases — for example, when an employee consistently fails to meet job performance requirements, or is absent from work for five consecutive working days or more without a legitimate reason.

However, in practice, there have been many cases where employees won lawsuits against employers because the employer failed to provide sufficient evidence or apply lawful procedures. The key issue often lies in how the employer evaluates and documents the employee’s performance.
To determine what constitutes “frequently failing to complete assigned work,” the employer must have an official, transparent performance evaluation system that has been duly issued and uniformly applied. The assessment should be based on clear, measurable criteria, supported by written records and employee acknowledgment. If the evaluation is based solely on subjective opinions or managerial discretion, any termination decision may be ruled by the court as unlawful.
In cases where an employee is dismissed for “voluntarily leaving work,” the employer must prepare written records, have witness confirmation, and issue a formal written notice to the employee. If these steps are skipped, the termination may not be legally valid.
We recommend that businesses establish transparent HR regulations, maintain proper documentation, and consult legal counsel before making any termination decision. Following the correct legal process not only protects the company but also contributes to building a fair, stable, and sustainable working environment.

At Hnlaw Legal Insight, we are committed to accompanying businesses in achieving compliant and secure human resource management.