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New regulations on time to calculate the severance allowance and job-loss allowance that enterprises in Binh Duong province should be noted

On 24 October 2018, the Government issued Decree No. 148/2018/ND-CP amending and supplementing the Government's Decree No. 05/2015/ND-CP dated 12 January 2015 stipulating in details and guiding the implementation of a number of contents of the 2012 Labor Code. One of the amended points of the Decree is the contents related to working time to calculate the severance allowance and job-loss allowance for the employee.

The Decree states that the working time for calculation of severance allowance and job-loss allowance is the total time that the employee has actually worked for the employer minus the time the employees have attended unemployment insurance in accordance with the Vietnamese laws and working time has been paid by the employer for severance allowance and previous job-loss allowance (if any).

In particular, the time the employee has actually worked for the employer, including The time the employee has actually worked for the employer under the labor contract; Length of time that the employer sent employee for studying; The duration of leave for sickness, maternity leave, leave for treatment or rehabilitation of labor when suffering from a labor accident or an occupational disease; Weekly leave, full leave of absence in accordance with the provisions of the 2012 Labor Code; resignation for union activities in accordance with the Vietnamese laws on trade unions; leave for the performance of citizen obligations according to the provisions of the Vietnamese laws but paid by the employer; Time to stop work, take leave not due to fault of the employee; The duration of suspension of work according to the provisions of the 2012 Labor Code.

The period of time an employee has paid unemployment insurance includes the period of time the employee has paid unemployment insurance premiums, which is calculated as the period of unemployment insurance in accordance with the Vietnamese laws on insurance. Unemployment insurance, the time the employer paid at the same time with the pay period of the employee a sum equal to the unemployment insurance premium under the provisions of Vietnamese laws on labor, unemployment insurance.

The working time for calculating the severance allowance and the job-loss allowance of employees shall be calculated on a yearly basis (full 12 months). In the case of odd months, full months from 1 month to less than 6 months shall be calculated as 1/2 year; Full 06 months or more is calculated as 01 working year.

Decree No. 148/2018/ND-CP also amended and supplemented the following contents: Employers and employees must pay all items related to the benefits of each party within 7 working days from the date of termination of the labor contract; The wage as a basis for compensation when the unilateral termination of the contract is unlawful is the wage according to the labor contract at the time the employer or employee unilaterally terminates the labor contract; Disciplinary action will be taken in accordance with the new procedures set out in Decree 148/2018/ND-CP.

Decree No. 148/2018 /ND-CP comes into force on 15 December 2018.

Full contents of Decree No. 148/2018 /ND-CP at here 

http://www.molisa.gov.vn/vi/Pages/chitiettin.aspx?IDNews=28434

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