13 Reasons for the Termination of Unemployment Benefits
As per Clause 4, Article 41 of the 2025 Labor Law, which takes effect from January 1, 2026, there are 13 cases in which unemployment benefit payments will be terminated for employees. Thus, the 2025 Labor Law stipulates the same number of cases as the current law, but with some changes in the content of each case.
13 reasons for the termination of unemployment benefits from January 1, 2026. Illustrative image.
Specifically, the 13 cases in which employees currently receiving unemployment benefits will have their payments terminated include: Gaining employment and becoming subject to mandatory social insurance contributions as per the Social Insurance Law; performing military service, participating in the People’s Police Force, or serving as a full-time militia; receiving monthly retirement pensions;
Refusing job offers from the public employment service organization where they are receiving unemployment benefits twice without justifiable reasons; failing to notify the organization of their monthly job search for three consecutive months as required; leaving the country for permanent residence; or studying abroad for more than 12 months.
Other reasons include: Being penalized for administrative violations related to unemployment insurance law; death; undergoing compulsory education or rehabilitation measures; being declared missing by a court; being detained; serving a prison sentence; or upon the employee’s request.
According to the 2025 Labor Law, employees receiving unemployment benefits can transfer their benefits to another location if they wish to do so during the benefit period.
However, employees receiving unemployment benefits will have their benefits temporarily suspended if they fail to notify the organization of their monthly job search as required. During the suspension period, employees will not receive unemployment benefits, and the suspension period will not be counted towards their benefit period.
Changes to the Conditions for Receiving Unemployment Benefits
The 2025 Labor Law also introduces changes to the conditions for employees to receive unemployment benefits.
One of the conditions is that employees must have made unemployment insurance contributions for at least 12 months within the 24 months preceding the termination of their labor contract, work contract, or termination of their employment as prescribed.
In the case of employees with fixed-term labor contracts ranging from one month to less than 12 months, they must have made contributions for at least 12 months within the 36 months preceding the termination of their labor contract.
Meanwhile, the 2013 Labor Law only stipulates “having made unemployment insurance contributions for at least 12 months within the 24 months before the termination of the contract…”.
As such, the current law does not differentiate between contract types or specify the time frame for short-term labor contracts, leading to unclear application in the case of labor contracts lasting from one to three months.
Rise in Unemployment
According to the Ministry of Home Affairs, the number of unemployed people in the second quarter of 2025 rose to 1.06 million, an increase of 25,300 from the previous quarter and 13,300 from the same period last year. The number of people filing for unemployment benefits in the second quarter exceeded 284,000, an increase of over 139,000 from the first quarter. It is known that of the 284,000 people who filed for unemployment benefits in the second quarter, more than 258,300 were approved to receive benefits.
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The Ministry of Home Affairs reported that over 3.3 million people received monthly pension and social insurance benefits in the second quarter of this year.
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