Vietnam: Workers working under labor contracts of 01 month or more are obliged to participate in unemployment insurance (Propose)

Workers working under labor contracts of 01 month or more are obliged to participate in unemployment insurance (Propose)  

According to Draft outline amendment to the Law on Employment of Vietnam, employees participating in unemployment insurance include: employees who have entered into a working contract, a definite or indefinite labor contract or a definite term labor contract of 01 month or more.

Currently, pursuant to Clause 1 Article 43 of the Law on Employment 2013 of Vietnam, workers are obliged to participate in unemployment insurance when working under labor contracts or working contracts below:

• Labor contracts or working contracts of indefinite time;

• Labor contracts or working contracts of definite time;

• Seasonal or job-based working contracts with a term of between full 3 months and under 12 months.

In case a worker has signed and is performing more than one labor contract specified in this Clause, the worker and the employer under the labor contract signed first shall participate in unemployment insurance.

Workers defined in Clause 1 of this Article who are currently on pension or doing housework are not required to participate in unemployment insurance.

Thus, workers who signed labor contracts with a term of 01 month or more can participate in unemployment insurance.

Proposal to supplement regulations on "Employee insurance management costs"

The Draft outline amendment to the Law on Employment of Vietnam proposes additional regulations on management costs of unemployment insurance (based on the provisions of the Law on Social Insurance 2014 of Vietnam):

Specifically, the proposed contents of unemployment insurance management costs include:

- Propagating and disseminating policies and laws on unemployment insurance; professional training and retraining on unemployment insurance.

- Reform unemployment insurance procedures, modernize the management system, develop and manage unemployment insurance participants and beneficiaries.

- Organize unemployment insurance collection and operate the apparatus of the social insurance industry to implement unemployment insurance.

- To organize the receipt and settlement of unemployment insurance benefits and to operate the apparatus of the employment service center.

- Expenses for inspection, examination and supervision.

- Expenses for the operation of the Unemployment Insurance Management Council.

- Expenses for procurement to modernize the management system.

Acts related to job transactions in the electronic environment are strictly prohibited (Propose)

Specifically, the Draft outline amendment to the Law on Employment of Vietnam will amend prohibited acts related to employment, including:

- Handling of violations of the law on unemployment insurance (in the direction of inheriting and developing the provisions of Article 122 of the Law on Social Insurance 2014 of Vietnam).

- Acts related to job transactions in the electronic environment.

- Violations in the assessment and issuance of national occupational skills certificates and the requirement to use workers with national occupational skills certificates in jobs that directly affect the safety and health of workers and the community.

Currently, prohibited acts related to employment are prescribed in Article 9 of the Law on Employment 2013 of Vietnam, specifically:

• Committing discriminatory acts in employment and occupations.

• Infringing upon the body, honor, dignity, property, the lawful rights and interests of workers or employers.

• Recruiting or employing workers in contravention of law.

• Enticing, promising and deceitfully advertising to deceive workers, or taking advantage of employment services or labor market information to commit illegal acts.

• Committing fraud or forging dossiers in the implementation of employment policies.

• Obstructing, or causing difficulties or damage to, the lawful rights and interests of workers or employers.

Implement policies to support job creation and job transformation in the context of population aging (Propose)

The Draft outline amendment to the Law on Employment of Vietnam, the State of Vietnam  will propose to add 02 additional policies on employment as follows:

- Policies to support and encourage the development of creative jobs and jobs in the context of the digital economy and digital transformation.

- Policies to support job creation and job transformation in the context of population aging.

Currently, State policies on employment including:

• To adopt socio-economic development policies aiming to create employment for workers, identify employment creation objectives in socio-economic development strategies and plans; to allocate resources for the implementation of employment policies.

• To encourage organizations and individuals to create employment for others and for themselves with incomes at least equal to the minimum wage level, contributing to socio-economic and labor market development.

• To adopt policies on employment creation support, labor market development and unemployment insurance.

• To adopt policies on assessment and grant of certificates of national occupational skills in association with improvement of occupational skills qualifications.

• To adopt preferential policies for sectors and trades that use workers with high professional and technical qualifications or use many workers, as suitable to socio-economic development conditions.

• To support employers that employ many people with disabilities, women and ethnic minority people.

(Article 5 of the Law on Employment 2013 of Vietnam)

Thanh Rin

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