Within the framework of the online dialogue and exchange program, policy communication, and dissemination of new points on labor law, social insurance, and trade union activities in 2025, workers ask: What rights are workers guaranteed for enterprises in the process of merging and changing their structure? If the company unilaterally terminates the labor contract, what is the compensation regime?
Lawyer Nguyen Van Ha, Deputy General Secretary of the Vietnam Bar Federation, Deputy Head of the Hanoi Bar Association, said: According to the provisions of the 2019 Labor Code, Article 43 stipulates the obligations of employers, when an enterprise is separated, merged, consolidated, sold, leased or converted into an enterprise, or transferred ownership rights and use rights of assets of an enterprise, the enterprise must develop a labor use plan according to the provisions of the Labor Code. When restructuring the operations of enterprises, a plan must be developed and submitted to the competent authority for approval.
On that basis, employees who are forced to quit their jobs under that restructuring plan will receive unemployment benefits according to the provisions of Article 47 of the Labor Code.
The responsibility of the enterprise when having to terminate the labor contract when restructuring, all rights and obligations of that employee or enterprise must be implemented within 30 days from the date of approval of the plan.
In addition, during the restructuring period, wages, social insurance, health insurance, unemployment insurance, severance pay and other benefits of employees must be implemented and resolved according to the provisions of the collective labor agreement or labor contract signed by the parties, and must be paid in priority. On that basis, the rights of workers will be implemented.
In the process of restructuring enterprises, employees must also fully fulfill their responsibilities according to regulations. Specifically, employees need to complete procedures related to confirming the payment period of social insurance and unemployment insurance and returning assets and tools previously assigned by the enterprise (if any).
If the enterprise still retains the original documents and records of the employee, the employer must be responsible for fully handing over them. This is to ensure the rights of the parties in cases where there is a handover of documents, papers or tools and means for work between the employer and the employee. The parties must return the money clearly and fully so as not to arise a dispute.
In addition, during the working process at the enterprise, the employer must provide copies of documents related to the employee's work process when they have a need. All costs related to the making and provision of this dossier are paid by the enterprise to ensure the legitimate rights of employees.
In cases where enterprises have to restructure according to the provisions of Article 43 of the Labor Code, the regimes and rights of employees will be resolved in accordance with the provisions of current law.
