FRAUD IN UNEMPLOYMENT ALLOWANCE

Unemployment allowance is payment to support employees who leave their jobs while they are unable to find a new job. If we have a new job, we will receive unemployment allowance, so are we breaking the law ? 

Firstly, we learn about the concept of "unemployment allowance". .

Unemployment allowance: is the amount paid by the Social Insurance Agency to the employee after the employee terminates the labor contract or working contract and meets the conditions as prescribed by law:

To be entitled to unemployment allowance, an employee has to fully meet the following conditions:

1. Terminate the labor contract or working contract in accordance with regulations.
2. Having paid unemployment insurance for full 12 months or more within 24 months for a definite or indefinite term labor contract or working contract or full 12 months within 36 months before terminating a contract with a term from 3 months to less than 12 months.
3. Has submitted an application for unemployment allowance within 3 months from the date of terminating the labor contract.
4. Have not found a job after 15 days since the date of submitting the application for unemployment allowance.

Unemployment allowance help many employees get through difficult times when they cannot find suitable jobs. However, when they have new jobs, they do not notify the Employment Service Center because they do not want to be loose this allowance without knowing that when this action is discovered, they have to face risks or not.

RECEIVING UNEMPLOYMENT BENEFITS DOES NOT VIOLATE THE LAW

Many employees think that is okay if they have not noticed about having job, or late notice with a few months and continue to receive unemployment allowance. However, this is very easy to detect. At the new workplace, employees will have to declare personal information, and make a Social Insurance profile. The employee's personal information will be transferred to the Social Insurance agency for checking and it will be easy to see the wrongdoing.

If the employees break the law to enjoy unemployment insurance, and discovered, employees will face the following risks:

• One: the employees have to refund Unemployment Allowance corresponding to the months of having job but still receiving allowance.
• Two: the risk is they are not allowed to reserve their unearned unemployment insurance payment period.
• Three: in addition to having to return the money and lose the reserved benefits, they will also be fined from 1 to 2 million VND as prescribed in Article 40 of Decree No. 12 in 2022.

In conclusion: No need to diferrence fraud and error.

• When an employee who is receiving allowance has a job and at the same time they informs the employment service center, the employee will only be terminated from receiving unemployment allowance, but the employee will have his/her time reserved the payment period corresponds to the number of remaining months that the employee has not yet received that unemployment allowance.
• If the employee who has a job does not notify the employment service center and is discovered, the employee will be not entitled to reserve the payment period corresponding to the remaining months not previously enjoyed. At the same time, they will be fined and have to refund the wrongly received Unemployment Insurance, but will still "lose" the previous payment period.