Foreigners working in Vietnam in the form of labor contracts. For some reason, they stop working, but they still have the right to legal rights, as well as compensation for breach of contract.
Currently, the Labor Code 2019 regulates labor standards; rights, obligations, and responsibilities of employees, employers, representative organizations of employees at the grassroots level, representative organizations of employers in labor relations and other relations directly related to labor relations; state management of labor.
And one of the subjects applying the provisions of the Labor Code, according to Clause 3, Article 2 of this Code is “Foreign workers working in Vietnam”.
On the other hand, a new point of the Law on Social Insurance 2014 replaced the old one in 2006 which is to mention that employees participating in compulsory social insurance include foreign citizens working in Vietnam with work permits or practice certificates or practice licenses issued by a competent Vietnamese agency are entitled to participate in compulsory social insurance by the Government’s regulations and guided by Decree 143/2018/ND-CP detailing the Law on Social Insurance and the Law on Occupational Safety and Health on compulsory social insurance for foreign national employees working in Vietnam, effective from December 1, 2018. Therefore, foreigners working at enterprises in Vietnam can completely participate in insurance and have obligations and benefits in participating in health insurance.
Thus, foreign employees working in Vietnam terminate the contract according to the agreement with the employer as prescribed in Clauses 1, 2, 3, 4, 6, 7, 9, and 10, Article 34 of the Labor Code 2019, the employers are responsible for paying severance allowance to employees who have worked regularly for themselves from sufficient For 12 months or more, each working year is entitled to half a month’s salary, except for cases where the employees are eligible for a pension in accordance with the law on social insurance and in case the employee voluntarily quits his/her job without a legitimate reason for 05 consecutive working days or more.
Working time to calculate severance allowance is the total time the employee has actually worked for the employer minus the time the employee has participated in unemployment insurance in accordance with the law on unemployment insurance and the working time has been paid severance allowance by the employer, job loss benefits. The salary for calculating severance allowance is the average salary of 06 consecutive months under the labor contract before the employee quits.
In summary, foreign workers working in Vietnam who work for the enterprise for a full 12 months or more and terminate the contract in accordance with the law will still be paid severance allowances by enterprises.