Severance allowance, redundancy allowance, and unemployment benefits are benefits that employees in Vietnam may receive when they no longer work for the employer. To receive these benefits, employees must meet certain specific conditions. To be specific:
Legal Basis:
- Circular 47/2015/TT-BLDTBXH.
Unemployment benefits
Process | Content |
Step 1: Ensure eligibility requirements for unemployment benefits |
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Step 2: Prepare documents |
The document set includes:
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Step 3: Submit documents |
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Severance allowance, redundancy allowance
The employer must pay a severance allowance to the employee who has worked regularly for full 12 months or more in the following cases:
- Expiration of the employment contract, except for cases specified in Clause 6, Article 192 of the Labor Code 2012.- Completion of the work stated in the employment contract.
- Mutual agreement to terminate the employment contract.
- The employee is sentenced to imprisonment, death penalty, or banned from performing the job stated in the employment contract by a legally effective judgment or decision of the Court.
- The employee dies, is declared by the Court to have lost civil act capacity, is missing or has died.
- The employer, who is an individual, dies, is declared by the Court to have lost civil act capacity, is missing or has died; the employer, who is not an individual, terminates its operation.
- The employee unilaterally terminates the employment contract in accordance with Article 37 of the Labor Code 2012.
- The employer unilaterally terminates the employment contract under Article 38 of the Labor Code 2012.
The employer must pay redundancy allowance to the employee who has worked regularly for full 12 months or more when the enterprise changes structure, technology, or due to economic reasons; specifically:
- Change in organizational structure, reorganization of labor.
- Change in products, product structure.
- Change in process, technology, machinery, business equipment associated with the sector, business profession of the employer.
- Economic crisis or recession.
- Implementation of State policies during economic restructuring or execution of international commitments.
Allowance amounts:
- Severance allowance: half a month's salary for each working year.
- Redundancy allowance: one month's salary for each working year but at least two months' salary.
Note: The working period for enhoyingredundancy allowance is the total actual working time for the employer minus the time the employee has participated in unemployment insurance as prescribed by the Law on Social Insurance and the time the employer has paid severance allowance.
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