Wrongful Termination Compensation In Vietnam

Wrongful termination in Vietnam costs employers far more than most expect, because the amount is fixed by statute and keeps growing for as long as the dispute runs. Under Article 41 of the Labour Code 2019, an employer that ends a contract unlawfully must pay the employee’s wages and insurance for the whole period they were out of work, pay a minimum amount of compensation, and in most cases take them back.

Vietnamese law calls this unlawful unilateral termination (sometimes described in English as unfair dismissal), and it is not reserved for employers acting in bad faith. Many of the cases that reach court involve employers who had a genuine reason to end the relationship but skipped a step the law requires, and they face exactly the same bill.