During the period when the COVID-19 epidemic casts a shadow over the economics in all industries in Vietnam, many workers suffered unemployment when factories endured lack of supply, cutting contracts by customers ….

The Law on Employment of Vietnam takes effect from 2015 and Decree 28/2015 / ND-CP stipulate the application dossiers for claiming unemployment insurance of which employees are entitled to unemployment benefits when they meet the conditions prescribed by monthly benefit rate is equal to 60% of the average monthly salary paid for unemployment insurance of the 6 (six) preceding months before job termination (with maximum controlled amount), the period of entitlement depends on the time of participation in unemployment insurance, but maximum is up to 12 months.

To enable workers to apply for unemployment benefits, Russell Bedford KTC – accounting, auditing, and business consulting professional firm – lists the following practical processes so that businesses can support employees to take steps quickly. Please be noted that this process is applied in Ho Chi Minh City only, in other cities/provinces, the process might follow instructions of the social insurance agency in the stated cities/ provinces:

Step 1: Procedures to reduce social insurance of employees (businesses need to perform this step)

Enterprises need to perform this step on the software of social insurance for the employees leaving their jobs.

Step 2: Clearing employees’ social insurance books with Social Insurance Fund (businesses need to perform this step)

• The enterprise fills Form 620 for clearance of social insurance books of the employees.
• The enterprise sends Form 620 attached with original insurance books to the social insurance agency in charge for reconciliation and clearance.
• The insurance agency will respond after 7-10 working days and send the social insurance books back to the enterprises by post (to the enterprise’s registered address).
• Enterprises need to transfer original documents to the employees: the termination decision and the original social insurance book + separate sheets (if any) after clearance by the social insurance fund.

Enterprises should take attention to the working processes of the social insurance agency because during the disease epidemic period, the public offers might work from home and these processes may be delayed. Express delivery time from the post office to the registered address of the business may also take more time if the postman arriving at the address and finding no recipient, the entire dossiers will be brought back to the post office.

Form PGNHS 620: Confirmation of process of payment of social insurance and unemployment insurance premium (certificating for participants who stop paying social insurance and unemployment insurance premium at the enterprise; the enterprise moves to another province/city; employees work under fixed-term contracts abroad registration of compulsory social insurance payment), confirming the payment process for voluntary social insurance participants.

Step 3: Prepare application dossiers for unemployment benefit (employees need to prepare)

According to the Employment Law and Decree 28/2015/ND-CP stipulating the documents for unemployment insurance benefits, within 3 months from leaving the job, employees must submit their unemployment application dossiers to the Employment Introduction Center in the locality where workers want to receive unemployment benefits. In Ho Chi Minh City, the application is submitted to the Ho Chi Minh City Employment Service Center – the procedures referred on the following link: http://www.vieclamhcm.net/tintuc/tinchitiet/tabid/111/Id/644/HUONG-DAN-NGUOI-LAO-DONG.aspx

http://www.vieclamhcm.net/tintuc/tinchitiet/tabid/111/Id/644/HUONG-DAN-NGUOI-LAO-DONG.aspx

The steps to do are as follows:

• Employees need to open an East Asia bank account to receive unemployment benefits (this is the only Bank that the Social Insurance Fund accepts).
• Fill in the latest form No.03 unemployment benefits application form – fill out the required information. Please enter the employee’s direct contact phone number so that the insurance agency can contact the employee.
• Attached 01 copy of the termination decision (the original or notarized copy)
• Attached 01 copy of ID card or citizen ID
• Attached 01 copy of the social insurance book and the separate sheets, the original book and the original sheets for comparison.

Step 4: Submit unemployment benefits’ dossiers (employees need to do)

All documents mentioned above to be sent by post via registered mail to one of the following locations:

• Ho Chi Minh City Employment Service Center (“ESC”); Address: 106/14D Dien Bien Phu Street, Ward 17, Binh Thanh District.
• Unemployment insurance branch District 4; Address: 249 Ton Dan, Ward 15, District 4.
• Unemployment insurance branch District 6; Address: 743/34 Hong Bang, Ward 6, District 6.
• Unemployment insurance branch District 9; Address: No. 1, Street 9, Phuoc Binh Ward, District 9.
• Unemployment insurance branch District 12; Address: 802 Nguyen Van Qua, Dong Hung Thuan Ward, District 12.
• Unemployment insurance branch in Tan Binh District; Address: 456 Truong Chinh, Ward 13, Tan Binh District.
• Facility 2-Cu Chi; Address: No. 108, 458 Street, Thanh An, Trung An Commune, Cu Chi District.

After submitting the dossier within 15 working days from the date of filing, the employee has not yet been able to find a job, the ESC confirms the resolution of the dossier for unemployment allowance.

Within 20 working days from the date of applying, the ESC issues a decision approving the payment of unemployment benefits with the social insurance book with the certification of payment to the employee.

In case the application is missing or ineligible for unemployment benefits, the ESC will notify the employee in writing stating the reason.

The time to calculate the unemployment allowance is the 16th day from the submitting date. Within 5 working days from the date of issuance of the decision to approve the payment of unemployment benefits, the local social insurance agency shall pay the first month’s allowance to the employee with the Health Insurance card.

Monthly, the social insurance agency shall pay unemployment allowance within 12 days from the date of receiving the unemployment allowance of that month if not receiving the decision to suspend or terminate the unemployment benefit of the employee. During the process of receiving unemployment insurance benefits, the employee must go to the ESC monthly to notify about finding a job while they are receiving unemployment benefits (according to the appointment schedule attached to the decision on unemployment allowance).