Show Me The Money: How Severance Pay Works in Vietnam (With a Real Court Case)

Etymology Corner 🔍

The English term "severance" comes from the Old French word "sevrer," meaning "to separate" or "to cut off." It's quite fitting for a payment that comes when the employment relationship is being severed! Just like pruning a tree can lead to new growth elsewhere, a proper severance package helps employees branch out to new opportunities. 🌱

---

When Your Ex-Employer Ghosts Your Severance Pay 💸

Hello, legal enthusiasts! 👋 Today we're diving into the fascinating world of severance pay in Vietnam, featuring a recent court case that perfectly answers the question: "How is severance pay calculated, and what happens when employers refuse to pay?" Spoiler alert: The court has a way of making employers pay attention! 💰

The Case in a Nutshell 🥜

Picture this: An employee resigns from her job after several years of loyal service, follows all proper procedures, but when it's time to receive her severance pay... crickets! 🦗 The company acknowledges they owe the money but simply refuses to pay. Let's meet our key players in this workplace drama:

The key players:

• Lily Nguyen (plaintiff): A human resources assistant who worked at Jupiter Company from 2018 to 2023
• Jupiter Company (defendant): A limited liability company with offices in Tra Vinh Province
• Patricia Tran: Legal representative of Jupiter Company
• The Court: Duyen Hai Town People's Court, Tra Vinh Province

The case began when Lily submitted her resignation in May 2023, properly following all termination procedures. After completing her work on July 18, 2023, the company issued a formal termination decision effective July 19, 2023. Despite acknowledging that they owed Lily severance pay as per her employment contract, Jupiter Company refused to pay the approximately 74 million VND (about $3,000 USD) they admitted owing her.

The Contract That Couldn't Be Clearer 📝

The employment contract between Lily and Jupiter Company, signed on March 29, 2018, was an indefinite-term contract that specifically stated:

"The employee will receive severance pay of one month's salary for each year of work (the amount will be based on the average of the last 6 months' salary before termination)."

This provision was actually more generous than the standard legal requirement in Vietnam's Labor Code, which only requires half a month's salary per year of service!

The Company's Defense (or Lack Thereof) 🤷‍♀️

The most surprising aspect of this case? Jupiter Company fully acknowledged they owed Lily the money! They even calculated the exact amount: 82,329,666 VND before tax, or 74,096,699 VND after 10% personal income tax.

Despite this acknowledgment, the company simply stated they "disagreed" with paying the severance and interest - without providing any legal reasoning whatsoever. It's like admitting you ate someone's lunch from the office refrigerator but refusing to reimburse them just... because!

The Judgment: Pay Up! ⚖️

On January 12, 2024, the Duyen Hai Town People's Court issued its verdict:

1. Jupiter Company was ordered to pay Lily the full severance amount of 74,096,699 VND
2. The company also had to pay 2,460,000 VND in interest for the 4-month delay (from July 19 to November 19, 2023)
3. Jupiter Company was required to pay court fees of 2,296,710 VND

The court emphasized that Jupiter Company had violated both:

• Their contractual obligations (Article 6 of the Labor Code)
• Their legal obligations to fulfill financial commitments (Civil Code Articles 274, 275, 278, and 280)

Severance Pay in Vietnam Explained 📊

How Severance Pay Works in Vietnam 📝

According to Article 46 of Vietnam's 2019 Labor Code, severance pay works as follows:

1. Who qualifies? Employees who have worked regularly for the same employer for 12+ months when their employment ends (with certain exceptions).
2. How much? The legal minimum is half a month's salary for each year of service - though employers can offer more generous terms by contract (as Jupiter did in Lily's case).
3. Base salary calculation: The average contractual salary over the final 6 months of employment.
4. Time period calculation: Total employment time MINUS periods covered by unemployment insurance and periods for which severance was previously paid.
5. Payment deadline: Must be paid within 14 working days from termination date (Article 48).

The Lily vs. Jupiter case illustrates several important points:

• Employment contracts can offer better severance terms than the legal minimum
• When contracts specify severance terms, employers must honor them
• Courts will enforce contractual severance obligations with interest for delays
• Even when employers acknowledge the debt, they must still pay court costs if they force employees to sue

Real-Life Examples of Severance Disputes 🏢

1. The "We'll Pay You Later" Ploy ⏰ A manufacturing company in Binh Duong told 50 laid-off workers they would receive severance "when business improves." The court ordered immediate payment plus 5% interest, emphasizing that financial difficulty is not a legal excuse for delaying severance.
2. The "Different Calculation Method" Trick 🧮 An IT company in Ho Chi Minh City tried to calculate severance based only on base salary, excluding allowances that were part of the contractual salary. The court ruled that all contractual salary components must be included in the calculation.
3. The "Unauthorized Absence" Claim 📅 After an employee resigned with proper notice, a tourism company claimed she had unauthorized absences that disqualified her from severance. The court ruled that documented approved leave cannot be retroactively reclassified as unauthorized.

