Job discontinuation allowance for public employees in Vietnam

According to Article 45 of the Law on Public Employees 2010 and Article 38 of Decree No. 29/2012/NĐ-CP of Vietnam’s Government, a public employee may be allowed for job discontinuation in the following cases:

- He/she makes a voluntary written request for job discontinuation which is approved in writing by a competent agency or unit;

- He/she unilaterally terminates his/her working contract under Clause 4 or 5, Article 29 of the Law on Public Employees 2010 of Vietnam;

- His/her public non-business unit unilaterally terminates the working contract signed with him/her in a case specified at Point c, d or e, Clause 1, Article 29 of the Law on Public Employees 2010 of Vietnam.

Regarding to job discontinuation allowance for public employees, according to Clause 1 Article 39 of Decree No. 29/2012/NĐ-CP of Vietnam’s Government, job discontinuation allowance applicable to working periods of public employees from December 31, 2008, back shall be calculated as follows: For every working year, a public employee is entitled to a half of his/her current salary, including the salary level based on professional title, leadership allowance, extra-seniority allowance, professional seniority allowance and salary reservation difference coefficient (if any); the minimum level of this allowance is equal to the monthly salary currently paid to the public employee;

Concurrently, according to Clause 2 Article 39 of Decree No. 29/2012/NĐ-CP of Vietnam’s Government, job discontinuation allowances for working periods of public employees from January 1,2009, to the present time comply with the law on unemployment allowance. Specifically, the monthly unemployment allowance of a serving employee is equal to 60% of the average monthly salary on which unemployment insurance premiums are based on the 6 preceding months before unemployment.

It should be noted that employees who resign from work are entitled to unemployment benefits when they fully meet the conditions specified in Article 49 of the Law on Employment 2013 of Vietnam.

Nguyen Trinh

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