ARE WORKERS ENTITLED TO UNEMPLOYMENT BENEFITS WHILE LOOKING FOR A NEW JOB?

Unemployment benefits are important, which helps unemployed people to reduce the financial burden after quitting their jobs and finding new jobs in the labor market. Therefore, employees need to know clearly the cases in which they are or are not entitled to unemployment benefits, especially the issue of receiving unemployment benefits during the period of looking for a new job.

22/11/2023

ARE WORKERS ENTITLED TO UNEMPLOYMENT BENEFITS WHILE LOOKING FOR A NEW JOB?

1. Legal basis

- Law on employment 2013

- Decree no 28/2015/ND-CP

- Decree no 61/2020/ND-CP

2. Overview on the matter of being entitled to unemployment benefits while looking for a new job

Unemployment benefits are one of four unemployment insurance regimes with the purpose of supporting workers when they lose their jobs and in period of learning vocational skills and finding new jobs based on salary deductions paid into the Unemployment Insurance Fund.

In order to receive unemployment benefits, employees must meet all conditions regarding unemployment insurance payment period, reason for terminating the labor contract with the employer, order and deadline for submitting documents stipulated in Article 49 of the Law on employment 2013

3. Are workers entitled to unemployment benefits while looking for a new job?

Article 21 of Decree 28/2015/ND - CP stipulates the termination of benefits not happening in cases where employees stop receiving unemployment benefits when looking for work. Regarding employment issues, employees only stop receiving unemployment benefits when they have a job in one of the following cases (Point b Clause 5 Article 21 Decree 28/2015/ND - CP amended by Clause 9 Article 1 Decree 61/2020/ND – CP):

- He/she has concluded an employment contract, a seasonal labor contract or a piecework contract with a term of full 1 month or more. The date on which the employee is determined as having a job is the effective date of the employment or labor contract in accordance with law

- There is a recruitment or appointment decision for cases in which an employee is not classified as eligible for entry into a labor or employment contract. The date on which the employee is determined to be employed in this case is the date on which the employee is placed with a job or is appointed as stated in the recruitment or appointment decision

- He/she has business household registration certificate in case the employee is the homeowner of the business household, or has an enterprise registration certificate in case the employee is the business owner. The date on which an employee is determined to have a job is the date on which the employee notifies the employment service center of their business commencement

- The employee notifies the employment service center that he/she has got a job. The date on which the employee is determined as having a job is the date specified in the employee’s notice of being employed

Therefore, in case workers are looking for a new job, they are still entitled to full unemployment benefits if they meet the conditions. However, employees are obliged to notify about their job search while receiving unemployment benefits (Article 52 of the Employment Law 2013) to ensure that employees accurately update their employment situation and ensure that the worker is eligible for unemployment benefits.

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

Attention: This legal update is not an advice and should not be treated as such.