Who has right to close social insurance books upon termination of an employment contract in Vietnam?

Who has right to close social insurance books upon termination of an employment contract in Vietnam?

Closing the social insurance book is the finalization and termination of the employee's social insurance payment process at the Social Insurance Agency where the unit is paying social insurance. This is done when the employee resigns or retires when eligible.

According to Clause 5, Article 21 of the 2014 Law on Social Insurance, the responsibilities of employers are stipulated as follows:

Responsibilities of employers

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5. To coordinate with social insurance agencies in returning social insurance books to and certifying periods of social insurance premium payment for employees who terminate labor contracts or working contracts or cease working in accordance with law.

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Pursuant to Clause 3, Article 48 of the 2019 Labor Code, it stipulates that employer has the responsibility to:

Responsibilities of the parties upon termination of an employment contract

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3. The employer has the responsibility to:

a) Complete the procedures for verification of duration of participation in social insurance and unemployment insurance, return them and original copies of the employee’s other documents (if any);

b) Provide copies of the documents relevant to the employee’s work if requested by the employee. The employer shall pay the cost of copying and sending the documents.

According to this Article, when the employee quits his job, the employer will be responsible for coordinating with the social insurance agency to return the social insurance book to the employee and procedures to confirm the employee's social insurance payment period. This is the activity of closing social insurance books for employees in Vietnam.

Who has right to close social insurance books upon termination of an employment contract in Vietnam? (Image from the Internet)

Can I apply for unemployment insurance without closing my social insurance book in Vietnam?

According to Clause 3, Article 48 of the 2019 Labor Code, responsibilities of the parties upon termination of an employment contract are prescribed as follows:

Responsibilities of the parties upon termination of an employment contract

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3. The employer has the responsibility to:

a) Complete the procedures for verification of duration of participation in social insurance and unemployment insurance, return them and original copies of the employee’s other documents (if any);

b) Provide copies of the documents relevant to the employee’s work if requested by the employee. The employer shall pay the cost of copying and sending the documents.

According to this Article, when terminating the employment contract, the employer is responsible for completing procedures to confirm the period of payment of social insurance and unemployment insurance for the employee in Vietnam.

Completion of confirmation of the employee's social insurance payment period, also known as the procedure for closing the social insurance book, is to determine whether the employee participates in social insurance and has terminated the employment contract and at the same time stop paying compulsory social insurance in Vietnam

According to Article 49 of the Employment Law 2013, regulations on conditions for unemployment allowance receipt, when employees meet the following conditions, they will be entitled to unemployment benefits:

- Terminate the labor contract or working contract unless the employee unilaterally terminates the labor contract or working contract illegally; receive monthly pension and disability allowance;

- Conditions on unemployment insurance payment period;

- Having submitted a dossier for receipt of unemployment allowance to an employment service center;

- Having not yet found any job after 15 days from the date of submission of the dossier for receipt of unemployment allowance, except in some cases prescribed by law.

Thus, the conditions for employees to receive unemployment benefits include the condition that the employer has terminated the employment contract and the condition on the period of participation in social insurance in Vietnam.

To confirm that the employee has terminated the employment contract and is eligible for social insurance payment period, it is necessary to complete the procedure to close the social insurance book in Vietnam.

Therefore, if the employee has not yet closed his/her social insurance book, he/she will not be eligible for unemployment insurance in Vietnam

Can I close my social insurance book on the VssID application in Vietnam?

Pursuant to Article 48 of the 2019 Labor Code, regulations on responsibilities of the parties upon termination of an employment contract are specifically as follows:

Responsibilities of the parties upon termination of an employment contract

1. Within 14 working days following the termination of an employment contract, both parties shall settle all payments in respect of the rights and interests of each party. In the following cases, such period may be extended, but shall not exceed 30 days:

a) Shutdown of business operation of the employer that is not a natural person;

b) Changes in the organizational structure, technology or changes due to economic reasons;

c) Full division, partial division, consolidation, merger of the enterprise; sale, lease, conversion of the enterprise; transfer of the right to ownership or right to enjoyment of assets of the enterprise or cooperative;

d) Natural disasters, fire, hostility or major epidemics.

2. Priority shall be given to payment of the employees’ salaries, social insurance, health insurance, unemployment insurance, severance allowance and other benefits under the collective bargaining agreement and employment contracts in case of shutdown, dissolution or bankruptcy of an enterprise or cooperative.

3. The employer has the responsibility to:

a) Complete the procedures for verification of duration of participation in social insurance and unemployment insurance, return them and original copies of the employee’s other documents (if any);

b) Provide copies of the documents relevant to the employee’s work if requested by the employee. The employer shall pay the cost of copying and sending the documents.

Thus, when the employment contract has been terminated in Vietnam, the employer must complete the procedures for closing the social insurance book and return the originals of other documents if kept by the employee and close the insurance book. Social insurance procedures are carried out on paper (directly).

Currently, the social insurance agency has not implemented online book closing on the VssID application in Vietnam.

Best regards!