Proposal to amend the regulations on subjects of unemployment insurance in Vietnam

Is there any proposal to amend the regulations on subjects of unemployment insurance in Vietnam? - Thanh Tai (Ca Mau)

Proposal to amend the regulations on subjects of unemployment insurance in Vietnam

Proposal to amend the regulations on subjects of unemployment insurance in Vietnam (Internet image) 

Regarding this matter, LawNet would like to answer as follows: 

The Ministry of Labor - Invalids, and Social Affairs is seeking opinions on the draft Law on amendments to Law on employment.

Proposal to amend the regulations on participants in unemployment insurance in Vietnam

According to Article 97 of the draft Law on amendments to Law on employment, the proposed additional subjects of unemployment insurance is as follows:

- Workers subjects to unemployment insurance, including:

+ Workers employed under indefinite-term employment contracts, fixed-term employment contracts of one month or more, including cases where both parties agree under a different name but with content indicating paid employment, wages, and the management, operation, and supervision of one party;

+ Workers defined in point a, clause 1, Article 97 of the draft Law on amendments to Law on employment working part-time, with a total monthly salary equal to or higher than the minimum social insurance contribution base of half the highest monthly salary in the region announced by the Government.

+ Workers employed under work contracts;

+ Enterprise managers, inspectors, representatives of state capital, representatives of capital in companies and parent companies, managers of cooperative associations, and federations of cooperative associations, who receive wages.

In the event that a worker enters into and is performing multiple labor contracts defined in this clause, the worker and the employer of the first employment contract are responsible for participating in unemployment insurance.

- Workers defined in clause 1, Article 97 of the draft Law on amendments to Law on employment working under probation contracts as regulated by labor laws, receiving retirement pensions, social insurance allowances, monthly allowances as regulated by the Government, workers eligible for retirement pensions but not receiving them, and domestic helpers are not required to participate in unemployment insurance.

- Employers participating in unemployment insurance include state agencies, public service providers, armed forces units; political organizations, political-social organizations, socio-political-professional organizations, social organizations, socio-professional organizations; foreign organizations, international organizations operating on Vietnamese territory; enterprises, cooperatives, household businesses, business households, cooperative groups, other organizations, and individuals hiring or utilizing labor as regulated in clause 1, Article 97 of the draft Law on amendments to Law on employment.

- Participation in unemployment insurance for other subjects with stable and regular income will be determined by the Government in accordance with the economic and social development conditions of each period.

*Note: The italicized portion is the amended and added section.

Currently, according to Article 43 of the Law on Employment 2013, the subjects of compulsory participants in unemployment insurance in Vietnam are as follows:

- Workers are obliged to participate in unemployment insurance when working under labor contracts or working contracts below:

+ Labor contracts or working contracts of indefinite time;

+ Labor contracts or working contracts of definite time;

+ Seasonal or job-based working contracts with a term of between full 3 months and under 12 months.

In case a worker has signed and is performing more than one labor contract specified in this Clause, the worker and the employer under the labor contract signed first shall participate in unemployment insurance.

- Workers defined in Clause 1 of Article 43 of the Law on Employment 2013 who are currently on pension or doing housework are not required to participate in unemployment insurance.

- Employers obliged to participate in unemployment insurance include state agencies, public non-business units and people’s armed forces units; political organizations, socio-political organizations, socio-political-professional organizations, social organizations and socio-professional organizations; foreign agencies and organizations and international organizations operating in the Vietnamese territory; enterprises, cooperatives, households, business households, cooperative groups, other organizations and individuals that hire or employ workers under the labor contracts or working contracts specified in Clause 1 of Article 43 of the Law on Employment 2013.

More details can be found in the draft Law on amendments to Law on employment.

To Quoc Trinh

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