Law on Employment (No. 38/2013/QHB)

Section 1 areas with extremely difficult socio-economic CREDIT INCENTIVES FOR conditions, and people with disabilities. EMPLOYMENT CREATION Article 13. Conditions for loan bonowing Article 10. Credit incentives for employment 1. The entities defined at Point a, Clause 1, creation Alticle 12 of this Law may take loans from the The State shall provide credit incentives National Employment Fund when fully meeting from the National Employment Fund and other the following conditions: credit sources to suppo1t employment creation a/ Having a loan-bonowing project that is and maintain and expand employment. feasible in the locality, suits their production and business lines and creates more stable Article 11. The National Employment jobs; Fund b/ Having a loan-bonowing project ce1tified 1. Sources fonning the National Employment by a competent agency or organization in the Fund include: locality where the project is implemented; a/ State budget; c/ Having loan collateral. b/ Supporting sources of domestic and 2. The entities specified at Point b, Clause 1, foreign organizations and individuals; Alticle 12 of this Law may take loans from the c/ Other lawful sources. National Employment Fund when fully meeting the following conditions: 2. The management and use of the National Employment Fund must comply with law. a/ Having full civil act capacity; b/ W ishing t o take loans t o create Article 12. Bonowers of loans from the employment for themselves or attract more National Employment Fund workers, as ce1tified by a competent agency or 1. Eligible borrowers of loans from the organization in the locality where the project National Employment Fund include: is implemented; a/ Small- and medium-sized enterprises, c/ Lawfully residing in the locality where cooperatives, cooperative groups and business the project is implemented. households; 3. The Government shall prescribe loan bf Workers. levels, duration and interest rates, the order and procedures for bonowing loans, and loan 2. The entities defined in Clause 1 of this collateral conditions. Alticle that fall in the cases below may take loans from the National Employment Fund at Article 14. Provision of preferential lower interest rates: loans from other credit sources to support a/ Small- and medium-sized enterprises, employment creation © Vietnam Law & Legal Forom Issue nos 06-07/December 2013 51 (Cong Bao nos 1003-1004/Decemher 29, 2013) Based on socio-economic conditions in Small- and medium-sized enterprises, each period, the State shall use other credit cooperatives, cooperative groups and business somces to provide preferential loans for the households are entitled to the State's support implementation ofindirect policies to suppo1t for development of production and business employment creation. activities and expansion ofon-spot employment for workers in rural areas through:

Section 2 1. Taking loans from the National POLICIES TO SUPPORT EMPLOYMENT Employment Fund as prescribed in Alticles CHANGE FOR W ORKERS IN RURAL 11, 12 and 1 3 ofthis Law; AREAS 2. Being suppo1ted in accessing infonnation Article 15. Support for occupation or on outlet markets; employment change for workers in mral areas 3. Enjoying tax exemption and reduction in 1. Based on socio-economic development accordance with tax laws. strategies and plans, the State shall suppo1t

Section 3 occupation or employment change for workers in mral areas. PUBLIC EMPLOYMENT POLICIES 2. Workers in mral areas who participate in Article 18. Contents ofpublic employment occupation or employment change are entitled policies to: 1. Public employment policies are a/ Vocational training support; implemented through state-funded projects b/ Free counseling on policies and laws on or activities associated with socio-economic labor, employment and vocational training; development programs in communes, c/ Free job recommendation; including: d/ Ta king loans from the National a/ Building infrastmcnire for agriculnire, Employment Fund as prescribed in Articles forest1y, fisheries and salt production; 11, 12 and 13 ofthis Law. b/ Building public infrastmcmre facilities; Article 16. Vocational training suppo1t for cl Protecting the environment; workers in mral areas di Responding to climate change; Workers in mral areas who attend vocational dd/ Other projects and activities serving the training courses of under three months local communities. or at primary level in vocational training 2. For the projects and activities specified instin1tions are entitled to suppo1t ofvocational in Clause 1 of this Article, when selecting training expenses under the Piime Minister's contractors under the bidding law, a bidding regulations. dossier or dossier ofrequirement must contain Article 17. Suppo1t for small- and medium­ a requirement that the bid-participating sized enterprises, cooperatives, cooperative contractors propose a plan on employment of groups and business households to create the workers defined in Clause 1, Alticle 19 of employment for workers in mral areas this Law. © Vietnam Law & Legal Fornm 52 Issue nos 06-07/December 2013 (Cong Bao nos 1003-1004/Decemher 29, 2013) 3. The Government shall detail the workers, are entitled to the State's support organization of implementation of public for: employment policies. a/ Vocational training and learning foreign languages; getting familiarized with the Article 19. Paiticipants in public employment customs, habits and laws of Vietnam and the policies host country; 1. Workers may participate in public b/ Training to improve occupational skills employment policies when fully meeting the qualifications to meet the requirements of the following conditions: host countiy; a/ Lawfully residing in the locality where the c/ Taking loans with preferential interest projects or activities are implemented; rates. b/ Pa1ticipating on a volunta1y basis. 3. The Government shall detail support 2. The workers defined in Clause 1 of policies for guest workers as prescribed in this this Alticle who are ethnic minority people, Alticle. members of poor households or households living just above the pove1ty line or households Article 21. Employment creation suppo1t having agricultural land recovered, and for young people unemployed or underemployed people are 1. The State shall encourage organizations pliolitized to participate in public employment and individuals to create employment for young policies. people; and create conditions for young people 3. Organizations and individuals are to bring into play their initiative and creativity encouraged to employ the workers defined in in employment creation. Clause 1 of this Alticle when implementing 2. The State shall provide employment projects or activities other than those specified creation support for young people through: in Clause 1, A1ticle 18 of this Law. a/ Free job counseling, career orientation and job recommendation for young people;

Section 4 b/ Vocational ti·aining in association with OTHER SUPPORT POLICIES employment creation for young people who Article 20. Suppo1t for guest workers have completed their military or public security obligation and youth volunteers who 1. The State shall encourage and create have completed their tasks in socio-economic conditions for workers who have demand and development programs or projects; ability to go abroad as guest workers. c/ Suppo1t for young people to start up their 2. Workers who are ethnic minority people, career or business. members of poor households or households 3. The Government shall detail Points b and livingjust above the pove1ty line or households c, Clause 2 of this Alticle. having agricultural land recovered, and relatives of people with melitorious se1vice to Article 22. Support for labor market the revolution who wish to go abroad as guest development © Vietnam Law & Legal Forom Issue nos 06-07/December 2013 53 (Cong Bao nos 1003-1004/Decemher 29, 2013) The State shall provide supp011 for labor other than labor market info1mation being market development through: national statistics; promulgate regulations on 1. Collecting and providing labor market management, use and dissemination of labor information, analyzing and forecasting mai·ket inf01mation; and develop labor market labor markets, and linking labor supply and info1mation networks and databases. demand� 3. P eople's Committees a t all levels 2. Modernizing employment service shall, within the ambit of their tasks and activities and l abor market information powers, manage labor market info1mation in systems; localities. 3. Making investment to build the capacity 4. The agencies defined in Clauses 1, 2 and 3 of employment service centers; of this A11icle shall peliodically publicize labor market info1mation. 4. Encouraging organizations and individuals to pai1icipate in labor market development. Article 25. Collection, ai·chive and synthesis of labor market info1mation Chapter III 1. The Ministry of Labor, War Invalids LABOR MARKET INFORMATION and Social Affairs shall organize and guide Article 23. Contents of labor market the collection, archive and synthesis of inf01mation labor market information falling within its competence as specified in Clause 2, Article 1. Employment status and trends. 24 of this Law. 2. Info1mation on labor supply and demand 2. People's Committees at all levels shall and labor supply and demand developments in organize the collection, archive and synthesis labor markets. of labor market info1mation in localities under 3. Information on foreign workers in their management. Vietnam and Vietnamese guest workers. 3. Agencies, organizations, enterprises and 4. Info1mation on salaries and wages. individuals shall collect, ai·chive and synthesize Article 24. Management of labor market labor market infonnation in accordance with inf01mation law. 1. State management agencies in charge of Article 26. Provision of labor market statistics shall collect, publicize, develop and infonnation manage databases of labor market info1mation Agencies, organizations, enterprises and being national statistics in accordance with the individuals shall accurately and timely provide statistical law. labor market infonnation in accordance with 2. The Ministry of Labor, War Invalids law. and Social Affairs shall assume the prime responsibility for, and coordinate with related Article 27. Analysis, fo recast and ministries and agencies in, collecting and dissemination of labor market inf01mation publicizing labor market info1mation in the 1. The Ministry of Labor, War Invalids sectors and fields under their management and Social Affairs shall assume the prime © Vietnam Law & Legal Fornm 54 Issue nos 06-07/December 2013 (Cong Bao nos 1003-1004/Decemher 29, 2013) responsibility for the analysis, forecast and 1. Assessment and grant of ce1tificates of dissemination of labor market information national occupational skills aim to recognize falling within its competence. the levels of occupational skills of workers based on their qualifications. 2. People's Committees at all levels shall organize the analysis, forecast and dissemination 2. Workers may participate in the assessment of labor market infomiation in localities under and be granted certificates of national their management. occupational skills in order to improve their occupational capacity or seek appropriate Article 28. Safety assurance, confidentiality employment or employment requiring such and archive of labor market info1mation certificates. 1. Safety must be ensured for labor market Article 30. Principles and contents of info1mation during the development, operation assessment of national occupational skills and upgrading of labor market information 1. The assessment of national occupational networks and databases. skills must adhere to the following principles: 2. Confidential labor market info1mation a/ Ensming voluntariness of workers; includes: b/ Being based on national occupational a/ Labor market info1mation associated with skills standards; specific names and addresses of organizations cl Conf01ming with each qualification level and individuals, unless othe1wise agreed by of skills of each occupation; these organizations and individuals; d/ Ensuring accuracy, independence, b/ Labor market info1mation in the process impartiality, equality and transparency. of collection and synthesis not yet publicized 2. Contents of assessment of national by competent persons; occupational skills include: c/ Labor market info1mation on the law­ a/ Professional and technical knowledge; prescribed list of state secrets. b/ Work practice skills; 3. Agencies, organizations, enterprises c/ Occupational safety and hygiene and individuals that exploit and use labor process. market info1mation shall ensure safety and confidentiality of, and archive such info1mation Article 31. Occupational skills assessment in accordance with this Law and other relevant organizations laws. 1. Oc c u p ational skills assessment Chapter IV organization means an organization that operates under prescribed conditions and ASSESSMENT AND GRANT OF possesses a ce1tificate for assessment and grant CERTIFICATES OF NATIONAL of ce1tificates of national occupational skills OCCUPATIONAL SKILLS granted by a competent state agency. Article 29. Purposes of assessment and 2. W hen fully meeting the conditions on grant of ce1tificates of national occupational physical foundations, equipment and staff, an skills occupational skills assessment organization © Vietnam Law & Legal Forom Issue nos 06-07/December 2013 55 (Cong Bao nos 1003-1004/Decemher 29, 2013) will be granted a ce1tificate for assessment and to regulations of the Ministry of Labor, War grant of certificates of national occupational Invalids and Social Affairs. skills by a competent state agency. 2. Certificates of national occupational 3 . Occupational skills assessment skills are valid n ationwide. In case of organizations may collect charges in accordance mutual recognition of ce1tificates of national with the law on charges and fees. occupational skills between Vietnam and 4. The Gove1mnent shall detail the conditions other countries or tenitories, the certificates for, and organization and activities of, the of national occupational skills are valid in assessment and grant of certificates of national the countries or territories where they are occupational skills. recognized and vice versa. Article 32. Development and publicization Article 34. Rights and responsibilities of of national occupational skills standards workers participating in the assessment and grant of ce1tificates of national occupational 1. National occupational skills standards skills shall be developed for each qualification level of occupational skills for each occupation and 1. Workers who pa1ticipate in the assessment the national occupational skills qualification and grant of ce1tificates of national occupational framework. T he number of qualification skills have the following rights: levels of occupational skills depends on the al To select occupational skills assessment complexity of each occupation. organizations; 2. Ministers, heads of ministerial-level b/ To be granted certificates of national agencies and heads of government-attached occupational skills when satisfy ing the agencies shall assume the prime responsibility requirements at the conesponding qualification for developing national occupational skills level of occupational skills; standards for each occupation in the fields under cl To lodge complaints about the results of their management and request the Minist1y assessment of national occupational skills in of Labor, War Invalids and Social Affairs to accordance with law. appraise and publicize national occupational 2. Workers who pa1ticipate in the assessment skills standards. and grant of ce1tificates of national occupational 3. The Ministry of Labor, War Invalids and skills have the following responsibilities: Social Affairs shall guide the development, a/ To observe rules and regulations on appraisal and publicization of national assessment and grant of certificates of national occupational skills standards. occupational skills which are issued by occupational skills assessment organizations; Article 33. Certificates of n ational occupational skills b/ To pay charges for the assessment and grant of ce1tificates of national occupational 1. A worker who satisfies the requirements skills in accordance with law. at a ce1tain qualification level of occupational skills will be granted a ce1tificate of national Article 35. Jobs requiring certificates of occupational skills at that level according national occupational skills © Vietnam Law & Legal Fornm 56 Issue nos 06-07/December 2013 (Cong Bao nos 1003-1004/Decemher 29, 2013) 1. Certificates of national occupational of employment service centers specified at skills are required for workers who do jobs Point b, Clause 1 of this Alticle. that directly affect the safety and health of 3. T he Government shall detail the themselves or of the community. establishment conditions for, and organization 2. The Government shall provide a list of and operation of, employment service jobs specified in Clause 1 of this Alticle. centers. Chapter V Article 38. Tasks of employment se1vice centers EMPLOYMENT SERVICE ORGANIZATIONS AND ACTIVITIES 1. Employment service centers have the following tasks: Article 36. Employment se1vices a / To provide j o b counseling a n d 1. Employment services include job recommendation for workers and provide labor counseling and recommendation; supply market info1mation free of charge; and recmitment of workers at the request of b/ To supply and recruit workers at the employers; and collection and provision of request of employers; labor market info1mation. c/ To collect labor market infonnation; 2. Employment service organizations di To analyze and forecast labor markets; include employment service centers and dd/ To implement employment programs employment se1vice enterprises. and projects; Article 37. Employment se1vice centers el To provide occupational skills and vocational training in accordance with law. 1. Employment se1vice centers are public non-business units, including: 2. Employment se1vice centers established a/ Employment se1vice centers established by state management agencies in charge of by state management agencies; employment have the tasks specified in Clause 1 of this Alticle and shall receive dossiers b/ Employment se1vice centers established of request for unemployment insurance and by socio-political organizations. submit them to competent state agencies for 2. Employment service centers must be decision. established under the P1ime Minister-approved A rtic l e 39. E m p l o y m e n t s e r v i c e master plans and s atisfy the prescribed enterprises conditions on physical foundations, equipment and staff. Ministers, heads of ministerial­ 1. Employment se1vice enterprise means level agencies and chairpersons of People's an enterprise established and operating under Committees of provinces or centrally mn cities the law on enterprises and possessing an (below refened to as provincial-level) may employment service license granted by the decide on the establishment of employment provincial-level state management agency in service centers specified at Point a, Clause 1 charge of employment. of this Alticle; heads of central socio-political 2. An enterprise that fully satisfies the organizations may decide on the establishment conditions on physical foundations, equipment, © Vietnam Law & Legal Forom Issue nos 06-07/December 2013 57 (Cong Bao nos 1003-1004/Decemher 29, 2013) staffand deposit shall be granted an employment 3. The levels of unemployment insurance service license. benefits are based on the levels and duration 3. Employment service enterprises may of payment of unemployment insurance establish employment service branches. premiums. 4. Employment service enterprises may 4. Unemployment insurance is implemented collect charges in accordance with the law on in a simple, easy and convenient manner, charges and fees. promptly and adequately ensming the interests 5. The Government shall detail this of unemployment insurance participants. A1ticle. 5. The Unemployment Insurance Fund is managed in a centralized, uniform, public, Article 40. Activities of employment transparent and safe manner and protected by se1vice enterplises the State. 1. P r o v i d i n g jo b c o u n s e l ing a n d Article 42. Unemployment insurance recommendation for workers and employers. benefits 2. Supplying and recmiting workers at the request of employers. 1. Unemployment allowance. 3. Collecting and providing labor market 2. Job counseling and recommendation inf01mation. suppo1t. 4. Analyzing and forecasting labor 3. Vocational training suppo1t. markets. 4. Support for training and retraining to 5. Providing occupational skills and improve qualifications of occupational skills vocational training in accordance with law. for job maintenance for workers. 6. Implementing employment programs Article 43. Compulsory participants in and projects. unemployment insurance Chapter V I 1. Workers are obliged to participate in unemployment insurance when working under UNEMPLOYMENT INSURANCE labor contracts or working contracts below:

Section 1 a/ Labor contracts or working contracts of PRINCIPLES, PARTICIPANTS AND indefinite time; BENEFITS OF UNEMPLOYMENT b/ Labor contracts or working contracts of INSURANCE definite time; c/ Seasonal or job-based working contracts Article 41. Principles of unemployment with a te1m of between full 3 months and under insurance 12 months. 1. En s u r i n g r i sk s h a r i n g a m o n g In case a worker has signed and is pe1fo1ming unemployment insurance participants. more than one labor contract specified in this 2. The levels of payable unemployment Clause, the worker and the employer under the insurance premiums are based on wages of labor contract signed first shall participate in workers. unemployment insurance. © Vietnam Law & Legal Fornm 58 Issue nos 06-07/December 2013 (Cong Bao nos 1003-1004/Decemher 29, 2013) 2. Workers defined in Clause 1 of this Arti cle 45. Period o f p a yment o f Alticle who are cmTently on pension or doing unemployment insurance premiums housework are not required to participate in 1. The period of payment ofunemployment unemployment insurance. i n s u r a n c e p r e m i u m s fo r r e c e i p t o f 3. Employers obliged to participate in unemployment insurance benefits is the total of unemployment insurance include state consecutive or inte1rnpted periods of payment agencies, public non-business units and people's of unemployment insurance premiums from armed forces units; political organizations, the staiting time of such payment to the time socio-political organizations, socio-political­ the worker te1minates his/her labor contract or professional organizations, social organizations working contract under law but dming which and socio-professional organizations; foreign he/she has not yet received any unemployment agencies and organizations and international allowance. organizations operating in the Vietnamese 2. Afte r a worker stops receiving tenito1y; enterprises, cooperatives, households, unemployment allowance, his/her previous business households, cooperative groups, period of payment of unemployment insurance other organizations and individuals that hire premiums is not counted for receiving or employ workers under the labor contracts unemployment allowance for the subsequent or working contracts specified in Clause 1 of time. The period of payment ofunemployment this A1ticle. insurance premiums for the subsequent receipt of unemployment insurance benefits will be Article 44. Participation in unemployment counted from the beginning, except the case of insurance stopping receiving unemployment allowance 1. Employers shall pay unemployment under Points b, c, h, 1, m and n, Clause 3, Alticle insurance premiums for workers to social 53 of this Law. insurance organizations within 30 days from 3. The period of payment ofunemployment the effective date oflabor contracts or working insurance premiums is not counted for receiving contracts. job loss allowance or severance pay under the laws on labor and public employees. 2. Mo n t h l y, e m p l o y e r s s h a l l p a y unemployment insurance premiums at the Article 46. Receipt of unemployment level specified at Point b, Clause 1, Alticle allowance 57 of this Law and make deductions from 1. Within 3 months after te1minating his/her the wages of workers at the level specified at labor contract or working contract, a worker shall Point a, Clause 1, Alticle 57 of this Law, for submit a dossier for receipt of unemployment simultaneous payment to the Unemployment allowance to an employment service center Insurance Fund. established by the state management agency 3. Based on the balance ofthe Unemployment in charge of employment. Insurance Fund, the State shall transfer 2. Within 20 days after the employment suppo1ting funds from the state budget to the service center receives a complete dossier, Fund at the level specified by the Government the competent state agency shall issue a under Clause 3, A1ticle 59 of this Law. decision on unemployment allowance receipt; © Vietnam Law & Legal Forom Issue nos 06-07/December 2013 59 (Cong Bao nos 1003-1004/Decemher 29, 2013) in case the worker is ineligible for receiving 2. The duration of support for training lmemployment allowance, the center shall issue and retraining to improve occupational skills a wlitten reply to the worker. qualifications for job maintenance for workers must comply with the approved plan, but must 3. The social insurance organization shall not exceed 6 months. pay unemployment allowance to the worker within 5 days after receiving a decision on 3. The Government shall detail this Article unemployment allowance receipt. and specify the levels of financial support for training and retraining to improve occupational

Section 2 skills qualifications for job maintenance SUPPORT FOR TRAINING AND for workers, ensuring the balance of the RETRAINING TO IMPROVE Unemployment Insurance Fund. OCCUPATIONAL SKILLS Article 48. Responsibility for training QUALIFICATIONS FOR JOB and retraining to improve occupational skills MAINTENANCE FOR WORKERS qualifications Article 47. Support conditions, time and 1. Employers shall organize training and levels retraining to improve occupational skills qualifications and use workers under approved 1. Employers may receive financial plans; use funds for eligible workers and support for training and retraining to improve proper purposes and repo1t training results to occupational skills qualifications for job competent state agencies after completion of maintenance for the workers defined in Clause training or retraining courses. 1, A1ticle 43 of this Law who cunently pay lmemployment insurance premiums, when fully 2. Workers shall abide by regulations on meeting the following conditions: training and retraining to improve occupational skills qualifications. a/ Having fully paid unemployment insurance premiums for workers obliged to Section 3 participate in unemployment insurance for at UNEMPLOYMENT ALLOWANCE least full 12 consecutive months by the time of request for suppo1t; Article 49. Conditions for unemployment b/ Meeting difficulties due to economic allowance receipt recession or otherforce rnajeure causes, forcing A worker defined in Clause 1, Alticle 43 of them to undergo restructuring or change this Law who cunently pays unemployment production and business technologies; insurance premiums may receive unemployment c/ Lacking funds for organizing training allowance when fully meeting the following and retraining to improve occupational skills conditions: qualifications for workers; 1. Te1minating the labor contract or working d/ Having a plan on training and retraining contract, except the following cases: to improve occupational skills qualifications a/ He/she unilaterally te1minates the labor for job maintenance, approved by a competent contract or working contract in contravention state agency. of law; © Vietnam Law & Legal Fornm 60 Issue nos 06-07/December 2013 (Cong Bao nos 1003-1004/Decemher 29, 2013) b/ He/she receives monthly pension or insurance premiums ai·e based, but must not working capacity loss allowance. exceed 5 times the basic wage level, for workers 2. Having paid unemployment insurance receiving wages under the State-prescribed premiums for at least full 12 months within 24 regime, or must not exceed 5 times the region­ months before tenninating the labor contract based minimum wage level under the Labor or working contract, for the case specified at Code, for workers who pay unemployment Points a and b, Clause 1, Article 43 of this insurance premiums under the wage regime Law; or having paid unemployment insurance decided by employers at the time oftennination premiums for at least full 12 months within 36 ofthe labor contract or working contract. months before te1minating the labor contract, 2. The duration ofunemployment allowance for the case specified at Point c, Clause 1, receipt is based on the number of months Alticle 43 ofthis Law. of payment of unemployment insurance 3. Having submitted a dossier for receipt of premiums. This duration is 3 months if the unemployment allowance to an employment peliod ofpayment ofunemployment insurance se1vice center under Clause 1, Alticle 46 of premiums is between full 12 months and full 36 this Law. months, which is added with 1 month for each 4. Having not yet found any job after 15 days additional period ofpayment offull 12 months, from the date ofsubmission of the dossier for but must not exceed 12 months. receipt ofunemployment allowance, except the 3. The time for unemployment allowance following cases: receipt is counted from the 16th day after the a/ He/she pe1fo1ms the militaiy or public date of submission of a complete dossier for secmity obligation; receipt ofunemployment allowance as specified in Clause 1, Alticle 46 ofthis Law. b/ He/she attends a training course of full 12 months or longer; Article 51. Health insurance c/ He/she se1ves a decision on application of 1. Persons on unemployment allowance the measure to send him/her to a refo1mato1y, are entitled to health insurance benefits in compulso1y education institution or compulso1y accordance with the law on health insurance. detoxification establishment; 2. Social insurance organizations shall di He/she is kept in tempora1y detention or pay health insurance premiums for persons serves a prison sentence; on unemployment allowance from the dd/ He/she goes abroad for settlement or as Unemployment Insurance Fund. guest worker; Article 52. Notification ofjob seeking e/ He/she dies. 1. While on unemployment allowance, Article 50. Levels, duration and time of monthly, a worker shall directly notify his/her receipt ofunemployment allowance job seeking to the employment se1vice center 1. The monthly unemployment allowance ofthe locality where he/she cmTently receives level equals 60% ofthe average monthly wage unemployment allowance, except the following of 6 consecutive months before the worker cases: becomes unemployed on which unemployment a/ He/she is sick or on maternity leave or has © Vietnam Law & Legal Forom Issue nos 06-07/December 2013 61 (Cong Bao nos 1003-1004/Decemher 29, 2013) an accident as ce1tified in wiiting by a competent e/ He/she fails to monthly notify his/her health establishment prescribed by the law on job seeking lmder Al.·ticle 52 of this Law for 3 medical examination and treatment; consecutive months; bl Force majeure cases. g/ He/she goes abroad for settlement or as 2. The worker shall notify the case specified guest worker; at Point a or b, Clause 1 of this Alticle to the h/ He/she attends a training course of full employment service center of the locality 12 months or longer; where he/she cunently receives unemployment i/ He/she is administratively sanctioned allowance. for violations of the law on unemployment 3. The Ministry of Labor, War Invalids and insurance; Social Affairs shall guide the implementation k/ He/she dies; of this Alticle. 1/ He/she serves a decision on application of Article 53. Suspension, resumption and the measure to send him/her to a refo1mato1y, termination of unemployment allowance compulso1y education institution or compulso1y receipt detoxification establishment; 1. Persons on unemployment allowance will ml He/she is declared by a comt as missing; be suspended from receiving it if they fail to n/ He/she is kept in tempora1y detention or monthly notify their job seeking under Alticle serves a prison sentence. 52 of this Law. 4. Workers who stop receiving lmemployment 2. Workers who are suspended from allowance in the cases specified at Points b, c, receiving unemployment allowance may h, l, m and n, Clause 3 of this A1ticle may continue receiving it under the decisions on have the period of payment of unemployment unemployment allowance receipt ifthe receipt insurance premiums rese1ved for calculating the duration has not yet expired and they monthly subsequent duration ofreceipt oflmemployment notify their job seeking under Article 52 of allowance when they fully satisfy the conditions this Law. specified in Alticle 49 of this Law. 3. A person on unemployment allowance The rese1ved period equals the total of the will stop receiving it in the following cases: pe1iods ofpayment ofunemployment insurance a/ The duration ofunemployment allowance premiums minus the peliod during which the receipt expires; worker has received unemployment allowance, b/ He/she has found a job; with one month of receipt of unemployment c/ He/she perfo1ms the military or public allowance equivalent to 12 months of payment security service obligation; of unemployment insurance premiums. d/ He/she receives monthly pension; Section 4 dd/ He/she has twice refused without a SUPPORT FOR JOB COUNSELING, plausible reason to take up the job recommended RECOMMENDATION AND TRAINING by the employment service center ofthe locality where he/she cunently receives unemployment Arti c l e 54. J o b c o u n s e l i n g a n d allowance; recommendation © Vietnam Law & Legal Fornm 62 Issue nos 06-07/December 2013 (Cong Bao nos 1003-1004/Decemher 29, 2013) The workers defined in Clause 1, Article 43 a/ Workers shall pay unemployment of this Law who cmTently pay unemployment insurance premiums equal to 1 % of their insmance premiums, have their labor contracts monthly wage; or working contracts tenninated and wish to b/ Employers shall pay unemployment seek employment shall be provided with free insurance premiums equal to 1 % of the monthly job counseling and recommendation. wage fund of the workers ctmently paiticipating Article 55. Conditions for vocational in unemployment insurance; training suppo1t c/ The State shall provide at most 1 % of the monthly wage fund from the central budget The workers defined in Clause 1, Alticle 43 as support for payment of unemployment of this Law who cunently pay unemployment insurance premiums of workers currently insurance premiums are entitled to vocational participating in unemployment insurance. training support when fully meeting the following conditions: 2. Sources forming the Unemployment Insurance Fund include: 1. The conditions specified in Clauses 1, 3 and 4, Alticle 49 of this Law; a/ Contributions and support specified in Clause 1 of this Alticle; 2. Having paid unemployment insurance premiums for at least full 9 months within 24 b/ Profits from the Fund's investment months before tenninating labor contracts or activities; working contracts under law. c/ Other lawful revenues. 3. The Unemployment Insurance Fund must Article 56. Duration and levels of vocational be used for: training suppo1t a/ Paying unemployment allowance; 1. The duration of vocational training b/ Supporting training and retraining support depends on the actual duration of activities to improve occupational skills vocational training but must not exceed 6 qualifications for job maintenance for months. workers; 2. The vocational training support levels c/ Suppo1ting vocational training; must comply with the Prime Minister's regulations. d / Supporting job counseling and recommendation;

Section 5 dd/ Paying health insurance premiums for THE UNEMPLOYMENT INSURANCE workers on unemployment allowance; FUND e/ Paying expenses for unemployment insurance management in accordance with the Article 57. Levels of contribution to, Law on Social Insurance; sources and use of, the Unemployment Insurance Fund g/ Making investment for preservation and growth of the Fund. 1. The levels of and responsibility to pay unemployment insurance premiums are Article 58. Wages on which unemployment specified as follows: insurance premiums are based © Vietnam Law & Legal Forom Issue nos 06-07/December 2013 63 (Cong Bao nos 1003-1004/Decemher 29, 2013) 1. For workers who receive wages under the a/ Buying bonds and bills of the State and State-prescribed regime, the monthly wage on bonds of commercial banks with over 50% of which unemployment insurance premiums are chatter capital owned by the State; based is the monthly wage on which compulso1y b/ Making investment in important projects social insurance premiums are based 1mder the under the P1ime Minister's decisions; Law on Social Insurance. In case the monthly cl Providing loans for the state budget, the wage on which unemployment insurance Vietnam Development Bank, the Vietnam Bank premiums are based is higher than the twenty for Social Policies, and commercial banks months' region-based basic wage, the monthly with over 50% of charter capital owned by wage on which unemployment insurance the State. premiums will be equal to the twenty months' region-based basic wage at the time of payment 3. The Government shall detail the of unemployment insurance premiums. percentages of state budget support; the management and use of the Fund; and the 2. For workers paying unemployment implementation of unemployment insurance. insurance premiums under the wage regime decided by employers, the monthly wage on Chapter VII which unemployment insurance premiums IMPLEMENTATION PROVISIONS are based is the monthly wage on which compulso1y social insurance premiums are Article 60. Transitional provisions based under the Law on Social Insurance. In 1. Ent erprises that are granted job case the monthly wage on which unemployment recommendation licenses before the effective insurance premiums are based is higher than the date of this Law may continue providing twenty months' region-based minimum wage, employment services until these licenses the monthly wage on which unemployment expire. insurance premiums are based will be equal 2. Job recommendation centers that are to the twenty months' region-based minimum established before the effective date of this wage as prescribed by the Labor Code at the Law that continue providing employment time of payment of unemployment insurance services must be renamed employment service premiums. centers. A rticle 59. M a n a g e me n t o f t h e 3. Oc cupational skills assessment Unemployment Insurance Fund organizations that are granted ce1tificates for 1. The Unemployment Insurance Fund may assessment and grant of certificates of national apply independent cost-accounting. Social occupational skills before the effective date of insurance organizations shall collect, spend, this Law may continue their operation until manage and use the Unemployment Insurance these ce1tificates expire. Fund. 4. The period during which workers have 2. The Unemployment Insurance Fund's paid unemployment insurance pre1niums under investment activities must ensure safety, the Law on Social Insurance before the effective transparency, efficiency, and capital ret1ieval date of this Law but have not yet received any when necessa1y, through: unemployment allowance will be added to the © Vietnam Law & Legal Fornm 64 Issue nos 06-07/December 2013 (Cong Bao nos 1003-1004/Decemher 29, 2013) pe1iod ofpayment of unemployment insurance premiums under Article 45 of this Law. Article 61. Effect 1. This Law takes effect on January 1, 2015. 2. The provisions ofLaw No. 71/2006/QHll on Social Insurance regarding unemployment insurance and Chapter IX - Assessment and Grant of Ce1tificates of National Occupational Skills ofLaw No. 76/2006/QHll on Vocational Training cease to be effective on the effective date of this Law. Article 62. Implementation detailing and guidance The Government and other competent state agencies shall detail and guide the implementation of articles and clauses as assigned in this Law. ThisLawwas passed onNovember 16, 2013, by the XIJfhNational Assembly of the Socialist Republic of W.etnam, at its (;th session.- Chairman of the National Assembly NGUYEN SINH HUNG © Vietnam Law & Legal Forom