VietNamNet Bridge – Expanding the list of participants, and amending provisions on conditions to enjoy unemployment allowance and on the level of such allowances are some of the significant adjustments on the policy of unemployment insurance stipulated in the Law on Employment (2013), which will be brought into effect on January 1, 2015.
At present, unemployment insurance is regulated in the Law on Social Insurance. However commencing from January 1, 2015, such content shall be stated in the Law on Employment and take effect and comprise the following noteworthy points:
Persons required to participate in unemployment insurance
Based on existing provisions, persons obligated to participate in unemployment insurance are employers who employ 10 or more laborers and Vietnamese employees working under labor contracts of an indefinite or definite term of between 12 and 36 months.
From January 1, 2015, the list of persons required to participate in unemployment insurance includes all employers that hire or employ workers under labor contracts and expands to employees working under seasonal or job-based working contracts with a term of between three months and under 12 months, as well as under labor contracts of an indefinite or definite time.
Particularly, in case a worker has signed and is performing more than one labor contract, the worker and the employer under the first-signed labor contract shall be held responsible to participate in unemployment insurance.
Benefits of unemployment insurance
Apart from the benefits of participating in unemployment insurance, according to current provisions such as unemployment allowance, vocational training support and job search assistance, the Law on Employment has been amended with a regime of support for training, retraining, and improving qualifications of occupational skills to maintenance employment for workers.
Wages on which unemployment insurance premiums are based
According to new regulations, the monthly wage, based on which unemployment insurance premiums are calculated, is the wage on which compulsory social insurance premiums are based under the Law on Social Insurance. In the event where the monthly wage, on which unemployment insurance premiums are based, is higher than the 20 months’ regional minimum wage, the 20 months’ regional minimum wage will be applied in accordance with the provisions at the time of payment of unemployment insurance premiums, unlike current provisions which are based on the common minimum wage.
Conditions for unemployment allowance
As stipulated by the Law on Employment, employees may only be entitled to unemployment allowance when satisfying the following conditions, which are deemed more specific and stricter than current provisions:
1. Terminating labor contracts, except in the following cases:
a. The employee unilaterally terminates the labor contract in contravention of law;
b. The employee receives a monthly pension or working-capacity-loss allowance.
2. Having paid unemployment insurance premiums within 24 months before terminating the labor contracts, for the case of contracts of indefinite and definite terms; or “having paid unemployment insurance premiums for at least full 12 months within 36 months before terminating the labor contract, for the case of seasonal or job-based working contracts with a term of between full 3 months to under 12 months.”
3. Having submitted a dossier for unemployment allowance entitlement to an employment service center;
4. Having yet to find any job after 15 days from the date of submission of the dossier for unemployment allowance entitlement, except for performance of military obligation, temporary detention or a prison sentence, etc.
Level and duration of unemployment allowance
1. Based on new regulations, while monthly unemployment allowance level of the employee equals 60% of the average monthly wage of six consecutive months before the worker becomes unemployed but “must not exceed 5 times the region-based minimum wage level in accordance with the provisions at the time of termination of the labor contract”, current provisions do not regulate the limit of the maximum level.
2. The duration of unemployment allowance entitlement is based on the number of months of payment of unemployment insurance premiums. Accordingly, this duration is three months if the period of payment of unemployment insurance premiums is between a full 12 months and full 36 months, which is added with 1 month for each additional period of payment of a full 12 months, but must not exceed 12 months.
Termination of unemployment allowance
Basically, the cases of termination of unemployment allowance under the Law on Employment inherit the current provisions of Law on Social Insurance and are supplemented with the following cases: the employee performs public security service obligation; goes abroad under a labor contract; attends a training course of full 12 months or longer; is administratively sanctioned for violations of the law on unemployment insurance; is declared by a court as missing; or is kept in temporary detention.
Workers who stop receiving unemployment allowance in cases such as finding a new job or performing military obligation may have the period of payment of unemployment insurance premiums reserved for calculating the subsequent duration of receipt of unemployment allowance when they fully satisfy certain conditions.
While under current regulations, the employee will be entitled to a one-time payment of the remaining value of unemployment allowance.
PLF – LAW FIRM
Đăng ký: VietNam News