The amount employees can receive when terminating their labor contract

To ensure their rights, employees need to know the 5 amounts of money they can receive after quitting their job. This article aims to provide a concise overview of these five crucial financial aspects that employees can expect to receive when they decide to leave their employment.

1. Wages for unpaid working days

This is the amount of money that all employees will receive when terminating their labor contracts.

According to the provisions of Article 48 of the 2019 Labor Code: within 14 working days from the date of termination of the labor contract, the employer is responsible for paying all amounts related to employee benefits. workers (including wages).
The payment term for this amount may be extended but not exceeding 30 days in the following cases:

• The employer is not an individual terminating operations;
• The employer changes structure, technology or for economic reasons;
• Division, separation, consolidation, merger; selling, leasing, converting business types; transfer of ownership and rights to use assets of enterprises and cooperatives;
• Due to natural disasters, fires, enemy attacks or dangerous epidemics.

Thus, within the time limit as prescribed above, the employee will be paid wages for the days he worked but have not been paid.

 

The amount employees can receive when terminating their labor contract

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2. Annual Leave

In accordance with Article 113 of the 2019 Labor Code, the entitlement to annual leave, which ranges from 12 to 16 days, depends on the type of employee and working conditions. Employees who have completed a full 12 months of service with their employer are eligible for annual leave.

Furthermore, as stated in Clause 3 of Article 113 of the 2019 Labor Code, when annual leave remains unused due to resignation or job loss, the employer is required to compensate employees for these non-holiday days. This means that in addition to their regular salary, employees will also receive compensation for any accrued but untaken annual leave if their employment ends due to resignation or job loss.

3. Severance Pay

In accordance with Article 46 of the 2019 Labor Code, employees are entitled to receive severance pay if they meet two specific conditions:
 

• Termination of the labor contract under the circumstances outlined in Clauses 1, 2, 3, 4, 6, 7, 9, and 10 of Article 34 of the 2019 Labor Code.
• Regular employment with the employer for a period of 12 months or more.

If both of these conditions are met, employees are eligible for a severance payment equivalent to half a month's salary for each year of service. However, exceptions apply, such as when an employee qualifies for a pension according to the provisions of social insurance law or voluntarily resigns from their job without valid reasons for a continuous period of 5 or more working days.

4. Unemployment Benefits

According to Article 47 of the 2019 Labor Code, employees who voluntarily resign from their jobs are eligible for unemployment benefits when they meet two specific conditions:

• Termination of the labor contract as stipulated in Clause 11, Article 34 of the 2019 Labor Code.
• A minimum of 12 months of continuous employment with the same employer.

If these two conditions are met, the employee will receive unemployment benefits from the employer, equivalent to one month's salary for each year of service, but no less than two months' salary. Specifically:

Unemployment benefit calculation: Working time considered for benefits x Monthly salary considered for benefits.
 

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5. Unemployment Benefits

Unemployment benefits are disbursed from the Social Insurance Fund rather than the employer. To be eligible for these benefits, employees must fulfill the following criteria:

• The labor contract or work agreement must have been terminated.
• The employee must have made unemployment insurance contributions for at least 12 months within the 24 months prior to the termination of the labor contract for employment contracts.
• Registration for unemployment and submission of a benefits application at the Employment Service Center are required.
• The employee must remain unemployed for a period of at least 15 days from the date of filing for unemployment insurance.

Hence, qualifying employees will receive unemployment benefits in accordance with Article 50 of the 2013 Employment Law, calculated as follows:

Monthly benefit amount: Average monthly salary for unemployment insurance contributions during the six consecutive months preceding unemployment x 60%

In addition to the five aforementioned types of compensation, employees may also be entitled to additional benefits based on the terms of the contract they have signed or agreed upon with the employer regarding post-employment financial arrangements.

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