Ms. A signed a 2-month probation contract with a company. On day 45, the company told her “you no longer need to come in” — giving no reason and paying nothing beyond wages for days actually worked. She wonders: dismissed so abruptly, is she entitled to any compensation? The legal answer may surprise many.
Core answer: no compensation is owed
Clause 2, Article 27 of the Labor Code 2019 provides: “During the probation period, either party may cancel the probation contract or the signed labor contract without prior notice and without compensation.”
In other words, dismissing an employee during probation without stating a reason is the employer’s lawful right — and conversely, an employee who quits mid-probation owes the company nothing either. The law does not require the employer to state reasons for termination during probation, and provides no compensation of any kind (severance allowance, damages) for termination during probation.
The only rights guaranteed to probationers
Although no compensation is owed, probationers are still guaranteed these rights:
- Wages for days actually worked — as agreed by the parties but at least 85% of the wage for that job (Article 26 of the Labor Code 2019);
- At the end of probation, the employer must notify the probation result to the employee (Clause 1, Article 27); if the result is satisfactory and a probation contract was signed, a labor contract must be concluded;
- No severance or job-loss allowance: these apply only to employees who have regularly worked for at least 12 months (Articles 46 and 47) — probationers do not qualify.
The boundary: when does a “probation dismissal” become a violation?
The right to dismiss without reason exists only during the probation period. The following acts are violations subject to penalties:
- Dismissing after probation has ended without notifying the result or concluding a labor contract where the employee met the requirements;
- Extending probation beyond the statutory limit to avoid concluding a labor contract;
- Requiring probation more than once for the same job;
- Paying probation wages below the agreed level or under 85% of the job’s wage.
Maximum probation periods under Article 25 of the Labor Code 2019: 180 days for enterprise manager positions; 60 days for jobs requiring college-level or higher qualifications; 30 days for intermediate-level or technical worker jobs; 06 working days for other jobs.
Penalties for probation violations
Decree 283/2026/ND-CP (issued 15 July 2026, effective 10 September 2026) replaces Decree 12/2022/ND-CP on administrative sanctions in the labor sector. Under its provisions on probation violations (companies should verify the exact article numbers against the original text):
- VND 500,000–1,000,000 fine: requiring probation for employees signing fixed-term labor contracts under 01 month; failure to notify the probation result;
- VND 2,000,000–5,000,000 fine: requiring probation more than once for one job; exceeding the permitted probation duration; paying probation wages below the agreed level or below 85% of the job’s wage; failure to conclude a labor contract where probation was satisfactory;
- Remedial measures: full wage payment to the employee; mandatory conclusion of a labor contract as prescribed.
These fines apply to individuals; violating organizations face double the amounts (Article 7 of Decree 283/2026/ND-CP). Note: Decree 283/2026 contains no sanction for “dismissing a probationer without reason” — because that is a lawful right.
The authority for labor inspection and violation handling is now the Inspectorate of the Department of Home Affairs (following the merger of the Department of Labor, War Invalids and Social Affairs under Resolution 190/2025/QH15).
Exception: a separate compensation agreement
The only case where a dismissed probationer may receive compensation is where the parties agreed otherwise — for example, a probation contract committing to compensation upon early termination. The agreement then applies under freedom-of-contract principles; disputes follow the general contract rules (Civil Code 2015).
Points requiring cautious wording
- Where the employer dismisses on the final day of probation without written notice of the result: whether this counts as “failure to notify the probation result” depends on evidence of notification;
- Severance for someone who completed probation and continued working but totaled under 12 months: ineligible under Article 46 — certain as a matter of law, with only the practical calculation of actual working time potentially disputed.
Applicable legal framework (in force at 14 October 2026)
- Labor Code 45/2019/QH14 (Consolidated Document 18/VBHN-VPQH 2026): Articles 24, 25, 26, 27, 46, 47 — in force; Articles 24–27 are unaffected by amendments.
- Decree 283/2026/ND-CP (effective 10 September 2026) — replacing Decree 12/2022/ND-CP (expired 10 September 2026).
Frequently asked questions
Dismissed during probation without reason — any compensation?
No. Clause 2, Article 27 of the Labor Code 2019 allows either party to cancel the probation contract without prior notice and without compensation. The employee is only entitled to wages for days actually worked (at least 85% of the job’s wage).
What is the minimum probation wage?
As agreed, but at least 85% of the wage for that job (Article 26 of the Labor Code 2019). Paying less is a violation subject to fines.
Can a company require 4 months of probation for an office clerk?
No. For jobs requiring college-level qualifications, probation is capped at 60 days; intermediate level at 30 days (Article 25). Exceeding the limit is a violation, fined VND 2–5 million with remedial orders.
Does quitting during probation entitle the employee to severance?
No. Severance applies only after at least 12 months of regular work (Article 46). Probationers do not qualify.
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Contact FLAT Law Firm for advice on probation contracts and labor disputes.
Note: This article is for general reference only based on the law in force at the time of writing (14 October 2026) and does not constitute legal advice for any specific case. Legal provisions may change; specific cases require a lawyer’s opinion.
Transparency note: This article was drafted by FLAT Law Firm’s AI content production system and is undergoing internal review (AI Legal Council QA and owner approval before publication). It has not been reviewed by a human lawyer.