No table of contents available
When a foreign employee is preparing to leave Vietnam, HR receives the question: "Can I withdraw my social insurance contributions?". In reality, many HR departments at companies face difficulties in handling social insurance for foreign workers. If not handled correctly and promptly, the business not only affects the rights of the employee but also faces risks to its reputation and internal liability.
Before proceeding with the process, HR needs to understand the legal framework to provide accurate advice to employees. According to the Social Insurance Law 2014 and Decree 143/2018/ND-CP, foreign workers participating in mandatory social insurance in Vietnam are entitled to a lump-sum social insurance payment if they meet the necessary conditions.
In practice, HR should pay particular attention to the following common conditions:
The key point is: HR not only needs to confirm the termination of employment, but also needs to ensure that the employee's legal documents meet the eligibility requirements for social insurance withdrawals.
Improper handling of social insurance can lead to many unforeseen consequences for HR.
This is a very common situation. Employees only notify HR of their resignation and departure from Vietnam shortly, leaving insufficient time to prepare the necessary documents.
In such cases, even a missing document or an incomplete social insurance book can disrupt the entire process. HR is forced to handle the process from overseas – a much more complicated issue.
If the company hasn't completed the social insurance book finalization procedures, employees will be unable to submit their social insurance withdrawal application. This is an "internal" error, but it directly affects the employee's rights.
HR needs to note that the information on the passport, employment contract, and social insurance data must match. Changes such as passport changes, name changes, nationality changes, etc., if not updated, will cause difficulties in processing.
To avoid errors, HR should approach this as a clear process, rather than handling it in separate steps.
Step 1: Confirm Termination and Residency Status
HR needs to clarify the contract termination date and verify the employee's residency status. This is the basis for determining whether they are eligible to withdraw social insurance benefits.
Step 2: Complete Social Insurance Record Closing
This is a mandatory step. HR needs to coordinate with relevant departments to ensure the social insurance record is fully closed, with no missing contribution periods or data errors.
Step 3: Guide Employees in Preparing Documents
HR should proactively provide a list of necessary documents and check them before employees submit them. This helps reduce the risk of rejection.
Step 4: Choose the Appropriate Processing Option
If the employee is still in Vietnam, direct processing is preferred. If they have returned to Vietnam or are about to return, HR needs to advise on a valid authorization option.
Step 5: Monitoring and Support During the Processing
HR should not stop at simply "guiding" the process, but should monitor progress to provide timely support if additional requests arise from the Social Security agency.
Handling social insurance for foreigners is not just an administrative procedure, but an integral part of the HR experience. If handled well, it demonstrates professionalism and responsibility. Conversely, errors can lead to risks not only in terms of money but also in reputation.
It's important to note that each case may vary depending on the documentation, timing, and residency status. Therefore, HR should not apply procedures mechanically but should conduct thorough checks.
📞 Hotline: (+84) 39 969 0012 (Support available via WhatsApp, WeChat, and Zalo)
🕒 Opening hours: Monday – Friday (8:30 AM – 6:00 PM)
Contact us today for a free initial consultation with our team of professional lawyers!
Select a platform to view details
