Guide · Termination
Termination and severance in Vietnam.
There is no at-will dismissal in Vietnam. The lawful ways a job ends, the notice each side gives, what severance is owed and when final pay is due.
Updated 22 October 2026 · General information, not legal or tax advice
Short answer
How do you terminate an employee in Vietnam?
There is no at-will dismissal in Vietnam. A labour contract ends by expiry, mutual agreement, the employee’s resignation, disciplinary dismissal, redundancy, or the employer’s unilateral termination on one of the grounds listed in Article 36 of the Labour Code, such as repeated failure to meet registered work criteria. The employer must give at least 45 days’ notice on an indefinite-term contract, 30 days on a contract of 12 to 36 months and 3 working days on a contract under 12 months, and may not terminate during protected periods such as pregnancy or maternity leave. Severance is half a month’s wage per year of service, excluding years covered by unemployment insurance, and final pay is due within 14 working days.
Notice
Notice periods.
| Contract | Notice |
|---|---|
| Indefinite term | 45 days |
| Fixed term of 12 to 36 months | 30 days |
| Fixed term under 12 months | 3 working days |
Employees who resign give the same periods of notice. Some special jobs carry longer periods.
Protected employees
When an employer cannot terminate.
- While the employee is on certified sick leave or treatment.
- During annual leave, personal leave or other agreed leave.
- While the employee is pregnant, on maternity leave or raising a child under 12 months.
Severance
Severance, job-loss allowance and final pay.
| Severance allowance | Half a month’s wage per year of service, for employees with at least 12 months’ service; years covered by unemployment insurance are excluded |
|---|---|
| Job-loss allowance | When a role disappears through restructuring or economic reasons: one month’s wage per year of service, at least two months |
| Final settlement | Salary, untaken leave and allowances within 14 working days, extendable to 30 in defined cases |
| Tax | Statutory severance is not subject to personal income tax |
Because unemployment insurance has been compulsory since 2009, severance for most recent hires is small or nil. Through an EOR, Nhân Kiệt confirms the lawful route, serves notice, runs the final payroll and closes the employee’s insurance and tax records.
Sources: Labour Code 2019, Articles 34–48 and 124–125; Decree 145/2020/ND-CP, Article 8.
Questions
Termination in Vietnam: FAQ
Can an employer dismiss an employee at will in Vietnam?
No. Termination needs a lawful ground under the Labour Code, the correct notice and, for discipline, a documented process.
How much severance is paid in Vietnam?
Half a month’s wage per year of service for employees with at least 12 months’ service, excluding years covered by unemployment insurance.
How quickly must final pay be made?
Within 14 working days of the end of employment, extendable to 30 in defined cases.
How much notice must an employee give to resign?
45 days on an indefinite-term contract, 30 days on a 12- to 36-month contract and 3 working days on a contract under 12 months.
Hiring in Vietnam? We handle all of this as your employer.
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