Agreement on future termination of labor contract
In the context of an increasingly dynamic labor market, employers and employees continuously seek flexible solutions in their employment relationships. In many cases, the parties wish to anticipate and enter into an agreement on the termination of the labor contract at the time of concluding the labor contract (“Labor Contract”). However, the question arises as to whether such an agreement is lawful under the current labor regulations. 1. Legal basis The Labor Code 2019 (hereinafter referred to as the “Labor Code”) provides detailed regulations on cases of termination of labor contracts in Chapter III, Section 3, from Article 34 to Article 38. According to Article 34 of the Labor Code, one of the grounds for terminating a labor contract is that “ both parties agree to terminate the labor contract ”. This indicates that Vietnamese labor law recognizes agreement as a legitimate method for terminating an employment relationship. Moreover, the law does not prohi...