1. 1 Key contents of the darft EI chapter under the employment law BoE MoLISA

2. 2 Employment insurance (EI) I. Purposes and types of EI II. Coverage of EI. III. Principles of EI. IV. EI benefits. V. EI fund. VI. Prohibitive/unacceptable behaviors in EI VII. Rights, responsibilities of employees, employers, agencies, VGCL, employer’s organization

3. 3 I. Purposes and type of EI 1. Purposes of EI: EI is employed by employment sector for the following purposes:  Unemployment protection  Promoting employment  Skills development and skills training for employees  Promoting job seeking activities 2. Form of EI: Is a form of compulsory insurance

4. 4 II. EI coverage 1. Employees  Vietnam citizens who are on labour/working contract with indefinite term or fixed term of 3 months or more.  Vietnam citizens on one of above mentioned contracts and are working for Vietnamese contractors oversea for a certain period of time.

5. 5 II. EI coverage (con’t) 2. Employers:  State agencies, public service agencies, armed units;  Political organization, mass-organization, political- social-occupational organizations, other social orgs;  International and foreign organizations running businesses in VN;  Enterprises, cooperatives, other orgs and individual households those engage in transactions of hiring, using and paying labourers, except the cases fall under the provision of relevant international treaties that Vietnam is a member of.

6. 6 III. Principles of ei 1. EI benefits are calculated based on the base salary, duration of contribution and risk-pooling factor among participants. 2. The base salary is determined by the salary or wages which are paid to labourers. 3. The EI fund will be centrally, consistently, democratically, transparently and accountably managed for the right purposes and will be given full economic accounting status. 4. EI implementation procedures should facilitate a simple, easy, convenient, in-time, and adequate access of UI insurees to UI benefits.

7. 7 IV. UI benefits 1. Support for employment stabilization:  Coverage: are labourers working in enterprises or organizations those face difficulties resulting from any among economic, financial, foods, oil crisises or any out-of-control events defined by the Goverment regulations.  Eligible conditions to receive support:  Having proposals available, in accordance with related guidance given by MoLISA and certified by appropriate authorities, to support labourers on employment stabilisation;  Proved to have used all financial resources of their own to stabilize employment. Guidance to be provided by MoF.  Labourers and Employers have contributed EI premiums for 12 months or more.

8. 8 IV. EI BENEFITS 2. Support for employment restructuration:  Coverage : the labourers those are at high risks of losing jobs due to enterprise’s changes of technology or application of new business or production line.  Eligible conditions to receive support: Having proposals available, in accordance with related guidance given by MoLISA and certified by appropriate authorities, to support labourers on employment restructuration; Proved ability to retain a significant number of the labourers under above-mentioned coverage;

9. 9 IV. EI benefits 2. Support for employment restructuration  Conditions to receive support (con’t)  The employers are facing financial difficulties, to be determinded by the guidances of MoF, in financing their employment restructuration;  Labourers and Employers have contributed EI premiums for 12 months or more.  Level of support: Maximum support should be equivalent to 50% of total wages for employees and for 3 months or less.  The public ESC should be in charge of implementimg provisions of employment restructuration.  Process and procedures for processing the concerning proposals to be guided by MoLISA and MoF.

10. 10 IV. EI BENEFITS 3. Support for skills development:  Coverage: - The labourers who are working enterprises and are in need of skills development so as to meeting new requirements resulted from restructuring or application of new technologies.  Eligible conditions for skill development support : Having proposals available, in accordance with related guidance given by MoLISA and certified by appropriate authorities, to support labourers on skills development; Proved ability to retain a significant number of the labourers those are under above-mentioned coverage  The employers are facing financial difficulties, to be determinded by the guidance of MoF, in financing their proposal on skills development;  Labourers and Employers have contributed EI premiums for 12 months or more.

