Unilaterally terminating the labor contract because of covid pandemic- some points should be noted by enterprises1

Labour & Employment KNOWLEDGE CENTER LEGAL UPDATE

Unilaterally terminating the labor contract because of covid pandemic- some points should be noted by enterprises

When the developments of the Covid pandemic 19 is extremely complicated and unpredictable, many enterprises have to face to extremely difficult situations in their business (input materials are not available, products can not be sold due to delayed export output, workers have no job.

On the other hand, for the company of business services, reducing gathering in a huge crowd has been causesing damage of the company. Facing to this difficult situation, what should you do to maintain your existence to overcome the difficulties of this period?

One of the measures to minimize loss and limit costs is narrowing the scope of the business. In addition, reducing the number of employees is considered. However, not all enterprises are fully aware of the provisions of the law related to the termination of the labor contract with the employee in this case.

How to unilaterally terminate the labor contract with the employee in accordance with the law in order to limit the labor disputes occurring, to maintain the reputation of the company. This article will help you to have specific directions to unilaterally terminate the contract with the employee due to the pandemic.

Unilaterally terminating the labor contract because of covid pandemic- some points should be noted by enterprises
Unilaterally terminating the labor contract because of covid pandemic- some points should be noted by enterprises

1. Term of notice:

For an indefinite term contract: 45 working days in advance

For fixed-term contracts: 30 working days in advance

For seasonal contracts, irregular: 03 working days

2. The case are not allowed to terminate labor contracts with employees:

• Occupational accident.

• Being sick (In case the labor contract with indefinite term is within 12 months, the labor contract has a term of 6 consecutive months, the seasonal labor contract is half the contract period with the employee).

• Being on leave according to the provisions of the Labor Law.

• The employee is pregnant, the employee is nursing a child under 12 months, the employee is on maternity leave.

In the above cases, if the enterprise does not have an agreement with the employee, the enterprise cannot unilaterally terminate the labor contract.

3. The regime for the employee when the enterprise unilaterally terminates the labor contract:

• Paid severance allowance.

• Paid job loss benefits.

If the enterprise has paid unemployment insurance for its employees, the enterprise does not have to pay the above benefits. If the enterprise has paid unemployment insurance for the employee, the enterprise must also pay attention to the issues such as the enterprise must fulfill its obligations related to social insurance. Enterprises must close insurance books for employees, to ensure that within 3 months from the termination of labor contracts with employees, enterprises must close insurance books for employees, so that the employees can carry out procedures related to benefits. unemployment insurance according to regulations.

The information I mentioned above are legal considerations for enterprises when enterprises find the best way to use their employees to overcome the Covid pandemic.

Please do not hesitate to contact us for more information to be supported and consulted:

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