Does the labor contract end when the company is suspended?

Does the labor contract end when the company is suspended?

A reader has email address such as tuanhungx @ xx asked: because of business’s difficulty, my company has to suspend business. During the business suspension, did the labor contract between the company and the employee terminate?

Lawyer Pham Thi Hang, YouMe Law Firm answers:

Article 36 of the Labor Code 2012 provides for the following cases of labor contracts:

1. The labor contract expires, except the case specified in Clause 6, Article 192 of this Code.

2. The work stated in the labor contract has been completed.

3. Both parties agree to terminate the labor contract.

4. The employee fully meets the requirements on the time of payment of social insurance premiums and the age of retirement stated in Article 187 of this Code.

5. The employee is sentenced to imprisonment or death or is prohibited from performing the job stated in the labor contract under a legally effective judgment or ruling of a court.

6. The employee dies or is declared by a court to have lost civil act capacity, be missing or dead.

7. The individual employer dies or is declared by a court to have lost civil act capacity, be missing or dead; the institutional employer terminates operation.

8. The employee is dismissed under Clause 3, Article 125 of this Code.

9. The employee unilaterally terminates the labor contract under Article 37 of this Code.

10. The employer unilaterally terminates the labor contract under Article 38 of this Code; the employer lays off the employee due to structural or technological changes or because of economic reasons, merger, consolidation or division of the enterprise or cooperative.

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