Question 118: As prescribed by law, Employees will be paid for the unused annual leave days for the reasons of resignation, loss of jobs or other reasons. What are the other reasons mentioned in this regulation? If Employees are disciplined in the form of dismissal, will they be paid for the unused annual leave days?

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The current labour law has not specified the other reasons for which Employees are paid for the unused annual leave days other than the reasons of resignation or loss of jobs[1]. By reference to the former regulations guiding implementation of the 1994 Labor Code on working hours and break time[2], Employees will be paid for the unused annual leave days in the following cases:

  • Suspending LCs to perform military services; and
  • Expiry of LCs; unilateral termination of LCs; loss of jobs due to changes in the technological structure; dismissal; retirement; death.

Therefore, according to the former regulations, “the other reasons” here may be understood as the following cases: suspension of LCs to perform military services; expiry of LCs; unilateral termination of LCs; dismissal; retirement.

In practice, for the matters which the 2012 Labor Code does not provides for differently from the 1994 Labor Code (including amendments and supplements), the competent labour management agencies tend to refer to the explanation of the former legal documents while guiding documents on these matters are not yet provided.

Therefore, during the time when legal instruments have not provided for “the other reasons” for which Employers must pay Employees for the unused annual leave days, Employers should refer to the explanation of the former regulations to pay salaries for the Employees’ unused annual leave days in the circumstances mentioned above. This means even in the case of dismissal, Employers must also pay Employees for their unused annual leave days.


[1]Article 114.1 Labor Code and Article 26.3(a) Decree 05/2015/NĐ-CP dated 12/01/2015

[2]Article 10 Decree 195-CP dated 31/12/1994