SBLAW would like to provide Regulation regarding social insurance and unemployment insurance for employees in Vietnam for your kind consideration:
COMMENTS ON THE SOCIAL INSURANCE AND UNEMPLOYMENT INSURANCE FOR EMPOYEES.
1. The insurance regimes and policies for female employees in maternity leave.
With regard to the social insurance, Pursuant to Article 35.2 of Law No.71/2006/QH11 dated July 12, 2006 of the National Assembly on social insurance (hereafter referred as to Law on social insurance): The period of leave for enjoying the maternity regime shall be counted as the period of payment of social insurance premiums. During this period, laborers and employers are not required to pay social insurance premiums.
With regard to the unemployment insurance,pursuant to Article 8.2 of Circular No.32/2010/TT-BLĐTBXH dated October 25, 2010 of the Ministry of Labor, War Invalids and Social Affairs guiding a number of articles of the Government’s Decree No.127/2008/ND-CP of December 12, 2008, detailing and guiding a number of Article of the Social Insurance Law regarding unemployment insurance: “In case an employee is on a maternity or sickness leave for 14 or more working days in a month and does not receive monthly salary or wage but enjoys social insurance allowance, both the employer and employee are not required to pay unemployment insurance premiums for that month”.
Thus, employer and employeesare not required to pay social insurance premiums and unemployment insurance premium during maternity leave.
2. The insurance regimes and policies for temporary employees
The social insurance:
Pursuant to point a, Article 2.1 of Law on Social Insurance No. 71/2006/QH11: “Laborers has to participate in compulsory social insurance in Vietnam are Vietnamese citizens, including: Persons working under contracts of indefinite term or contracts of a term of full three months or longer”.
And according to the regulation stated in the Article 92.1 of Law on Social Insurance No. 71/2006/QH11, employers shall have to pay social insurance for laborers including the labor defined at Points a,Article 2.1 above.
Accordingly, employer has to pay the social insurance for employees who have the contracts of a term of full three months or longer.
The unemployment insurance:
Pursuant to Article 44.1 of Law No.38/2013 dated on 16th November, 2013 of the National Assembly on Employment (hereinafter referred to as “Law on Employment”): “Employers shall pay unemployment insurance premiums for workers to social insurance organizations within 30 days from the effective date of labor contracts or working contracts”.
Pursuant to point c, Article 43.1 Law No.38/2013 above: “Workers are obliged to participate in unemployment insurance when working under labor contracts or working contracts below: Seasonal or job-based working contracts with a term of between full 3 months and under 12 months”.
Thus, Employer has to pay unemployment insurance for employees who have the contracts of a term of full three months or longer.
Accordingly, at this time, employees working at Vietnam company under the contracts of a term of full three months or longer cannot participate in the voluntary social insurance because they has to participate in compulsory social insurance under point a, Article 2.1 of Law on Social Insurance No. 71/2006/QH11 above.
