Procedure for unemployment allowance

Unemployment insurance that has a risk prevention feature can assist workers in getting through tough times after losing their jobs. However, in order for the unemployment benefits process to be granted, the employee must become proficient in a few key areas, including following the implementation order.

  1. Employees prepare and submit application for unemployment allowance

The unemployed employee that wishes to receive unemployment benefit shall submit an application for unemployment benefit to the employment service center of the locality where he/she wishes to receive unemployment benefit. Time limit for procedure execution is 03 months from the day on which his/her termination of employment contract or working contract.

In some cases, employees are allowed to authorize others to submit documents or send documents by post, if:

  • he/she is suffering from sickness or has pregnancy as certified by a competent health facility;
  • he/she meets with an accident as certified by the traffic police or a competent health facility;
  • Conflagration, flood, earthquake, tsunami, conflict, or epidemic occurs with a certification of the Chairperson of the People’s Committee of a commune, ward or commune-level town.

2. Competent agency to receive and process application

  • The employment service center shall receive and examine the application, make a note of appointment to receive application processing result. If the application is inadequate, return it to the applicant and give reasons for such return.
  • Within 20 working days from its receipt of an adequate application, the employment service center shall consider petitioning the Director of the relevant provincial Department of Labour, War Invalids and Social Affairs to issue a decision to provide unemployment allowance to the employee; or if an application is refused, a written response shall be given to the employee.

3. The employee receives the decision to receive unemployment allowance

  • Based on the appointment slip to return the results, the employee must come to receive a decision on unemployment allowance. Note, the decision on unemployment allowance must be taken within 3 working days stated in the appointment slip.
  • In case the employee does not come to receive the decision or does not authorize another person to receive the decision and does not notify the reason, he or she is considered not in need of unemployment allowance. The competent authority cancels the decision on unemployment allowance if the decision is not collected within 02 days from the date recorded in the appointment slip.

4. Payment of unemployment allowance

  • The unemployment allowance for the first month of the employees is paid within 05 working days from receipt of the decision of unemployment allowance.
  • The unemployment allowance for the employees from the second unemployment benefit month onwards within 05 working days from the 07th day of the month of unemployment allowance if they do not receive a decision of suspension or termination of unemployment benefit for the employees. 
  • Within 03 months from the date of expiry of unemployment allowance of the employees under the decision of unemployment allowance, but the employees do not receive unemployment allowance and notify in writing to the social insurance organization where they are receiving unemployment allowance, such employees shall be determined to have no need for unemployment allowance.

5. The employees need to strictly comply with job search notification procedures

  • While on unemployment allowance, monthly, a worker shall directly notify his/her job seeking to the employment service center of the locality where he/she currently receives unemployment allowance under the specified method.
  • This responsibility is only excepted for the following cases: (i) He/she is sick or on maternity leave or has an accident as certified in writing by a competent health establishment prescribed by the law on medical examination and treatment; or (ii) Force majeure cases.
  • Employees with failure on provide notice of job seeking may have their unemployment benefits suspended or stopped.

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