Did You Know? 🤔

• Vietnam's first Labor Code in 1994 required a full month's salary per year for severance, which was reduced to half a month in the 2012 revision! 📉
• Vietnam introduced unemployment insurance in 2009, which is why the severance calculation excludes periods covered by this insurance! 🛡️
• If an employee has multiple consecutive contracts with the same employer, all contract periods are combined when calculating severance! 📚
• Companies must pay severance even if they're going bankrupt - severance claims take priority over almost all other creditor claims! 💼
• Vietnamese courts typically process severance disputes much faster than other labor disputes - the Lily case took just one month from filing to judgment! ⚡

Severance in Nature: Animal "Termination Packages" 🐜

Even in the animal kingdom, we can find parallels to severance packages:

• Ant colonies provide "severance" to older forager ants by reassigning them to less dangerous tasks within the nest when they can no longer forage effectively.
• Elephant herds continue to support elderly members who can no longer keep up with the herd's pace by adjusting travel speeds and sharing food resources.
• Wolf packs often continue to feed injured or elderly members who can no longer hunt, providing a form of "retirement benefit" before natural death.

The key difference? In nature, "severance" comes in the form of continued support for contribution, while human society has monetized the concept. Also, you rarely see elephants filing lawsuits over unpaid benefits! 🐘

Tips for Navigating Severance Pay Issues 💡

For Employees:

1. Get it in writing - Ensure your employment contract clearly states severance terms.
2. Keep detailed records of your employment history, including all contracts, amendments, and salary information.
3. Calculate your expected severance before resignation to know what to expect.
4. Submit a formal written request for severance pay immediately after termination.
5. Follow up in writing if payment is not received within 14 working days.
6. Consider mediation through the labor department before going to court.

For Employers:

1. Budget for severance as part of your operational costs.
2. Create clear policies about severance calculation methods.
3. Process severance promptly to avoid interest penalties and court costs.
4. Document all communications about severance payments.
5. Consider severance agreements for key employees that clarify all terms.
6. Remember: Refusing to pay legitimate severance almost always costs more in the end due to interest, court fees, and damage to company reputation.

Test Your Severance Pay Knowledge! 📝

1. In Vietnam, what is the minimum legal severance pay requirement? a) One month's salary per year of service b) Half a month's salary per year of service c) Three months' salary regardless of time served d) Whatever is specified in the employment contract
2. Which of these employees would NOT be entitled to severance pay? a) An employee who resigns with proper notice after 3 years b) An employee who is eligible for a pension c) An employee whose fixed-term contract expires d) An employee laid off due to technology changes
3. In the Lily vs. Jupiter case, what was unusual about the company's position? a) They claimed the employment contract was invalid b) They acknowledged owing the money but refused to pay anyway c) They disputed the amount of severance owed d) They claimed Lily had been terminated for misconduct
4. How is the salary base for severance calculation determined? a) The final month's salary only b) The highest monthly salary during employment c) Average contractual salary of the last 6 months d) Base salary excluding all allowances and bonuses

(Answers: 1-b, 2-b, 3-b, 4-c)

The Takeaway: Know Your Rights, Get What You're Owed 📋

The Lily vs. Jupiter case demonstrates several critical points about severance pay in Vietnam:

1. Contractual terms matter - Courts will enforce severance provisions in employment contracts, especially when they're more generous than the legal minimum.
2. Documentation is crucial - Having a clear record of employment terms, resignation procedures, and payment obligations was key to Lily's victory.
3. Interest accrues on delays - Employers who delay severance payments will be liable for interest, making the "pay later" strategy financially unwise.
4. Legal costs add up - Jupiter Company ended up paying not just the severance and interest, but also substantial court fees.

As Vietnam's labor market continues to mature, both employers and employees should be well-versed in severance requirements. The days when employers could simply ignore these obligations are clearly over, as courts consistently uphold employees' rights to their hard-earned severance pay.

Call to Action 🗣️

Have you experienced challenges receiving your severance pay in Vietnam? Or as an employer, have you faced difficulties in calculating appropriate severance? Share your experience in the comments below—your story might help others navigate this important aspect of employment relationships!

⚖️ Real legal case: the judgment number  01/2024/LĐ-ST , issued on  Jan 12, 2024📜(Source: congbobanan.gov.vn)

---

🚨 Fun But Serious: A Brief Legal Disclaimer 🚨

Hey there, legal explorer! 🕵️‍♂️ Before you go...

