When a foreign teacher working at a private school in Vietnam is suddenly terminated from their teaching contract, they may face numerous risks related to labor rights, insurance, and professional reputation. What exactly is the issue, where does it come from, and which solutions are effective? Below is a detailed legal analysis and practical guidance that businesses, teachers, and the legal team at DEDICA Law can apply.
When a private school in Vietnam terminates a teaching contract with a foreign teacher (either a foreign national or an expat employee working under a Vietnamese contract), many legal and practical complications arise.
In private educational institutions, foreign teachers often sign either labor contracts or teaching service contracts. Based on recent analysis, labor contracts for teachers in private schools are governed by the Labor Code 2019. Meanwhile, teachers in public institutions fall under the Law on Public Employees and relevant decrees.
However, in private schools—especially international schools or those with foreign investment—teaching contracts with foreign teachers may be considered labor contracts governed by Vietnamese labor laws, or dual contracts that follow both domestic and international standards (but still enforceable in Vietnam). Therefore, it is crucial to determine whether the foreign teacher qualifies as an “employee” under Vietnamese law or is bound under an overseas or consulting/teaching contract. This affects their level of legal protection.
When a private school terminates a contract with a foreign teacher, both sides face significant risks:
Foreign teachers: may lose income, insurance benefits, teaching hours, and professional reputation. If the termination is unlawful, they have the right to file a lawsuit seeking compensation.
Private schools: If the termination does not comply with legal requirements—such as proper notice or valid legal grounds—the school may face labor disputes, financial compensation, and legal consequences. In one case, a school and local authority were ordered to compensate over VND 1.2 billion to five unlawfully terminated teachers.
Both sides may incur substantial time and financial costs in dispute resolution, harming the school’s reputation and educational environment.
Common causes include:
Private schools end or refuse to renew contracts without valid legal grounds or without proper notice.
Foreign teachers are not notified in writing or are not given clear reasons for contract termination.
Contracts contain unclear or disadvantageous terms regarding duration, termination, and compensation.
Schools change their business model, reduce staffing, or face financial difficulties but fail to inform teachers as required.
Teachers are assigned roles or locations inconsistent with the contract—leading to unilateral termination or legal disputes.
For foreign teachers, matters become more complex due to work permits, visas, and contracts with external organizations.
When facing disputes related to the termination of teaching contracts with foreign teachers at private schools, DEDICA Law recommends the following preventive and corrective measures:
Review and finalize the contract: Schools and teachers should sign clear labor or teaching contracts specifying duration, duties, workplace, benefits, insurance, notice periods, and valid grounds for termination. According to current analysis, fixed-term labor contracts require at least 30 days’ notice; indefinite-term contracts require at least 45 days’ notice.
Review termination clauses: Contracts must specify legally valid termination grounds (e.g., consistent underperformance, unexcused absence for 5 consecutive working days). This reduces the risk of unlawful termination.
Foreign teachers should check work permits and visas: Termination affects residency and work authorization; schools should advise teachers accordingly.
Establish internal procedures: Schools should maintain evaluation systems, internal rules, warning steps, and dialogue mechanisms. If termination is due to restructuring or business needs, early notice is essential.
Teachers should keep evidence: Contracts, offer letters, salary slips, insurance documents, and emails should be retained to support any future claims.
Verify whether the termination was lawful: Schools and teachers should check contract type, notice period compliance, and legal grounds. For example, termination due to “redundancy” must be supported by actual restructuring or downsizing.
Internal dialogue/mediation: Organizing a meeting to document mutual rights and obligations can resolve many disputes early.
Filing a lawsuit or requesting labor dispute resolution: If internal discussions fail, teachers may file a claim with the court or request mediation by local labor authorities. Possible claims include reinstatement, compensation, back pay, and insurance benefits.
Detailed advice on compensation and rights:
If the teacher was unlawfully terminated, the school must pay salary, allowances, and insurance from the termination date until dispute resolution.
If the teacher unilaterally terminates the contract unlawfully (e.g., insufficient notice), they may lose severance benefits and must compensate half a month’s wage or salary for missing notice days.
Monitoring enforcement: Both parties must ensure compliance with judgments or settlement agreements to avoid further legal complications.
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