What is the difference between suspending an employment contract and terminating it?

January 5, 2023 11:28

Question: My company has just suspended some workers' labor contracts due to a decrease in orders. So how is contract suspension different from contract cancellation or contract termination?

Does the law stipulate a maximum period of time for which a company can suspend a contract with an employee? During the suspension period, does the company have any obligations to the employee?

TRAN VAN HUNG(Cam Giang)

Reply:According to the law, contract suspension is completely different from contract cancellation or termination.

Specifically, when the labor contract is terminated, the labor relationship between the parties will also cease to exist. The parties do not have to perform the rights and obligations in the labor relationship.

When a contract is suspended, the performance of committed labor rights and obligations is only suspended for a certain period of time, not completely terminated.

Cases that are allowed to suspend contracts, as stipulated in Clause 1, Article 30 of the Labor Code, include employees performing military service, being detained, imprisoned, pregnant female employees... and some other cases.

Currently, the law does not stipulate the maximum time that a company can postpone a contract, but this depends on the agreement of both parties.

Also according to the provisions of Article 30 of the Labor Code, during the period of suspension of the labor contract, the employee shall not receive salary and rights and benefits agreed upon in the labor contract, unless otherwise agreed by both parties or otherwise provided by law.

When the suspension period of the labor contract expires, the reinstatement of the employee is regulated in Article 31 of the Labor Code. Specifically, within 15 days from the date of expiration of the suspension period of the labor contract, the employee must be present at the workplace. The employer must reinstate the employee to work under the signed labor contract if the contract is still valid (except in cases where the two parties have an agreement or the law provides otherwise).

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What is the difference between suspending an employment contract and terminating it?