• This article is like a map, not a teleporter 🗺️ It'll guide you, but won't zap your problems away!
• Each legal journey is unique 🦄 Your mileage may vary!
• For real-world quests, seek a professional legal wizard 🧙‍♂️ (May we suggest Thay Diep & Associates Law Firm?)

Remember: Reading this doesn't make you a labor lawyer, just like watching "The Office" doesn't qualify you as a branch manager! 📎😉

Support Your Legal Ninja's Coffee Fund! ☕

Enjoyed Ngọc Prinny's witty legal wisdom? Help keep this ninja caffeinated! Every article is powered by:

• Hours of research 📚
• Legal expertise spanning 10+ years ⚖️
• Creative storytelling 📝
• And lots of coffee! ☕

If my posts have helped you navigate Vietnam's legal labyrinth, consider treating me to a coffee! Your support helps keep the legal puns flowing and the knowledge growing. 🌱

If you're reading this in the evening, may your dreams be full of properly calculated severance packages! 😴 If you're reading this in the morning, may your workday be productive and your employment rights respected! ☀️ And if you're reading this during your lunch break, here's hoping your employment contract includes better benefits than whatever sandwich you're eating! 🥪

Spill the Beans, Spread the Love, & Brighten My Day! ☕️⚖️🌟

• Local Support (VND): Local Bank QR Code:📱

 

• International Support (USD via PayPal): 💸 PayPal: @NgocPrinny 

#VietnamLaborLaw #SeverancePay #EmploymentRights #LaborDisputes #VietnamEmployment #TerminationBenefits #LaborCode2019

When Can Land Use Rights Certificates Be Revoked in Vietnam? A 2025 Guide 📜✂️

Etymology Corner 🔍

The word "revocation" comes from the Latin "revocare," meaning "to call back" or "recall." Just like the ancient Romans could summon back their decrees, modern governments can recall documents that grant property rights when circumstances dictate!

Land Rights in Vietnam: The Plot Thickens! 🧩

Hello, legal adventurers! 👋 Today we're diving into the fascinating (and sometimes frustrating) world of land rights certificates in Vietnam. Specifically, we'll unpack a recent high-profile case that reached the Hanoi High Court in September 2024, which perfectly illustrates when these precious documents can be revoked. Grab your legal magnifying glass - we're about to investigate! 🕵️‍♀️

The Case in a Nutshell 🥜

Picture this: A family dispute over inherited land that had been brewing for decades finally erupted when one brother discovered his sibling had obtained a land use certificate for their parents' property without the knowledge or consent of other heirs. Talk about a family dinner conversation-starter! 😬

The key players:

• Robert Dao (plaintiff): The eldest brother who discovered the certificate
• Richard Dao: Brother who obtained the certificate in 1997
• Susan (Richard's wife): Current occupant of the disputed property
• Claire & Diana: Sisters who supported Robert's claim
• Haiphong District Committee: The administrative body that issued the certificate

The case centered around a 990m² plot of land, comprising three separate parcels (identified as parcels #19, #20, and #21). While parcels #19 and #21 were purchased by Richard, parcel #20 (660m²) was the ancestral property left by the parents, who passed away in 1989 and 1996 respectively, without leaving a will.

First Instance Judgment: Case Dismissed! 👨‍⚖️

In March 2024, the Haiphong City Court rejected Robert's request to invalidate the certificate, concluding that:

• The certificate was issued according to the 1993 Land Law procedures
• There was evidence of stable land use by Richard
• The certificate was properly registered in the land registry
• Too much time had passed since its issuance in 1997

Robert and his siblings weren't happy with this result (understatement of the year!), so they filed an appeal faster than you can say "land dispute"! 🏃‍♂️💨

The Appeal: Plot Twist! 📣

On September 30, 2024, the Hanoi High Court took a different view! 🔄 After carefully examining the evidence, the court found:

• Parcel #20 was indeed inherited property from the parents
• No documentation proved the parents had gifted the land to Richard
• Richard was granted the certificate after both parents had already passed away
• In 2000, the brothers even jointly built an ancestral worship house on the disputed land, with Robert contributing significantly to the construction cost

The verdict: The Hanoi High Court partially accepted the appeal and revoked the land use certificate, but only for parcel #20 (the inherited land). Richard could keep the certificate for parcels #19 and #21 which he had purchased.

