Are Foreign Workers Eligible for Unemployment Allowance in Vietnam?

In Vietnam, the issue of foreign workers’ rights has always been a topic of significant interest, especially as the number of international employees continues to rise. One of the key questions raised by foreign workers and employers alike is whether they are entitled to unemployment benefits, similar to Vietnamese citizens. This article will clarify the regulations surrounding this matter, providing foreign workers with a better understanding of the benefits they may be eligible for in the event of unemployment in Vietnam.

1. Information of Unemplyment Allowance

Unemployment allowance is a form of financial support provided to employees who lose their jobs and meet certain eligibility criteria. This allowance is part of the country’s social insurance system, aimed at helping workers who become unemployed due to reasons like layoffs or contract termination.

The unemployment allowance is listed in Article 42 of the 2013 Law on Employment as follows:

“Article 42. Unemployment Insurance Benefits

  1. Unemployment allowance.
  2. Job counseling and recommendation support.
  3. Vocational training support.
  4. Support for training and retraining to improve qualifications and occupational skills for job maintenance for workers.”

2. Conditions for receiving Unemployment Allowance

In accordance with the 2013 Law on Employment, the conditions for receiving unemployment allowance are clearly outlined in Article 49. This article specifies the necessary requirements that workers must meet in order to qualify for unemployment benefits.

Article 49. Conditions for unemployment allowance receipt
A worker defined in Clause 1, Article 43 of this Law who currently pays unemployment insurance premiums may receive unemployment allowance when fully meeting the following conditions:
1. Terminating the labor contract or working contract, except the following cases:
a/ He/she unilaterally terminates the labor contract or working contract in contravention of law;
b/ He/she receives monthly pension or working capacity loss allowance.

2. Having paid unemployment insurance premiums for at least full 12 months within 24 months before terminating the labor contract or working contract, for the case specified at Points a and b, Clause 1, Article 43 of this Law; or having paid unemployment insurance premiums for at least full 12 months within 36 months before terminating the labor contract, for the case specified at Point c, Clause 1, Article 43 of this Law.

3. Having submitted a dossier for receipt of unemployment allowance to an employment service center under Clause 1, Article 46 of this Law.

4. Having not yet found any job after 15 days from the date of submission of the dossier for receipt of unemployment allowance, except the following cases:
a/ He/she performs the military or public security obligation;
b/ He/she attends a training course of full 12 months or longer;
c/ He/she serves a decision on application of the measure to send him/her to a reformatory, compulsory education institution or compulsory detoxification establishment;
d/ He/she is kept in temporary detention or serves a prison sentence;
dd/ He/she goes abroad for settlement or as guest worker;
e/ He/she dies.

3. Are Foreign Workers Eligible for Unemployment Allowance in Vietnam?

According to Article 2 of the 2013 Employment Law, the scope of application is clearly defined. This law applies to workers, employers, and other agencies, organizations, and individuals involved in employment matters within Vietnam. The law governs the relationship between these parties and ensures fair practices in the employment sector.

In addition, Article 3 of the same law provides a definition of the term “worker.” Specifically, it states that a worker is a Vietnamese citizen who is at least 15 years old, has the ability to work, and is actively seeking employment. This definition highlights that the law is primarily designed to protect the rights of Vietnamese citizens.

“In this Law, the terms below are construed as follows:
1. Worker means a Vietnamese citizen who is full 15 years or older, has the ability to work, and seeks employment.”

Given this context, foreign workers do not fall within the scope of those eligible for unemployment benefits under the Employment Law 2013. Since the law applies specifically to Vietnamese citizens, foreign workers are not entitled to unemployment allowances in Vietnam unless otherwise stipulated by special agreements or regulations. As a result, foreign workers are not eligible for the unemployment allowance provided by the Vietnamese government.

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TLA Law is a leading law firm with a team of highly experienced lawyers specializing in criminal, civil, corporate, marriage and family law, and more. We are committed to providing comprehensive legal support and answering all your legal questions. If you have any further questions, please do not hesitate to contact us.

1. Lawyer Vu Thi Phuong Thanh, Manager of TLA Law LLC, Ha Noi Bar Association

Email: vtpthanh@tlalaw.vn

2. Lawyer Tran My Le, Chairman of the Members’ Council, Ha Noi Bar Association

Email: tmle@tlalaw.vn.

– Nguyen Huong Huyen-

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