How to announce the termination of the labor contract due to restructuring

Lawyer Nguyen Thi Thuy, YouMe Law Firm LLC, replied:

Article 42 of the 2019 Labor Code stipulates the obligations of employers in case of changes in structure, technology or for economic reasons as follows:

1. The following cases are considered changes in structure and technology:

a) Changes in organizational structure, reorganization of labor;

b) Changes in processes, technology, machinery, production and business equipment associated with the production and business sectors and occupations of employers;

c) Changes in products or product structure.

2. The following cases are considered for economic reasons:

a) Economic crisis or recession;

b) Implementing State policies and laws when restructuring the economy or implementing international commitments.

3. In case of changes in structure and technology that affect the employment of many workers, employers must develop and implement a labor use plan according to the provisions of Article 44 of this Code; in case of having a new workplace, priority will be given to retraining workers to continue using.

4. In case many employees are at risk of losing their jobs or having to quit for economic reasons, the employer must develop and implement a labor employment plan according to the provisions of Article 44 of this Code.

5. In case the employer cannot solve the problem and has to let the employee quit, the employer must pay unemployment benefits according to the provisions of Article 47 of this Code.

6. The resignation of the employee in accordance with this Article is only conducted after exchanging opinions with the representative organization of the Labor at the grassroots level for the place where the representative organization is at the grassroots level where the employee is a member and notifying 30 days in advance to the provincial People's Committee and to the workers.

Thus, in case of termination of the labor contract due to change in organizational structure, the employer must notify the employee 30 days in advance according to the above regulations.