HM&P discusses the legal value of employee resignation letters in The Saigon Times

Recently, Mr. Nguyen Van Phuc, The Managing Partner of HM&P Law Firm, engaged in a discussion with The Saigon Times on current labor disputes. In this exchange, Mr. Phuc provided an in-depth legal perspective on the legal value of employee resignation letters. The question arises as to whether submitting a resignation letter necessarily means ending the employment relationship with the company. And in certain specific cases, should a resignation letter be interpreted as a request to terminate employment? Mr. Phuc’s analysis helps businesses understand potential risks in human resources management, especially when hiring, contracting, and terminating senior management employees. Establishing rigorous contract management and risk-control procedures can help businesses minimize unwanted disputes.

A Resignation Letter Does Not Always Mean Termination of Employment

According to Mr. Nguyen Van Phuc, an employee’s submission of a resignation letter does not necessarily express an intention to terminate their employment contract. In certain cases, employees in managerial roles may only want to relinquish their current position while continuing to work under an employment contract for a regular position, which is still valid. If the parties do not clarify this matter at the outset, misunderstandings can lead to legal disputes and impact the rights of both parties.

The CGV Case: Different Interpretations of the Value of a Resignation Letter

Taking the example of a recent high-profile dispute between CJ CGV Vietnam Co., Ltd. (“CGV”) and Mr. Benedict Daniel Sullivan – a senior employee at the company – Mr. Phuc analyzed the differences in understanding Mr. Sullivan’s resignation letter. The trial court considered it a request to terminate employment, while the appellate court determined it was not grounds for ending the employment contract, leading to a retrial of the case. This demonstrates the risk of legal disputes due to varying interpretations of an employee’s resignation letter.

The Need to Distinguish Between “Resignation” and “Termination”

Mr. Phuc emphasized that confusion between the concepts of resignation and termination can lead to prolonged legal disputes, particularly for senior management positions associated with significant benefits and responsibilities. To avoid risks, businesses must be very cautious when handling resignation requests from senior employees and clearly distinguish between cases:

1. Hiring a regular employee and appointing them to a managerial position via an employment contract addendum: In this case, when the employee resigns, they may return to their original position and continue under the initial employment contract.
2. Directly hiring for a managerial position under an employment contract: Here, resignation should be understood as termination of the employment contract, as the employee has no other position to return to within the company.

Caution in Terminating Employment with Senior Personnel

Through the CGV case and Mr. Phuc’s guidance, HM&P aims to alert businesses to the risks involved in terminating contracts with senior personnel while providing recommended solutions for companies to apply to their specific cases. As a law firm specializing in and recognized for its labor law expertise, HM&P hopes these insights bring value and support to businesses in managing labor relations.

As a highly specialized and reputable law firm in labor law, HM&P is committed to delivering high-quality legal services with safe and effective solutions for the business operations of our clients.

The full sharing of Mr. Nguyen Van Phuc’s insights on this issue has been concretized by The Saigon Times in a detailed and easy-to-understand video below. We invite our clients to watch and follow along.