Conditions and procedures for receiving support when not eligible for unemployment benefits in Vietnam

Conditions and procedures for receiving support when not eligible for unemployment benefits in Vietnam (Internet image)

The Vietnam General Confederation of Labor issued Decision 6696/QD-TLD dated 16/01/2023 providing for the implementation of policies to support trade union members and employees whose working hours are reduced or their contracts terminated. employees due to business cuts, orders reduction.

Thus, regulations to support union members and employees whose labor contracts are terminated but are not eligible for unemployment benefits are as follows:

1. Beneficiaries of financial and/or other Support in Vietnam

According to Article 15 of the Regulation attached to Decision 6696/QD-TLD, the beneficiaries include:

Support shall be granted to trade unionists and employees working under labor contracts at enterprises who have paid union dues before September 30, 2022 if they are made redundant by termination of labor contracts due to their employer’s cancellation or reduction of purchase orders, and are not eligible for unemployment benefits.

2. Conditions for support in Vietnam

Trade unionists and employees referred above shall be entitled to support if:

- They have their labor contracts terminated during the period from October 1, 2022 to end of March 31, 2023, except as they unilaterally terminate labor contracts in contravention of law; are sanctioned in the form of firing; fail to meet probation requirements or fall into the situation where the probation contract is made null or void by a contracting party; are paid retirement pensions or benefits for their incapacity to work on a monthly basis.   

- They are not eligible for unemployment benefits. 

3. Amounts of support and payment methods in Vietnam

Article 17 of Regulations attached to Decision 6696/QD-TLD stipulate the amounts of support as follows:

- If employees are trade unionists; employees who are not trade unionists are females aged 35 years or older; employees are pregnant females; employees are raising natural or adopted children or fostering children under 6 years of age, they shall be entitled to VND 3,000,000 per capita (only one person who is the mother or father or the foster carer).

- Employees who are not trade unionists shall be entitled to VND 2,100,000 per capita.

- Payment method: Support shall be paid in cash or wire transfer on a one-time basis.

4. Application package for support in Vietnam

Dossier to request support for union members and employees whose labor contracts have been terminated but are not eligible for unemployment benefits include:

- Written application form submitted by trade unionists or employees wishing to receive support (using the Form 05 given in an Appendix hereto).

- The copy of one of the following documents:

+ The labor contract which has expired or under which all contractual obligations have been discharged.

+ Resignation decision.

+ The written notice or agreement of termination of the labor contract.

- The copy of the Social Insurance Book or the social insurance agency's confirmation of participation in compulsory social insurance and unemployment insurance.

- Copies of written documents, plans, decisions on rearrangement of work, production and business of the employer leading to the termination of labor contracts with trade unionists and employees (if any).

- If an employee who is not a trade unionist is a pregnant female; an employee is raising a biological or adoptive child or fostering a child under 6 years old, he/she shall be required to submit the following documents other than those mentioned above:

+ Proof of pregnancy;

+ Birth certificate or evidence of birth of the child;

+ Certificate of adoption;

+ Decision on transfer of foster care of a child issued by a competent authority.

5. Support processes and procedures in Vietnam

-  Any trade unionist or employee who wishes to receive support shall send the application dossier to the immediate superior trade union or the provincial Federation of Labour of the place where he/she resides (permanently or temporarily) or where he/she terminates his/her labor contract.

The trade union receiving the application dossier shall examine and guide the trade unionist or employee to submit the application dossier as defined in Article 18 herein; make a record of receipt of the application dossier (using the Form No. 06 in the Appendix hereto)

The submission deadline is end of March 31, 2023.

- Within 05 working days of receipt of the dossier, the receiving trade union shall send the dossier to the provincial Federation of Labor of the place where the applicant terminates his/her labor contract.

- Within 07 working days of receipt of the dossier, the provincial Federation of Labour of the place where the applicant terminates the labor contract shall collect necessary documents related to the applicant (if possible), review (or direct the immediate superior trade union to do so) and issue a decision to approve the list and support funding (using Form No. 02 in Appendix hereto); direct the immediate superior trade union of the place where the enterprise terminates the labor contract to transfer support funding or directly transfer the support funding to the applicant within 05 working days from the date of approval.

In case of disapproval, the provincial Federation of Labour of the place where the union member or employee terminates the labor contract shall notify in writing and clearly state the reasons therefor to the trade unionist or employee submitting application.

- Within 07 working days  from the date of completed payment of support to trade unionists and employees, the trade union paying support shall send a list of trade unionists and employees signing for support (using Form No. 03 in the Appendix to these Regulations) or collect documents proving that the amounts of support have been paid to trade unionists and employees by wire transfer (if the trade union member or employee does not directly receive cash), and retain them in accordance with regulations.

More details can be found in Decision 6696/QD-TLD effective from the date of signing.

Nhu Mai

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