Question 155: Do foreign Employees under hospital treatment affect termination of LCs due to their expiry?

LCs will be terminated due to their expiry except for the case of Employees as part-time trade union officials still serving their trade union tenure. In such case, signed LCs must be extended until end of their tenure[1]. However foreign Employees who are not entitled to join Vietnamese trade unions will not fall into this exception.

Where Employees are sick, encounter labour accidents or suffer occupational diseases, and are being treated or convalesced under the decision of a competent medical treatment and examination establishment, Employers must not be entitled to unilaterally terminate LCs[2]. Nonetheless, this is the case of LC expiry rather than unilateral termination of LC as regulated in Article 38 of the Labor Code. Therefore the LC expiry does not fall into one of the said prohibitions against the said unilateral termination of LCs.

Moreover, there have been not any related legal guiding documents on the extension of LCs upon their expiry where Vietnamese Employees or foreign Employees are being under hospital treatment. Besides, in response to this issue, the MOLISA and the DOLISA of Ha Noi City comment that LCs will be terminated on their expiry date and will not be forced to extend its term due to the fact that Employees are sick, encounter labour accidents or suffer occupational diseases in accordance with the Vietnamese law. Extensions of LCs will absolutely depend on any agreement of the signing parties. In conclusion, foreign Employees under hospital treatment will not affect the termination of their LCs due to their expiry.

[1]Article 36.1 Labor Code

[2]Article 39.1 Labor Code