Many employees who have worked steadily for years at the same company—always completing tasks, supporting colleagues, and even working overtime without extra pay—may suddenly receive a notice of reassignment to a role completely unrelated to their qualifications or health condition.

If they resist or refuse the new position, workers are often placed on “standby leave” with only minimum wages, labeled as redundant, and eventually served a termination notice. In many cases, this is perceived as coercion to resign and amounts to an illegal unilateral termination of employment.

How to Determine Whether a Termination Is Legal?

After receiving a termination notice, many employees feel confused and powerless—they wonder if the dismissal is lawful, whether they can contest or sue, and how their rights are affected. From the employer’s side, actions that appear procedural may actually carry legal risks if certain steps are omitted. So how can you tell if the termination is lawful or illegal? The answer lies in comparing the actual process against specific provisions in the current Labor Code.

Legal Grounds for an Employer to Unilaterally Terminate a Contract

Under Article 42 of the 2019 Labor Code, employers may legally terminate employees in cases of restructuring, organizational or technological changes, or economic hardships. However, they must meet the following conditions:

Prepare a labor use plan and submit it to competent state authorities;
Conduct dialogue sessions with employees;
Notify the employee at least 30 days in advance;
Provide full payment of all statutory entitlements and severance.

If any of these procedures are missing, the unilateral termination will be considered illegal.

Is the Employer’s “Restructuring” Genuine?

A common tactic by some employers is to rename job titles or reorganize departmental structures to make an employee’s position "disappear," even though the role still exists—filled either by someone else or a new hire.

In disputes, courts will compare old and new organizational charts and assess whether the position was truly eliminated. If they find evidence of legal circumvention, judgments may favor the employee.

What Should Employees Do If They Are Unilaterally Terminated?

Receiving a termination notice can be a major shock, especially for long-serving and dedicated employees. Many become passive and unsure how to protect their rights—or they avoid confrontation, fearing legal hassles or time loss. But if handled correctly under the law, employees can actively assert their rights—from claiming unpaid wages and insurance to even returning to their positions. Here are the key steps to actively defend your rights when facing unilateral termination:

1. Review all documentation and employer conduct
Before initiating action, gather:

The signed employment contract;
Reassignment and termination notices;
Dialogue meeting minutes (if any);
Emails or messages about position or salary changes;
Medical records if you suffered health issues due to work pressure or conflicts.

If you can prove the employer failed to follow the procedures outlined in Articles 42 and 44 of the 2019 Labor Code, you have solid grounds to seek compensation or reinstatement.

2. Propose contract reinstatement or request compensation
If a termination is found to be illegal, you can demand:

Contract reinstatement;
Payment of wages for the period you were not assigned work;
Compensation of at least two months’ salary;
Back-payment of social, health, and unemployment insurance contributions.

If you prefer not to return, you may seek compensation equivalent to 36 months’ salary, in line with many legal precedents and court decisions.

How Should Employers Avoid Disputes?

Some employers believe that citing “restructuring” legitimizes every dismissal or reassignment. But the legal reality is more stringent. Even minor procedural oversights can lead to lawsuits, hundred-million-dong awards, and serious reputational damage. To avoid unnecessary disputes, employers must fully understand legal boundaries and prepare thoroughly before terminating any employment.

1. Don’t reassign arbitrarily
Any change in job duties must have prior written agreement if it involves qualifications or core responsibilities. In several cases, reassigning from accounting to warehouse duties—or office to field roles—was considered illegal absent a proper basis.

2. Follow the full termination procedure
If the termination is due to restructuring, the employer must:

Prepare a labor use plan;
Consult with the labor union;
Provide advance notice;
Send written explanations to the authorities;
Timely pay all severance, wages, and insurance contributions.

A lack of transparency or haste in pushing employees out often leads to losing the case.

The Role of Legal Counsel in Labor Disputes

Consulting a lawyer early helps both employees and employers to:

Accurately evaluate whether the actions violate labor laws;
Identify the best strategy—negotiation or litigation;
Prepare necessary documents for authorities or courts;
Obtain representation in mediation or trial to maximize protection.

Especially in high-stakes, lengthy disputes where the employer exerts pressure, professional legal support ensures faster and fairer resolution.

Don’t Let Your Rights Be Wiped Out by Ignorance of the Law

Labor disputes are not just about right or wrong—they affect your dignity, future career, and family stability. If you're facing an illegal unilateral termination, act now to reclaim your rights.

DEDICA Law Firm – Your trusted legal companion in all disputes. With extensive experience in labor and corporate litigation, we understand every legal nuance and will help you protect your rights to the fullest.

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