The Draft Law Reflects a Shift in Legislative Mindset

In her report on key issues regarding the draft Employment Law (amended), Chairwoman of the Social Affairs Committee Nguyễn Thúy Anh noted that the draft law has achieved the objectives set during its development. Currently, there are no significant disagreements between agencies on major aspects of the draft.

Minister Đào Ngọc Dung further elaborated on the draft law during the 41st session of the National Assembly Standing Committee (NASC).

To finalize the draft law and define provisions under the Government’s authority, the Social Affairs Committee recommended:

• Ensuring that registration and updates of information for workers participating in mandatory social insurance do not incur additional costs, or if costs arise, they are not deducted from the Social Insurance Fund.
• Carefully evaluating the significant administrative and financial implications of creating a labor database and labor market information system. The drafting agency must assess the impact, forecast costs, and structure to ensure feasibility.
• Including a provision for unemployment insurance subsidies to support employers hiring disabled workers by reducing their unemployment insurance contributions.

The Social Affairs Committee supported policies to encourage employers to hire disabled workers, emphasizing the Party and State’s commitment to assisting vulnerable groups. However, the draft's broad definition of "disabled persons" requires clarification, given the Law on Persons with Disabilities defines three levels of disability (mild, severe, and especially severe). Additionally, accurate data on disabled workers is needed to estimate resources effectively.

The draft proposes reduced unemployment insurance contributions for employers of disabled workers, which necessitates an assessment of its impact on the Unemployment Insurance Fund. Currently, the fund operates on a nearly balanced annual inflow and outflow.

The Social Affairs Committee urged the drafting agency to:

• Eliminate overlapping provisions and focus the law on matters under the National Assembly's authority, leaving administrative details for subordinate regulations.
• Carefully draft implementing documents and assess the law’s provisions to ensure clarity and feasibility.
• Engage stakeholders for consensus and ensure consistency with the legal framework.     

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Minister Đào Ngọc Dung emphasized that the draft law adheres to the principle of retaining all existing superior policies for workers. "This is the foundation of social policy development in the new era, transitioning from stability and assurance to stability and development, in line with Resolution 42," he stated.

Regarding labor registration, Minister Dung affirmed its necessity, particularly for informal workers. The draft law outlines principles for labor registration and database management, leaving detailed implementation to subordinate regulations.

Improving Labor Market Management and Unemployment Insurance

Vice Chairwoman of the National Assembly Nguyễn Thị Thanh concluded the discussion, highlighting the draft law's alignment with four key policy groups, introducing flexibility, efficiency, modernity, sustainability, and integration into labor market governance.

Key provisions include:

• Expanding coverage for unemployment insurance.
• Revising flexible contribution rates and benefit mechanisms for unemployment insurance.
• Facilitating sustainable employment policies through increased funding and broadened access to preferential credit policies for employment solutions, especially for vulnerable and specialized groups.

Vice Chairwoman Thanh urged the Social Affairs Committee to promptly incorporate feedback from this session, finalize the draft law, and prepare a detailed explanatory report for submission to the NASC. Ensuring the draft law’s quality and timeliness remains a top priority.

*** Unemployment insurance is an essential policy that helps share the financial burden for workers during their job search period. So, what are the conditions and levels of unemployment benefits? What are the required documents and procedures to apply for unemployment benefits?

Unemployment Insurance: Conditions, Benefits, and Application Procedures

I. Conditions for Receiving Unemployment Benefits

1. Termination of Labor Contract or Employment Contract, except in the following cases:

   • The employee unilaterally terminates the contract illegally.
   • The employee is receiving a monthly pension or disability allowance.

2. Payment of Unemployment Insurance Contributions for at Least:

   • 12 months or more within 24 months prior to the termination of the labor contract for cases involving fixed-term or indefinite-term labor contracts.
   • 12 months or more within 36 months prior to the termination of the labor contract for cases involving seasonal or specific job contracts lasting from 3 months to less than 12 months.

3. Registration for Unemployment and Submission of Application at a Job Service Center.

4. No Employment Found within 15 Days from the date of submitting the application, except in the following cases:

   • Performing military or police service.
   • Studying for a duration of 12 months or more.
   • Complying with a decision to enter reformatory schools, compulsory educational institutions, or rehabilitation centers.
   • Being detained or serving a prison sentence.
   • Emigrating or working abroad under a contract.
   • Death.

II. Time Frame for Submitting Unemployment Benefits Application

Within 3 months from the date of labor contract termination, unemployed individuals must submit one set of application documents directly to the job service center where they wish to receive benefits.

If the individual cannot submit the application directly, they may authorize someone else to do so if they fall into one of the following categories:

• Suffering from illness or maternity issues, with certification from a competent medical facility.
• Involved in an accident, with certification from traffic police or a competent medical facility.
• Affected by fire, flood, earthquake, tsunami, epidemics, or war, with confirmation from the Chairman of the Commune, Ward, or Town People's Committee.

If the application is not submitted within the specified time frame, the individual is considered to have no need for unemployment benefits. The period of Unemployment Insurance (UI) contributions not yet claimed will be preserved and used as a basis for calculating benefits for future claims.