If there is no legitimate reason to fire an employee to avoid rewards, in addition to being fined, the enterprise will have to compensate the employee.
1. In what cases is an enterprise allowed to fire an employee?
Dismissal is another way of calling an enterprise unilaterally terminating a labor contract with an employee. Pursuant to Article 36 of the 2019 Labor Code, an enterprise has the right to unilaterally terminate a labor contract in the following cases:
– Employees often do not complete the work according to the contract.
– The employee has been treated for an illness or accident but has not yet recovered his working capacity.
– Due to natural disasters, fires, dangerous epidemics, enemy sabotage or relocation, downsizing production and business as required, but having tried all remedies but still having to reduce jobs.
– The employee is not present at the workplace after 15 days after the contract suspension period.
– Employees reach retirement age, unless otherwise agreed.
– The employee voluntarily quits work from 05 consecutive working days without a valid reason.
– Employees provide untruthful information when entering into contracts, affecting recruitment.
If the enterprise arbitrarily dismisses the employee without the reasons mentioned above, it will be considered as illegal unilaterally terminating the contract.
2. Fired employees to avoid Tet bonuses, how are businesses punished?
If there is no legitimate reason to fire an employee to avoid bonuses, the enterprise will be forced to accept the employee back to work.
At that time, the enterprise also has to compensate for the loss of employees according to the provisions of Article 41 of the Labor Code 2019 including:
– Pay salary, pay social insurance, health insurance, unemployment insurance in the days when employees are not allowed to work.
– Pay an amount corresponding to salary in unannounced days (if the notice period is violated).
– Pay an additional amount of at least 02 months’ salary according to the labor contract.
Especially in the case of arbitrarily dismissing an employee with an illegal dismissal decision so as not to have a Tet bonus, the business owner may also be prosecuted for the crime of illegal dismissal under Article 162 of the Ministry of Industry and Trade. Criminal Law 2015, amendments and supplements in 2017).
Accordingly, if an employee is illegally dismissed for profit or other personal motives, the employer will be subject to a fine of between VND 10 and 100 million, a non-custodial reform for up to one year or a fine imprisonment from 3 months to 1 year.