Question 53. Can the Employer impose the LD actions of deferral of wage increase for not more than 06 months, demotion, or dismissal if the Employee regularly fails to fulfil his or her tasks instead of unilateral termination of his or her LC?

Answer:

According to Article 36.1(a) of the Labour Code, the Employee’s regular failure to fulfil his or her tasks specified in the LC in accordance with thecriteria for assessing the work completionis considered one of the reasons that allow the Employer to unilaterally terminate the LC[1]. Deferral of wage increasefor not more than 06 months, demotion or dismissal is the LD actions which are prescribed in the Labour Code. The applicable Labour Code does not have any regulations that allow the Employer to impose LD actions in replacement of the unilateral termination of LC with any Employee who regularly fails to fulfil his or her  tasks. However, many Employers still misunderstand that the Employee’ failure to fulfil his or her tasks regularly is one of the LD violations which must be sanctioned. The Employer needs to understand that the regular failure to fulfil the assigned tasks depends largely on the Employee’s capacity but the Employee himself or herself still respect and comply with the enterprise’ ILR.

In short, when the Employee regularly fails to fulfil his or her assigned tasks, the Employer will consider if it is necessary to unilaterally terminate the LC instead of imposing LD actions even though these actions are less serious and prescribed in the enterprise’ ILR.


[1]Article 36.1 (a) of the Labour Code