If you do not renew the contract, do you need to notify the employee?
1. Why not re-sign the labor contract?
Pursuant to the provisions of Clause 1, Article 34 of the 2019 Labor Code, when the labor contract expires, if both parties do not re-sign, the labor contract will automatically terminate. Because the parties are establishing a fixed-term labor contract. Signing or not signing a new labor contract is the right, ensuring the implementation needs of both parties. When one party has a need while the other party no longer needs it, the contract will not be renewed.
Therefore, the employer's decision not to re-sign the labor contract does not violate the law. They have completed the contract and agreement that was signed and terminated before, and the law does not require stating the reason why the labor contract is not renewed.
In addition, this demand can also be raised from the employees' side. If they see that their benefits are not renegotiated, they do not want to continue working for the company because there is a new, more suitable direction.
According to the law, failure to renew the contract after the contract expires is understood as failure to re-sign the contract. The announcements from both sides have different meanings. However, these notices more often come from the employer. Because they consider the employee's ability, capacity and suitability to decide whether to continue the contract or not.
Not renewing a labor contract after the previously signed labor contract expires is definitely not good news for employees. Therefore, they must quickly grasp information and proactively protect their rights. Including time to find a suitable job. But the employer must have some reason for this decision. While their business is running, they still need to hire employees for a variety of jobs. In fact it could be for the following reasons:
Some reasons why companies can convince employees not to re-sign labor contracts are:
+ Employees work ineffectively.
+ Poor sense of discipline, not getting along with colleagues.
+ Health is not guaranteed,...
These are grounds for businesses to only hire workers until the labor contract expires. And they have no need to continue employing workers in their businesses. They can look for others to work more efficiently, increasing the overall quality of the business.
These reasons help businesses believe that if employees continue to work, it will not be good for the company. They consider to make appropriate choices, looking for the most effective and quality workers.
2. If I do not re-sign the contract, do I need to notify the employee?
Pursuant to the provisions of Clause 1, Article 45 of the 2019 Labor Code, there are regulations on notice of termination of labor contracts as follows:
- The employer must notify the employee in writing of the termination of the labor contract when the labor contract terminates according to the provisions of this Code, except for the cases specified in Clauses 4 and 5. , 6, 7 and 8, Article 34 of this Code.
- In case the employer who is not an individual terminates operations, the time of termination of the labor contract is calculated from the time of notice of termination of operations.
In case the employer is not an individual and is notified by the specialized business registration agency under the Provincial People's Committee that it does not have a legal representative or person authorized to exercise rights and obligations, of the legal representative according to the provisions of Clause 7, Article 34 of this Code, the time of termination of the labor contract is calculated from the date of notification.
This regulation defines the employer's responsibility to notify the employee in writing when not renewing the contract, however there is no regulation requiring the company to notify the employee in advance for how long. day.
Previously, according to the old regulations in Clause 1, Article 47 Labor Code 2012There are regulations on the employer's responsibilities when terminating a labor contract as follows:
- At least 15 days before the expiration date of a fixed-term labor contract, the employer must notify the employee in writing of the time to terminate the labor contract...
It can be seen that, according to the old regulations, the employer must notify the employee in writing when not renewing the contract within 15 days before the contract expires.
Thus, at the present time, the employer is still responsible for notifying the employee in writing about the expiration of the contract, whether to continue renewing it or not, but there is no need to guarantee the number of days of notice. before.
Therefore, in case the company terminates the labor contract due to its expiration (according to Clause 1, Article 34 of the 2019 Labor Code), it is legal and whether to re-sign or not depends entirely on the will of both parties, so If you do not re-sign, you will not violate the law.
3. Responsibility to notify when not renewing the contract
The labor relationship between employee and employer is determined by contract. This relationship also ends when the employment contract ends and the parties do not need to continue the contract. This is the result of the contract and the contract not being renewed or signed. From then on, the contract between the parties is no longer valid. At the end of the labor relationship, if either the employer or the employee does not want to renew the contract, the labor contract between the employee and the employer will terminate. Do the parties express their needs, whether they want to continue working or want to continue hiring workers?
However, the parties must express their needs to the other party. Because they need to prepare and proactively look for alternative jobs or resources. Therefore, the law stipulates that the company's obligation is to notify the employee that the contract will not be renewed.
Currently, there is no regulation requiring companies to notify employees in writing in advance for how many days. The law also does not stipulate or require uniform use of a notification form. Therefore, on the day the contract expires, the user's notice is still considered valid. Just make sure to convey the content and basic form of the notice.
Note: The company should not notify too early, it will cause psychological disturbance and confusion for workers. From there, it can affect psychology and quality of work performance. When delivering notices, Human Resources staff also need to explain and motivate employees. This helps them quickly find new jobs.
When terminating the contract, the regimes and benefits that the employee is entitled to must be guaranteed according to regulations. In addition, if possible, employers should support employees with an additional amount of money. It can be financial support to help workers feel comfortable and have time to find a suitable job in the future.