Unemployment insurance regime

I. GENERAL PROVISIONS

1. Definition:

Unemployment insurance ("UI") is a regime to compensate a portion of employee’s income when they lose their job, to support employees in learning a trade, maintaining a job, and finding a job on the basis of contributions to the Unemployment Insurance Fund.

2. Conditions for enjoyment:

According to the provisions of Article 49 of the 2013 Employment Law, employees who are paying unemployment insurance are entitled to unemployment benefits when they meet the following conditions:

• Termination of labor contract or work contract; except for cases where the employee unilaterally terminates the labor contract, works contract illegally or is receiving monthly pension or disability allowance.
• Have paid unemployment insurance for 12 months or more within 24 months before terminating the labor contract or fixed-term/indefinite-term working contract; or 12 months or more within 36 months before terminating a seasonal labor contract or a certain job with a term of 3 months to less than 12 months.
• Have submitted an application for unemployment benefits at an employment service center established by the state management authority on employment within 03 months from the date of termination of the labor contract or working contract.
• Have not found a job after 15 days from the date of submitting the application for unemployment insurance, except in the following cases: the employee performs military service or police service; study for a period of 12 months or more; being detained, serving a prison sentence, etc.

Employees who meet the above 4 conditions will be entitled to unemployment insurance benefits in accordance with law.

3. Level of unemployment insurance benefits:

According to Clause 1, Article 50 of the 2013 Employment Law, the monthly unemployment insurance benefit is equal to 60% of the average monthly salary paid for unemployment insurance of the 6 consecutive months before unemployment, but up to:

• No more than 05 times the base salary for employees subject to the salary regime prescribed by the state.
• No more than 05 times the regional minimum wage in accordance with Labor Code for employees who pay unemployment insurance according to the salary regime decided by the employer at the time of termination of the labor contract or work contract.

Regulations on unemployment insurance benefit period are calculated based on the number of months of unemployment insurance payment, specifically as follows:

• For every full 12 to 36 months of payment, employees will receive 3 months of benefits. After that, for every additional 12 months employees have paid, employees will receive 1 additional month.
• The maximum period of receiving unemployment benefits for one time must not exceed 12 months.

Thus, employees who are eligible and have paid unemployment insurance for 12 months or more are entitled to unemployment insurance in accordance with law.

II. GIA LUAT’S SERVICES:

• Consulting on regulations on unemployment insurance benefits;
• Accompanying and guiding Valued Customers to prepare documents to submit to employment service authorities;
• Accompanying and receiving the decision to enjoy unemployment insurance with Valued Customers;
• Appearing with Valued Customers every month to prove that Valued Customers do not have a job at the employment service center.

Above are the contents related to the provisions of law on unemployment insurance regime. If you have any questions, please contact Gia Luat for the best support.