Having New Employment from 01 Month or More Shall Terminate Unemployment Benefits

This is a noteworthy new content stipulated in Decree 61/2020/ND-CP amending Decree 28/2015/ND-CP guiding the Law on Employment regarding unemployment insurance.

Termination of Unemployment Benefits, Decree 61/2020/ND-CP

Having a new job for 01 month or more will result in the termination of unemployment benefits (Illustrative photo)

Effective from July 15, 2020, employees currently receiving unemployment benefits will have their benefits terminated when they obtain employment. Specifically, an employee is considered employed in any of the following cases:

- Has entered into a working contract, seasonal labor contract, or a certain task contract with a duration of 01 month or more. The date the employee is considered employed is the effective date of the working contract, labor contract as stipulated by law; (As stipulated in Decree 28/2015/ND-CP, has entered into a labor contract or a working contract with a duration of 03 months or more);- Has a recruitment or appointment decision for cases not subject to labor contracts or working contracts. The date the employee is considered employed in this case is the date stated in the recruitment or appointment decision;- Has a registration certificate of household business for cases where the employee is the owner of the household business or a business registration certificate for cases where the employee is the owner of the business. The date the employee is considered employed is the date the employee notifies the employment service center of the commencement of business activities; (Not stipulated in Decree 28/2015/ND-CP)- The employee notifies the employment service center of having obtained employment. The date the employee is considered employed is the date stated in the employment notification of the employee.

It can be seen that, according to the old regulations, employees had to terminate their unemployment benefits if they had employment for 03 months or more. However, the new regulation has shortened this period to only 01 month to prevent the situation where employees work at a new entity while simultaneously receiving unemployment benefits, depleting our Unemployment Insurance Fund.

Therefore, when obtaining new employment with a duration of 01 month or more, employees need to promptly declare to terminate their unemployment benefits to avoid legal violations.

Le Hai

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