On 21 March 2024, the Ministry of Labor and Vocational Training issued an Instruction on Benefits Received after Termination of Employment Contract (“Notification”).

According to the Notification, if there is termination of Fixed Duration Contract (“FDC”), workers-employees are entitled to (1) last wage, (2) payment in lieu of remaining annual leave, (3) severance payment, and (4) damage.

However, in case of no valid reason for the termination, workers-employees under Unfixed Duration Contract (“UDC”) shall receive (1) last wage, (2) payment in lieu of remaining annual leave, (3) payment in lieu of prior notice, (4) seniority payment, and (5) damage.

In the event that enterprises are bankrupt, workers-employees under either FDC or UDC shall not receive any damages.

Termination of FDC or UDC by employers due to workers-employees’ serious misconduct entitles the workers-employees to only (1) last wage and (2) payment in lieu of remaining annual leave.

For additional information, please contact our legal expert Antoine FONTAINE.

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