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Learn more about Employment Termination Letter in Vietnam

The Employment Termination Letter serves as a pivotal instrument in this process, formalizing the cessation of the employer-employee relationship. At Themis Partner, we recognize the paramount importance of precision and legality in such matters. Our team of seasoned legal experts has painstakingly curated an Employment Termination Letter template that not only meets the exacting standards of Vietnamese labor laws but also ensures utmost professionalism and clarity. Delivered in an easily editable Word format, our template empowers employers to navigate terminations confidently, safeguarding both legal compliance and organizational integrity. Trust Themis Partner to furnish you with the tools needed to manage HR processes with utmost professionalism and legal prudence.

Table of contents


What is an Employment Termination Letter?

An Employment Termination Letter serves as a formal and legally recognized means of concluding the employment relationship between an employer and an employee. It is a pivotal document that encapsulates the decision to terminate employment, articulating the reasons behind the decision, whether it be due to performance issues, restructuring, or other business-related reasons. Beyond a mere notification, it establishes clarity and transparency, ensuring that both parties understand the circumstances surrounding the termination. By detailing the terms of separation, such as the effective date of termination and any relevant severance packages or benefits, the letter provides a structured framework for the transition out of the organization.

An Employment Termination Letter serves as a vital record in the event of any future disputes or legal proceedings. It documents the employer’s adherence to due process and compliance with relevant employment laws and regulations, thus mitigating potential risks associated with wrongful termination claims. From a practical standpoint, it also serves as a reference point for both the employer and the departing employee, clarifying expectations and facilitating a smooth transition. In essence, an Employment Termination Letter is not just a formality; it is a strategic tool that fosters accountability, professionalism, and fairness in the termination process, ultimately safeguarding the interests of all parties involved.

What is included in an Employment Termination Letter?

Employer Information: Name and address of the employer or company issuing the letter.

Employee Information: Name, job title, department, and any other relevant employment details of the employee being terminated.

Reason for Termination: A clear and concise explanation of the reason(s) for termination, such as poor performance, misconduct, redundancy, or other business-related factors.

Effective Date of Termination: The specific date on which the termination becomes effective. This is crucial for determining final pay, benefits cessation, and other logistical arrangements.

Details of Final Pay and Benefits: Information about the employee’s final paycheck, including any accrued but unused vacation or sick leave, as well as details regarding the continuation or cessation of benefits.

Return of Company Property: Instructions for the return of any company-owned property, such as keys, access cards, laptops, or other equipment.

Non-Disclosure and Non-Compete Obligations: Any post-employment obligations, such as confidentiality agreements or non-compete clauses, that the employee must adhere to after termination.

Severance Package (if applicable): Details regarding any severance pay or benefits offered to the terminated employee, including eligibility criteria and payment terms.

Acknowledgment of Receipt: A section for the employee to acknowledge receipt of the termination letter, confirming that they have received and understood its contents.

Next Steps: Guidance on any next steps the employee needs to take, such as returning signed documents, scheduling exit interviews, or transitioning responsibilities.

How is it different from a resignation letter?

An Employment Termination Letter and a resignation letter serve different purposes and are initiated by different parties in the employment relationship.

1. Employment Termination Letter

An Employment Termination Letter is typically issued by the employer to formally notify an employee of the decision to end their employment. It provides details such as the reason for termination, the effective date of termination, any final pay and benefits, and instructions for returning company property. The Employment Termination Letter is initiated by the employer and serves as a formal record of the termination decision.

2. Employee Resignation Letter

An Employee Resignation Letter is initiated by the employee to inform the employer of their decision to voluntarily resign from their position. It typically includes the employee’s intention to resign, the effective date of resignation, and a brief expression of gratitude for the opportunity to work with the company. A resignation letter serves as formal notice of the employee’s intent to leave the company and is often submitted in advance of the intended last day of work.

How to deliver an Employment Termination Letter in Vietnam?

In Vietnam, delivering an Employment Termination Letter typically involves adhering to certain protocols to ensure legality and professionalism. Here are the steps typically followed:

1. Prepare the Letter:
Draft the Employment Termination Letter, ensuring it includes all necessary details such as the reason for termination, effective date, and any other relevant information.

2. Arrange a Meeting and Present the Letter:
Schedule a meeting with the employee to discuss the termination. This meeting should be conducted in private and with sensitivity to the employee’s feelings. During the meeting, present the Employment Termination Letter to the employee. Hand it to them in person and explain its contents clearly and respectfully.

3. Allow Time for Discussion and Provide Support:
After presenting the letter, allow the employee time to ask questions or seek clarification. Be prepared to address any concerns they may have. Offer support to the employee during this challenging time. This may include assistance with understanding their rights, guidance on next steps, or access to counseling services if needed.

4. Obtain Acknowledgment:
Ask the employee to sign a receipt or acknowledgment of receipt to confirm that they have received the Employment Termination Letter and understand its contents. This helps document the termination process.

