Unilateral Termination of Employment Contracts with Foreign Employees in Vietnam: Conditions and Responsibilities
In labor relations in Vietnam, cases where one party — often a foreign employee or an employer — exercises the right to unilaterally terminate an employment contract raise various legal issues that must be carefully considered. Such termination must comply with the legal conditions, notice requirements, and associated legal responsibilities to avoid potential risks. This article helps both enterprises employing foreign workers and the foreign employees themselves better understand their rights, obligations, and how to mitigate legal risks.
1. Conditions for Foreign Employees to Unilaterally Terminate an Employment Contract
When a foreign employee (FE) working in Vietnam wishes to unilaterally terminate their employment contract, they must meet the legal conditions under Vietnamese labor law to ensure the termination is lawful, avoiding contractual breaches and resulting liabilities.
1.1. Right to Terminate and Notice Period
According to the Labor Code 2019 (No. 45/2019/QH14) and its guiding regulations, employees — including foreign employees — have the right to unilaterally terminate an employment contract without providing a reason, but must give prior notice to the employer within a prescribed timeframe:
Indefinite-term contract: at least 45 days’ notice;
Definite-term contract (12 – 36 months): at least 30 days’ notice;
Short-term contract (under 12 months): at least 3 working days’ notice.
These periods equally apply to foreign employees working in Vietnam.
1.2. Cases Where No Notice Is Required
A foreign employee may terminate an employment contract without prior notice in specific situations that seriously affect their rights or working conditions, including:
The employer fails to assign work, workplace, or working conditions as agreed;
The employer does not pay or delays payment of salary;
The employee is mistreated, assaulted, or verbally abused by the employer;
The employee experiences sexual harassment in the workplace;
A pregnant female employee must stop working because the job harms her fetus;
The employer provides false information about the job, workplace, or working conditions.
In these cases, unilateral termination without notice is lawful and will not be deemed a breach of contract if all legal requirements are met.
1.3. Special Conditions and Link to Work Permits
For foreign employees in Vietnam, unilateral termination is also linked to their work permit (WP) or work permit exemption certificate. For example, if the employment contract expires or its content no longer matches the WP, the contract can be legally terminated.
Under Decree 219/2025/NĐ-CP (effective from August 7, 2025), the employer must withdraw and return the foreign employee’s work permit within 15 days from the date the permit expires or the employment ends.
Therefore, when a foreign employee unilaterally terminates a contract, the employer must verify:
(i) the notice period (if applicable);
(ii) whether the case qualifies for termination without notice; and
(iii) the effect on the work permit and its withdrawal procedures — ensuring full compliance to avoid administrative penalties or disputes.
2. Responsibilities of Employers and Foreign Employees in Unilateral Termination
When one party — usually the foreign employee but sometimes the employer — unilaterally terminates the employment contract, the other party’s legal responsibilities must be properly fulfilled. Failure to comply may lead to compensation, administrative fines, or labor disputes.
2.1. Responsibilities of Foreign Employees
If a foreign employee unilaterally terminates their employment contract:
They must provide notice or fall under a legitimate no-notice situation as mentioned above. Otherwise, they may be considered to have breached the contract.
They must handover work, assets, and support transition if reasonably requested by the employer. While Vietnamese law does not specify these obligations in detail for foreign employees, they are standard business practice.
They must cooperate with the employer to return and cancel their work permit or exemption certificate if the termination leads to its invalidation. If the foreign employee fails to return the permit, the employer must submit an explanation and the termination decision to the Department of Labor, Invalids and Social Affairs (DOLISA).
2.2. Responsibilities of Employers
When an employer terminates or receives notice of unilateral termination from a foreign employee, the employer must:
Issue a written notice confirming the termination and its effective date (except when the contract automatically ends due to the expiration or revocation of the work permit).
Settle all payments related to the foreign employee’s entitlements within 30 days of termination, including salary, allowances, and other benefits under Article 48 of the Labor Code 2019.
Withdraw the work permit and return it to the issuing authority within 15 days, following Decree 219/2025/NĐ-CP.
If the employer illegally terminates the contract (e.g., not under Article 36 of the Labor Code 2019 or without notice), they must compensate the employee and may face penalties.
Report employment updates to authorities where required, as part of labor management obligations concerning foreign workers in Vietnam.
2.3. Specific Considerations for Employers Using Foreign Labor
Employers should also take note of the following:
Once an employment contract ends, the corresponding work permit automatically loses validity under Article 156 of the Labor Code 2019.
When the work permit expires or is revoked, the foreign employee must stop working and leave Vietnam or switch to another lawful employment status. Employers are responsible for ensuring this process is properly completed.
Termination may give rise to obligations such as reimbursement of training costs (if stipulated in the contract) or compensation if the foreign employee violates notice requirements.
Employers should retain all termination documents — including handover records, work permit withdrawal notices, and reports to DOLISA — to prevent future disputes, especially regarding unauthorized continued work.
From August 7, 2025, Decree 219/2025/NĐ-CP introduces major amendments on employing foreign workers in Vietnam. Both employers and employees must stay updated to ensure compliance.
3. Conclusion
Unilateral termination of an employment contract with a foreign employee in Vietnam is not as simple as “the worker leaves and the contract ends.” It involves numerous legal obligations for both the foreign employee and the employer. Complying with proper termination conditions, notice periods, and work permit procedures helps minimize risks of disputes, administrative fines, or contractual losses — ensuring fairness and legal security for both parties.
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