Dismissal and unilateral termination of labor contract are both ways for company to terminate the labor contract with employee. However, the nature, implementation method and applicable law provisions are different, specifically as follows:
About the nature
- Dismissal: is one of disciplinary measures and also the most severe disciplinary measure.
- Unilateral termination of labor contract: is a way the company terminates the labor contract without the agreement with the employee for a number of statutory reasons, this is not a disciplinary measure.
About the reason
- Dismissal: the employee seriously violates the internal labor regulations of the company, or repeat the violations many times, or commit the violations specified in Article 125 Labor Code 2019.
- Unilateral termination of labor contract: the employee is in one of the cases specified in Article 36 Labor Code 2019, such as repeatedly fails to perform his/her work according to the criteria for assessment of employees’ fulfillment of duties; in the event of a natural disaster, fire, major epidemic; or not present at the workplace after the time limit of the temporary suspension of the labor contract is expired, etc.
About the procedure
- Dismissal: the company must prove that the employee has a violation, conduct a labor discipline meeting, representative of internal trade union or internal employee organization and employee attend the disciplinary meeting, and the dismissal decision must be issued within the time limit of 06 or 12 months.
- Unilateral termination of labor contract: the company must always comply with the advance notice period.
