On November 16, 2013, at the 6th session of the 13th National Assembly, the Employment Law was passed. This Law takes effect from January 1, 2015, and applies to employees, employers, and agencies, organizations, or individuals involved in employment. Simultaneously, the Law clearly stipulates that Employees are Vietnamese citizens aged 15 years or older, who are capable of working and seeking employment.
Article table of contents
Below are some key contents of the Employment Law 2013:
Prohibited Acts: The law prohibits discrimination in employment and occupation; infringing upon the body, honor, dignity, property, rights, and legitimate interests of employees and employers; recruiting and employing employees contrary to the provisions of the law; enticing, promising, and advertising falsely to deceive employees or exploiting employment services and labor market information to conduct illegal acts; fraudulence and forgery of documents in the implementation of employment policies; obstructing, causing difficulties, or damaging the legal rights and interests of employees and employers.
Government policies to support job creation: Preferential credit policies; employment transition support policies for workers in rural areas; public employment policies and other support policies such as assisting in sending workers abroad under contracts, supporting job creation for the youth, and developing the labor market.
Organization and operation of employment services: The law specifies two types of organizations and operations for employment services: Employment Service Centers and Employment Service Enterprises.
Regarding unemployment insurance: According to the Employment Law, from January 1, 2015, all employees with labor contracts of 3 months or more must participate in unemployment insurance (UI). The mandatory participants in unemployment insurance include:
+ Employees must participate in UI when working under labor contracts or working contracts as follows: labor contracts or working contracts of indefinite duration; labor contracts or working contracts of a definite duration; seasonal labor contracts or specific jobs with a duration of 3 months to less than 12 months.
In case an employee signs and is performing multiple labor contracts specified in this clause, the employee and the employer of the first signed labor contract are responsible for participating in UI.
+ Employees as specified above who are receiving pensions or performing household work are not required to participate in UI.
+ Employers participating in UI include state agencies, public service providers, people's armed forces units; political organizations, socio-political organizations, socio-political-professional organizations, social organizations, social-professional organizations; foreign agencies and organizations, international organizations operating in the territory of Vietnam; businesses, cooperatives, households, business households, group cooperatives, other organizations, and individuals hiring and using employees under labor contracts or working contracts as specified above.
The UI contribution rate is 2%, where the employer contributes 1% and the employee contributes 1%.
The state supports a maximum of 1% of the monthly wage fund for UI contributions of the participating employees, ensured by the central budget.
UI contribution period for UI benefit eligibility is the total period of continuous or non-continuous UI contributions accumulated from the start of UI contributions until the termination of the labor contract or working contract as prescribed by law without having received unemployment benefits.
Conditions for unemployment benefit eligibility: Employees specified in Clause 1, Article 43 of this Law who are participating in UI are entitled to unemployment benefits when they satisfy the following conditions:
+ Termination of labor contract or working contract, except in cases where the employee unilaterally terminates the labor contract or working contract illegally; receiving a pension or monthly loss-of-working-capacity allowance;
+ Having paid UI contributions for 12 months or more within 24 months before terminating the labor contract or working contract for the cases specified in points a and b, clause 1, Article 43 of this Law; having paid UI contributions for 12 months or more within 36 months before terminating the labor contract for the cases specified in point c, clause 1, Article 43 of this Law;
+ Submitting an unemployment benefit application to the employment service center as prescribed in Clause 1, Article 46 of this Law;
+ Having not found a job within 15 days from the date of submitting the unemployment benefit application, except in the cases of: performing military or police service; attending a course of 12 months or more; complying with decisions on being sent to reform schools, mandatory education centers, or compulsory rehabilitation centers; being detained; serving imprisonment sentences; emigrating abroad; going to work abroad under contracts; or death.
Monthly unemployment benefit is equivalent to 60% of the average monthly wage of the 6 consecutive months before unemployment but not exceeding 5 times the statutory pay rate for employees subject to state wage policies or not exceeding 5 times the regional minimum wage prescribed in the Labor Code for employees contributing to UI according to wage policies decided by the employer at the time of terminating the labor contract or working contract.
Duration of unemployment benefits is calculated by the number of months of UI contributions, with 3 months of benefits for every 12 to 36 months of contributions, and an additional month of benefits for each additional 12 months of contributions, but not exceeding 12 months in total.
The time of unemployment benefit commencement is calculated from the 16th day after the date of submitting a complete unemployment benefit application as prescribed in Clause 1, Article 46 of this Law.
In addition, the law also prescribes support for training, nurturing, and enhancing vocational skills to maintain employment for employees; support for employment counseling, job introduction, and vocational training; and management of the unemployment insurance fund.
Source: sotuphapqnam.gov.vn
