Do foreign workers have to participate in unemployment insurance?

In the Employment Law 2013 and the Government's decrees, the circulars of the ministries and branches do not stipulate unemployment insurance policies for foreign national employees working in Vietnam. However, unemployment insurance is one of the benefits of employees when working. Therefore, in this article, Faro Vietnam will write about this topic. Are foreign workers eligible to participate in unemployment insurance?

1. Subjects participating in unemployment insurance

According to the provisions of Article 43 of the Employment Law 2013: Employees must participate in unemployment insurance when working under a labor contract or a working contract as follows:

• Labor contract or work contract with indefinite term;
• Labor contract or fixed-term work contract;
• Seasonal labor contracts or specific jobs with a term of from full 3 months to less than 12 months.

In case the employee enters into and is performing many labor contracts specified in this Clause, the employee and the employer of the first signed labor contract are responsible for participating in unemployment insurance. .
 

Do foreign workers have to participate in unemployment insurance?

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2. Do foreign workers have to participate in unemployment insurance?

According to the provisions of Article 2 of the Employment Law 2013, the subjects governed by the Employment Law 2013 are employees, employers and other agencies, organizations and individuals related to employment. In which, employees are Vietnamese citizens aged full 15 years or older, have the ability to work and have a need to work (Clause 1, Article 3 of the Employment Law 2013). Based on the above provisions, foreign workers are not subject to the provisions of the Employment Law 2013, so foreign workers are not eligible for unemployment insurance.

3. What kind of insurance can foreign workers participate in?

Foreign workers are not eligible to participate in unemployment insurance, but will participate in 02 types of insurance including: compulsory social insurance and health insurance.

3.1. For compulsory social insurance

As per Clause 1, Article 2 of Decree 143/2018/ND-CP, foreign employees engaged in work within Vietnam are eligible to partake in mandatory social insurance, provided they meet the subsequent criteria:

• Possession of a work permit, practice certificate, or practice license, duly issued by a competent authority in Vietnam.
• Involvement in an indefinite-term labor contract or a fixed-term labor contract spanning a minimum of 01 year with an employer located in Vietnam.

It's noteworthy that foreign workers do not meet the criteria for compulsory social insurance if they fall under any of the subsequent circumstances

3.1.1 Internal transfers within the enterprise, in accordance with regulations

Within this context, foreign workers who undergo internal transfers within an enterprise encompass individuals occupying managerial, executive, expert, or technical roles within a foreign enterprise that has established a commercial presence within Vietnam's territory. They are temporarily relocated within the enterprise with a commercial presence in Vietnam and have been employed by the foreign enterprise for a continuous duration of no less than 12 months, as stipulated in Clause 1, Article 3 of Decree 152/2020/ND-CP.

3.1.2 The employee has attained the retirement age as prescribed in Clause 1, Article 187 of the Labor Code

Furthermore, in conjunction with the regulations delineated in Clause 1, Article 5 of Decree 143/2018/ND-CP, eligible foreign workers will be entitled to the subsequent compulsory social insurance schemes: sickness, maternity, occupational accident and occupational disease insurance, retirement, and death.
 

Can foreign workers participate in health insurance?

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3.2. For health insurance

In accordance with the provisions outlined in Clause 2, Article 1 of the Law on Health Insurance 2008 (amended 2014), this law is applicable to both domestic entities and individuals, as well as foreign entities and individuals operating within Vietnam in connection to health insurance matters.

Furthermore, Article 12 of the Law on Health Insurance 2008 (amended 2014) delineates the categories of individuals eligible for participation in the health insurance program. This encompasses employees engaged under indefinite-term labor contracts, fixed-term labor contracts, etc., spanning a minimum of 3 months or longer. This also extends to employees holding managerial roles within enterprises, drawing a salary, as well as to individuals classified as cadres, civil servants, and public employees (referred to collectively as "employees").

Drawing upon the aforementioned foundations, it can be inferred that foreign workers possess the eligibility to partake in the health insurance scheme, provided they fulfill the criteria stipulated in a labor contract with a duration of 3 months or more.

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