UncategorizedFebruary 13, 2026
Guide to Labor Discipline and Contract Termination in Accordance with Legal Procedures

Guide to Labor Discipline and Contract Termination in Accordance with Legal Procedures

In human resource management, disciplining or terminating an employee’s contract is a difficult decision fraught with risks. Many businesses, despite having legitimate reasons, still lose in Court simply due to errors in the implementation process. A small procedural mistake can lead to compensation amounting to hundreds of millions of VND, along with the obligation to reinstate the employee.

To protect the organization, businesses must master the regulations on guiding and supporting labor discipline handling. All acts of disciplinary violation must be clearly stipulated in the Labor Regulations registered with the management authority. Without a basis from these regulations, disciplinary actions will be considered unlawful from the very first step, handled with Kindness and strict adherence to the law.

An “Air-Tight” Labor Discipline Procedure

The disciplinary process cannot be carried out arbitrarily or hastily. The first step is to record the violation and collect objective evidence. The business must organize a disciplinary meeting with the participation of the grassroots employee representative organization. Inviting the employee and relevant parties must be done in writing with prior notice according to the statutory time limit.

During the meeting, the employee’s right to self-defense or to have a lawyer defend them must be absolutely respected. After the meeting, the minutes must be signed by the parties, and the disciplinary decision must be issued within the prescribed statute of limitations. Regularly reviewing and assessing Labor Regulations and Collective Labor Agreements helps businesses ensure these steps are always aligned with the latest changes in the Labor Code, practiced with Kindness toward all members.

Terminating Labor Contracts: When is it Lawful?

Termination can result from an agreement or unilaterally from the business side when an employee commits a serious violation. However, businesses need to clearly distinguish between “dismissal” (the highest form of discipline) and “unilateral termination” due to the employee’s failure to complete tasks. Each case requires entirely different evidence conditions and notice periods.

To ensure safety, businesses should use services for consulting and drafting Labor Contracts that include specific clauses on work evaluation criteria. This creates a solid legal foundation when contract termination is necessary due to poor performance. A lack of KPIs or a transparent evaluation process will make it very difficult for the business to “win” when a dispute breaks out.

The Role of Lawyers in HR Management

The presence of a lawyer during the disciplinary process ensures objectivity and legality. We support businesses from drafting meeting notices and guiding dialogue methods to issuing the final decision. This meticulous preparation minimizes the possibility of employees filing complaints or lawsuits. We approach these sensitive matters with Kindness to maintain corporate harmony.

If a dispute has already arisen, we will represent the business in handling labor disputes at mediation agencies or the Court. With extensive litigation experience, our lawyers will help protect the business’s reputation and minimize financial loss. We prioritize negotiation solutions to end the case as peacefully as possible for both parties.

Important Notes for Foreign Labor

For international personnel, contract termination also involves procedures for revoking Work Permits and Temporary Residence Cards. Businesses need to consult and perform procedures for foreign workers synchronously to avoid violating regulations on foreign national management in Vietnam. Failure to report promptly when a foreign employee resigns can lead to unnecessary administrative fines.

In conclusion, labor discipline and contract termination are complex legal technical processes. Businesses should not subjectively act on emotion or old habits. Build a professional, law-abiding HR management process to establish long-term trust and stability for the organization. Investing in legal HR consulting is an investment in the safety of your business, performed with Kindness and expertise.

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