Ms. Pham Thi Thu Suong (Tien Giang, Vietnam) asked: If a teacher reaches the age of 55 and terminates their indefinite-term employment contract in July 2015, having contributed to social insurance for 19 years and 3 months, is the unit required to pay a severance allowance according to Decree No. 29/2012/ND-CP?
Lawyer Tran Van Toan, Khanh Hung Law Firm - Hanoi Bar Association addresses this issue as follows:
According to Clause 1, Article 38 of Decree 29/2012/ND-CP dated April 12, 2012, of the Government of Vietnam regulating the recruitment, use, and management of public employees, public employees are resolved to resign and receive severance allowance in the following cases:
- The public employee submits a voluntary resignation letter and is approved in writing by the competent agency or unit.
- The public employee unilaterally terminates the working contract as stipulated in Clauses 4 and 5, Article 29 of the Law on Public Employees 2010 as follows:
A public employee working under an undefined-term working contract who unilaterally terminates the contract must notify the head of the public service provider in writing at least 45 days in advance; in cases where the public employee is ill or has had an accident and has been undergoing treatment for 6 consecutive months, they must give at least 3 days' notice.
A public employee working under a definite-term working contract unilaterally terminates the contract in cases where: They are not arranged according to the correct job position, workplace, or are not guaranteed the working conditions agreed upon in the working contract; They are not fully paid or not paid on time as agreed in the working contract; They are maltreated, forced to work; They or their family are in difficult circumstances that hinder contract performance; Female public employees are pregnant and must take leave as advised by medical facilities; The public employee is ill or has had an accident and has been undergoing treatment for 3 consecutive months and has not yet recovered their working capacity.
- The public service provider unilaterally terminates the working contract with the public employee in one of the cases specified at Points c, d, and dd, Clause 1, Article 29 of the Law on Public Employees as follows:
A public employee working under an undefined-term working contract who is ill and has been undergoing treatment for 12 consecutive months, and a public employee working under a defined-term working contract who is ill and has been undergoing treatment for 6 consecutive months without recovering their working capacity.
Due to natural disasters, fires, or other force majeure reasons stipulated by the Government of Vietnam that force the public service provider to downsize, resulting in the elimination of the job position the public employee is holding.
When the public service provider ceases operations according to the decision of the competent authority in Vietnam.
Ms. Pham Thi Thu Suong is a teacher who terminated an indefinite-term working contract, resigning at the retirement age (not in the case of a public employee voluntarily resigning before reaching the retirement age and receiving written approval from the competent agency or unit; nor in the case of a public employee unilaterally terminating an indefinite-term working contract according to Clause 4, Article 29 of the Law on Public Employees). Therefore, Ms. Suong's case does not fall under the cases of resignation eligible for severance allowance stated in Clause 1, Article 38 and Article 39 of Decree 29/2012/ND-CP.
Ms. Suong resigned at the retirement age but has only contributed to compulsory social insurance for 19 years and 3 months, thus she is not eligible for a pension. If she has not yet received one-time social insurance policies, she can continue to pay social insurance for another 9 months to complete 20 years of social insurance contributions to receive a pension.
According to the Government Electronic Newspaper
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