Do workers who have not yet terminated their labor contracts receive severance pay?

Not all employees are fully aware of the provisions of the law to ensure their rights. For example, allowances (severance pay, job loss, etc.) that employers are responsible for paying them.

1. Nine cases received severance pay

According to Clause 1, Article 48 of the 2012 Labor Code, there are nine cases where employees have the right to receive the severance pay as follows:

– The labor contract expires;

– Completed work under the labor contract;

– The two parties agree to terminate the labor contract;

– The employee is imprisoned, executed or prohibited from doing the job stated in the labor contract according to the valid court judgment or decision;

– The employee dies, is declared by the court to have lost civil act capacity, missing or dead;

– The employer is an individual who dies, is reported by the court to lose public act capacity, missing or dead; The employer is not an individual who has terminated his / her activity;

– The employee unilaterally terminates the labor contract;

– The employer unilaterally terminates the labor contract;

– The employer dismisses the employee due to restructuring, technology upgrades, merger, or separation of the enterprise.
However, to receive this allowance, employees must work for employers for at least 12 months.

2. Can workers who have not terminated contracts received severance pay?

The severance allowance is a “reward” of the employer for employees after a period of employment.

According to Clause 1, Article 48 of the Labor Code 2012, clearly state: When the employment contract terminates under Clauses 1, 2, 3, 5, 6, 7, 9 and 10, Article 36 of this Code (cases already stated above). And these contracts have actual working time more than the time participating in unemployment insurance. At that time, the employer is responsible for paying severance pay to the employee who has worked regularly from a full 12 months or more. For each year of employment, they will receive a half-month salary allowance.

It means that, only when the labor contract ends (the labor relationship between the employee and the employer ends), the employee can receive severance pay.

Any act of agreeing to receive benefits while continuing to work or paying in advance for severance allowances to force employees to resign is considered unlawful.