ARE PUBLIC EMPLOYEES ENTITLED TO SEVERANCE ALLOWANCE IF THEY RESIGN BEFORE COMPLETING THEIR COMMITTED TERM OF SERVICE?

Regulations regarding the policies and schemes for public employees who resign are set forth in Article 53 of Decree 259/2026/ND-CP. Find more details in the article below—let’s explore this further with Phạm Consult!

Are public employees entitled to a severance allowance if they resign before completing their committed term of service?

Pursuant to Article 53 of Decree 259/2026/ND-CP, the policies and schemes for public employees who resign are as follows:

POLICIES AND SCHEMES FOR PUBLIC EMPLOYEES WHO RESIGN

1. Public employees are entitled to severance allowances and unemployment benefits in accordance with labor laws, social insurance laws, and other relevant legal provisions.
2. The determination of eligibility for severance allowances and unemployment benefits, the calculation of current monthly salary and allowance amounts, the methods for computing such allowances, and other matters related to resignation policies shall be governed by labor laws, social insurance laws, and other relevant legal provisions.
3. Public employees are not entitled to a severance allowance in the following cases:
4. a) The public employee has been subject to disciplinary action in the form of forced resignation (dismissal);
5. b) The public employee has not completed the term of service as committed;
6. c) Cases specified by agreement within their employment contract;
7. d) Other cases as stipulated by labor laws or laws specific to the relevant sector or field. Accordingly, in cases where a public employee has not completed the period of service as committed, they are not entitled to…

Is a public employee who resigns before completing their committed period of service entitled to a severance allowance?

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What are the authority, sequence, and procedures for handling the resignation of a public employee?

The authority, sequence, and procedures for handling the resignation of a public employee, as stipulated in Article 52 of Decree 259/2026/ND-CP, are as follows:

– The authority to process resignations is prescribed as follows:

+ The head of a public service provider shall decide on the termination of employment for their deputies; the heads and deputy heads of subordinate or affiliated units; and public employees who do not hold managerial positions.

+ The head of the agency managing a public service provider shall decide on the termination of employment for a public employee who serves as the head of that public service provider.

– Sequence and procedures for handling the termination of employment:

+ In cases of employment termination as stipulated in Point a, Clause 1, Article 51 of this Decree, the process shall comply with labor laws.

+ In cases where employment is terminated as a disciplinary measure (dismissal) pursuant to Point b, Clause 1, Article 51 of this Decree, the disciplinary decision shall also serve as the decision for the termination of employment.

In cases where employment is automatically terminated pursuant to Point b, Clause 1, Article 51 of this Decree, the competent authority shall issue a decision on the termination of employment immediately after the court’s judgment or decision takes legal effect.

+ In cases stipulated in Point c, Clause 1, Article 51 of this Decree: Within 10 days from the date the results of a public employee’s monitoring, evaluation, and classification are available, the head of the public service provider—or the head of the agency managing the public service provider (in cases where the individual under review is the head of the public service provider)—shall establish a council to evaluate and specifically review the employee’s monitoring, evaluation, and classification results. This council shall also assess whether the employee’s current position aligns with their competencies and qualifications, engage in detailed discussions with the employee, and submit a report to the head of the competent authority for consideration and a final decision regarding the termination of employment. + In the case specified in Point d, Clause 1, Article 51 of this Decree, the head of the competent authority shall issue a decision on termination of employment within 15 days from the date the agency, organization, or unit is dissolved, reorganized, or restructured, resulting in the absence of any suitable job position.

– A public employee must settle all outstanding financial or property-related obligations for which they are personally responsible toward the agency or organization (if any) prior to the termination of their employment. If such obligations are not settled, the competent authority shall still issue the decision on termination of employment; however, the employee shall not be entitled to severance pay, job-loss allowances, or unemployment benefits. The handling of any unsettled obligations shall be carried out in accordance with the law.

In which cases is the termination of a public employee’s employment not yet processed?

Pursuant to Article 51 of Decree 259/2026/NĐ-CP, the provisions are as follows:

Cases for termination of employment

2. Unresolved cases of dismissal:
3. a) The public employee is being considered for disciplinary action or is being prosecuted for criminal liability, except in cases of personal wishes, permission from a competent authority or according to a decision of a competent authority;
4. b) Officials are in the process of resolving complaints and denunciations (have decided to establish a verification team), inspect when there are signs of violations, are recommended to handle violations according to inspection and audit conclusions, except in cases according to personal wishes, permission of competent authorities or according to decisions of competent authorities;
5. c) Due to work requirements of an agency or organization or a replacement has not been arranged;
6. d) Other reasons as prescribed by law, according to the decision of the competent authority to terminate the job.

Accordingly, employees in the following cases will not be dismissed, including:

– The employee is being considered for disciplinary action or is being prosecuted for criminal liability, except in cases of personal wishes, permission from a competent authority or according to a decision of a competent authority;

– Officials are in the process of resolving complaints and denunciations (have decided to establish a verification team), inspect when there are signs of violations, are recommended to handle violations according to inspection and audit conclusions, except in cases according to personal wishes, permission of competent authorities or according to decisions of competent authorities;

– Due to work requirements of the agency or organization or a replacement has not been arranged;

– Other reasons as prescribed by law, according to the decision of the competent authority to terminate the job.