Latest levels of severance allowance for severing employees in Vietnam

Latest levels of severance allowance for public employees in Vietnam (Internet image)

Regarding this issue, LawNet responded as follows:

1. Regulations on severance settlements with public employees

According to Article 57 of Decree 115/2020/ND-CP stipulating the settlement of severance with public employees, as follows:

- An employee may terminate his/her job in the following cases:

+ The public employee unilaterally terminates the working contract according to the provisions of Clauses 4, 5 and 6, Article 29 of the Law on Public Employees;

+ The public non-business unit unilaterally terminates the working contract with the public employee when there is one of the cases specified at Points c, d and dd, Clause 1, Article 29 of the Law on Public Employees and Clause 4, Article 2 of the Law amending number of articles of the Law on Cadres and Civil Servants and the Law on Public Employees;

+ The public non-business unit does not renew the working contract with the public employee upon the end of the definite-term working contract.

- An employee whose job termination has not been settled in one of the following cases:

+ Being within the time limit for disciplinary action, being investigated, prosecuted, or tried;

+ Have not worked for the full commitment period with the public non-business unit when being sent for training;

+ Has not yet completed the payment of money and property under the responsibility of the public employee to the public non-business unit;

+ Due to work requirements, no replacement has been arranged.

- Procedures for severance settlement:

+ In case a public employee unilaterally terminates a working contract, a written notice must be sent to the head of the public non-business unit as prescribed in Clause 6, Article 29 of the Law on Public Employees.

Within 05 working days from the date of receiving the written request of the officer, if agreeing to dismiss the public employee, the head of the public non-business unit shall terminate the working contract and settle the severance regime for the public employee according to regulations. In case the supervisor does not approve of the employee's resignation, he/she must reply to the employee in writing and clearly state the reason as prescribed.

+ In case the public non-business unit unilaterally terminates the working contract or does not renew the working contract with the public employee, it must simultaneously settle the severance regime for the public employee as prescribed.

- The severance regime is not applied in the following cases:

b) Public employees who are approved by competent agencies or units to move to work at other agencies, organizations, or units in the political system;

+ Public employees who have announced their retirement or are subject to downsizing according to the provisions of law;

+ Public employees are not entitled to severance pay as prescribed in Clause 2, Article 29 of the Law on Public Employees.

2. The latest levels of severance allowance for public employees in Vietnam

The latest severance allowance for severance employees according to Article 58 of Decree 115/2020/ND-CP is as follows:

- The working period of public employees from December 31, 2008 and earlier is calculated as follows:

+ Each working year is equal to 1/2 of the current salary, including: Salary according to professional title, allowance for management position, allowance for seniority beyond the bracket, allowance for seniority, and salary reserve difference coefficient (if any);

+ The minimum allowance is equal to 01 month's salary;

+ In case the public employee is recruited before July 1, 2003, the working time for which severance allowance is calculated is the total working time (cumulative) from the date the public employee has a recruitment decision to the end of December 31, 2008;

+ In case the public employee is recruited from July 1, 2003 onward, the working period for which severance allowance is calculated is the total working time under the working contract (cumulative) from the date the public employee has a recruitment decision to the end of December 31, 2008.

- The working period of public employees from January 1, 2009 to the present shall comply with the provisions of the law on unemployment benefits.

- Expenses for paying severance allowance:

+ For public non-business units self-guaranteeing recurrent expenditures, investment expenditures, and public non-business units self-guaranteeing recurrent expenditures: The funding source for the payment of severance allowance is taken from the financial source of the unit, including the previous time the public employee has worked at other agencies, organizations, and units in the political system.

+ For public non-business units that partially cover recurrent expenditures by themselves and for public non-business units whose recurrent expenditures are covered by the state budget: The funding source for payment is taken from the financial sources of public non-business units, including the time before that the public employee worked at other agencies, organizations, and units in the political system.

Cases where the financial source of the public non-business unit does not meet the expenses to pay for the time the public employee previously worked at other agencies, organizations, or units in the political system shall be supported by the state budget.

- The retired public employee is entitled to the severance allowance specified in Clauses 1 and 2, Article 58 of Decree 115/2020/ND-CP and has a confirmation of the period of payment of social insurance premiums as prescribed by law.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE