Vietnam: Important notes that employees should pay attention on unemployment allowance in 2021

1. Cases not eligible for unemployment allowance

(1) A worker unilaterally terminates the labor contract or working contract in contravention of law;

(2) A worker receives monthly pension or working capacity loss allowance;

(3) A worker has not yet found any job after 15 days from the date of submission of the dossier for receipt of unemployment allowance in the following cases:

- He/she performs the military or public security obligation;

- He/she attends a training course of full 12 months or longer;

- He/she serves a decision on application of the measure to send him/her to a reformatory, compulsory education institution or compulsory detoxification establishment;

- He/she is kept in temporary detention or serves a prison sentence;

- He/she goes abroad for settlement or as guest worker;

- He/she dies.

(Legal basis: Clause 1, 4 Article 49 of the Law on Employment 2013 of Vietnam)

2. Time of unemployment insurance payment for unemployment allowance receipt

Having paid unemployment insurance premiums for at least full 12 months within 24 months before terminating the labor contract or working contract, for the following cases:

- Labor contracts or working contracts of indefinite time;

- Labor contracts or working contracts of definite time.

Having paid unemployment insurance premiums for at least full 12 months within 36 months before terminating the labor contract, for the case of seasonal or job-based working contracts with a term of between full 3 months and under 12 months. (From January 01, 2021, seasonal contracts are no longer available)

(Legal basis: Clause 2 Article 49 of the Law on Employment 2013 of Vietnam)

3. Application for unemployment benefit

** Application components include:

(1) A written form of unemployment benefit;

  Form of unemployment benefit

(2) An original or certified true copy of one of the following documents certifying the termination of the labor contract or working contract:

- The labor contract or working contract expired or terminated under its term;

- The resignation decision;

- The dismission decision;

- Disciplinary decisions on dismissal;

- The written notice or agreement of termination of the labor contract or working contract.

- Confirmation of the employer, which contains specific content about the employee's information; type of signed labor contract; the reason and time of termination of the labor contract for the employee;

-  Certification of the competent state agency on the dissolution or bankruptcy of the enterprise or cooperative, or decision on dismissal, relief from duty or dismissal of the appointed titles in case the employee is enterprise managers, cooperative managers;

- In case the employee does not have documents certifying the termination of the labor contract because the employer has no legal representative and the person authorized by the legal representative, the following procedure shall be followed:

+ The Department of Labor, War Invalids and Social Affairs or the provincial Social Insurance Agency shall send a written request to the Department of Planning and Investment to certify that the employer unit has no legal representative or no representative authorized by the legal representative.

+ The Department of Planning and Investment is responsible for coordinating with the tax agency, police agency, and local government where the employer's head office is located in verifying the content that the employer has no legal representative or no representative authorized by the legal representative.

+ Within 10 days from the date of receiving the written request for certification from the Department of Labor - Invalids and Social Affairs or the provincial Social Insurance, the Department of Planning and Investment sends a written reply to the provincial Department of Labor, War Invalids and Social Affairs and Social Insurance about the content of no legal representative or no representative authorized by the legal representative.

- If employees participate in unemployment insurance under the provisions of Point c Clause 1 Article Article 43 of the Law on Employment 2013 of Vietnam, the documents certifying the termination of the labor contract under seasonal work or under a certain job from full 03 months to less than 12 months shall be the original or certified true copy of such contract.

(3) Social insurance books.

** Submission of application for unemployment benefit: Submit 01 application for unemployment benefits to employment service center in the locality where employees want to receive unemployment benefits.

** Form of submission: Directly. However, employees are entitled to authorize another person to submit the application by post in one of the following cases:

- Sickness, Maternity certified by a competent medical facility;

- Accident certified by traffic policemen or competent medical facilities;

- Fires, floods, earthquakes, tsunami, Enemy-inflicted destruction, epidemic diseases certified by the Chairman of the People's Committees at commune level.

** Time limit of submission: Within 03 months from the date of termination of labor contract or working contract, employees who have no jobs and need unemployment benefit shall submit application for unemployment benefit.

** Time limit of settlement: Within 20 working days from receipt of a satisfactory application in accordance with regulations, employment service centers shall consider, request the Director of the Services of Labour, War Invalids and Social Affairs for decision on unemployment benefits of employees.

The time of unemployment benefits of employees shall be calculated from the 16th working day from the date of submission of the application for unemployment benefits.

4. Levels of unemployment allowance

The monthly unemployment allowance level equals 60% of the average monthly wage of 6 consecutive months before the worker becomes unemployed on which unemployment insurance premiums are based, but must not exceed 5 times the basic wage level, for workers receiving wages under the State-prescribed regime, or must not exceed 5 times the region-based minimum wage level under the Labor Code, for workers who pay unemployment insurance premiums under the wage regime decided by employers at the time of termination of the labor contract or working contract.

The duration of unemployment allowance receipt is based on the number of months of payment of unemployment insurance premiums. This duration is 3 months if the period of payment of unemployment insurance premiums is between full 12 months and full 36 months, which is added with 1 month for each additional period of payment of full 12 months, but must not exceed 12 months.

(Legal basis: Article 50 of the Law on Employment 2013 of Vietnam)

In addition to the above-mentioned allowance, during the period of unemployment benefit, the employee is also granted a health insurance card issued by the social insurance agency. The employee shall be subject to the termination of entitlement to health insurance benefit when his/her unemployment benefit is terminated.

(Legal basis: Clause 11 Article 1 of the Decree No. 61/2020/NĐ-CP of the Vietnam ‘s Government)

Above are some important issues about unemployment benefits that employees need to pay attention to in order to enjoy benefits from social insurance policies on the basis of their participation in social insurance.

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Thuy Tram

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