Which employers are obliged to participate in unemployment insurance in Vietnam?
Which employers are obliged to participate in unemployment insurance in Vietnam?
According to Article 43 of the Law on Employment 2013, regulations on compulsory participants in unemployment insurance are specifically as follows:
Compulsory participants in unemployment insurance
1. Workers are obliged to participate in unemployment insurance when working under labor contracts or working contracts below:
a/ Labor contracts or working contracts of indefinite time;
b/ Labor contracts or working contracts of definite time;
c/ Seasonal or job-based working contracts with a term of between full 3 months and under 12 months.
In case a worker has signed and is performing more than one labor contract specified in this Clause, the worker and the employer under the labor contract signed first shall participate in unemployment insurance.
2. Workers defined in Clause 1 of this Article who are currently on pension or doing housework are not required to participate in unemployment insurance.
3. Employers obliged to participate in unemployment insurance include state agencies, public non-business units and people’s armed forces units; political organizations, socio-political organizations, socio-political-professional organizations, social organizations and socio-professional organizations; foreign agencies and organizations and international organizations operating in the Vietnamese territory; enterprises, cooperatives, households, business households, cooperative groups, other organizations and individuals that hire or employ workers under the labor contracts or working contracts specified in Clause 1 of this Article.
Thus, based on the above regulations, employers obliged to participate in unemployment insurance include:
- state agencies, public non-business units and people’s armed forces units;
- political organizations, socio-political organizations, socio-political-professional organizations, social organizations and socio-professional organizations;
- foreign agencies and organizations and international organizations operating in the Vietnamese territory;
- enterprises, cooperatives, households, business households, cooperative groups, other organizations and individuals that hire or employ workers under the labor contracts or working contracts specified in Clause 1 of Article 43 of the Law on Employment 2013.
Which employers are obliged to participate in unemployment insurance in Vietnam?
When do employers pay unemployment insurance premiums for employees in Vietnam?
Pursuant to Article 44 of the Law on Employment 2013, regulations on participation in unemployment insurance are specifically as follows:
Participation in unemployment insurance
1. Employers shall pay unemployment insurance premiums for workers to social insurance organizations within 30 days from the effective date of labor contracts or working contracts.
2. Monthly, employers shall pay unemployment insurance premiums at the level specified at Point b, Clause 1, Article 57 of this Law and make deductions from the wages of workers at the level specified at Point a, Clause
1, Article 57 of this Law, for simultaneous payment to the Unemployment Insurance Fund.
3. Based on the balance of the Unemployment Insurance Fund, the State shall transfer supporting funds from the state budget to the Fund at the level specified by the Government under Clause 3, Article 59 of this Law.
Thus, according to the above regulations, employers shall pay unemployment insurance premiums for workers to social insurance organizations within 30 days from the effective date of labor contracts or working contracts.
What are the conditions for employers to receive financial support for training from the Unemployment Insurance Fund of Vietnam?
Pursuant to Article 47 of the Law on Employment 2013, conditions, time and specific support levels are specified as follows:
Support conditions, time and levels
1. Employers may receive financial support for training and retraining to improve occupational skills qualifications for job maintenance for the workers defined in Clause 1, Article 43 of this Law who currently pay unemployment insurance premiums, when fully meeting the following conditions:
a/ Having fully paid unemployment insurance premiums for workers obliged to participate in unemployment insurance for at least full 12 consecutive months by the time of request for support;
b/ Meeting difficulties due to economic recession or other force majeure causes, forcing them to undergo restructuring or change production and business technologies;
c/ Lacking funds for organizing training and retraining to improve occupational skills qualifications for workers;
d/ Having a plan on training and retraining to improve occupational skills qualifications for job maintenance, approved by a competent state agency.
2. The duration of support for training and retraining to improve occupational skills qualifications for job maintenance for workers must comply with the approved plan, but must not exceed 6 months.
3. The Government shall detail this Article and specify the levels of financial support for training and retraining to improve occupational skills qualifications for job maintenance for workers, ensuring the balance of the Unemployment Insurance Fund.
Thus, according to the above regulations, employers may receive financial support for training and retraining to improve occupational skills qualifications for job maintenance for the workers who currently pay unemployment insurance premiums, when fully meeting the following conditions:
- Having fully paid unemployment insurance premiums for workers obliged to participate in unemployment insurance for at least full 12 consecutive months by the time of request for support;
- Meeting difficulties due to economic recession or other force majeure causes, forcing them to undergo restructuring or change production and business technologies;
- Lacking funds for organizing training and retraining to improve occupational skills qualifications for workers;
- Having a plan on training and retraining to improve occupational skills qualifications for job maintenance, approved by a competent state agency.
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