5. Follow Up:
Follow up with the employee after the meeting to ensure they have everything they need and to provide any additional support or assistance if required.

By following these steps, employers can deliver Employment Termination Letters in Vietnam in a professional, respectful, and legally compliant manner.

What are the consequences of not issuing an Employment Termination Letter?

The consequences of not issuing an Employment Termination Letter can vary depending on the circumstances and jurisdiction, but they can generally include legal, financial, and operational risks for the employer. Here are some potential consequences:

Legal Risks: Failure to provide a formal notice of termination in writing may lead to allegations of wrongful termination or unfair dismissal by the employee. Without documented evidence of the termination decision and its reasons, the employer may face legal challenges and potential lawsuits.
Breach of Contract: If the termination is in violation of the employment contract or any applicable laws or regulations, the employer may be liable for breaching contractual obligations, leading to legal disputes and financial penalties.
Employee Misunderstanding: Without a clear and formal notification, the terminated employee may misunderstand the reasons for termination or the terms of separation, leading to confusion, resentment, or disputes.
Loss of Documentation: An Employment Termination Letter serves as a critical piece of documentation for the employer, providing a record of the termination decision, the reasons behind it, and any agreed-upon terms. Without this documentation, it may be challenging for the employer to defend against legal claims or disputes.
Operational Disruption: Failing to issue an Employment Termination Letter in a timely manner can lead to operational disruptions, as the terminated employee may continue to have access to company resources, sensitive information, or responsibilities beyond their termination date.
Reputational Damage: Mishandling the termination process, including the failure to provide proper documentation, can damage the employer's reputation among current and potential employees, clients, and business partners.

What are the laws or regulations in Vietnam regarding termination letters?

In Vietnam, termination of employment is governed by various labor laws and regulations, which outline specific requirements and procedures for issuing termination letters. While I can’t provide the most up-to-date information as of my last training data, here are some general principles that are often included in Vietnamese labor laws:

1. Labor Code

The Vietnamese Labor Code is the primary legislation governing labor relations in Vietnam. It typically contains provisions related to termination of employment, including requirements for providing written notice, grounds for termination, and procedures for dismissal.

2. Written Notice

Vietnamese labor laws often require employers to provide written notice of termination to employees. This notice should include the reasons for termination and the effective date of termination.

3. Notice Period

Depending on the circumstances of termination, there may be a required notice period that employers must adhere to before terminating an employee’s contract. This notice period is typically specified in the labor laws or employment contract.

4. Severance Pay

In certain cases, employers may be required to provide severance pay to terminated employees. The amount of severance pay is usually determined based on factors such as length of service and reason for termination.

5. Grounds for Termination

Vietnamese labor laws typically specify permissible grounds for termination, such as poor performance, misconduct, redundancy, or mutual agreement between the employer and employee.

6. Procedural Requirements

Employers are often required to follow specific procedures when terminating an employee, including conducting investigations, providing opportunities for the employee to respond to allegations, and documenting the termination decision.

7. Non-Discrimination

Vietnamese labor laws generally prohibit discrimination in termination decisions based on factors such as race, gender, religion, disability, or union membership.

What is the notice period in an Employment Termination Letter in Vietnam?

In Vietnam, the notice period in an Employment Termination Letter can vary depending on several factors, including the terms of the employment contract, the reason for termination, and applicable labor laws or regulations.
According to the Vietnamese Labor Code, notice periods for termination of employment are typically determined based on the length of service of the employee. For example:

Employees with less than one year of service: Generally, no specific notice period is required for terminating employees with less than one year of service.
Employees with one to less than ten years of service: Employers are typically required to provide at least 30 days' notice prior to terminating employees who have worked for one to less than ten years.
Employees with ten years or more of service: For employees who have worked for ten years or more, employers are typically required to provide at least 45 days' notice prior to termination.

It’s important to note that these are general guidelines, and specific notice periods may vary depending on the circumstances and agreements between the employer and employee. Additionally, certain situations, such as termination for gross misconduct, may not require a notice period.

Can an employee request changes to it in Vietnam?

Yes, in Vietnam, an employee can request changes to an Employment Termination Letter, although the extent to which changes can be made may depend on various factors, including the reason for termination, contractual agreements, and the willingness of the employer to negotiate.

If an employee disagrees with the terms or details outlined in the Employment Termination Letter, they have the right to express their concerns and request modifications. Common reasons for requesting changes to the termination letter may include disputes over the reason for termination, the effective date of termination, or the terms of severance pay or benefits.

Employers are generally encouraged to consider reasonable requests for changes to the Employment Termination Letter and engage in good-faith discussions with the employee to address any concerns or disputes. However, employers are not obligated to make changes that would compromise their legal obligations or violate applicable labor laws or regulations.

Ultimately, if the employer and employee are unable to reach an agreement on changes to the termination letter, the matter may need to be resolved through legal channels, such as mediation or arbitration, or by seeking guidance from legal professionals familiar with Vietnamese labor laws and regulations.

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