Legal enforcement of compensation for damages arising from employer-initiated unilateral termination of employment contracts and recommendations

A labor contract constitutes the fundamental legal basis for establishing employment relationships between employees and employers. Compliance with contractual obligations not only safeguards the legitimate rights and interests of both parties but also fosters stable labor relations and supports sustainable business development. In practice, however, unilateral termination of labor contracts remains relatively common, giving rise to disputes and necessitating compensation mechanisms, particularly from the employer’s perspective during contract performance. Vietnamese labor law, notably the 2019 Labor Code, provides specific provisions governing compensation liabilities for both parties in cases of unilateral termination. Nevertheless, practical implementation has revealed a number of shortcomings, highlighting gaps between legal provisions and enforcement in addressing the complexities of modern labor relations.