Still receive severance pay after retirement

Accordingly, the Ministry of Labor, Invalids and Social Affairs said that Clause 1, Article 48 of the Labor Code stipulates that when a labor contract is terminated according to the provisions of Clauses 1, 2, 3, 5, 6, 7, 9 and 10, Article 36 of the Labor Code, the employer is responsible for paying severance allowance to employees who have worked regularly for 12 months or more, with each year of work being subsidized by half a month's salary.

Still receive severance pay after retirement

Therefore, in case an employee meets the requirements on social insurance payment period and retirement age as prescribed in Article 187 of the Labor Code and terminates the labor contract (Clause 4, Article 36 of the Labor Code), the employer is not responsible for paying severance allowance to the employee.

In addition, according to the provisions of Clause 1, Article 166 and Clause 2, Article 167 of the Labor Code, an elderly employee is a person who continues to work after the age prescribed in Article 187 of this Code; when retired, if working under a new labor contract, in addition to the benefits currently enjoyed under the pension regime, the elderly employee is entitled to the benefits agreed upon in the labor contract.

Employees who have retired and worked for the employer for 12 months or more under a labor contract, when the labor contract is terminated, the employer is responsible for paying severance pay.

Currently, the Labor Code and legal documents guiding the implementation of severance pay do not discriminate between employees who have or have not retired.

Therefore, in case an employee has retired and worked for the employer for 12 months or more under a labor contract, when the labor contract is terminated in accordance with the law, the employer is responsible for paying severance pay to the employee in accordance with the regulations.