Is probation period counted for severance allowance?
According to Article 46 of the 2019 Labor Code on severance pay regulations:
Employees shall receive severance pay if they meet the following conditions:
Termination of labor contract falls under one of the following cases:
+ Expiration of the labor contract;
+ Completion of work under the labor contract;
+ Both parties agree to terminate the labor contract;
+ Employee unilaterally terminates the labor contract legally;
...
Continuously working for the employer for 12 months or more;
Not eligible for pension;
Not dismissed.
According to Point a, Clause 3 of Article 8, Decree 145/2020/ND-CP, the total actual working time for the employer includes: probationary period.
Regarding the calculation method: Each working year is entitled to half a month's salary as severance pay.
(1) Working period to calculate severance pay = Total actual working time - Time participating in unemployment insurance (UI)
Severance pay = 1/2 x Salary for severance pay calculation x (1) Working period to calculate severance pay
Note: The working period to calculate severance pay or job loss allowance for employees is calculated by year (full 12 months);
- Where there are months remaining less than or equal to 06 months, they are counted as 1/2 year;
- Over 06 months are counted as 01 year of work.
Therefore, when quitting the job, the 02-month probationary period will also be counted for severance pay calculation minus the time participating in UI.
From this, it can be calculated as follows:
Severance pay calculation duration = 02 months of probation (counted as 1/2 year).
Severance pay = 1/2 x Salary for severance pay calculation x 1/2 year.
Please refer to the above regulations to apply them to specific cases at your unit.
Respectfully!
