Legal Update – New Employment Law (2025)
On 16 June 2025, at its 9th session, the 15th National Assembly officially passed the amended Law on Employment, which is intended to replace the 2013 Law on Employment No. 38/2013/QH13.
Expansion of unemployment insurance beneficiaries
The scope of workers eligible for unemployment insurance benefits has been broadened to include:
- Workers under fixed-term contracts of between one and fewer than three months;
- Part-time employees earning a monthly salary equal to or greater than the base salary used for calculating social insurance contributions, as defined under the Law on Social Insurance (2024);
- Individuals working under contracts with different titles, where the nature of the work still reflects an employment relationship, especially one involving payment and subordination (e.g. supervision, management).
Cap on contribution rates
The maximum contribution rate to the unemployment insurance fund is set at one per cent for each of the following: employees, employers, and the State. Unlike previous fixed rates, this law allows the Government to adjust the contribution rates depending on specific circumstances such as natural disasters, pandemics, or economic crises. These adjustments must be based on the unemployment insurance fund’s current balance.
Unemployment benefits
Individuals who are eligible for retirement are now excluded from receiving unemployment benefits. Additionally, the waiting period for benefit disbursement has been reduced from fifteen to ten working days after a complete application is submitted. This means that benefits will now begin from the eleventh working day, rather than the sixteenth as previously applied.
Eased access to training support
Employers will now find it easier to access financial assistance for employee training or upskilling aimed at job retention. Two former conditions have been removed, including
- There is no longer a need to prove economic hardship or force majeure situations that require organisational restructuring;
- Employers are no longer required to demonstrate insufficient internal budget for training purposes.
The amended Law on Employment takes effect on 1 January, 2026.
Disclaimer: This newsletter and its content are for informational purposes only and do not constitute legal advice. Readers should seek legal or professional advice before taking or refraining from an
