Unfair Dismissal in Vietnam: What Are Your Rights and Compensation Entitlements?
Under Vietnam’s Labor Code 2019 (Law No. 45/2019/QH14), unfair dismissal occurs when an employer terminates a labor contract without valid legal grounds, fails to observe mandatory notice periods, or skips required procedures such as a disciplinary hearing or trade union consultation. If a dismissal is found unlawful, Article 41 of the Labor Code 2019 entitles the affected employee to reinstatement, full back pay including wages and all insurance contributions, and at least two months’ additional salary as compensation — rights that apply equally to foreign teachers and education sector workers holding valid work permits in Vietnam.
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What Is Considered Unfair Dismissal Under Vietnamese Law?
Unfair dismissal in Vietnam is any employer-initiated termination that lacks lawful grounds or violates mandatory procedures under the Labor Code 2019. A dismissal is only lawful when based on specific grounds listed in Article 36 of the Code and carried out through the correct legal process. Any termination that falls outside these conditions — regardless of how the employer frames the reason — is legally an illegal unilateral termination, triggering the remedies set out in Article 41 (Labor Code 2019).
According to Article 36 of the Labor Code 2019, employers may only unilaterally terminate a labor contract for defined reasons: the employee repeatedly failing to complete assigned work; the employee suffering prolonged illness beyond statutory thresholds; natural disasters or force majeure requiring workforce reduction; or structural, technological, or economic changes requiring redundancy — each subject to additional procedural requirements. Termination for reasons outside these grounds, or without documented evidence supporting them, constitutes unfair dismissal.
A dismissal is legally unfair if any of the following conditions apply:
| Condition | What It Means in Practice |
|---|---|
| No valid legal grounds | Termination not based on Article 36 grounds in the Labor Code 2019 |
| Notice period not observed | Employer failed to give required written advance notice per contract type |
| No disciplinary hearing held | Employer skipped mandatory internal hearing before misconduct-based dismissal |
| No trade union consultation | Employer did not consult the union representative where required |
| Discriminatory or retaliatory motive | Dismissal linked to gender, pregnancy, union activity, or exercising legal rights |
- No valid grounds. Article 36 provides a closed list of lawful grounds for unilateral termination by an employer. Dismissing a teacher — or any employee — without documented performance failures, without a formal review process, or for reasons not on that list is unlawful regardless of how the termination letter is worded.
- Notice period violations. Under Article 36, Clause 2 of the Labor Code 2019, employers must provide advance written notice before unilateral termination: 45 days for indefinite-term contracts, 30 days for fixed-term contracts of 12–36 months, and 3 working days for contracts of under 12 months. The distinction matters: the 45-day and 30-day periods are calendar days, while the period for contracts under 12 months is calculated in working days only. Failure to give the required notice is itself a procedural violation that makes the dismissal unlawful.
- Missing disciplinary hearing or union consultation. Where termination is based on misconduct, the employer must conduct a formal disciplinary hearing with the employee present, and where a trade union exists, consult the union representative. Skipping either requirement is a breach of procedure that independently supports an unfair dismissal claim.
Many teachers working in Vietnam on definite-term contracts — the most common contract type in the education sector — may not realize that their rights during the contract period differ from those during a probationary arrangement. Understanding that distinction matters. What Are Your Rights and Obligations During the Probationary Period in Vietnam?
What Are Your Compensation Entitlements Under Article 41 If Dismissed Unfairly?
If a labor authority, arbitration council, or court determines that your dismissal was unlawful, Article 41 of the Labor Code 2019 mandates four core remedies: reinstatement to your original position, full back pay covering wages plus social insurance, health insurance, and unemployment insurance contributions for the entire period you were out of work, at least two months’ additional salary as supplementary compensation, and severance pay under Article 46 if you choose not to return (Labor Code 2019, Article 41). These entitlements apply equally to Vietnamese and foreign employees working legally in Vietnam.
Article 41 of the Labor Code 2019 specifies: when an employer illegally terminates a labor contract, they must reinstate the employee and pay wages and compulsory social insurance, health insurance, and unemployment insurance contributions for the entire period the employee was not allowed to work, plus at least two months’ wages as additional compensation. If the employee opts not to return, severance pay under Article 46 is payable in addition to the above. Where the original position no longer exists, both parties may negotiate a termination agreement, typically resulting in a settlement higher than the statutory minimums (Article 41, Clause 3, Labor Code 2019).
| Entitlement | Conditions | Legal Basis |
|---|---|---|
| Reinstatement | Dismissal found unlawful; employee wishes to return | Article 41, Labor Code 2019 |
| Back pay (wages + all insurance) | Salary + social, health, and unemployment insurance for entire period out of work | Article 41, Labor Code 2019 |
| Additional compensation | Minimum 2 months’ contractual salary, on top of back pay | Article 41, Labor Code 2019 |
| Severance pay | Employee has 12+ months of service and chooses not to return | Article 46, Labor Code 2019 |
| Notice period compensation | Employer did not give required notice; salary paid for each unserved notice day | Article 36, Clause 2 + Article 41, Labor Code 2019 |
| Negotiated exit compensation | Position no longer exists; minimum 2 months’ additional salary on top of other amounts | Article 41, Clause 3, Labor Code 2019 |
- Reinstatement. If you wish to return to the role, the employer must restore you to your previous position on the original terms. Reinstatement comes with full back pay covering every day you were wrongfully kept out — including all three categories of compulsory insurance contributions, not just base salary.
