Having A Job While Receiving Unemployment Benefits: What Employees Need To Do To Avoid Risks

If an employee finds a job while receiving unemployment benefits, they must notify the Employment Service Center within three working days of starting the new job. Additionally, they must submit a termination application for unemployment benefits to avoid violating regulations.

If the employee has already received the benefit payment for the month after starting a job, they must return the incorrectly received amount. Failing to report the new job may result in repayment demands, administrative fines, or legal consequences. Therefore, complying with the proper procedures ensures the protection of rights and avoids legal risks.

What Are Unemployment Benefits?

Unemployment benefits (UB) provide temporary financial assistance to workers who have lost their jobs, helping them maintain stability while seeking new employment. However, if a worker finds a job while receiving UB, they must comply with regulations to avoid legal violations and other issues.

Regulations On Employment While Receiving Unemployment Benefits

According to the Employment Law 2013 and Decree 61/2020/ND-CP, which took effect on July 15, 2020, unemployment benefits will be terminated under the following circumstances:

• The worker has secured a job, which includes:
  • Signing an employment contract with a duration of at least one month.
  • Engaging in self-employment with stable income (e.g., holding a household business registration certificate or a business registration certificate if they own a company).
• Failure to report job-seeking activities to the Employment Service Center for three consecutive months while receiving UB.
• Other cases, such as the expiration of the UB period, receiving a monthly pension, or permanently emigrating abroad.

How To Handle Employment While Receiving Unemployment Benefits

Step 1: Notify the employment service center immediately

Employees who start a new job must inform the Employment Service Center where they are receiving UB within three working days from the date of signing the employment contract.

Step 2: Submit the termination application for unemployment benefits

The application includes:

• Request form for termination of unemployment benefits (according to the Employment Service Center’s template).
• A copy of the employment contract or recruitment decision (if available).
• Other required documents, depending on local regulations.

Step 3: Settle obligations with social insurance

• If an employee has already received UB payments for the month after starting the job, they must return the improperly received amount.
• Failure to comply may result in administrative penalties or other legal consequences.

Risks Of Failing To Report New Employment

If an employee fails to report their new job or continues receiving UB despite being employed, they may face:

• Repayment of improperly received benefits.
• Fines range from 1 to 2 million VND, as per Decree 12/2022/ND-CP.
• Loss of unemployment insurance contributions, as improperly received UB cannot be preserved.

Important Considerations

• Employees on probation or without a formal employment contract are still eligible to receive UB.
• If an employee loses their job during the probation period, they can continue receiving UB without reapplying.
• Once officially employed, the company will contribute to social insurance, and employee must report their employment status to the Employment Service Center as required.

Conclusion

Finding a job while receiving UB is a positive development, but employees must follow the proper reporting procedures to avoid legal risks.

By proactively notifying the authorities, workers comply with regulations and protect their long-term benefits.

For consultation, please contact our hotline at 028 3505 1800 or directly connect with TPM specialists for support.

Do Thi Thu Quynh
Senior Specialist – Social Insurance & Payroll Department | quynh.do@tpm.com.vn

References

• Employment Law No. 38/2013, dated November 16, 2013
• Decree No. 12/2022/ND-CP, dated January 17, 2022
• Decree No. 28/2015/ND-CP, dated March 12, 2015
• Decree No. 61/2020/ND-CP, dated May 29, 2020