The enterprise is allowed to contribute to the Occupational Accident and Disease Insurance Fund at a lower rate than usual; additional cases where employees are determined to have employment to terminate unemployment benefits; ... are new insurance regulations that will simultaneously come into effect from July 15, 2020. To be specific: these regulations are as follows:
Article table of contents
04 new insurance regulations simultaneously take effect from July 15, 2020 - Illustrative image
1. Businesses are allowed to contribute to the Occupational Accident Insurance and Occupational Disease Insurance Fund at a lower rate than usual
This notable content is found in Decree 58/2020/ND-CP regulating mandatory social insurance contributions to the Occupational Accident Insurance and Occupational Disease Insurance Fund, effective from July 15, 2020.
To be specific, according to Decree 58/2020/ND-CP, from July 15, 2020, employers will contribute monthly to the social insurance salary fund into the Occupational Accident Insurance and Occupational Disease Insurance Fund for employees specified at points a, b, c, d, e, and h clause 1 Article 2 and clause 2 Article 2 of the Social Insurance Law, excluding domestic workers, at one of the following rates:
- The regular contribution rate of 0.5% of the social insurance salary fund; also applicable to employees who are officials and public employees and members of the armed forces in the organizations of the Communist Party, State, socio-political organizations, the military, the police, public service providers using state budgets;
- The contribution rate of 0.3% of the social insurance salary fund applies to businesses meeting the conditions stipulated in Article 5 of Decree 58/2020/ND-CP, specifically, businesses operating in industries with high risks of occupational accidents and occupational diseases and meeting the following conditions:
- Have not been fined via administrative penalties in the form of monetary fines or been criminally prosecuted for violations of laws on occupational safety, hygiene, and social insurance within 03 years up to the proposal date;- Have accurately, fully, and timely reported occupational accidents and occupational safety and hygiene annually for 03 consecutive years prior to the proposal year;- Have a frequency rate of occupational accidents in the year immediately prior to the proposed year reduced by 15% or more compared to the average occupational accident frequency of the 03 consecutive years before the proposed year or have had no occupational accidents within the 03 consecutive years before the proposed year.
Note: The period for implementing the lower contribution rate is 36 months, starting from the month the decision to apply the rate takes effect.
Within 60 days before the lower contribution rate period expires, if the employer still wishes to continue contributing at a lower rate to the Occupational Accident and Disease Insurance Fund, they must submit a set of documents as prescribed in Article 6 and follow the procedures stipulated in Article 8 of Decree 58/2020/ND-CP.
2. Additional cases for determination of employment status to terminate unemployment benefits
To be specific, according to Clause 9 Article 1 Decree 61/2020/ND-CP amending and supplementing point b clause 1 Article 21 Decree 28/2015/ND-CP, an employee is determined as having employment status to terminate unemployment benefits in one of the following cases:
- Having entered into a work contract, seasonal labor contract, or labor contract for a specific job with a duration of at least one month (Currently, Decree 28 stipulates at least 3 months). The date the employee is determined to have a job is the effective date of the work contract or labor contract as per the law;
- Having a recruitment or appointment decision (Decree 28/2015/ND-CP only stipulates a recruitment decision) for those who do not fall under the category of labor contract or work contract. The date the employee is determined to have a job in this case is the date stated in the recruitment or appointment decision;
- Having a business household registration certificate for employees who are business household owners, or a business registration certificate for employees who are business owners. The date the employee is determined to have a job is the date the employee notifies the employment service center about the start of business operations of the business household or company (This is a newly added case in Decree 61/2020/ND-CP);
- The employee informs the employment service center that they have found a job. The date the employee is determined to have a job is the date stated in the job notification.
Thus, it can be seen that Decree 61/2020/ND-CP has modified and supplemented the cases determined to be employment status to terminate unemployment benefits as previously regulated in Decree 28 and added a new case for employees being business household owners or business owners.
