CAN AN EMPLOYEE UNILATERALLY TERMINATE A FIXED-TERM LABOR CONTRACT OF 36 MONTHS?

Legal Situation: Dear Lawyer, I would like to ask: I started working at a Garment Company in January 2023 under a fixed-term labor contract valid for 3 years, which means the contract will end in January 2026. By February 2025, due to important personal matters, I submitted a resignation letter with 30 days’ prior notice. However, after receiving my resignation letter, the company did not approve it and required me to continue working until the contract ends (i.e., January 2026). In addition, the company also threatened to withhold my last month’s salary, arguing that I have not completed the full 3 years of the contract. So, I would like to ask: Do I have the right to unilaterally terminate the labor contract in this case? Sincerely thank you!

Response:

Thank you for trusting and submitting your question to FDVN Law Firm (“FDVN”). After reviewing the relevant legal provisions, FDVN would like to provide the following information:

Pursuant to Point b, Clause 1, Article 35 of the 2019 Labor Code, which provides for the employee’s right to unilaterally terminate a labor contract, as follows:

“1. An employee shall have the right to unilaterally terminate the employment contract, provided he/she notices the employer in advance:

…

b) at least 30 days in case of an employment contract with a fixed term of 12 – 36 months;…”

According to the above provision, an employee working under a fixed-term labor contract (from 12 to 36 months) has the right to unilaterally terminate the contract if they give the employer at least 30 days’ prior notice.

In your case, the labor contract has a term of 36 months and you submitted your resignation with at least 30 days’ notice. Therefore, this qualifies as a lawful unilateral termination of the labor contract.

Thus, you have the legal right to terminate the labor contract before the end of the term. The company cannot force you to continue working until the end of the contract and cannot apply any sanctions related to “unlawful unilateral termination” under Article 40 of the 2019 Labor Code.

This is FDVN’s legal opinion regarding your inquiry, based on the study of relevant legal provisions. We hope this opinion is helpful to you.

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