UNEMPLOYMENT INSURANCE, 06 IMPORTANT ISSUES

In the context of labor market fluctuations, unemployment insurance has become one of the important guarantees for workers against the risks of losing their jobs. Providing peace of mind for employees, unemployment insurance also plays an important role in maintaining economic and social stability.

Unemployment insurance is a mandatory insurance regime, applicable to both employees and employers

With the function of ensuring risk sharing among unemployment insurance participants, this regime is required for mandatory participation by both employees and employers, except for some specific cases according to regulations.

Employees are required to participate in unemployment insurance when working under a labor contract or employment contract, including:

– Indefinite term labor contract or working contract;

– Fixed-term labor contract or working contract;

–  Seasonal or job-based working contracts with a term of between full 3 months and under 12 months.

The unemployment insurance premium according to current regulations for employees is equivalent to 1% of monthly salary.

Employers are required to participate in unemployment insurance if they hire or employ employees under the above labor contract or working contract, including:

– State agencies, public non-business units and people’s armed forces units;

– Political organizations, socio-political organizations, socio-political-professional organizations, social organizations and socio-professional organizations;

– Foreign agencies and organizations and international organizations operating in the Vietnamese territory;

– Enterprises, cooperatives, households, business households, cooperative groups;

– Other organizations and individuals that hire or employ workers under the labor contracts or working contracts.

The unemployment insurance premium according to current regulations for employers is equivalent to 1% of the monthly salary fund of employees participating in unemployment insurance.

The first concluded labor relationship will apply the unemployment insurance regime

In case an employee has signed and is performing more than one labor contract specified above, the employee and the employer under the labor contract signed first shall participate in unemployment insurance.

Employees can be entitled to many unemployment insurance benefits

When participating properly and meeting regulations, employees can enjoy the following unemployment insurance benefits:

– Unemployment allowance.

– Job counseling and recommendation support.

– Vocational training support.

– Support for training and retraining to improve qualifications of occupational skills for job maintenance for workers.

To receive unemployment insurance, specified conditions must be fully met

Conditions that need to be fully satisfied when an employee carries out the procedures to receive unemployment insurance include:

– Valid termination of a labor contract or working contract;

– Satisfaction of the minimum unemployment insurance premium period;

– Completion of submitted the application for unemployment benefits at the employment service center; having not yet found a job after 15 days from the date of application for unemployment insurance benefits.

>> CONDITIONS FOR UNEMPLOYMENT ALLOWANCE https://linconlaw.vn/conditions-for-unemployment-allowance/

The level and duration of unemployment insurance allowance depend on the level and duration of insurance participation

Unemployment allowance level

The monthly unemployment allowance level equals 60% of the average monthly wage of 6 consecutive months before the employee becomes unemployed on which unemployment insurance premiums are based.

However, the law has regulations on the maximum level of unemployment benefits as follows:

– must not exceed 5 times the basic wage level, for workers receiving wages under the State-prescribed regime; or

– must not exceed 5 times the region-based minimum wage level under the Labor Code, for workers who pay unemployment insurance premiums under the wage regime decided by employers at the time of termination of the labor contract or working contract.

Time duration of unemployment allowance receipt

The duration of unemployment allowance receipt is based on the number of months of payment of unemployment insurance premiums, from 03 months to 12 months.

To receive unemployment insurance allowance, employees need to strictly comply with job search notification procedures

While on unemployment allowance, monthly, a worker shall directly notify his/her job seeking to the employment service center of the locality where he/she currently receives unemployment allowance under the specified method.

This responsibility is only excepted for the following cases: (i) He/she is sick or on maternity leave or has an accident as certified in writing by a competent health establishment prescribed by the law on medical examination and treatment; or (ii) Force majeure cases.

Employees with failure on provide notice of job seeking may have their unemployment benefits suspended or stopped.

Employees who are unemployed can still enjoy health insurance

Persons on unemployment allowance are entitled to health insurance benefits in accordance with the law on health insurance. Correspondingly, when unemployment allowance stop, employees will also stop receiving health insurance.

>> IS PAYMENT FOR PIT ON PROBATION WAGES REQUIRED? https://linconlaw.vn/is-payment-for-pit-on-probation-wages-required/

>> MATERNITY REGIME OF MALE EMPLOYEES https://linconlaw.vn/maternity-regime-of-male-employees/