Decree No. 148/2018/ND-CP dated October 24th, 2018 of the Government on amending, supplementing to a number of articles of the Government's Decree No. 05/2015/ND-CP dated January 12th, 2015 detailing and guiding the implementation of a number of contents of the Labor Code
In comparison with the earlier regulations, there are some changes in benefits relating to severance pay, redundancy as follows: read more
The work seniority for which severance pay has been offered previously (if any) shall be no longer used as the basis for calculation of redundancy pay later on (Clause 5 Article 1).
In addition, with regard to severance pay, these periods for which redundancy pay shall be no longer offered: probation, internship and apprenticeship periods; period during which an employee is detained or jailed away from work and after which he/she is permitted to come back to work on account of the competent authority’s reaching the conclusion that he/she is not guilty.
With regard to the period of participation in unemployment insurance which is subtracted upon calculation of severance pay, redundancy pay, according to the supplements at this Decree, the period which is considered to be the period of unemployment insurance premium payment as prescribed by law shall be also subtracted.
However, there are some additional periods for which severance pay shall be offered such as: the period for treatment and rehabilitation of ability to work after suffering from occupational accident and disease and the period an employee left his/her work to perform duties of a citizen.
Regarding time limit for settlement of benefits of employer and employee upon termination of the labor contract, Clause 8 Article 1 of this Decree allowed enterprises to extend the time limit for payment to 30 days in some special cases such as: merger, consolidation, division, separation of enterprise, cooperative, ownership transfer or property use right transfer as prescribed in Article 45 of the Labor Code."
In addition, salary which is used as the basis for compensation upon illegal unilateral termination of the labor contract is specified that it is the salary under the labor contract at the time when the employer or the employee illegally unilaterally terminates the labor contract (Clause 10 Article 1).
This Decree takes effect from December 15th, 2018.
Clause 7 and Clause 1, Clause 3 Article 10 of Circular No. 47/2015/TT-BLDTBXH dated November 16th, 2002 shall be abolished.
Leave your request into the following form and click SEND REQUEST button
Your request will be soon processed and replied within next working day or earlier
+84 (028) 3831 5725 /26 /27 (3 lines)
7/17 Street No. 44, Go Vap Dist. HCMC, Vietnam
Coming to effect soon
Amended and/or supplemented
Coming to expire soon
Expired and replaced