Contract expiry looks like the cleanest termination route, but three small questions — was notice given, is severance owed, is the employee still working past expiry — are where most disputes in this group are born. In practice, the same legal question can end differently depending on the file, so the enterprise must read the framework in force before acting.
The legal framework in force
Expiry of the contract term is a termination case under Article 34 of Labour Code 45/2019/QH14, distinct from unilateral termination in needing no reason and attracting no Article 41 compensation mechanism. Pre-expiry notice is a written duty, not a courtesy. Article 45 requires the employer to notify the employee in writing of the termination timing before the expiry date within the statutory period, so both sides can arrange ahead. Severance is still owed on expiry, save for statutory exclusions. On expiry termination, an employee with at least twelve months of regular service receives severance allowance under Article 46 — half a month’s salary per working year — save for pension-covered and other statutorily excluded cases. If the contract expires while the employee keeps working, Article 20 obliges a new contract; after thirty days unsigned, the existing contract converts into an indefinite-term one, and where the new contract is again fixed-term, its next expiry forces an indefinite-term contract.
Application to the enterprise’s file
- Pre-expiry notice is a written duty, not a courtesy. Missing the Article 45 notice does not turn expiry into an unlawful termination under Article 41, but it creates disputes over the real termination date and the sums settled at it; an employer proving timely notice closes half the case at the outset.
- Severance is still owed on expiry, save for statutory exclusions. Many employers forget expiry does not erase Article 46 severance; the counted period is total service minus periods covered by unemployment insurance and periods already paid severance for.
- Letting the employee work on past expiry converts the contract type by itself. HR silence after the expiry date does not preserve the old status: the law converts the contract to indefinite-term after thirty days, and every ‘one more fixed term’ plan must be counted from that mark.
Action checklist
- Put expiry-notice dates into the HR system with automatic advance alerts and keep notice delivery evidence.
- Compute severance with the unemployment-insurance deduction formula for every expiry case and build it into the standard termination settlement sheet.
- List contracts expiring by month and decide renewal or termination before the expiry date arrives, never drifting past the thirty-day mark.
Bottom line
On fixed term contract expiry notice severance Articles 45 46 Vietnam, the safe approach is to prepare the file early, price the worst-case cost scenario, and commit only with verified figures.
Frequently Asked Questions
Is notice required when a fixed-term contract expires?
The distinction that matters: Pre-expiry notice is a written duty, not a courtesy. Missing the Article 45 notice does not turn expiry into an unlawful termination under Article 41, but it creates disputes over the real termination date and the sums settled at it; an employer proving timely notice closes half the case at the outset. Main bases: Article 34 (expiry as a termination case), Article 45 (pre-expiry notice), Article 46 (severance), Article 20 (working on after expiry) of Labour Code 45/2019/QH14. Fix verbal understandings in writing.
Is severance payable?
From the actual file’s perspective: Severance is still owed on expiry, save for statutory exclusions. Many employers forget expiry does not erase Article 46 severance; the counted period is total service minus periods covered by unemployment insurance and periods already paid severance for. Main bases: Article 34 (expiry as a termination case), Article 45 (pre-expiry notice), Article 46 (severance), Article 20 (working on after expiry) of Labour Code 45/2019/QH14. Keep supporting records year by year.
What if work continues without a new contract?
Short answer: Letting the employee work on past expiry converts the contract type by itself. HR silence after the expiry date does not preserve the old status: the law converts the contract to indefinite-term after thirty days, and every ‘one more fixed term’ plan must be counted from that mark. Main bases: Article 34 (expiry as a termination case), Article 45 (pre-expiry notice), Article 46 (severance), Article 20 (working on after expiry) of Labour Code 45/2019/QH14. Check this against the enterprise’s file first.
How does expiry differ from unilateral termination?
In principle: Pre-expiry notice is a written duty, not a courtesy. Missing the Article 45 notice does not turn expiry into an unlawful termination under Article 41, but it creates disputes over the real termination date and the sums settled at it; an employer proving timely notice closes half the case at the outset. Main bases: Article 34 (expiry as a termination case), Article 45 (pre-expiry notice), Article 46 (severance), Article 20 (working on after expiry) of Labour Code 45/2019/QH14. If authority is unclear, ask in writing.
This article has been quality-reviewed by the FLAW AI Legal Council