Proposal to increase the time to register for unemployment benefits

Many regulations are beneficial for workers

Mr. Le Dinh Quang - Deputy Head of the Department of Legal Policy - Labor Relations of the Vietnam General Confederation of Labor - said that the draft has 14 new points, including those that are beneficial to employees.

According to Article 50, the 2013 Employment Law is in effect, "the monthly level of unemployment benefits (CI) is equal to 60% of the average monthly salary of unemployment insurance premiums of 6 months before unemployment". In fact, many cases of employees pay unemployment insurance for many years, but for some reason, the month before terminating the labor contract, the contract is not allowed to pay unemployment insurance (such as the employee who resigns does not pay salaries, the enterprise is slow to pay, does not pay social insurance, unemployment insurance for employees ...), so it is not eligible to enjoy the labor force regime.

However, the draft Law on Employment (amended) stipulates: "The monthly TCTN benefit is equal to 60% of the average monthly salary for unemployment insurance contributions of the 6 most recent months of unemployment insurance contributions before terminating the labor contract, employment contract or termination of employment...". Replacing the two words "adjacent" with "most recent" will help employees have more favorable conditions when registering for TCTN.

Especially, in Clause 2, Article 35 of the draft regulation on unemployment insurance regimes has a very new regulations, namely: "In case of crisis, economic recession, natural disasters, fire, enemy or dangerous epidemics, based on the actual situation and the surplus of unemployment insurance fund, the Government stipulates the reduction of unemployment insurance level, support in cash or other support". With the regulations in the draft of the use of surplus money from the unemployment insurance fund to support when difficulties in crisis, economic recession, natural disasters, fire ... the employee will have the opportunity to enjoy this right.

Slow payment, slow settlement of social insurance must compensate employees

According to the current regulations and in the draft, within 3 months from the date of termination of labor contracts and working contracts, employees must register unemployment to enjoy CI. One of the compulsory procedures is that the employer must close and close the social insurance book for employees.

Mr. Vu Ngoc Ha - Director of the Dong Nai Provincial Federation of Labor's Legal Consulting Center - said that in reality, there are many cases where enterprises terminate their labor contracts with employees, but do not close their social insurance books immediately, or go to close their social insurance books but encounter problems, so near the end or the end of the 3-month term, employees have not yet closed their social insurance books to complete unemployment registration procedures and will not be entitled to TCTN while they need money to live and find another job. However, current laws and the draft have not yet stipulated that if a business or social insurance agency is late in paying social insurance to employees, causing employees not to receive TCTN like that, they must compensate employees.

“In fact, in many cases, we have to apply for a warning of the enterprise, if not closing the social insurance book in time for employees to lead to employees who are not entitled to credit institutions, they will be sued and have to pay a compensation of an amount equivalent to the level of entitlement to the CIs that the employee is entitled and enjoy the CI.

Mr. Pham Van Hien - Legal Consulting Center of the Ho Chi Minh City Labor Federation - proposed that the time to register for unemployment after the end of the labor contract and work contract should be extended to 6 months instead of 3 months as in the draft. Because many businesses and units are currently behind schedule, owe social insurance and unemployment insurance, if they can make compensation to employees, the time will be extended, the procedures for closing social insurance and unemployment insurance books are delayed, so employees cannot register for unemployment in time to receive unemployment benefits.

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