When a fixed-term employment contract expires while a female employee is on maternity leave, many enterprises and employees still hold misunderstandings about their respective legal rights and obligations.

Pursuant to Article 34 of the 2019 Labor Code, the expiration of an employment contract is a legal basis to terminate the labor relationship, except for special cases such as female employees who serve as members of the leadership board of a labor representative organization, who are still within their term of office.

In addition, Article 137 of the 2019 Labor Code only prohibits employers from unilaterally terminating an employment contract before its expiration for reasons related to an employee’s pregnancy, maternity leave, or childcare of a child under 12 months old. This prohibition does not apply to cases where an employment contract has automatically expired on its scheduled end date.

Therefore, it is completely legal for a company to decline to sign a new employment contract (after the current contract expires) with a female employee who is on maternity leave.

1. Regulations on priority rights

Clause 3, Article 137 of the 2019 Labor Code stipulates that:

If an employment contract expires while a female employee is pregnant or caring for a child under 12 months old, she shall be given priority to enter into a new employment contract.

However, this priority right does not mandate that employers are required to sign a new contract. This priority only applies if the company has a hiring need for a similar position, in which case the female employee in this situation will be considered before other candidates.

Practical example:

Ms. B signed a 2-year employment contract with Company C, expiring on June 30, 2025. On May 15, 2025, Ms. B gave birth and took maternity leave until November 30, 2025. On June 30, 2025, her employment contract expired while she was still on maternity leave.

In this case, Company C is fully within its legal rights to not renew her contract, and this action does not violate any labor laws. If three months later, Company C hires an employee for a similar position, Ms. B will be given priority in hiring over other applicants.

2. Mandatory procedures employers must comply with

• Written notification: Pursuant to Article 45 of the 2019 Labor Code, before the employment contract’s expiration date, the company must notify the female employee in writing that the employment relationship will be terminated due to the contract reaching its end date.
• Settlement of benefits: All outstanding wages, and severance pay (if applicable) must be paid in full within 14 working days from the date of contract termination.
• Completion of social insurance procedures: Report the employee’s departure to the social insurance system and return the employee’s social insurance book to them.

3. Social insurance benefits

Pursuant to Point a, Clause 2, Article 12 of Circular 59/2015/TT-BLĐTBXH:

• The maternity leave period taken before the employment contract expires is still counted as a period of social insurance contribution.
• Any maternity leave period that falls after the contract’s expiration date will not be counted as a period of social insurance contribution.