Yes, under certain circumstances, a company in Vietnam can retrench its employees due to restructuring. In Vietnam, companies are allowed to retrench employees for reasons such as restructuring, downsizing, or the reorganization of the company's operations.However, there are specific legal requirements that must be followed when retrenching employees in Vietnam. These include:
Consultation: The company must consult with its employees or their representatives before deciding to retrench employees. This consultation should cover the reasons for the retrenchment, the number of employees to be retrenched, and any measures to be taken to minimize the impact on the employees.
Notice: The company must give written notice to the employees to be retrenched, stating the reasons for the retrenchment and the date on which the retrenchment will take effect. The notice period must be at least 30 days for employees who have been with the company for less than one year, and at least 60 days for employees who have been with the company for one year or more.
Severance pay: The company must pay severance pay to employees who are retrenched. The amount of severance pay depends on the length of the employee's service and the reasons for the retrenchment.
Overall, while companies in Vietnam are allowed to retrench employees due to restructuring, they must follow specific legal requirements and provide adequate notice and severance pay to affected employees.