Understanding Employee Compensation in Unlawful Termination Cases: Key Legal Precedent

Enclosed is Draft Precedent No. 21 on determining the wage level as the basis for compensation when an employer illegally terminates a labor contract. This precedent, derived from Supervisory Review Decision No. 05/2023/LĐ-GĐT, provides critical guidance for resolving wage disputes in labor cases.

Key Insights:
According to Article 41 of the 2019 Labor Code, employers must compensate employees for unlawful termination, with compensation based on the wage stated in the labor contract. In cases where no wage evidence (e.g., payslips) is provided, the Court will rely on the wage used for social insurance contributions as the basis for compensation.

This precedent emphasizes the importance of maintaining accurate documentation in employment relationships to ensure fairness in disputes.

As a legal professional or HR manager, keeping track of these rulings is crucial to staying compliant with labor laws and protecting both employer and employee rights.

For more details on this topic, read the full analysis of Draft Precedent No. 21.
Link: https://drive.google.com/file/d/1ikCp3KuJmnhBXXFADgpcvnmEY0G3JPKH/view?usp=sharing 


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