In the report on reception, explanation, and revision of the draft Law on Employment (amended), the National Assembly’s Standing Committee stated that there were multiple suggestions to add the responsibility of compensating employees by employers in case of non-payment or insufficient payment of unemployment insurance.
PROVISIONS ON THE RESPONSIBILITY OF EMPLOYERS TO PAY UNEMPLOYMENT INSURANCE
Additionally, there were suggestions to add a provision stating that “In case a company fails to pay unemployment insurance for its employees, leading to the employees’ ineligibility to register for unemployment benefits, the company must compensate an amount equivalent to the unemployment benefits the employees should have received.”
The revised draft Law has taken into consideration the opinions of the National Assembly delegates and has been adjusted to ensure that employers are responsible for paying the appropriate unemployment insurance for their employees when terminating labor contracts or ending the working relationship to facilitate the timely provision of unemployment benefits for the employees.
In cases where employers fail to pay sufficient unemployment insurance, they are obligated to reimburse the employees for the unemployment benefits they are entitled to according to the law.
According to the draft Law, employers are required to contribute to the Unemployment Insurance Fund on a monthly basis, with a maximum contribution of 1% of the total monthly salary of the employees participating in unemployment insurance.
For employees who are paid based on products or contracts in enterprises, cooperatives, cooperative alliances, and households operating in the fields of agriculture, forestry, fisheries, and salt production, the employers must register with the Social Insurance Agency and make unemployment insurance contributions monthly, quarterly, or bi-annually. The deadline for payment is the last day of the month following the contribution period.
The time frame for employers’ and employees’ unemployment insurance contributions is the same as that for mandatory social insurance contributions.
Employees who do not receive a salary for 14 or more working days in a month are exempt from paying unemployment insurance for that month.
Employers are responsible for paying unemployment insurance in full, and any delays or evasion of payment will be handled according to the provisions of the Social Insurance Law.
GUARANTEEING THE RIGHTS OF EMPLOYEES TO UNEMPLOYMENT BENEFITS
According to the Social Insurance Law 2024, which will come into effect on July 1, 2025, the penalties for employers who delay or evade unemployment insurance contributions include: forcing employers to pay the overdue amount, a fine of 0.03% per day calculated on the overdue unemployment insurance amount and the number of days of delay, and the money will be contributed to the Unemployment Insurance Fund.
Additionally, administrative violations will be handled according to the law. In cases of evasion, criminal liability may also be considered, and the offending employers will not be considered for honorary awards or commendations.
During the discussions at the National Assembly regarding the draft Law on Employment (amended), delegate Vo Manh Son from Thanh Hoa province brought up the reality that some businesses have been deducting money from employees’ monthly salaries for unemployment insurance but failing to fulfill their obligation to pay unemployment insurance for those employees.
This has led to a situation where employees who leave their jobs are unable to finalize their social insurance and unemployment insurance, resulting in a loss of unemployment benefits.
While the responsibility for collecting unemployment insurance lies with the Social Insurance Agency and handling violations falls under the purview of the state management agency, when these agencies fail to address the violations of businesses, the employees are the ones who suffer, which is unfair.
Therefore, to ensure the legitimate rights of employees, the delegate suggested considering and adding provisions about the conditions for eligibility to receive unemployment benefits.
These conditions include cases where the employer has deducted unemployment insurance from the employee’s salary for at least 12 months, within 24 months before the termination of the labor contract or working relationship according to the law.
For employees working under fixed-term labor contracts ranging from 1 month to less than 12 months, the employer must have deducted unemployment insurance from the employee’s salary for at least 12 months, within 36 months before the termination of the labor contract.
“The violating employers will be subject to handling measures, administrative sanctions, late payment interest, and the recovery of the debt to reimburse the employees for unemployment insurance,” contributed delegate Vo Manh Son.
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