- At least two months’ additional salary. Separately from back pay, the employer must pay a minimum of two months’ contractual salary as punitive compensation. This is a statutory floor under Article 41; the actual amount may be higher depending on circumstances including discrimination or deliberate procedural evasion.
- Severance for those who choose not to return. If you decide not to return, you retain full entitlement to severance pay under Article 46 of the Labor Code 2019 on top of all Article 41 compensation described above.
- Notice period compensation. Where the employer terminated without providing the legally required advance notice, the employee is additionally entitled to receive salary for every unserved notice day (Article 36, Clause 2 read with Article 41, Labor Code 2019).
How Is Severance Pay Calculated Under Vietnamese Labor Law?
Severance pay in Vietnam is calculated at half a month’s salary per completed year of service, based on the employee’s average contractual salary over the final 6 consecutive months of employment before termination (Article 46, Labor Code 2019; Decree 145/2020/NĐ-CP). Eligibility requires at least 12 months of continuous service. Importantly, the working period used for the calculation excludes any time the employee participated in unemployment insurance — meaning periods covered by unemployment insurance contributions are not counted twice (Article 46, Clause 2, Labor Code 2019).
Article 46 of the Labor Code 2019 establishes that the “salary” used for severance calculations is the average contractual salary over the 6 months immediately before termination, including base salary and fixed allowances defined in the labor contract. Variable bonuses, meal allowances, and transportation support not stated in the contract are excluded from this figure (Decree 145/2020/NĐ-CP). Each “year of service” counts only as a completed 12-month period; partial years do not round up.
Severance formula: Working Period (years) × Average Monthly Contractual Salary (last 6 months) × 0.5
| Years of Service | Average Monthly Contractual Salary | Severance Pay |
|---|---|---|
| 1 year | 10,000,000 VND | 5,000,000 VND |
| 3 years | 15,000,000 VND | 22,500,000 VND |
| 5 years | 20,000,000 VND | 50,000,000 VND |
(Calculated per Article 46, Labor Code 2019 and Decree 145/2020/NĐ-CP. Periods covered by unemployment insurance are deducted from the working period before applying the formula.)
Note that severance pay is not applicable when a dismissal is based on documented and procedurally sound disciplinary grounds. However, if the disciplinary process itself was defective — no hearing, no documentation, no union consultation — the dismissal may still be found unlawful under Article 41, and full remedies including severance may then apply.
Which Government Authorities Handle Unfair Dismissal Cases in Vietnam?
An important point that many employees — including foreign teachers — are unaware of: unfair dismissal disputes in Vietnam are exempt from mandatory mediation under Article 188 of the Labor Code 2019. Employees can file directly with the People’s Court without first going through a labor conciliator. Alternatively, they may choose the mediation pathway voluntarily, or escalate through the Labor Arbitration Council. Where mediation is pursued, the labor conciliator must complete the process within 5 working days of receiving the request (Article 188, Labor Code 2019).
Article 188 of the Labor Code 2019 lists specific categories of individual labor disputes that can proceed directly to the People’s Court without mandatory mediation. Unlawful dismissal (unfair dismissal) is one of these exempt categories, confirmed in guidance from the Supreme People’s Procuratorate (Instruction No. 33/HD-VKSTC, 2022) and multiple Vietnamese legal practitioners. This matters significantly: you do not need to wait for a mediation process to fail before accessing the court.
| Authority | Role | Contact |
|---|---|---|
| Labor Conciliator (District level) | Voluntary mediation; must complete within 5 working days of request | Contact district-level Division of Labor, Invalids and Social Affairs |
| Labor Arbitration Council (Provincial) | Binding arbitration for disputes not resolved through other means | Established by provincial People’s Committee; contact via provincial labor authority |
| People’s Court (District level) | Legally enforceable judgment; can be accessed directly for unfair dismissal without mandatory mediation | Submit written claim at relevant district People’s Court |
| DOLISA (Provincial) | Labor inspection; complaints about labor law violations; handles employer administrative penalties | molisa.gov.vn for provincial directory; english.molisa.gov.vn for foreign workers |
- Direct court access for unfair dismissal. Because unlawful dismissal is an exempt category under Article 188, you can choose to file at the district-level People’s Court without first attempting mediation. This is particularly useful when the employer has been uncooperative or when circumstances make negotiation unlikely to succeed.
- Labor Conciliator pathway. If you prefer a faster, lower-cost option, you may request mediation through the district-level labor conciliator. The conciliator must complete mediation within 5 working days of receiving the request (Article 188, Labor Code 2019). A successful mediation record is legally binding. If mediation fails, that record becomes the basis for escalating to court or arbitration.
- Labor Arbitration Council. The Council is established at provincial level by the Chairman of the Provincial People’s Committee. It provides a binding resolution without the full formality of court proceedings. Where one party fails to comply with a Council decision, the other party may refer the matter to the People’s Court (Article 193, Labor Code 2019).