11. 11 IV. EI BENEFITS 3. Support for skills development(con’t)  Level of support for skills developemnt :  The qualified enterprises are eligible to a loan that is equivalent to maximum 50% of total cost for skills development regulated by Government. Loans terms should be varied among workers depending on individual skills development plans, but should not exceed 24 months and interest rate will be 0%. Workers will be receiving this support for skills development as regulated by Goverment.  EI system will be in charge of implementing provisions on skills development.  Process and procedures to deliver this support should be guided by joint efforts of MoLISA and MoF.

12. 12 IV. EI benefits 4. UI allowance:  Eligible conditions for UI benefits: The labourers - Have contributed UI premiums for 12 months or more within the 24 consecutive months before contract terminated; - Have registered and submitted claims to the public ESC; - Have contract terminated not because of their own fault; - Have not found a job within 15 days since the date of registration

13. 13 IV. Ei benefits 4. UI allowance (con‘t):  Level of UI allowance : equivalent to 60% of the average base salary on which the EI premiums were calculated over 6 consecutive months before the termination of contract, but should not exceed 5 times of the relevant minimum wage.  Duration of UI allowance: 02 months for the cases of 12 months contribution; one more month of allowance shall be accumulated for every additional 12 months of contribution, but should not exceed 12 months allowance in total.

14. 14 IV. Ei benefits 5. Job councelling and job matching services: The labourers on EI allowance are entitled to access free to labour market information, job councelling and job matching services.

15. 15 IV. Ei benefits 6. Vocational training  The labourers on EI allowance are entitled to vocational trainings and skills trainings provided by vocational training centers; and an extra allowance for the period that the labourers attend training course. No cash should be disbursed for the labourers to learn by themseves.  The levels of support for vocational and skills trainings and extra allowance shall be regulated by the Government  The vocational training centers which provide trainings to EI claimers shall be disbursed according to related regulations.

16. 16 IV. Ei 7. Others:  Suspension, termination and continuation of EI;  Rules for transforming from UI to EI : - The priod for which UI premiums were paid before the effective date of EI law shall be accumulated and added to the duration of EI premiums contribution. - The labourers with full 12 months contribution of EI premiums and no claim yet are eligible to have the period accumulated and reserved for any claims in future. - The priod for which EI premiums were paid shall be excluded from the coverage of severance pay.

17. 17 V. EI fund 1. EI premiums contribution:  Employees: 1% of their monthly salary/wages.  Employers: 1,5% of total salary/wages paid to the employees those are under EI coverage.  State budget: 1% of total salary/wages paid to the employees those are under EI coverage. 2. The duration of EI premiums contribution: Determined by the period when the contribution of EI premiums commenced to the month Lµ thêi gian ®­îc tÝnh tõ khi NL§ b¾t ®Çu ®ãng BHVL cho ®Õn khi dõng ®ãng. Tr­êng hîp ®ãng kh«ng liªn tôc th× ®­îc céng dån c¸c kho¶ng thêi gian ®· ®ãng.

18. 18 V. Quü b¶o hiÓm viÖc lµm 3. Base salary/wages: Following the Government’s salary scale, steps, allowances and sectoral co-efficient, where applicable; or salary/wages stated in the labour/working contract. 4. Sources of EI fund  Contribution made by employees according to this Law;  Contribution made by employers according to this Law;  Contribution from State budget according to this Law;  Profits resulting from investment activities of the fund;  Other legitimate sources of funding.

19. 19 V. EI fund 5. Uses of EI fund: to cover  employment stabilization measures;  employment promotion measures;  skills development;  unemployment allowance;  job seeking services activities  vocational training;  HI premiums for those are on EI benefits;  administration cost;  Investment for fund stabilization and growth.

