A practical scenario: a group cuts the same role in Vietnam and Hungary. In Hungary, it sends 30 days’ notice and pays seniority-based severance — done. In Vietnam, it does the same — then gets sued: no valid unilateral-termination ground, no union consultation — forced to reinstate and compensate. One HR decision, two different procedures — copy-paste invites lawsuits.
1. Vietnam: strict grounds + procedures
Labor Code 2019 (45/2019/QH14) lists cases for unilateral termination by employers (Article 36) — requiring statutory grounds and proper advance notice (45/30/3 days by contract type). Disciplinary dismissal (Article 125) applies only to serious misconduct (theft, secret disclosure…) with a full disciplinary process: union-attended hearing, employee’s right to defend. Missing one procedural step — even with valid grounds — can mean unlawful dismissal: reinstatement + compensation.
2. Hungary: notice + seniority-based severance
Hungary’s Labor Code (Act I of 2012): employers may terminate with notice — the period growing with seniority — and must pay severance also scaled to seniority. Termination needs clear, genuine reasons (capacity, conduct, or business operations) — pretextual reasons fail in court. Special protection covers vulnerable groups (pregnant women, maternity leave…). Unlike Vietnam: lighter union role in procedure, but Hungarian courts scrutinize termination reasons closely.
3. Comparing for investors
- Grounds: both need just cause — Vietnam from statutory lists; Hungary requiring clear, genuine reasons.
- Notice: Vietnam 45/30/3 days; Hungary’s notice growing with seniority.
- Severance: Vietnam (statutory severance/job-loss allowances); Hungary (seniority-based severance pay).
- Unions: Vietnam mandates consultation in many cases; Hungary lighter, but courts strict on reasons.
- Unlawful dismissal: both risk reinstatement + compensation — costly in money and reputation.
Dismissal: follow each country’s law, never copy-paste
This article is general information. Each case needs individual assessment. FLAT Law Firm helps companies handle labor relations in Vietnam. Contact us for advice.
This article is general information only and does not replace legal advice for any specific case. Regulations may change; please check the current texts.
Frequently asked questions
1. What does unilateral termination need in Vietnam?
Article 36 Labor Code 2019 grounds + proper notice (45/30/3 days by contract type).
2. What about disciplinary dismissal in Vietnam?
Only for serious misconduct (Article 125) with full process: union-attended hearing, right to defend.
3. What does Hungary require?
Advance notice (seniority-scaled) + clear genuine reasons + seniority-based severance.
4. Who gets special protection in Hungary?
Pregnant women, those on maternity leave, and other vulnerable groups.
5. What are the consequences of unlawful dismissal?
In both countries: possible reinstatement + compensation — costly financially and reputationally.
This article has been quality-reviewed by the FLAW AI Legal Council