New regulations on time for calculating severance pay and unemployment benefits
The period for calculating severance pay and unemployment benefits is the total time the employee has actually worked for the employer minus the time the employee has participated in unemployment insurance according to the provisions of law and the working time for which the employer has paid severance pay and unemployment benefits before (if any).
The Labor Relations Department, Vietnam General Confederation of Labor has just responded to a number of new regulations on the time to calculate severance and unemployment benefits.
Accordingly, on October 24, 2018, the Government issued Decree No. 148/2018/ND-CP amending and supplementing Decree No. 05/2015/ND-CP dated January 12, 2015 of the Government detailing and guiding the implementation of a number of contents of the Labor Code.
One of the amendments of the Decree is the content related to working time to calculate severance pay and unemployment benefits for employees.
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The Decree clearly states that the working time for calculating severance pay and unemployment benefits is the total time the employee actually worked for the employer minus the time the employee participated in unemployment insurance according to the provisions of law and the working time for which the employer previously paid severance pay and unemployment benefits (if any).
In which, the time the employee actually worked for the employer includes: The time the employee actually worked for the employer under the labor contract; The time the employee was sent to study by the employer; The time off for sick leave, maternity leave, leave for treatment, rehabilitation of labor functions due to work accidents, occupational diseases; weekly leave, leave with full pay according to the provisions of the Labor Code; leave for trade union activities according to the provisions of the law on trade unions; leave to perform civic duties according to the provisions of the law and paid by the employer; Time off work, leave without fault of the employee; time of temporary suspension from work according to the provisions of the Labor Code.
The period of time that the employee has participated in unemployment insurance includes: The period during which the employer has paid unemployment insurance, the period considered as the period of unemployment insurance payment according to the provisions of the law on unemployment insurance, the period during which the employer has paid at the same time as the employee's salary payment an amount equivalent to the unemployment insurance payment level according to the provisions of the law on labor and unemployment insurance.
Working time to calculate severance pay and unemployment benefits for employees is calculated by year (full 12 months); in case of odd months, from full 01 month to less than 06 months is calculated as 1/2 year; from full 06 months or more is calculated as 01 working year.
Decree No. 148/2018/ND-CP also amends and supplements other contents: Employers and employees must fully pay all amounts related to the rights of each party within 7 working days from the date of termination of the labor contract; the salary used as the basis for compensation when unilaterally terminating the labor contract illegally is the salary according to the labor contract at the time the employer or employee unilaterally terminates the labor contract illegally; labor discipline will be carried out according to a new procedure prescribed in Decree 148/2018/ND-CP... This Decree takes effect from December 15, 2018.
