On 12 March 2015, the Government issued Decree No. 28/2015/ND-CP that provides detailed regulations on the implementation of a number of aspects in the Law on Employment, with specific regard to unemployment insurance (Decree 28). The new Decree replaces Decree No. 127/2008/ND-CP on the same subject, and Decree No. 100/2012/ND-CP which amended and supplemented a number of articles in Decree 127.
Decree 28 provides guidance on regulations relating to entitlement of employees as well as employers under unemployment insurance policies, including support given to the employer for training, fostering and raising vocational skill levels of the employees, unemployment allowances and jobs consultancy and vocational training with the highlighted points as follows:
- The employer who satisfies conditions on full unemployment insurance payments, suffering from economy decline, or having insufficient funds to arrange training to enhance vocational skills level of the employees and having a plan for such training, shall be entitled to a supporting amount of VND 1 million per month for each employee. If the incurred cost is higher, the employer will bear the exceeding amount;
- Employees that have entered into a seasonal labour contract before the effectiveness of the Law on Employment (i.e. 01 January 2015) shall be eligible to join unemployment insurance if the remaining span of the labour contract is more than 03 months;
- The required duration for submission of applications for entitlement to unemployment insurance from the date of job loss is extended to 3 months, instead the previous regulations stipulation of 7 days.
Additionally, Decree 28 provides a detailed guidance on the procedures and timelines for payment and entitlement of unemployment insurance; and stipulates the rights and obligations of the employer and employees, social insurance agency and other relevant authorities. In general, the Law on Employment and Decree 28 provide both employees and employers more support either for sustaining jobs or in case of job loss.
Decree 28 takes effect on 1 May 2015.
By Vietnam Law Insight, LNT & Partners
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