How to Terminate Employees Lawfully and Avoid Legal Disputes

In human resources management, dismissal is the most serious form of disciplinary action, often leaving significant legal and reputational consequences for businesses. So, when can a company lawfully terminate an employee? How can it avoid legal risks arising from procedural errors? Let’s analyze this issue with DEDICA Law.

Legal basis for disciplinary dismissal

Many companies believe that if an employee is absent without permission, they can immediately issue a dismissal decision. However, labor laws stipulate specific conditions, procedures, and steps for applying this serious form of discipline. If mishandled, the employer may face complaints, prolonged disputes, or even be required to compensate and reverse the dismissal. Therefore, understanding the legal foundation is the first step to protecting the business.

Conditions for dismissal under current labor law

According to Article 125 of the 2019 Labor Code, an employee can be dismissed if they are “absent from work for 5 working days within 30 days or 20 working days within 365 days without a legitimate reason.”

However, employers must ensure the following:

• The violation is clear and supported by evidence such as attendance records or official memos;

• The act falls under serious violations listed in the registered internal labor regulations;

• The absence is not due to valid reasons (e.g., illness, natural disasters, family bereavement);

• The disciplinary process follows legal requirements: proper notice, meeting with full participants (employee, union, witness), meeting minutes, and decision issued within legal timeframes under Decree 145/2020/ND-CP.

A lesson from a real-life labor case

In a 2021 court case in Binh Duong, the court dismissed the employee’s lawsuit, ruling that the employer’s dismissal was lawful. The employee refused to take a new assignment despite previously requesting it via contract appendix. The company had sent multiple notices, held meetings, and documented the process properly. Only after the employee failed to cooperate did the dismissal take place.

Although the employee claimed to still be working at the representative office, the company’s documentation (notices, minutes, third-party confirmation) was accepted by the court. This reinforces a key principle: if a reassignment is lawful but the employee refuses, it may be considered abandonment.

Key points for businesses to avoid disputes when dismissing employees

Dismissal is not merely a personnel decision but a legal action that can have lasting consequences. Many disputes stem from a company’s lack of preparation or procedural mistakes. To minimize risks, businesses should:

1. Strengthen internal labor rules and procedures

• Clearly list acts that may lead to dismissal;

• Define unauthorized absence and legitimate reasons;

• Detail the disciplinary steps: notice, summon, meeting, documentation, and decision.

Ensure the rules are registered with the Department of Labor to be legally valid.

2. Ensure transparency in evaluations and reassignments

• Document all job transfers or changes;

• Maintain fair evaluation processes and include employee feedback;

• In case of objections, hold meetings with union or neutral parties before deciding.

3. Keep complete documentation and evidence

Common failures include missing records or unclear notices. Proper documentation includes:

• Labor contracts, appendices, internal regulations;

• Job assignment notices, emails;

• Attendance logs, violation memos, meeting invites;

• Disciplinary meeting minutes, dismissal decisions.

All must be properly signed. If the employee refuses to sign, record the refusal.

DEDICA Law – Your trusted legal partner in employment discipline

Termination is a sensitive decision requiring legal precision. DEDICA Law has assisted many companies in building strong internal systems, handling employee discipline lawfully, and resolving disputes effectively. Let our team help you build a strong legal foundation and confidently manage HR challenges.

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