Application for unemployment benefit in Vietnam 2023

1. What is unemployment allowance?

According to Article 42 of this Law, there are also four unemployment insurance benefits, including:

1. Unemployment allowance.

2. Job counseling and recommendation support.

3. Vocational training support.

4. Support for training and retraining to improve qualifications of occupational skills for job maintenance for workers.

Thus, unemployment allowance are one of the four unemployment insurance benefits.

In addition, based on the provisions of Clause 4 and Article 3 of the Law on Employment 2013, unemployment insurance is defined as follows: "4. Unemployment insurance means a scheme aiming to compensate part of income of a worker when he/she becomes unemployed, support him/her to receive vocational training, maintain employment, or seek employment, on the basis of making contributions to the Unemployment Insurance Fund."

Thus, unemployment allowance are a benefit deducted from the Unemployment Insurance Fund to pay employees to compensate for a part of their income when they lose their jobs.

2. Conditions for unemployment allowance receipt in Vietnam

According to the provisions of Article 49 of the Law on Employment 2013, the conditions for unemployment allowance receipt include:

Article 49. Conditions for unemployment allowance receipt

A worker defined in Clause 1, Article 43 of this Law who currently pays unemployment insurance premiums may receive unemployment allowance when fully meeting the following conditions:

Terminating the labor contract or working contract, except the following cases:

a/ He/she unilaterally terminates the labor contract or working contract in contravention of law;

b/ He/she receives monthly pension or working capacity loss allowance.

Having paid unemployment insurance premiums for at least full 12 months within 24 months before terminating the labor contract or working contract, for the case specified at Points a and b, Clause 1, Article 43 of this Law; or having paid unemployment insurance premiums for at least full 12 months within 36 months before terminating the labor contract, for the case specified at Point c, Clause 1, Article 43 of this Law.

Having submitted a dossier for receipt of unemployment allowance to an employment service center under Clause 1, Article 46 of this Law.

 Having not yet found any job after 15 days from the date of submission of the dossier for receipt of unemployment allowance, except the following cases:

a/ He/she performs the military or public security obligation;

b/ He/she attends a training course of full 12 months or longer;

c/ He/she serves a decision on application of the measure to send him/her to a reformatory, compulsory education institution or compulsory detoxification establishment;

d/ He/she is kept in temporary detention or serves a prison sentence;

dd/ He/she goes abroad for settlement or as guest worker;

e/ He/she dies.

Thus, there are 4 conditions for employees who are participating in unemployment insurance to receive unemployment allowance including:

- First, terminate the labor contract or work contract (except for the case of unilaterally terminating the labor contract, an illegal work contract, enjoying a pension, and the monthly loss of labor allowance).

- Second, for labor contracts or employment contracts of indefinite term and for labor contracts or employment contracts of definite term, the employee has paid unemployment insurance premiums for the full 12 months or more during the 24 months before the termination of the labor contract or employment contract.

For seasonal labor contracts or for a certain job with a term ranging from 3 full months to less than 12 months, the employee has paid unemployment insurance for the full 12 months or more during the 36 months before the termination of the labor contract.

- Third, within three months from the date of termination of the labor contract or working contract, the employee has submitted an application for unemployment benefits at the employment service center.

- Forth, I have not found a job after 15 days.

3. Application for unemployment benefit in Vietnam

As stated in Clause 3 and Article 49 of the Law on Employment 2013, in order to enjoy unemployment benefits, the submission of an application within three months from the date of termination of the labor contract or working contract is a mandatory condition.

Regarding the application file for unemployment benefits specified in Article 16 of Decree  28/2015/ND-CP detailing the implementation of a number of articles of the employment law on unemployment insurance, specifically, employees must prepare the following documents:

- A written form of unemployment benefit defined by the Minister of Labor, War Invalids and Social Affairs.

Application form: Download

- An original or certified true copy of one of the following documents certifying the termination of the labor contract or working contract: the resignation decision; the dismission decision; disciplinary decisions on dismissal; the written notice or agreement of termination of the labor contract or working contract.

- Social insurance books

4. When will the employees receive unemployment benefits in Vietnam?

According to the provisions of Clause 2, Article 18 of Decree 28/2015/ND-CP, employees receive benefits when:

Article 18. Settlement of unemployment benefits

Payment of unemployment benefit

a) Social insurance organization shall pay unemployment benefit for the first month of the employees within 05 working days from receipt of the decision of unemployment benefits;

b) Social insurance organizations shall pay unemployment benefit for the employees from the second unemployment benefit month onwards within 05 working days from the 07th day of the month of unemployment benefit if they do not receive a decision of suspension or termination of unemployment benefit for the employees. If the above 07th day is a holiday, the payment deadline of unemployment benefits shall be the next working day.

Thus, the employee is entitled to the first month's unemployment allowance within 05 working days from receipt of the decision of unemployment benefits. From the second month onwards, the social insurance organization shall pay unemployment benefits to employees within 05 working days from the 07th day of the month of unemployment benefit if they do not receive a decision of suspension or termination of unemployment benefit for the employees

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