Law on termination of employment contracts due to structural and technological changes under the impact of artificial intelligence

The rapid adoption of artificial intelligence in Vietnam is creating new legal issues concerning termination of employment contracts due to structural and technological changes, particularly algorithmic dismissal. This study analyzes the theoretical foundations, current regulations, and practical implementation of the 2019 Labor Code under the impact of AI. The findings indicate that the existing framework does not adequately cover intangible technologies, lacks requirements for algorithmic transparency and accountability, and provides only limited mechanisms for meaningful retraining. Employees also face difficulties accessing data and challenging automated employment decisions. The study recommends expanding the legal meaning of technological change, establishing transparency and human-oversight obligations, strengthening employers’ burden of proof, improving retraining requirements, and introducing safeguards against algorithmic discrimination. These measures seek to balance managerial autonomy with employee protection in the digital era.