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The Receivable Benefit of employee when he/she resigns under Vietnam Labor Code

SB LAW would like to provide some legal information on receivable benefits of employee when he/she resigns under the Labor Law of Vietnam as below:

1.1. Benefits that employee shall be entitled when he or she resigns from the office
We understand that one your staffs has made the notice to you 30 days prior to the expected resignation date to terminate unilaterally his labor contract with your company by his personal reason. Therefore, this termination shall be considered legally.
Accordingly, pursuant to the Item 9, Article 36 and the Article 48 of Labor Code No. 10/2012/QH13 dated June 18, 2012 of the National Assembly, when employee resigns from the office legally, he/she shall be entitled to receive severance allowances or unemployment benefit if he/she has worked regularly for full 12 months or longer at the rate of half of a month’s wage for each working year. In which:

The working period used for the calculation of severance allowance is the total period during which he/she actually works for the employer minus the period during which he/she benefits from unemployment insurance in accordance with the Law on Social Insurance, and the working period for which he/she has received severance allowance from the employer.

And, the wage used for the calculation of severance allowance is the average wage in accordance with the labor contract during 6 months preceding the time he/she resigns his/her work.

In addition, pursuant to point 6, Article 139 of Law on Social Insurance No. 71/2006/QH11, the duration for which laborers pay unemployment premiums shall not be counted for enjoyment of job severance allowances under the provisions of the labor law or the law on cadres and civil servants.

Under light above, the employee shall not be entitled the severance allowance. He/she may be entitled only the unemployment benefit.

1.2. Unemployment benefit and procedure for entitle
In order to entitle the unemployment benefit, the employee has to meet some following conditions and has to apply the dossier to competent authority to get unemployment benefits.

Condition to enjoy unemployment benefit
Pursuant to the Article 81 of Law on Social Insurance No. 71/2006/QH11, the conditions of the employee for enjoying the unemployment benefit as bellows:

    The unemployed employee shall be entitled to unemployment benefit if he/she meets the following conditions:
    Having paid unemployment insurance premiums for at least 12 months in 24 months prior being unemployed.
    Having registered as the unemployed person to the Unemployment Insurance Organization.
    Has not found a job after 15 days registered with the Unemployment Insurance Organization stipulated in Provision 2 of this Article;

Unemployment benefit
Pursuant to the Article 82 of Law on Social Insurance No. 71/2006/QH11, the level of unemployed benefit is equivalent to 60 % of the average wage of six months prior to resigning job on which the social security premiums are based.
The duration of unemployment benefit is 6 months because the employee has paid unemployment insurance premiums from 36 months to less than 72 months;
Required documents for unemployment benefits

    Requesting letter for unemployment entitlements issued by the social insurance organization.
    A copy of labor contract, labor contract termination or agreement of labor contract termination, the latest labor contract or certificate of the latest employer before unemployed on the legal unilateral termination of labor contract.

» Terminating labor contracts with redundant employees
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