The draft amended Labor Law has proposed new regulations on unemployment benefit eligibility, including a provision that excludes employees who retire with a pension from receiving this benefit.
According to the draft Law, insured workers are eligible for unemployment benefits if they meet the following conditions:
Termination of labor or work contracts or cessation of work in accordance with legal regulations, excluding the following cases: Employees unlawfully terminate their labor contract as per the Labor Code; employees terminate their work contracts contrary to the Law on Civil Servants; employees retire with a pension.
Having paid unemployment insurance contributions for at least 12 months within the 24 months preceding the termination of their labor or work contract or cessation of work as prescribed by law.
For employees with fixed-term labor contracts ranging from one month to less than 12 months, they must have paid contributions for at least 12 months within the 36 months preceding the termination of their labor contract.
Submission of complete documents for unemployment benefits within three months from the date of termination of the labor or work contract or cessation of work.
Within 10 working days from the date of submission of complete documents for unemployment benefits, the employee must not fall under any of the following cases:
Being employed and subject to compulsory social insurance under the Social Insurance Law; performing military service, participating in the people’s public security force or full-time militia; studying for a period of more than 12 months; undergoing compulsory education in corrective or compulsory drug rehabilitation centers; being detained, serving a prison sentence; emigrating; working abroad under a contract; or passing away.
Employees receiving unemployment insurance counseling during a job search
According to the report on the reception, explanation, and revision of the draft amended Law on Employment, the National Assembly Standing Committee stated that there were suggestions to consider providing unemployment benefits to employees who have met the pension contribution conditions under Article 64 of the Social Insurance Law but have not yet reached the retirement age as stipulated in Clause 2, Article 169 of the Labor Code.
However, due to objective reasons such as illness or injury, these employees may need financial support to cover their medical expenses while waiting to receive their pension.
The National Assembly Standing Committee clarified that the draft Law only stipulates that employees who retire with a pension, including those who meet the pension contribution requirements and the retirement age, are not eligible for unemployment benefits. Therefore, in the aforementioned situation, employees can still receive unemployment benefits if they fulfill the prescribed conditions.
Additionally, there were suggestions to amend the provision excluding employees who “retire with a pension” from receiving unemployment benefits. The proposed amendment suggested specifying that individuals who retire and receive a pension according to labor and social insurance laws are not eligible for unemployment benefits.
The National Assembly Standing Committee maintained that the draft Law stipulates that individuals eligible for a pension are not subject to unemployment insurance. Furthermore, Article 168 of the Labor Code states that for employees not subject to compulsory social insurance, health insurance, and unemployment insurance, the employer shall pay an additional amount equivalent to the employer’s contribution rates for these insurances, along with the employee’s salary.
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