When Can Land Certificates Be Revoked in 2025? 📊

Key Legal Principles: What We Learned 📝

Based on the 2024 Land Law (Article 152, Clause 6), here's what happens when a certificate needs to be revoked:

1. If the holder cooperates: The certificate is simply withdrawn ✅
2. If the holder refuses: The issuing authority can formally invalidate it anyway! 🚫

The case of the Dao family illustrates Ground #4 perfectly: The certificate was issued to the wrong person, as Richard wasn't the rightful owner of the entire property, particularly parcel #20.

Real-Life Examples: When Certificates Get the Chop! ✂️

1. The Development Project 🏗️ Mrs. Tran from Hanoi had her certificate revoked when the government needed her land for a new highway. She received compensation, but many neighbors felt the amount wasn't enough! (Ground #1)
2. The Measurement Mistake 📏 Mr. Nguyen discovered his certificate listed 500m² when his actual land was only 450m². The district office revoked his certificate and issued a corrected one. (Ground #4)
3. The Ex-Spouse Situation 💔 After divorce proceedings, a court ordered the revocation of a joint certificate and issuance of two separate ones dividing the property. (Ground #5)

Did You Know? 🤔

• Before 1993, Vietnam didn't issue individual land use certificates! Land was considered collective property managed by the state.
• The red book (sổ đỏ) nickname for land certificates comes from their distinctive crimson cover.
• In Vietnam, you don't technically own land - you own the right to use it! The land itself belongs to "the people" and is managed by the state.
• Approximately 70% of all civil disputes in Vietnam are related to land!

The Natural Law Comparison: Territory in the Animal Kingdom 🐾

Even in nature, territory disputes follow similar patterns! Wolf packs mark and defend their hunting grounds based on:

• Ancestral territory rights (inherited like parcel #20)
• Newly claimed areas (purchased like parcels #19 and #21)
• Disputes resolved through established hierarchies (courts in human society)

Just as courts can revoke improper land certificates, alpha wolves can challenge and reclaim territories that were improperly taken! Nature has its own "legal system" after all! 🐺

Tips for Protecting Your Land Rights 💡

1. Document everything! Keep all papers related to your property in a safe place.
2. Register changes promptly. Marriage, divorce, or inheritance should trigger updates to your certificates.
3. Verify boundaries. Have your land officially measured to avoid future disputes.
4. Know your rights. Familiarize yourself with the 2024 Land Law provisions that affect your property.
5. Resolve family disputes early. Had the Dao family addressed the inheritance issue before Richard obtained the certificate, they might have avoided 20+ years of tension!

Test Your Knowledge: Land Certificate Quiz! 📝

1. How many grounds exist for revoking land use certificates in Vietnam in 2025? a) 4 b) 5 c) 6 d) 7
2. What happens if someone refuses to surrender their land certificate when legally required? a) Nothing can be done b) They face criminal charges c) The authority can declare it invalid anyway d) They must pay a fine first
3. In the Dao family case, which parcel was revoked from the certificate? a) Parcel #19 b) Parcel #20 c) Parcel #21 d) All parcels
4. Which court made the final decision in the Dao family case? a) Haiphong District Court b) Haiphong City Court c) Hanoi High Court d) Supreme People's Court

(Answers: 1-c, 2-c, 3-b, 4-c)

The Takeaway: Document Early, Dispute Never! 📋

The Dao family case teaches us that proper documentation of land transfers, especially within families, is crucial. Richard's claim might have stood if he had formal documentation of his parents' gift before their passing.

As Vietnam continues to develop its land management systems, clear documentation and proper legal procedures become increasingly important to avoid protracted disputes and ensure stability in property ownership.

Call to Action 🗣️

Have you encountered land certificate issues in Vietnam? Share your experience in the comments below! Did the resolution follow one of the six grounds we discussed? Your story might help others navigate similar challenges!

⚖️ Real legal case: the judgment number  563/2024/HC-PT, issued on  Sep 30, 2024📜(Source: congbobanan.gov.vn)

---

🚨 Fun But Serious: A Brief Legal Disclaimer 🚨

Hey there, legal explorer! 🕵️‍♂️ Before you go...

• This article is like a map, not a teleporter 🗺️ It'll guide you, but won't zap your problems away!
• Each legal journey is unique 🦄 Your mileage may vary!
• For real-world quests, seek a professional legal wizard 🧙‍♂️ (May we suggest Thay Diep & Associates Law Firm?)

