Official Dispatch No. 2509/LDTBXH-LDTL dated August 01, 2011 of the Ministry of Labor, War Invalids and Social Affairs on severance allowance for labors when terminating labor contracts

THE MINISTRY OF LABOR, WAR INVALIDS AND SOCIAL AFFAIRS

Official Dispatch No. 2509/LDTBXH-LDTL dated August 01, 2011 of the Ministry of Labor, War Invalids and Social Affairs on severance allowance for labors when terminating labor contracts

To: Hanoi Education School Materials Joint Stock Company

(Address: Group 60, Dong Anh town, Hanoi)

On answering the Official Dispatch No. 79/CV-HLGDHN dated July 11,2011 of the Hanoi Education School Materials Joint Stock Company on severance allowance for labors when terminating labor contracts, the Ministry of Labor, War Invalids and Social Affairs has opinions as follows:

1. At the regulations at clause 1, Article 14 of the Decree No. 44/2003/ND-CP dated May 09, 2003 of the Government detailing and guiding the implementation of a number of articles of the Labor Code regarding labor contracts, when terminating labor contracts, employers will be responsible for paying severance allowance for labors who have worked from 12 months and above in the case of terminating labor contracts prescribed at Article 36, Article 37, sub-clause (a), (c), (d) and (dd) of clause 1 of Article 38, clause 1 of Article 41, sub-clause (c), clause 1 of Article 85 of the Labor Code,

In the case that Ms. Truong Thi Thanh who has worked at the Hanoi Education School Materials Joint Stock Company from October of 2008 to the end of July of 2011 (total working time in Company is 33 months), if she terminated her labor contract right to legal regulations, the Hanoi Education School Materials Joint Stock Company shall be responsible for solve regime on severance allowance for the time she has worked at company.

2. At the regulations at clause 1, Article 41 of the Decree No. 127/2008/ND-CP dated December 12, 2008 of the Government detailing and guiding the implementation of a number of articles of the Social Insurance Law concerning unemployment insurance, the time period that employee pay unemployment insurance in accordance with regulations at clause 1, Article 102 of the Law on Social Insurance will not calculated in receiving severance allowance or unemployment allowance. Therefore during the period from January, 2009 to July, 2011 that Company has paid unemployment insurance for Ms. Thanh, this time period will not calculated in receiving  severance allowance.

3. At the regulations at the Decree No. 44/2003/ND-CP dated May 09, 2003, the Decree No. 127/2008/ND-CP dated December 12, 2008 of the Government and the Circular No. 17/2009/TT-BLDTBXH dated May 26, 2009 of the Ministry of Labor, War Invalids and Social Affairs, Ms. Thanh’s time of receiving severance allowance is 03 months (from October, 2008 to the end of December, 2008) rounded to ½ working year. So Company must pay severance allowance for Ms. Thanh with amount equal to ¼ average salary of continuous six months before terminating labor contract.

The Ministry of Labor, War Invalids and Social Affairs answer Company for information and implementation./.

FOR THE MINISTER

DIRECTOR OF LABOR – SALARY DEPARTMENT

Tong Thi Minh