Good news for employees: Postponing labor contracts or taking unpaid leave will still receive support under Vietnam's Resolution 116

The Ministry of Labor, Invalids and Social Affairs of Vietnam has just released Official Dispatch 3535/LDTBXH-VL reply Dispatch 3138/BHXH-CSXH on determining beneficiaries of support according to Decision 28/2021/QD-TTg.

Good news for employees: Postponement of labor contracts, unpaid leave still receive support under Resolution 116 (Artwork)

The Ministry of Labour, Invalids and Social Affairs has the following comments:

According to Article 43 of the Law on Employment of Vietnam, employees are determined to be subject to compulsory participation in unemployment insurance when entering into one of the following types of contracts: labor contract or indefinite working contract term; employment contract or fixed-term employment contract; seasonal labour contracts or according to a certain job with a term of from full 3 months to less than 12 months.

Along with that, in Clause 1, Article 1 of Decision 28/2021/QD-TTg, it stipulates that the beneficiaries are employees who are participating in unemployment insurance as of September 30, 2021 (named in the list of people participating in unemployment insurance of the social insurance agency).

Employees participate in unemployment insurance on the basis of the labour contract/work contract entered into with the employer.

As of September 30, 2021, the employee has not terminated the labor contract/working contract, is on the list of participating in unemployment insurance of the social insurance agency, so it is still considered to be participating in the unemployed insurance and supported on the basis of the time of paying unemployment insurance premiums but not yet enjoying unemployment benefits (including cases of temporary suspension of labour contracts or work contracts, unpaid leave, cessation of work, maternity benefits,...) during the period from January 1, 2020 to September 30, 2021 as well as before January 1, 2022.

Therefore, an employee who is temporarily suspending his/her labour contract, taking unpaid leave, enjoying maternity benefits and having time to pay unemployment insurance premiums during the period from January 1, 2020 to September 30, 2021, shall still receive support from the unemployment insurance fund.

Previously, in Official Dispatch 3138/BHXH-CSXH of Vietnam dated October 6, 2021, the social insurance agency did not have a clear basis to apply to the following subjects:

- Employees who take leave for maternity or sick leave for 14 working days or more without monthly salary at the unit but enjoy social insurance benefits;

- The employee suspends the labour contract or the signed work contract;

- Employees leave without pay;

- The employee unilaterally terminates the labour contract or the working contract in contravention of the law (arbitrarily quits the job).

As of September 30, 2021, the above cases did not pay private insurance, but they were not out of the "private insurance list" and actually had a reserved time to participate in private insurance according to the provisions of the law on employment, similar to those entitled to support under Clause 2, Article 1 of Decision 28/2021.

Because in the dossiers of the advisory agencies submitted to the competent authorities, the above specific situations of reservation of unemployment insurance premium payment period have not been clearly mentioned.

So in the short term, Vietnam Social Insurance has not received the dossiers of this group of subjects until there are instructions.

Bao Ngoc


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