Do I have to pay unemployment insurance for foreign workers in Vietnam?
Do I have to pay unemployment insurance for foreign workers in Vietnam? Do I have to pay unemployment insurance continuously for 12 months to receive benefits in Vietnam? Do directors of joint-stock companies enjoy unemployment insurance in Vietnam?
Do I have to pay unemployment insurance for foreign workers in Vietnam?
The parent company of the upcoming company employs foreign workers. Please ask if the insurance obligations for foreign workers are the same as for Vietnamese people? Do I have to pay unemployment insurance for them?
Reply:
According to current legal regulations, in case of employing Vietnamese citizens, the enterprise must perform the obligation to participate in various types of insurance for employees with specific payment rates as follows: Social insurance Social insurance (17%), unemployment insurance (1%), health insurance (3%), occupational accident and occupational disease insurance (0.5%).
However, when employing foreign workers, enterprises are not obliged to pay unemployment insurance premiums.
Specifically, according to the provisions of Article 43, Clause 1, Article 3 of the Employment Law 2013, Worker means a Vietnamese citizen who is full 15 years or older, has ability to work and seeks employment, and are working under various types of labor contracts and working contracts in accordance with the provisions of the Labor Code.
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, in case your enterprise employs foreign workers, it is not required to participate in unemployment insurance for these workers. In addition, other compulsory insurance regimes apply similarly to the case of employees who are Vietnamese citizens.
Do I have to pay unemployment insurance continuously for 12 months to receive benefits in Vietnam?
I have paid unemployment insurance for 10 months. I have work at home, so I quit. Please let me know after 6 months, I will go back to work and pay 2 more months of insurance. Can I get unemployment insurance?
Reply:
Pursuant to Article 49 of the Employment Law 2013 stipulates 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:
1. 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.
2. 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.
3. Having submitted a dossier for receipt of unemployment allowance to an employment service center under Clause 1, Article 46 of this Law.
4. 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.
According to this Article, you must ensure that you have paid unemployment insurance premiums for a full 12 months before terminating your labor contract, in addition, you must also meet the conditions listed above to receive unemployment benefits in Vietnam.
According to Clause 1, Article 45 of the 2013 Employment Law, period of payment of unemployment insurance premiums is as follows:
1. The period of payment of unemployment insurance premiums for receipt of unemployment insurance benefits is the total of consecutive or interrupted periods of payment of unemployment insurance premiums from the starting time of such payment to the time the worker terminates his/her labor contract or working contract under law but during which he/she has not yet received any unemployment allowance.
According to this Article, the period of unemployment insurance premium payment to consider enjoying unemployment insurance may be a continuous or intermittent payment period. Calculated from the time you start paying unemployment insurance until the end of the labor contract without receiving unemployment benefits in Vietnam.
Based on the above basis and the information you provide, you pay 10 months of unemployment insurance and then take a break, then pay another 2 months, you are still guaranteed the time to pay unemployment insurance to enjoy benefits in Vietnam.
Do directors of joint-stock companies enjoy unemployment insurance in Vietnam?
I am a director of a joint stock company, hired under a labor contract, will I receive unemployment benefits when the company goes bankrupt?
Reply:
Pursuant to the provisions of Clause 1, Article 162 of the Enterprise Law 2020, the Director/General Director.
1. The Board of Directors shall designate one of its members or hire a person as the Director/General Director.
In Article 43 of the Employment Law 2013, compulsory participants in unemployment insurance as follows:
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, if you are a director of a joint-stock company hired by a labor contract, you can receive unemployment benefits if you meet the eligibility requirements for unemployment benefits in Vietnam.
Best regards!
