Vietnam: In case an employee has signed and is performing more than one employment contract, under which employment contract shall the employee participate in unemployment insurance?
- Do employees have the right to entering into multiple employment contracts in Vietnam?
- Vietnam: In case an employee has signed and is performing more than one employment contract, under which employment contract shall the employee participate in unemployment insurance?
- What are the levels of payment by employees entering into multiple employment contracts in Vietnam?
- For employees entering into multiple employment contracts in Vietnam, will the health insurance premium be paid according to the employment contract of which the salary is the highest?
Do employees have the right to entering into multiple employment contracts in Vietnam?
According to the provisions of Article 19 of the 2019 Labor Code, it is prescribed to enter into many employment contracts as follows:
Entering into multiple employment contracts
1. An employee may enter into employment contracts with more than one employer, provided that he/she fully performs all terms and conditions contained in the concluded contracts.
2. Where an employee enters into employment contracts with more than one employer, his/her participation in social insurance, health insurance and unemployment insurance schemes shall comply with regulations of law on social insurance, health insurance, unemployment insurance, occupational safety and health.
Thus, according to the above regulations, employees are allowed to enter into many employment contracts. However, employees must ensure full implementation of the contents of the employment contracts.
Vietnam: In case an employee has signed and is performing more than one employment contract, under which employment contract shall the employee participate in unemployment insurance?
Vietnam: In case an employee has signed and is performing more than one employment contract, under which employment contract shall the employee participate in unemployment insurance?
According to the provisions of Article 43 of the Law on Employment 2013, subjects required to participate in unemployment insurance include:
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.
Thus, according to the above regulations, in case a worker has signed and is performing more than one employment contract, the worker and the employer under the employment contract signed first shall participate in unemployment insurance.
What are the levels of payment by employees entering into multiple employment contracts in Vietnam?
Employees enter into many contracts, social insurance payment is prescribed in Clause 4, Article 85 of the Law on Social Insurance 2014 as follows:
Levels and methods of payment by employees covered by compulsory social insurance
1. Employees defined at Points a, b, c, d, dd and h, Clause 1, Article 2 of this Law shall monthly pay 8% of their monthly salary to the retirement and survivorship allowance fund.
Employees defined at Point i, Clause 1, Article 2 of this Law shall monthly pay an amount equal to 8% of the statutory pay rate to the retirement and survivorship allowance fund.
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4. An employee defined at Point a or b, Clause 1, Article 2 of this Law who signs labor contracts with many employers shall only pay social insurance premiums under Clause 1 of this Article for the first-signed labor contract.
Thus, according to the above regulations, an employee defined at Point a or b, Clause 1, Article 2 of Law on Social Insurance 2014 who signs employment contracts with many employers shall only pay social insurance premiums under Clause 1 of Article 85 of the Law on Social Insurance 2014 for the first-signed employment contract.
Accordingly, the social insurance payment rates for employees entering into multiple employment contracts are as follows:
Employees defined at Points a, b, c, d, dd and h, Clause 1, Article 2 of the Law on Social Insurance 2014 shall monthly pay 8% of their monthly salary to the retirement and survivorship allowance fund.
Employees defined at Point i, Clause 1, Article 2 of the Law on Social Insurance 2014shall monthly pay an amount equal to 8% of the statutory pay rate to the retirement and survivorship allowance fund.
For employees entering into multiple employment contracts in Vietnam, will the health insurance premium be paid according to the employment contract of which the salary is the highest?
According to the provisions of Clause 2, Article 13 of the Law on Health Insurance 2008, amended by Clause 7, Article 1 of the Law on amendments to the Law on Health insurance 2014, the health insurance rates and responsibilities to pay health insurance premiums are as follows:
Health insurance rates and responsibilities to pay health insurance premiums
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2. In case an individual concurrently prescribed as more than one policy-holder in Article 12 of this Law, his or her premium shall be paid due to the first prescribed policy-holder according to the order of the policy-holders prescribed in Article 12 of this Law.
In case an insured person prescribed in point a Clause 1 Article 12 of this Law concludes one or more than one indefinite or at least full 3 month labor contract, his or her premium shall be paid according to the labor contract of which the salary is the highest.
In case an individual prescribed in point b clause 1 Article 12 of this Law is concurrently prescribed as different policy holder in Article 12 of this Law, his or her premium shall be paid by the social insurance organization, the State budget and the People’s Committees of the commune respectively.
In addition, health insurance participants are specified in Clause 1, Article 12 of the Law on Health Insurance 2008, amended by Clause 6, Article 1 of the Law on amendments to the Law on Health insurance 2014, including:
Persons eligible for health insurance
1. The group whose insurance are paid by the employers and employees, including:
a) Employees on indefinite or at least full three-month contracts; salaried business managers; officials and civil servants (hereinafter referred to as employees).
b) Part-time officers in communes, wards and towns under the regulations of the law.
Thus, according to the above regulations, in case an employee concludes one or more than one indefinite or at least full 3 month employment contract, his or her premium shall be paid according to the employment contract of which the salary is the highest.
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