Can I receive severance pay if I leave my job because my contract expires?

During the working process, there are many cases where workers quit their jobsdue to contract expirationbut not sure if I will receive itseverance allowanceor not. This is an important benefit, but it depends on many factors according to current labor laws.

SoCan I receive severance pay if I quit my job due to the expiration of my labor contract?Join DEDICA LAW to answer in detail in the article below.

1. What is severance pay?

According to the Labor Code 2019severance allowanceis the amount of money that the employer must pay to the employeeterminate the labor contract, if the conditions are met.

2. If I quit my job due to contract expiration, can I receive severance pay?

Have, if the employee:

• Work regularly for 12 months or more, and

• Not eligible for unemployment benefits, and

• Working time is not counted as time spent participating in unemployment insurance.

📌 That is,Employees who quit their job due to contract expiration can still receive severance payIf:

• Do not pay unemployment insurance for the entire working period (for example, working period before 2009).

• Working in a unit that does not participate in unemployment insurance for employees.

3. How to calculate severance pay according to new regulations

According to Article 46 of the 2019 Labor Code, severance pay is calculated as follows:

Severance pay = 0.5 x Actual number of years worked without paying unemployment insurance x Average salary of the last 6 months

In there:

0.5is the subsidy coefficient (half month's salary for each year of work).

Number of years of actual work:Working time minus the time for which unemployment insurance has been paid.

Average salary: Get the salary according to the contract inLast 6 months before quitting job.

Practical example:

• Employees working from 2005 to the end of 2024.

• Enterprises only started paying unemployment insurance since 2009.

• Thus, time countssubsidy is from 2005–2008 = 4 years.

If the average salary of the last 6 months is12,000,000 VND,then:

Severance pay = 0.5 x 4 x 12,000,000 = 24,000,000 VND

4. In case of not receiving severance pay

PeopleEmployees quit their jobs because their contracts have expiredwilldo not receive severance payIf:

• Unemployment insurance has been paid for the entire working period, or

• Being fired, unilaterally terminating the contract illegally, or

• Receive pension when you leave work.

5. How long is the business responsible for paying?

According to Article 48 of the 2019 Labor Code, enterprises must:

• Severance pay within14 working daysfrom the date of contract termination.

• Special cases (natural disasters, fires, epidemics...), the payment time can be extended but not more30 days.

Conclude

Quit due tolabor contract expiresIt is completely possible to receive supportseverance grant, if the employee has worked for a period of time without paying unemployment insurance and meets the legal conditions. Therefore, employees need to check the unemployment insurance payment process and actual working time to ensure their legitimate rights.

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