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5 Common Concerns About Labor Contract Suspension
In the context of globalization, more and more foreign workers come to Vietnam to work, contributing positively to the development of businesses as well as the national economy. However, during their time of employment, like Vietnamese workers, foreign employees may also encounter personal circumstances or force majeure events that lead to labor contract suspension—such as health-related issues, family emergencies, changes in immigration policies, or other objective factors.
In the following section, the article will analyze the current legal framework and provide practical guidance so that businesses and foreign workers can handle this issue legally, flexibly and in accordance with Vietnamese law.
What is labor contract suspension?
Suspension of a labor contract is the temporary suspension of the performance of the rights and obligations agreed upon in the labor contract for a certain period of time. This suspension arises from reasons stipulated by law or by mutual consent of both parties. During the suspension period, the labor contract is not canceled but is only temporarily “frozen” pending favorable conditions for continued implementation.
Cases of labor contract suspension
The labor relationship between the employee and the employer is regulated by the labor contract, which clearly states the rights and obligations of both parties. However, in some special cases, for objective reasons or by agreement between the two parties, the law allows the suspension of the labor contract without terminating the labor relationship. There are 8 cases stipulated in the Labor Code 2019:
Perform military service, obligation to participate in the Militia and Self-Defense Forces
When called up for military service or service in the Militia and Self-Defense Forces, employees must temporarily suspend their current jobs to perform their duty to the Fatherland. During this time, employees have the right to suspend their employment contracts without being considered as having terminated their contracts. Protecting their positions and related rights after completing their duties is one of the highlights of the Labor Code to help employees feel secure in fulfilling their civic responsibilities.
Being detained or imprisoned according to the provisions of the law on criminal procedure
In cases where employees are detained or imprisoned to serve the investigation or trial process according to the provisions of law, they also have the right to suspend the performance of their labor contracts. This provision is intended to ensure the rights of employees in cases where they cannot continue working for objective reasons, and at the same time, to avoid employers unilaterally terminating contracts inappropriately.
Comply with the decision to send to a reform school, drug rehabilitation facility or compulsory education facility
Employees who are subject to administrative measures such as being sent to a reformatory school, compulsory drug rehabilitation facility or compulsory education facility are also eligible for temporary suspension of their employment contracts. During this period, the rights and obligations of the parties will be suspended but the contract will not be invalidated.
Pregnant female workers are at risk of adversely affecting the fetus
For pregnant female employees, if there is confirmation from a competent medical examination and treatment facility that continuing to work may adversely affect the health of the fetus, the employee has the right to request a temporary suspension of the labor contract. This provision demonstrates the humanity in Vietnamese labor law, protecting the health of mother and baby during this important period.
Appointed as state enterprise manager
When an employee is appointed as a business manager at a single-member limited liability company with 100% state capital, they will suspend their employment contract to focus on performing their new duties. This is a special case to ensure that the employee does not have to simultaneously perform multiple conflicting responsibilities.
Exercise the rights and responsibilities of representing state capital in enterprises
Employees authorized to represent the state owner to exercise rights and responsibilities for the state capital portion of the enterprise are also allowed to suspend their labor contracts. This helps them have enough time and resources to perform their assigned roles well.
Exercise the rights and responsibilities of the enterprise regarding the capital invested in other enterprises
Similarly, when authorized to exercise the rights and responsibilities of the enterprise with respect to the capital invested by the enterprise in another enterprise, the employee is also allowed to temporarily suspend the performance of the current labor contract.
Other cases agreed upon by both parties
In addition to the specific cases mentioned above, the labor law also allows the two parties to agree on the temporary suspension of the labor contract. This creates flexibility, suitable for practical situations that the law cannot fully list. For example, employees can temporarily suspend the contract for reasons of study, family care or other personal reasons, as long as the employer agrees.
Regulations on temporary suspension of labor contracts are not only to protect the rights of employees in cases of force majeure, but also to ensure the harmony of interests between the two parties in the labor relationship. This helps employees feel secure in handling personal matters, while maintaining their job position when returning. For employers, allowing temporary suspension of contracts is also a way to demonstrate social responsibility and compliance with the law, building a fair and transparent working environment.
What is the maximum period of time allowed for labor contract suspension?
Currently, in the current legal regulations, there is no specific limit on the maximum time that a labor contract can be suspended. Instead, the suspension period will depend on each specific case as stipulated in the law or by agreement of both parties.
However, this flexibility also requires the parties to have a clear and transparent agreement on the suspension period, ensuring that rights and obligations are not in conflict after the contract is re-performed. In practice, to avoid disputes, suspension agreements are often made in writing with detailed terms.
Time to return to work after labor contract suspension
After the suspension period ends, the employer is responsible for accepting the employee back to work after the suspension period of the labor contract ends, and must arrange work in accordance with the content of the previously signed labor contract. Ensure the legitimate rights of the employee, avoid the situation where they are unreasonably refused to return to work after the suspension period.
Within 15 days from the date of the suspension period of the labor contract, the employee must be present at the workplace to continue performing the work according to the content agreed in the valid labor contract, ensuring that the employee returns to work proactively and on time, avoiding disruption of the production and business activities of the employer.
However, if the employer cannot arrange work as agreed in the labor contract for objective reasons, the law also allows the two parties to negotiate with each other or has other specific legal provisions. For example, in some cases, the employee and the employer may agree to a change. In this case, the employment contract will need to be amended or supplemented to adjust the new working conditions, or if necessary, the employer and the employee can sign a new employment contract with the contents of the working position, working hours, or other terms related to the employment contract.
Suppose the employee does not return to work within 15 days from the date of the end of the contract suspension period without a valid reason. In that case, the employer has the right to terminate the labor contract unilaterally. In this case, the employer is not obliged to notify the employee in advance of the termination of the contract.
Is there a salary during the labor contract suspension?
During the suspension of the labor contract, the employee will not receive wages as well as other rights and benefits agreed upon in the labor contract. This is a general principle to clearly define the economic rights of the employee during the period of non-work participation. In practice, it can be seen that when the labor contract is suspended, the official labor relationship between the two parties is also suspended. Therefore, the employee’s rights are suspended accordingly.
However, the law still opens up an important exception: if the two parties have another agreement or the law has specific provisions, the employee can still receive wages or other benefits during the suspension of the contract.
Note:
Foreigners working in Vietnam need a Work Permit, so pay attention to the validity of the Work Permit after the contract suspension period.
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