This complete global solution for HR professionals combines custom research, strategic white papers, country primers, webinars, and the expert guidance you’ve come to expect from...
By Lien Hoang
April 6—Beginning May 1, most Vietnamese employees will be eligible for unemployment insurance coverage. Decree 28 of the Labor Law eliminates the 10-employee threshold for determining employer liability for unemployment insurance and makes all employers subject to the obligation as long as they have workers with contracts of at least three months.
According to Eli Mazur, a counsel at YKVN in Ho Chi Minh City, this expansion of unemployment insurance coverage is one of “the biggest economic changes for employers under the new regime.”
The changes come at a time when Vietnam is discouraging temporary work and pushing businesses to put longer-term employees on their payrolls, exemplified by the March release of Decree 5, which cut the number of times companies can renew short-term contracts.
The calculation of monthly employer UI liability had been based on a nationwide “common minimum salary,” under which insurance premiums would be calculated based on that amount even for employees with higher monthly salaries. According to Mazur, Decree 28 “significantly” increases the reference figures by using different “regional minimum salaries,” which are higher in more densely populated areas such as Hanoi, Ho Chi Minh City and the industrial parks surrounding them.
Under Decree 28, businesses that buy unemployment insurance will be entitled to state funding for “training, retraining, or raising professional skill levels to maintain employment for the worker” of up to 1 million dong ($46.32) per worker per month for up to six months.
To qualify, employers have to have contributed to the insurance fund for 12 months, experienced a business downturn or natural disaster, lack sufficient finances to do the training on their own and have a plan to carry out the training. Vietnam did not offer this financial aid before Decree 28, Mazur said: “Such support is newly stipulated.”
To contact the reporter on this story: Lien Hoang in Ho Chi Minh City at firstname.lastname@example.org
To contact the editor responsible for this story: Rick Vollmar at email@example.com
For more information on Vietnamese HR law and regulation, see the Vietnam primer.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)