Remember: Reading this doesn't make you a lawyer, just like watching "Top Gun" doesn't make you a pilot! ✈️😉

Support Your Legal Ninja's Coffee Fund! ☕

Enjoyed Ngọc Prinny's witty legal wisdom? Help keep this ninja caffeinated! Every article is powered by:

• Hours of research 📚
• Legal expertise spanning 10+ years ⚖️
• Creative storytelling 📝
• And lots of coffee! ☕

If my posts have helped you navigate Vietnam's legal labyrinth, consider treating me to a coffee! Your support helps keep the legal puns flowing and the knowledge growing. 🌱

If you're reading this in the evening, may your dreams be free of land disputes and full of peaceful property ownership! 😴 If you're reading this in the morning, may your day be as solid as a properly registered land certificate! ☀️ And if you're reading this during lunch break, I hope your food is more satisfying than winning a 25-year land dispute case! 🍜

Spill the Beans, Spread the Love, & Brighten My Day! ☕️⚖️🌟

• Local Support (VND): Local Bank QR Code:📱

 

• International Support (USD via PayPal): 💸 PayPal: @NgocPrinny 

#VietnamLandLaw #LandUseRights #PropertyDisputes #LegalGuide2025 #RedBookVietnam

When Companies Ghost Your Social Insurance: A Court Victory Story 🏆

Etymology Corner 🏆: 

"Compensation" comes from the Latin "compensare," meaning "to weigh one thing against another." In modern employment law, it's all about balancing rights and responsibilities!

The Case That Made Company L Pay Up! 💰

Meet Our Players:

• Sarah T (name changed): A determined employee 👩‍💼
• Company L: The social insurance ghosting expert 👻
• Ben Luc Social Insurance: The record keeper 📊

The Legal Drama Unfolds 🎭

The Setup:

• Contract period: September 11, 2022 - September 10, 2023
• Base salary: 4,576,000 VND/month
• Required insurance: Social, Health, Unemployment, Work Accident

What Went Wrong 😤

1. Company didn't pay social insurance (6 months!)
2. Skipped December 2022 salary
3. Ignored repeated requests to update insurance book

The Court's Verdict ⚖️

Original Claims:

• Missing insurance: 6,457,491 VND
• Unpaid salary: 5,264,000 VND
• Travel expenses: 10,000,000 VND

Final Judgment:

1. Insurance payment ordered: 6,457,491 VND
   • Principal: 5,680,695 VND
   • Interest: 776,796 VND
2. Other claims withdrawn by employee

Did You Know? 🤔

• Companies must pay 2x investment rate interest on late insurance
• Employees can check their insurance status online
• Courts can order direct bank account deductions

Nature's Insurance System 🌿

Just like how ant colonies maintain food reserves for their members, social insurance ensures workers' future security. The difference? Ants never skip their contributions! 🐜

Pro Tips 💡

1. Keep all employment contracts
2. Document insurance payment records
3. Regular status checks online
4. Make formal requests in writing
5. Know your local social insurance office

Quick Quiz 📝

1. How much interest must companies pay on late insurance?
2. What's the first step when discovering missing payments?
3. Can courts order direct bank transfers for payments?

[Answers below]

Your Action Plan When Insurance Goes Missing 📋

1. Gather Evidence
2. Contact Company (in writing)
3. Visit Social Insurance Office
4. Consider Legal Action

Quiz Answers:

 1. 2x investment rate 

2. Written request to employer 

3. Yes, from company accounts 

---

#VietnamLaborLaw #SocialInsurance #EmployeeRights #LegalVictory

#VietnamLaborLaw #EmployeeRights #SocialInsurance #CourtCase #LaborDispute #WorkerProtection #InsuranceRights #LegalVictory #EmployeeBenefits #VietnamLaw

---

🚨 Insurance Rights Navigator: A Legal Guide 🚨

Hey there, rights defender! Before you take action...

This Case Analysis:

• ✅ Explains real court proceedings
• ✅ Shows actual legal outcomes
• ✅ Provides action guidelines
• ✅ Updated as of April 2024

This Is Not:

• ❌ Individual legal advice
• ❌ Guaranteed case outcomes
• ❌ A substitute for legal counsel
• ❌ Applicable to all situations

For your specific case, please consult:

• 👨‍⚖️ Employment lawyers
• 📋 Social Insurance Office
• 👥 Labor Union representatives

---

☕ Support Employee Rights Education

Help us keep workers informed! Every analysis is powered by:

• 📚 Case law research
• 💼 Legal expertise
• 🔍 Document review
• ☕ Lots of coffee!

Why Support Us? Your contribution helps:

• 📖 Create more case analyses
• 🔄 Update legal information
• 🌐 Reach more workers
• 💡 Explain complex cases

Spill the Beans, Spread the Love, & Brighten My Day! ☕️⚖️🌟

• Local Support (VND): Local Bank QR Code:📱

 

• International Support (USD via PayPal): 💸 PayPal: @NgocPrinny