Labor Contract Termination Decision in Vietnam: Required Contents and Checklist

Vietnamese labor law provides no single mandatory template for a labor-contract termination decision applicable to all employers. But that does not mean employers may draft freely: a termination decision lacking legal grounds, citing the wrong article for the termination reason, or miscalculating the notice period may be deemed an unlawful unilateral termination — carrying heavy compensation duties under Articles 40–41 of the Labor Code. This article lists the nine required contents of a termination decision, a five-point pre-signing checklist, and distinguishes termination notices, decisions and mutual agreements under the Labor Code 45/2019/QH14 (effective 1 January 2021) and Decree 145/2020/ND-CP.

1. Nine required contents of a termination decision

1. Legal grounds: citing the Labor Code 45/2019/QH14, Decree 145/2020/ND-CP, and the company internal labor regulations/collective labor agreement;
2. Employee details: full name, date of birth, ID number, job title, department, employee code, labor contract number;
3. Termination reason — citing the correct article: the most important content. The reason must correspond to one of the cases in Article 34 of the Labor Code (expiry, completion of work, mutual agreement, unilateral termination by either party…). A wrongly cited article is the biggest source of litigation;
4. Effective date: the specific date the decision takes effect, respecting the notice periods in Article 35 (employee-initiated) and Article 36.2 (employer-initiated: 45 days for indefinite-term contracts, 30 days for definite-term contracts, 3 working days in special cases);
5. Employee entitlements: severance allowance under Article 46 (half a month salary per year of service, excluding periods covered by unemployment insurance) or job-loss allowance under Article 47 (one month salary per year, minimum two months) — depending on the termination case;
6. Payment and social-insurance book: full payment of all amounts due within 7 working days of termination (no more than 30 days in special cases); completing social-insurance book finalization and return under Article 48;
7. Handover: duty to hand over ongoing work, documents, tools and company assets;
8. Implementation responsibility: assigning the departments/individuals responsible for executing the decision;
9. Signature of the legal representative (or duly authorized person) and the company seal.

2. Five-point checklist before signing

• Does the reason fall under Article 34? Match the reason word-for-word with the cited article — no generic reasons like “failure to meet job requirements” without due process;
• Is this a prohibited unilateral termination? Article 37 prohibits employer-initiated termination while the employee is sick, under work-injury treatment, on maternity leave…;
• Is the notice period sufficient? Correctly count 45/30/3 working days under Article 36.2 from the notice date;
• Are allowances calculated correctly? Distinguish severance (Article 46) from job-loss allowance (Article 47); determine the correct qualifying period (excluding UI-covered periods);
• Does the signatory have authority? The legal representative or a person validly authorized in writing.

3. Distinguishing termination notice, termination decision and mutual agreement

• Unilateral termination notice: expresses one party unilateral will, must respect the notice period; the recipient need not “agree”;
• Termination decision: the employer internal administrative document, serving as the basis for follow-up procedures (payment, SI book finalization, handover);
• Mutual termination agreement: both parties agree to terminate (one of the Article 34 cases) — the lowest dispute risk, but requires a clear written agreement on entitlements.

4. Sanctions for unlawful unilateral termination

Under Articles 40–41 of the Labor Code, an employer unlawfully terminating a labor contract must: reinstate the employee, pay salaries and SI/HI/UI contributions for the period out of work, plus at least 2 months salary — with additional compensation if the employee declines reinstatement. For administrative sanctions: Decree 283/2026/ND-CP applies (replacing Decree 12/2022/ND-CP from 10 September 2026) — do not cite Decree 12/2022 as current authority.

Frequently asked questions

Is there a mandatory state template for termination decisions?
No. The law provides no single mandatory template; employers build their own following the nine contents above.

What is the employer notice period for unilateral termination?
At least 45 days (indefinite-term contracts), 30 days (definite-term contracts), 3 working days (special cases) — Article 36.2.

Severance vs job-loss allowance?
Severance (Article 46): half a month salary/year, excluding UI-covered periods. Job-loss allowance (Article 47): one month salary/year, minimum two months.

Payment deadline after termination?
Within 7 working days; no more than 30 days in special cases (Article 48).

Sources

• Labor Code 45/2019/QH14 (effective 1 January 2021): Article 34 (termination cases), Articles 35–36 (notice), Article 37 (prohibited unilateral termination), Articles 40–41 (unlawful termination), Articles 42–44, 125 (discipline, mass layoffs), Articles 46–48 (allowances, payment, SI book);
• Decree 145/2020/ND-CP: guiding the Labor Code;
• Decree 283/2026/ND-CP (replacing Decree 12/2022/ND-CP from 10 September 2026): administrative sanctions in labor.

Does your company need its labor-contract termination process reviewed or a labor dispute handled? Contact FLAT Law Firm for advice.

This article was prepared by the FLAW AI Legal Council and has been reviewed by the QA Council before submission to the owner for approval. General information as of 14 October 2026, not legal advice for any specific case, and not the opinion of a licensed human lawyer. Disciplinary dismissal or mass layoffs require separate procedures (Articles 42–44, 125, Labor Code).