Distinguish between temporary suspension of employment contract and unpaid leave

Due to the impact of COVID-19 pandemic, many enterprises and production facilities had to temporarily suspend the performance of employment contracts of their employees. Many readers have wondered if the temporary suspension of employment contract and unpaid leave are identical or different.

Through this article, we will help readers find out the answer.

Similarities:

In essence, temporary suspension of employment contract and unpaid leave are both suspending a employment contract for a certain period of time for a certain reason as prescribed by law.
Employers do not have to pay wages.

*Differences***:

	Temporary suspension of employment contract	Unpaid leave
Applicable cases	The employee performs military service or service in the militia and self-defense force; The employee is held temporarily in custody or detention in accordance with the criminal procedure law; The employee is sent to a reformatory, compulsory drug rehabilitation centre or compulsory education centre. Pregnant employees, if certified by a competent medical facility, that continuing to work will adversely affect the fetus; The employee is appointed as the manager of a state-owned one-member limited liability company; The employee is authorized to exercise the rights and obligations of the representative of the state owner with respect to the state-owned capital in the enterprise; The employee is authorized to exercise the rights and obligations of the enterprise’s representative with respect to the capital contribution of the enterprise invested in another enterprise; Other cases as agreed by both parties. (Article 30 of the Labor Code 2019)	When maternal grandparents, paternal grandparents, siblings passed away; When parents, siblings get married; Other cases as agreed with the employer. (Article 115 Labor Code 2019)
Consequences to the term of the employment contract	The period of temporary suspension of employment contract shall not be included in its term.	The period of unpaid leave shall be included in the term of the signed employment contract.
Upon the expiry date of temporary suspension/unpaid leave	Within 15 days from the expiration of temporary suspension of employment contract, the employee must be present at the workplace. The employer shall let the employee get back to work under the signed employment contract.	At the end of the unpaid leave period, employees shall get back to work. In case the contract expires, the employment contract shall be terminated, or the new contract shall be signed.
Fine range applied for violations	A fine of between VND 03 – 07 million if the employer does not let the employee get back to work after the expiry date of temporary suspension unless otherwise agreed. (Article 10.2.b of Decree No. 28/2020/ND-CP)	A fine of between VND 2 – 5 million if the employer does not allow the employee to take unpaid leave in accordance with the law. (Article 17.1.a of Decree 28/2020/ND-CP)