3. Many additional documents can replace for the application file for unemployment benefits
To be specific, according to Clause 6 Article 1 of Decree 61/2020/ND-CP amending and supplementing clause 2 Article 16 of Decree 28/2015/ND-CP, besides the original or certified copy or copy with the original for comparison of one of the documents verifying the termination of labor contracts or work contracts as stipulated in clause 2 Article 16 of Decree 28/2015/ND-CP, employees can also submit:
- Confirmation from the employer containing specific information about the employee; type of labor contract signed; reason, and time of termination of the labor contract for the employee;- Confirmation from a competent state agency about the dissolution or bankruptcy of the enterprise or cooperative or the decision to dismiss, relieve, or remove a person from appointed positions for employees who are management personnel of enterprises or cooperatives;- In cases where employees participate in unemployment insurance as stipulated in Point c Clause 1 Article 43 of the Employment Law, a document verifying the termination of a seasonal labor contract or a labor contract for a specific job with a duration from 3 months to less than 12 months can be either the original or a certified copy or a copy accompanied by the original labor contract for comparison;
Note, in cases where employees do not have documents verifying the termination of labor contracts due to employers not having legal representatives or authorized persons, the procedure is as follows:
- The Department of Labor, War Invalids and Social Affairs or the provincial Social Insurance sends a written request to the Department of Planning and Investment for confirmation that the employer does not have a legal representative or authorized person.
- The Department of Planning and Investment cooperates with the tax department, police department, and local authorities where the employer’s head office is located to verify the absence of a legal representative or authorized person.
- The Department of Planning and Investment sends a written response to the Department of Labor, War Invalids and Social Affairs and the provincial Social Insurance about the absence of a legal representative or authorized person within 10 working days from the receipt of the verification request.
4. 05 Cases where employees are determined to be paying unemployment insurance to receive unemployment benefits
According to Clause 4 Article 1 of Decree 61/2020/ND-CP amending and supplementing clause 2 Article 12 of Decree 28/2015/ND-CP, employees are identified as paying unemployment insurance as defined in Article 49 of the Employment Law when they fall into one of the following cases:
- Employees who have paid unemployment insurance for the month in which the labor contract or work contract is terminated and have been confirmed by the social insurance agency on the social insurance book;- Employees who have paid unemployment insurance for the month immediately preceding the month the labor contract or work contract is terminated and have been confirmed by the social insurance agency on the social insurance book;- Employees who, in the month immediately preceding the month the labor contract or work contract is terminated or in the month the labor contract or work contract is terminated, take sick leave or maternity leave for 14 days or more in the month without receiving the monthly salary from the unit and have been confirmed by the social insurance agency on the social insurance book;- Employees who, in the month immediately preceding the month the labor contract or work contract is terminated or in the month the labor contract or work contract is terminated, take unpaid leave for 14 days or more in the month from the unit and have been confirmed by the social insurance agency on the social insurance book;- Employees who, in the month immediately preceding the month the labor contract or work contract is terminated or in the month the labor contract or work contract is terminated, temporarily suspend performing the labor contract or work contract for 14 days or more in the month from the unit and have been confirmed by the social insurance agency on the social insurance book.
Currently, under Decree 28/2015/ND-CP, employees are considered as paying unemployment insurance if they have paid unemployment insurance during the month immediately preceding the termination of the labor contract or work contract and have been confirmed by the social insurance organization. The immediately preceding month includes the following time:
- Employees who, in the month immediately preceding the termination of the labor contract or work contract, take maternity leave or sick leave for 14 days or more without receiving the monthly salary from the unit but receive social insurance benefits;- Employees who, in the month immediately preceding the termination of the labor contract or work contract, temporarily suspend performing the labor contract or work contract as per the law without receiving the monthly salary from the unit.
Thus, it can be seen that Decree 61/2020/ND-CP has amended and added cases for employees to be identified as paying unemployment insurance as defined in Article 49 of the Employment Law compared to the current stipulations in Decree 28/2015/ND-CP.
The month of unemployment insurance payment for employees is counted if the employer and the employee have performed the labor contract or work contract and have paid unemployment insurance.
In cases where employees have already been granted unemployment benefits, after the termination of these benefits, any additional time confirmed by the social insurance agency as paying unemployment insurance will be considered as the time not yet receiving unemployment benefits as defined in Clause 1 Article 45 of the Employment Law. (This is a newly added content in Decree 61/2020/ND-CP compared to Decree 28/2015/ND-CP)
Nguyen Trinh
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