Determination of Working Time for Calculating Severance Allowance

The Ministry of Labor, Invalids, and Social Affairs provides guidance to Ban Phuc Nickel Mine Limited Liability Company (Hanoi City) on the determination of working time to calculate severance allowance for employees of the Company as follows:

According to the provisions of Clause 3, Article 14 of Decree 05/2015/ND-CP dated January 12, 2015, of the Government of Vietnam detailing and guiding the implementation of certain contents of the Labor Code 2012, the working time to calculate severance allowance and job loss allowance is the total actual working time the employee has worked for the employer minus the time the employee has participated in unemployment insurance as prescribed by law and the time for which the employee has already received severance allowances from the employer.

In which, the actual working time the employee has worked for the employer includes: the time the employee has worked for the employer; probationary period, vocational training period, and practice period to work for the employer; the period the employee is sent to study by the employer; leave periods enjoying policies as prescribed by the Law on Social Insurance; weekly rest periods as stipulated in Article 110, leave periods enjoying full salary as per Articles 111, 112, 115, and Clause 1, Article 116 of the Labor Code; the period of leave for trade union activities as prescribed by law on trade unions; the period the employee has to stop work or takes leave not due to their fault; the period of suspension and the period of detention and temporary custody but reinstated due to a conclusion from a competent state authority determining no crime has been committed.

According to the provisions of Clause 3, Article 34 of the Labor Code 2012, employees working part-time are entitled to salary, rights, and obligations like full-time employees, equal opportunities rights, non-discrimination, labor safety, and hygiene assurance.

Based on the above provisions and the Company's feedback, the determination of working time to calculate severance allowance for employees working on half-day policies (4 hours/day) is calculated similarly to full-time employees (8 hours/day).

Therefore, the Ministry of Labor, Invalids, and Social Affairs requests Ban Phuc Nickel Mine Limited Liability Company to, based on actual working conditions for the company as per the labor contract, implement the payment of severance allowance to employees accordingly.

According to the Ministry of Labor, Invalids, and Social Affairs

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