The employer in Laos needs to be aware that under Article 87 of the Labour Law of 2013 they cannot, without prior approval from the district labour office, terminate the employment of an employee if the employee is:

1. A female who is pregnant or has a child aged less than one year;
2. Undergoing medical treatment or rehabilitation and possesses a medical certificate;
3. A representative or head of a trade union within the labour unit;
4. Involved in legal proceedings or has been detained or is awaiting a court decision;
5. Injured and undergoing treatment and possesses a medical certificate or has recently experienced a disaster (such as fire or flooding);
6. On annual leave or leave approved by the employer;
7. Still performing work at another workplace on assignment from the employer;
8. Filing a complaint or claim against the employer in relation to the Labour Law.

If the employer terminates the employment of an employee who falls into any of the above categories, without the prior approval of the district employment office, the employer could be accused of unjustified termination. Unjustified termination in accordance Article 88 of the Labour Law is where the:

1. Employment contract is terminated without sufficient reason;
2. Employer terminates the employment contract by abusing its power directly or indirectly, or violates the basic rights of the employee such that the employee is unable to undertake their work;
3. Employer violates the employment contract after receiving a prior protest from the employee or employee representative, but does not resolve the situation or make any changes, thus forcing the employee to resign.

Where termination of an employment agreement is declared by the employment authority unjustified, the employee then has the right to request reinstatement. If the employer does not reinstate the employee, the employer is required to pay the higher rate termination allowance for unjustified termination: 15% of the monthly salary prior to termination multiplied by the number of months worked for the employer. Whereas in case of “justified” termination (e.g. redundancy), the employer must pay only 10% of the above.