My company is employing several foreign employees who do not participate in unemployment insurance. In case they end their work contracts with my company, does my company have to pay severance allowance for them?
Under the 2013 Employment Law, foreign employees are not subject to unemployment insurance.
Regarding severance allowance, Article 48 of Labour Code 2012 stipulates as follows:
Accordingly, under Article 36 of the Labour Code, cases of termination of an employment contract include:
1.The employment contract expires, except for the case regulated in Clause 6 Article 192 of this Code.
2.The tasks stated in the employment contract have been completed.
3.Both parties agree to terminate the employment contract.
5. The employee is sentenced to imprisonment, capital punishment or is prohibited from performing the work stipulated in the employment contract by an effective conviction or judgment of the court.
6.The employee dies or is declared by the court to have lost the capacity of civil acts, or as missing or dead.
7.The employer, who is an individual, dies or is declared by the court as dead, missing, or has lost the capacity of civil acts; the employer, who is not individual, ceases operation.
9.The employee unilaterally terminates the employment contract in accordance with Article 37 of this Code.
10.The employer unilaterally terminates the employment contract in accordance with Article 38 of this Code; the employer terminates the employment contract due to structural and technological changes or because of economic reasons, merger, and acquisition, separation of the enterprise or the cooperative.
Based on the above-mentioned regulations, foreign employees who work continuously at least 12 months and end their work contracts following one of the above-mentioned cases, are eligible for severance allowance paid by employers./.
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