Is a contract suspension covered by unemployment insurance?
(Baonghean.vn) - Question: Can employers negotiate with employees to postpone the performance of contracts? During the period of temporary suspension of contract performance, are employees entitled to receive salary and other benefits? My company will soon cease operations for 5 months. If the performance of the contract is postponed, will employees be entitled to unemployment insurance?
(Le Thi Van, ABC Joint Stock Company)
Reply:
1. Agreement to temporarily suspend the performance of the labor contract.
Pursuant to Article 30 of the 2019 Labor Code, regulations on temporary suspension of implementationemployment contractas follows:
- In cases of temporary suspension of labor contract performance, there are other cases agreed upon by both parties.
- During the period of suspension of the labor contract, the employee shall not receive salary and rights and benefits agreed upon in the labor contract, unless otherwise agreed by both parties or provided by law.
![]() |
The condition for considering unemployment benefits is when the employee terminates the labor contract or employment contract. Illustration photo: Diep Thanh. |
2. Conditions for unemployment benefits:
According to Article 49 of the Law on Employment, the conditions for receiving unemployment benefits are as follows: Employees specified in Clause 1, Article 43 of this Law who are paying voluntary insurance are entitled to unemployment benefits when meeting the following conditions:
- Termination of labor contract or employment contract, except in the following cases:WorkersUnilaterally terminate labor contracts, work contracts illegally; Receive monthly pensions and disability benefits;
- Having paid voluntary insurance for at least 12 months within 24 months before terminating the labor contract or work contract in the cases specified in Point a and Point b, Clause 1, Article 43 of this Law; having paid voluntary insurance for at least 12 months within 36 months before terminating the labor contract in the cases specified in Point c, Clause 1, Article 43 of this Law;
- Have submitted an application for unemployment benefits at the employment service center as prescribed in Clause 1, Article 46 of this Law.
- Not finding a job after 15 days from the date of submitting the application for unemployment insurance, except in the following cases: Performing military service or police service; Studying for a term of 12 months or more; Complying with a decision to apply measures to send to a reformatory school, compulsory education facility, or compulsory drug rehabilitation facility; Being detained; serving a prison sentence; Settling abroad; Working abroad under a contract;
Thus, according to the above regulations, the condition for considering unemployment benefits is when the employee terminates the labor contract or work contract; the case of suspending the labor contract is not eligible for unemployment benefits.
LEGAL POLICY DEPARTMENT - LABOR RELATIONS
NGHE AN PROVINCE LABOR FEDERATION
(Tel:09 1974 2006; 0375 037 037)