20. 20 VI. The behaviors considered to be prohibited in EI- related transactions  Incompliance to this Laws with regard to premiums contribution  Fraudulent acts or fakes in EI-related transactions  Use the EI fund for improper purposes.  Create troublesome, obstackles and costs those imply to damage the legitimate rights and benefits of wokers and employers.  Make false reports, false data and figures relating to EI

21. 21 VII. rights, responsibilities of workers, employers, agencies, orgs, worker’s and employer’s representatives 1. Rights of workers: to have  EI book (as owner)  EI book returned once their contract terminated  Once eligible, full EI benefits on timely maners;  HI coverage when enjoy EI benefits  Rights to authorize others to receive unemployment allowance;  Rights to ask employers, EI for information concerning premiums contributions and EI benefits  Right to complain and appeal on EI related matters  Other legal rights

22. 22 VII. rights, responsibilities of workers, employers, agencies, orgs, worker’s and employer’s representatives (con’t) 2. Responsibilties of workers  Be compliant to this Law with regards to EI premiums contribution;  Establishing EI files as per regulation.  Maintain EI book in accordance with existing regulations;  Other responsibilities regulated by other laws.  Register unemployment status at a public ESC;

23. 23 VII. rights, responsibilities of workers, employers, agencies, orgs, worker’s and employer’s representatives (con’t) 2. Responsibilities of worker (con’t) * Besides above mentioned responsibilities, the workers under EI scheme should have the additional responsibilities as follows:  Report monthly to public ESC on his/her job seeking activities during the period that he/she enjoys EI allowance;  Accept suitable job or join vocational training introduced by public ESCs.  Attend skills development course organized by public public ESC during the period of EI allowance.

24. 24 VII. rights, responsibilities of workers, employers, agencies, orgs, worker’s and employer’s representatives (con’t ) 3. Rights of employers  Refuse the requests those go beyond the Laws on EI;  Rights to complain and appeal in relation to EI matters;  Other rights established by laws.

25. 25 VII. rights, responsibilities of workers, employers, agencies, orgs, worker’s and employer’s representatives (con’t) 4. Responsibilties of employers  Inform public ESC when issueing any working/labour contract with workers; Inform public ESC if any contract is terminated following legal procedures of MoLISA;  Conduct all necessary steps to participate, contribute and process EI procedures;  Keep EI book of workers; and return it to them once their contracts terminated  Other legal duties;

26. 26 VII. rights, responsibilities of workers, employers, agencies, orgs, worker’s and employer’s representatives (con’t) 5. Rights of trade unions:  Protect rights of workers in EI related provisions and transactions;  Ask employers and EI to provide workers information concerning EI;  Alert violation behaviors to authorities as appropriate.

27. 27 VII. rights, responsibilities of workers, employers, agencies, orgs, worker’s and employer’s representatives (con’t) 6. Responsibilities of trade unions  Disseminating information on EI policies, benefits and related regulations to workers  Advising and taking part in the process of developing and amending provisions of EI benefits, policies, laws and procedures;  Participating in mornitoring the implementation of UI legal provisions.

28. 28 VII. rights, responsibilities of workers, employers, agencies, orgs, worker’s and employer’s representatives (con’t) 7. Rights of VCCI, and VCA  Protect the rights of workers involving in EI transactions;  Request public ESCs to provide information on worker’s and employer’s concerns relating to EI.  Advise authorities for the violation measures against illegal issues on EI.

29. 29 VII. rights, responsibilities of workers, employers, agencies, orgs, worker’s and employer’s representatives (con’t) 8. Rights of VCCI, and VCA  Disseminating information on EI policies, benefits and related regulations to workers  Advising and taking part in the process of developing and amending provisions of EI benefits, policies, laws and procedures;  Participating in mornitoring the implementation of UI legal provisions.

30. 30 VII. rights, responsibilities of workers, employers, agencies, orgs, worker’s and employer’s representatives (con’t) 9. Responsibities of public ESCs:  Disseminating information on EI policies, benefits and related regulations ;  Guiding implementation procedures and process of EI;  Receiving claims, processing claims for EI benefits;  Providing all information about EI premiums contribution and benefits as per request;  Other legal duties.

31. 31 Thank you very much