In Vietnam 2022, the employees will receive many payments when they quit their job. The value of the payments will vary from case to case because many factors affect the value of these payments. So, what are the 5 payments that employees will receive when they quit their jobs in Vietnam in 2022?
Wages for unpaid working days
If the employee is working in the company and then quit/fired, he/she is entitled to receive the rest of the salary for the days that she works in that month.
For example, if the employee quits on day 15 of a month, they will get half a month's salary for the 15 days that they have worked for the company.
Upon termination of the labour contract, all employees are entitled to this payment.
The employer is also responsible for paying the rest of the salary within 14 working days from the date of termination of the labor contract (Article 48 of the Labor Code 2019).
In some cases, this period may be extended but it shall not exceed 30 days.
Severance allowance
Pursuant to Article 46 of the Labor Code 2019, the employee who has worked regularly for the business for full 12 months or more and terminates the labor contract legally will receive severance allowance.
However, this benefit will not be paid for the employees in the following two cases:
- The employee is eligible for a pension.
- The employee arbitrarily quit work for 05 consecutive working days or more without a valid reason.
Thus, if employees quit their jobs before being eligible for the pension, they will have the opportunity to receive a severance allowance.
The employee's severance allowance will be calculated according to the following formula:
Severance allowance = 1/2 x Time used for calculation of severance allowance x The average salary of 06 consecutive months according to the latest labor contract before quitting
Job loss allowance in Vietnam
According to Article 47 of the Labor Law 2019, employees who quit their jobs are paid a job loss allowance when they leave the job due to termination of labor contract because of changes in structure, technology or economic reasons, division, separation, consolidation, or merger; sale, lease, conversion of types; transfer of ownership, right to use property and have worked regularly for the employer for full 12 months or more.
Thus, if the conditions are met, the employee will be paid a job loss allowance by the employer for each working year equal to 01 month's salary but at least equal to 02 months' salary.
The annual leave that has not been taken
According to the provisions of Article 113 of the Labor Code 2019, depending on the employee and working conditions, an employee who has worked for 12 months for the employer will be entitled to 12-16 days of annual leave.
The number of annual leave will be increased by 1 day for every 5 years the employee has worked for the company.
In case the employee has not taken leave for the annual leaves entitled to them according to the law but has to quit, he/she may be paid annual leave according to Clause 3, Article 113 of the Labor Code 2019.
For example, if an employee quits their job in June and has not taken any leave days, they will be entitled to 6 days salary.
Unemployment benefits
The unemployment benefits will be paid by the Social Insurance Fund, not the employer. However, in order to enjoy this payment, the employee must meet the following conditions:
- The labor contract has been terminated legally (The employee who illegally terminates the labor contract, and/or is eligible for monthly pension and allowance, etc. is not qualified)
- Have paid unemployment insurance for a full 12 months or more in the 24 months before leaving work.
- Have submitted the application for unemployment insurance benefits at the Employment Service Center within 03 months from the date of termination of the labor contract.
- Haven't found a job after 15 days from the date of submitting the application.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.