Repayment of training costs when an employee unlawfully terminates an employment contract unilaterally: Recommendations for legal reform

The obligation to repay training costs protects employers’ investments in employee training, professional development, and skills enhancement. Vietnam’s 2019 Labor Code recognizes this obligation under Article 40 and regulates training agreements and recoverable costs under Article 62. However, the relationship between these provisions remains unclear, resulting in inconsistent interpretations of the legal basis for repayment, the role of training agreements, the scope of recoverable expenses, and the relationship between repayment and compensation for unlawful unilateral termination. This study analyzes these shortcomings and argues that repayment should primarily arise from a breach of a valid training commitment rather than automatically from unlawful contract termination. It proposes clarifying the relationship between Articles 40 and 62, defining recoverable costs, and establishing proportional repayment rules to ensure transparency, consistency, and a fair balance between employers and employees.