Unilateral termination of employment contracts for employee underperformance in the context of digital transformation: Practical application and legal reform directions

Abstract

In Vietnam, the 2019 Labor Code permits employers, based on their evaluation criteria, to unilaterally terminate employment contracts with employees who consistently fail to meet job performance requirements. However, in practice, this matter has revealed various shortcomings. This paper analyzes legal issues arising from the application of Point a, Clause 1, Article 36 of the 2019 Labor Code and proposes directions to ensure a balanced approach between employers’ managerial rights and employees’ right to job security in the context of digital transformation.