Relevant Legislation
Lao PDR Labour Law 2006 (Amended)4
Unlawful Termination, Damages and Compensation
Article 33 of the Laotian Labour Law specifies that termination of an employment contract is considered to be unlawful where:
• The employer terminates a labour contract without a valid reason;
• The employer terminates the employment contract through an abuse of power, or directly or indirectly forces the worker to terminate the contract;
• The employer breaches the employee’s fundamental rights; or
• The employer breaches their contractual obligations towards the employee.
Article 33 further states:
An employee whose employment contract has been terminated without justification has the right to request reinstatement to his former post, or to be assigned to other appropriate work. In the event that the employer does not reinstate the employee or the employee has stopped work, the employer shall pay an allowance to that employee based on the duration of his work, where he shall be paid 15 per cent of his basic monthly salary received before termination for each month of work, for the employee who has been employed less than three years, and 20 per cent for the employee who has been employed for more than three years.
Endnotes
4 Lao PDR Labour Law (amended) 2006, available at http://www.na.gov.la/docs/eng/ laws/soc_cult/Labour%20(2006)%20Eng.pdf (accessed 30/05/11).