- Statute of limitations. Under Article 190 of the Labor Code 2019, the statute of limitations for filing a labor dispute claim is 1 year from the date the violation was discovered. Missing this deadline means losing the legal right to pursue compensation, so prompt action after a dismissal is essential.
One area directly affecting your Article 41 back pay calculation is the health insurance and social insurance contribution requirement. Understanding what the employer owes in insurance contributions — not just salary — is part of knowing your full entitlement. Health Insurance in Vietnam and What You Should Know
What Documents Should You Secure Immediately After an Unfair Dismissal?
Secure the written termination decision first: Article 36, Clause 2 of the Labor Code 2019 requires employers to issue written advance notice of termination specifying the grounds. An employer’s failure to issue any written notice is itself a procedural violation you can cite in your claim. Alongside this, collect your signed labor contract, performance evaluations, any written warnings, payroll records, and all communications related to the dismissal (LTS Law Firm, 2024; ANT Lawyers, 2024).
Per Article 45 of the Labor Code 2019, employers must complete all payment obligations to the employee — including final salary, severance, and insurance settlements — within 14 working days of the official termination date. Delays beyond 14 working days (extendable to a maximum of 30 days in specific circumstances) constitute a separate legal violation that can also be cited in a complaint to labor authorities.
Documents to collect immediately after dismissal:
- Written termination notice (required under Article 36, Clause 2, Labor Code 2019)
- Original or certified copy of your signed labor contract
- Performance evaluations and any written warnings or disciplinary notices
- Payroll records confirming salary amounts and insurance contributions
- Emails or written communications relevant to the dismissal
- Work permit, visa documents, and social insurance book (critical for foreign employees)
Foreign teachers face an additional consideration: when employment ends, your work permit status is directly affected. Securing all documents before the employer completes exit paperwork gives you time to assess legal options without visa pressure compounding the situation. Employers are also required to complete social insurance settlement procedures after termination; delays in this process constitute a separate violation citable in your complaint.
Frequently Asked Questions About Unfair Dismissal in Vietnam
Is “unfair dismissal” the same as “wrongful termination” in Vietnam?
Yes. In Vietnamese labor law and English-language legal practice in Vietnam, “unfair dismissal,” “wrongful termination,” and “unlawful dismissal” describe the same legal situation: an employer terminating a labor contract without the valid grounds or mandatory procedures required by Articles 35, 36, and 37 of the Labor Code 2019 (as defined by Article 39).
Do unfair dismissal protections apply to foreign employees in Vietnam?
Yes. The Labor Code 2019 applies equally to foreign employees holding valid work permits. Foreign teachers are entitled to the same reinstatement, back pay, additional compensation, and severance rights under Article 41 as Vietnamese nationals. Maintaining a valid work permit throughout the dispute process is essential, as permit expiry can automatically terminate the labor contract under Article 156 of the Labor Code 2019.
Do I need to go through mediation before going to court for unfair dismissal?
No. Under Article 188 of the Labor Code 2019, unfair/unlawful dismissal cases are exempt from mandatory mediation and can be filed directly with the district-level People’s Court. Mediation remains an option — and may be faster and less costly — but it is not legally required before accessing the court for this specific type of dispute.
What is the minimum additional compensation for unfair dismissal?
Under Article 41 of the Labor Code 2019, the minimum is at least 2 months’ contractual salary paid on top of back pay (wages and all insurance contributions). Courts may award higher amounts depending on the nature of the dismissal and the impact on the employee.
Can an employer dismiss an employee without any written notice?
No. Article 36, Clause 2 of the Labor Code 2019 requires written advance notice: 45 calendar days for indefinite-term contracts, 30 calendar days for fixed-term contracts of 12–36 months, and 3 working days for contracts of under 12 months. Dismissal without written notice is a procedural violation that independently constitutes unlawful termination.
What is the statute of limitations for an unfair dismissal claim?
Under Article 190 of the Labor Code 2019, the statute of limitations is 1 year from the date the violation was discovered. If this period lapses, the People’s Court may refuse to accept the case, unless the delay was caused by a force majeure event such as illness or natural disaster.
Does severance pay apply if I was fired for misconduct?
Severance pay under Article 46 of the Labor Code 2019 does not apply where dismissal was based on documented disciplinary grounds carried out through the proper process. However, if the disciplinary process was defective — no hearing, no documentation, no union consultation where required — the dismissal may be found unlawful under Article 41, and full remedies including severance may then apply.
Explore More on Employment Rights in Vietnam
Working and teaching in Vietnam means understanding the legal framework that protects you. From contract terms and dismissal rights to insurance obligations and visa status, knowing the rules in advance puts you in a far stronger position. Browse more articles in our EMPLOYMENT RIGHTS & CONTRACTS section for practical, up-to-date guidance written specifically for teachers and education professionals in Vietnam.
This article is for general informational purposes only and does not constitute legal advice. Vietnamese labor law is subject to regulatory updates. For advice on your specific situation, consult a qualified labor law practitioner or contact your local labor authority.
