Hanoi-Vietnam: Guidance on receiving severance allowance, redundancy allowance, and unemployment benefits

Duy Thinh

13:20, 11/07/2024

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:

- Labor Code 2012.

- Employment Law 2013.

- Decree 05/2015/ND-CP.

- Circular 47/2015/TT-BLDTBXH.

Unemployment benefits

Process	Content
Step 1: Ensure eligibility requirements for unemployment benefits	Currently pay unemployment insurance premiums. Have a terminated employment contract or working contract, except for cases: Employee unilaterally terminates the employment contract, working contract illegally. Receiving a pension, monthly loss of working capacity allowance. Have enough period of unemployment insurance contributions: At least 12 months within 24 months before the termination of the employment contract or working contract for employees working under indefinite-term and definite-term employment contracts. At least 12 months within 36 months before the termination of the employment contract for employees working under seasonal contracts or under a specific job contract with a duration from 03 months to less than 12 months. Have submitted an application for unemployment benefits. Have not found a job within 15 days from the date of submitting the application for unemployment benefits, except for cases: Performing military or police duties. Going on study programs of 12 months or more. Serving mandatory measures in reform schools, compulsory educational institutions, or compulsory rehab centers. Being detained; serving prison sentences. Going abroad for residence; working abroad under contract. Death.
Step 2: Prepare documents	The document set includes: Application for unemployment benefits according to Form No. 03 Circular 28/2015/TT-BLDTBXH. Original or certified copy of one of the following documents confirming the termination of the employment contract or working contract: Expired employment contract or working contract or completed work according to the employment contract; Decision on resignation; Decision on dismissal; Decision on disciplinary action of forced resignation; Notification or agreement on termination of the employment contract or working contract. (In the case of employees participating in unemployment insurance under seasonal employment contracts or under a specific job contract with a duration from 03 months to less than 12 months, the confirming documents on the termination of the employment contract should be the original or certified copy of the contract.) Social insurance book
Step 3: Submit documents	Employees submit the application for unemployment benefits at the employment service center established by the state management authority on labor. Within 20 days from the date the employment service center receives the complete document set, the competent state authority issues the decision on unemployment benefits or responds in writing if the application does not meet the criteria for allowance. The social insurance organization pays the unemployment benefits to the employee within 05 days from the date of receiving the decision on unemployment benefits.

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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