Question 197. Which are the regulations of the Labour Code state on the termination of a LC with an Older Employee?

Under the provisions of Article 35.2 (e) and Article 36.1 (đ) of the Labour Code, the LC will not be automatically terminated when an Employee has reached the retirement age but only shall be terminated when the Employer or the Employee want to be unilaterally terminated of the LC.

In this case, if the Employee wants to unilaterally terminate the LC, he or she will not oblige to notify the Employer in advance. Conversely, if the Employer wishes to unilaterally terminate the LC, the Employer must give the notice at least 03 days, 30 days, or 45 days in advance upon the LC’s type have signed between the Employer and the Older Employee.

Currently, the retirement age shall be defined as 62 years of old for male Employees in the year 2028 and 60 years of old for female Employees in the year 2035[1]. Thus, in 2021, the retirement age of an Employee has work in normal working conditions as below:

iv. Male Employees: 60 years of old plus 3 months (increasing by 03 months each year); and

v. Female Employees: 55 years of old and 4 months (increasing by 04 months each year).

As prescribed by the Labour Code, any Employee who continues to work after the retirement age shall be considered to be an Older Employee[2] and the LC between the enterprise and the said Employee also shall be considered to be a LC with an Older Employee.

[1] Article 169.2 of the Labour Code

[2] Article 148.1 of the Labour Code