Here is a noteworthy content stipulated in Decree 61/2020/ND-CP amending Decree 28/2015/ND-CP guiding the Law on Employment regarding unemployment insurance.
Conditions for Employers to Receive Training Cost Support Change from July 15, 2020
Decree 61/2020/ND-CP stipulates that from July 15, 2020, employers will be eligible for financial support for training, retraining, and enhancing vocational skills to maintain employment for employees as regulated in Clause 1, Article 47 of the Law on Employment 2013 if they meet the following conditions:
First, having paid full unemployment insurance premiums as regulated in Clause 2, Article 44 of the Law on Employment continuously for 12 months or more up to the month prior to the month of the application for training, retraining, and enhancing vocational skills or up to the month of the application for training support if the employer has paid unemployment insurance for that month.
Second, facing difficulties leading to the risk of reducing the current workforce by 30% or more or from 30 employees or more for employers with fewer than 200 employees; from 50 employees or more for employers with 200 to 1000 employees; from 100 employees or more for employers with over 1000 employees, excluding employees with seasonal labor contracts or for a specific job with a term of less than one month. (As regulated in Decree 28/2015/ND-CP, it was stipulated from 30% or from 50 employees or more for employers with under 300 employees and from 100 employees or more for employers with over 300 employees, excluding employees with labor contracts of under three months.)
Cases considered as force majeure as regulated in Clause 1, Article 47 of the Law on Employment include:
- Fire, floods, earthquakes, tsunamis, enemy destruction, epidemics causing partial or total damage to the infrastructure, equipment, machinery, factories with certification by the Chairman of the People’s Committee at the district, town, or provincially-affiliated city where the employer is damaged;
- Implementing the requirements of competent state agencies on relocation or narrowing of production and business venues. (This regulation is newly supplemented in Decree 61).
Third, lacking funds to organize training, retraining, and enhancing vocational skills for employees, determined through the production, business report of the previous year at the time of support application, confirmed by the tax authorities.
Fourth, having a training plan, retraining, enhancing vocational skills and maintaining employment approved by a competent state authority.
Refer to additional new regulations in Decree 61/2020/ND-CP, effective from July 15, 2020.
Le Hai