Cases in which unemployment insurance premium payment period shall be reserved in Vietnam

Cases in which unemployment insurance premium payment period shall be reserved in Vietnam (Internet image)

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

1. Cases in which unemployment insurance premium payment period shall be reserved in Vietnam

According to Clause 2, Article 9 of Circular 28/2015/TT-BLDTBXH, the payment period shall be reserved in the following cases:

- The employee fails to receive the decision on unemployment benefit payout as prescribed in Clauses 3 and 4 Article 18 of Decree No. 28/2015/ND-CP.

After the decision on cancellation of unemployment benefit payout is issued by the Director of Service of Labor, War Invalids and Social Affairs, the employment service center shall return the claim for unemployment benefit to the employee.

Within 3 months from the appointment date, if the employee fails to receive the social insurance at the employment service center, within 3 working days from the end date of the above period, the employment service center shall transfer his/her social insurance to the social security of province for management.

Example 5: Mr. Tran Van D had a 36-month payment period so that he was entitled to receive 3-month unemployment benefit. The appointment date is March 16, 2015. However, Mr. D did not come to receive the decision on unemployment benefit payout until March 18, 2015 (after 2 working days).

Within 7 working days from the deadline for unemployment benefit payout as prescribed, the employment service center shall request the Director of the Service of Labor, War Invalids and Social Affairs to cancel the decision on unemployment benefit payout. The payment period to be preserved of Mr. D is 36 months.

- The employee fails to receive unemployment benefit amount prescribed in Clauses 6 Article 18 of Decree No. 28/2015/ND-CP.

The social security agency shall, according to the decision on reservation of payment period, record the reserved payment period into the social insurance book as prescribed by Vietnam Social Security.

Example 6: Mr. Tran Van S had a 36-month payment period so that he was entitled to receive 3-month unemployment benefit. His payout period shall be determined from February 20, 2015 to May 19, 2015. However, until August 19, 2015 (after 3 months from the deadline for unemployment benefit payout), Mr. S still did not receive the unemployment benefit amount of the third payout month.

Consequently, the payment period to be reserved of Mr. S is 12 months (equivalent to 1 payout month for which Mr. S failed to receive unemployment benefit)

Example 7: Ms. Le Thi T had a 12-month payment period so that she was entitled to receive 3-month unemployment benefit. Her payout period shall be determined from July 6, 2015 to October 5, 2015.

However, until January 5, 2016 (after 3 months from the deadline for unemployment benefit payout), Ms. T still did not receive the unemployment benefit amount of the second and third payout month. Consequently, Ms. T had received 1 month’s unemployment benefit (equivalent to 12-month unemployment insurance payment), so that she has no payment period to be reserved.

Example 8: Ms. Le Thi T had a 29-month payment period so that she was entitled to receive 3-month unemployment benefit. The payout period of Ms. H shall be determined from March 9, 2015 to June 8, 2015. Ms. H received the first payout month and the second payout month had been suspended. In the third payout month, Ms. H went to the employment service center to give the monthly job seeking as prescribed so that she was entitled to receive the third payout month.

However, until September 8, 2015 (after 3 months from the deadline for unemployment benefit payout), Ms. T still did not receive the unemployment benefit amount of the third payout month. Accordingly, Ms. T had received 1 month’s unemployment benefit (equivalent to 12-month payment period) and 1 month’s unemployment benefit was suspended (equivalent to 12-month payment period). Consequently, her payment period to be reserved is 5 months.

- The remaining payment period in which the unemployment benefit is not received (hereinafter referred to as the remaining payment period) shall be reserved as prescribed in Clause 7 Article 18 of Decree No. 28/2015/ND-CP.

The social security agency shall, according to the decision on the unemployment benefit payout issued by the Director of Service of Labor, War Invalids and Social Affairs, record the reserved payment period into the social insurance book as prescribed by Vietnam Social Security.

Example 9: On March 24, 2015, Mr. Tran Quang P terminated the labor contract. Mr. P had a 47-month payment period so that he was entitled to receive 3 month’s unemployment benefit (equivalent to 36-month payment period). Accordingly, the payment period to be preserved of Mr. P is 11 months.

After the deadline for unemployment benefit payout, Mr. Point concluded a 3 month’s labor contract with enterprise F (from September 5, 2015 to December 4, 2015) and keep paying unemployment insurance premiums.

When the labor contract with the enterprise F expired, Mr. P claimed for unemployment benefit payout for the second time. Therefore, his total remaining payment period was 14 months. If meeting all requirements for unemployment benefit payout, Mr. Point shall receive 3-month unemployment benefit.

Example 10: Mr. Do Van G had a 35-month payment period so that he was entitled to receive 3 month’s unemployment benefit and there is no payment period to be reserved as prescribed in Clause 7 Article 18 of Decree No. 28/2015/ND-CP.

- The unemployment benefit is cut as prescribed in Clauses 5 Article 21 Decree No. 28/2015/ND-CP.

The social security agency shall, according to the decision on cutting unemployment benefit, record the reserved payment period into the social insurance book as prescribed by Vietnam Social Security.

Example 11: Mr. Nguyen Van V had a 38-month payment period so that he was entitled to receive 3 month’s unemployment benefit and 2-month payment period was reserved as prescribed in Point c Clause 2 of this Article.

His payout period shall be determined from March 2, 2015 to June 1, 2015 (the first payout month is from March 2, 2015 to April 1, 2015; the second payout month is from April 2, 2015 to May 1, 2015; the third payout month is from May 2, 2015 to June 1, 2015).

However, on April 25, Mr. V had to do his military service. Accordingly, his unemployment benefit was cut and the last payout month was reserved (equivalent to 12-month payment). Therefore, his total payment period to be equals 12 months + 2 months = 14 months.

Example 12: Mr. Nguyen Van L had a 36-month payment period so that he was entitled to receive 3-month unemployment benefit. His payout period shall be determined from March 10, 2015 to June 9, 2015. On May 12, 2015, Mr. L notified the employment service center of having a job in order for employment service center to cut his unemployment benefit.

However, on April 8, he concluded a 12-month labor contract with enterprise P and the contract took effect from the day on which it is signed. Consequently, his unemployment benefit is cut on April 8, 2015.

Example 13: Mr. Do Van X had a 12-month payment period so that he was entitled to receive 3-month unemployment benefit. His payout period shall be determined from March 3, 2015 to June 2, 2015.

However, on March 25, 2015 he had a new job. Thus, he was entitled to received the first payout month (from March 3, 2015 to April 2, 2015) equivalent to 12-month payment and his payment period to be reserved is 1 month.

2. Determination of reservation of payment period in Vietnam

According to Clause 1, Article 9 of Circular 28/2015/TT-BLDTBXH, the reservation of payment period in Vietnam shall be determined as follows:

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE