ISSUE OF AUGUST 2022 – SUPPORT POLICIES FOR EMPLOYEES UNDER RESOLUTION NO. 24/2022/UBTVQH15 DATED AUGUST 11, 2022 OF THE NATIONAL ASSEMBLY STANDING COMMITTEE

Dear our clients,

Facing the negative impacts of the COVID-19 epidemic, on September 24, 2021, the National Assembly Standing Committee issued Resolution No. 03/2021/UBTVQH15 promulgating policies to support employees and employers affected by the COVID-19 pandemic from the unemployment insurance fund (“Resolution 03”). Following Resolution 03, the National Assembly Standing Committee has issued Resolution No. 24/2022/UBTVQH15 dated August 11, 2022 (“Resolution 24”) to prolong the support to employees.

Under this Legal Update, we would like to provide some information with regard to support policies, beneficiaries entitled to the support and specific level of support payment under Resolution 24.

1.      The support policies as per Resolution 24

(i)     The Government shall use about 1,155 billion VND from the balance of the Unemployment Insurance Fund for the end of 2021 to continue paying support to employees who are eligible to receive support under Resolution 03 and who have submitted their dossiers on time;

(ii)     The deadline for paying support to the employee will be September 10, 2022 at the latest.

2.     The beneficiaries entitled to support

The beneficiaries eligible for support under Resolution 24 are the group of employees who are already eligible for support under Resolution 03, specifically including employees who:

(i)     Participating in unemployment insurance by September 30, 2021 (excluding employees working in government agencies, political organizations, socio-political organizations, people’s armed forces, and public service providers having recurrent expenditure guaranteed by state budget);

(ii)     Having ceased to participate in unemployment insurance as a result of terminating employment contracts or working contracts from January 1, 2020 to September 30, 2021 with a period of contributing to unemployment insurance retained according to regulations and law on occupation, excluding beneficiaries of monthly pension.

The amount used to pay under Resolution 24 is only about 1/25 of the amount used to pay under Resolution 03, which is about VND 30,000 billion. Therefore, the actual number of beneficiaries under Resolution 24 will be much lower than that of Resolution 03.

3.     The specific level of support payment

The Government currently has no specific guidance on the level of support payment under Resolution 24, however, if the Government continues to apply the level regulations as in Resolution 03, the support payment level will be based on the unemployment insurance payment period not yet enjoying unemployment benefits of employees, specifically as follows[1]:

(i)     Unemployment insurance payment period under 12 months: a support amount of 1,800,000 VND/person;

(ii)    Unemployment insurance payment period from full 12 months to under 60 months: a support amount of 2,100,000 VND/person;

(iii)   Unemployment insurance payment period from full 60 months to less than 84 months: a support amount of 2,400,000 VND/person;

(iv)   Unemployment insurance payment period from full 84 months to under 108 months: a support amount of 2,650,000 VND/person;

(v)    Unemployment insurance payment period from full 108 months to less than 132 months: a support amount of 2,900,000 VND/person;

(vi)   Unemployment insurance payment period from 132 months or more: a support amount of 3,300,000 VND/person.

Resolution 24 was approved by the Standing Committee of the National Assembly of the Socialist Republic of Vietnam, term XV, 14th session on August 11, 2022 and effective as of the date of approval.

As always, we hope you found this Legal Update helpful and look forward to working with you in the near future.

Kind regards,

ENT Law LLC

The full version of this Legal Update can be found here.

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[1] Clause 1 Section II of Resolution No. 116/NQ-CP dated September 24, 2021.