Resigning In 2025 And 5 Must-Know Benefits

This article provides detailed information about 5 types of payments that employees are definitely entitled to upon resignation, according to current labor laws. Understanding these payments not only helps you protect your legitimate rights but also serves as solid preparation for your upcoming career transition.

1. Severance Allowance

This is the first and crucial payment that employees need to know about. Severance allowance is clearly regulated in Article 46 of the 2019 Labor Code.

• Legal Basis: Article 46 of the 2019 Labor Code stipulates that employers (NSDLĐ) must pay severance allowance to employees upon termination of labor contracts in cases listed in clauses 1, 2, 3, 4, 6, 7, 9, and 10 of Article 34 of the 2019 Labor Code.
• Cases eligible for severance allowance:
  • Labor contract expiration.
  • Completion of the work as per the labor contract.
  • Mutual agreement between both parties to terminate the labor contract.
  • The employee is sentenced to imprisonment, capital punishment, or prohibited from performing the job stated in the labor contract according to an effective court judgment.
  • The employee passes away; is declared by the court as having civil act capacity, missing, or deceased.
  • The employer being an individual passes away; is declared by the court as having civil act capacity, missing, or deceased. The employer not being an individual ceases operation or is notified by a specialized agency as having no legal representative or authorized person to exercise the rights and obligations of the legal representative.
  • The employee unilaterally terminates the labor contract legally.
  • The employer unilaterally terminates the labor contract legally.
• Cases not eligible for severance allowance:
  • Employees who are eligible for pension benefits.
  • Employees who voluntarily abandon work without justifiable reasons for 05 consecutive working days or more.
• Important Note: If severance allowance has been received, employees will not be additionally entitled to job-loss allowance as per Article 47 of the 2019 Labor Code.
• Calculation of severance allowance:
  Severance Allowance = 1/2 1 x Working period for severance allowance calculation x Wage for severance allowance calculation.  

2. Job – Loss Allowance

In addition to severance allowance, job-loss allowance is another important payment that employees need to understand clearly.

• Legal Basis: Article 47 of the 2019 Labor Code regulates job-loss allowance.
  
• Eligibility for job-loss allowance: Employers (NSDLĐ) must pay job-loss allowance to employees who have worked regularly for them for 12 months or more and lose their job due to employer-initiated termination as per clause 11 of Article 34 of the 2019 Labor Code. For each year of work, the employee will be paid one month’s salary, but at least two months’ salary.
• Cases eligible for job-loss allowance:
  • Enterprises implement staff reductions due to changes in structure or technology.
  • Enterprises reduce staff due to economic reasons.
  • Enterprises reduce staff during division, separation, consolidation, merger; sale, lease, transformation of enterprise type; transfer of ownership or property use rights of enterprises or cooperatives.
• Important Note: If job-loss allowance has been received, employees will not be entitled to severance allowance.
• Calculation of job-loss allowance:
  Job-Loss Allowance Amount = Working period for allowance calculation x Monthly salary for allowance calculation.

3. Unemployment Allowance

Unemployment allowance is an essential financial support, particularly important when employees lose their jobs and are seeking new employment.

• Legal Basis: The 2013 Law on Employment, specifically Article 46 and Article 50.
• Eligibility for unemployment allowance:
  • Employees participating in unemployment insurance.
  • Termination of labor contract.
  • Submission of application for unemployment allowance at a state-established employment service center within 03 months from the date of labor contract termination.
• Duration of unemployment allowance:
  
  • Having paid unemployment insurance for a full period of 12 months to 36 months: entitled to 03 months of unemployment allowance.
  • Subsequently, for each additional full 12 months of payment: entitled to an additional 1 month of unemployment allowance, but not exceeding 12 months in total.
• Monthly unemployment allowance rate:
  Monthly unemployment allowance rate = 60% of the average monthly salary for unemployment insurance payment of the 6 consecutive months before unemployment.
  • Allowance Limit: The maximum monthly allowance must not exceed 5 times the base salary (for employees under the state-prescribed salary regime) or not exceed 5 times the minimum wage (for employees under the salary regime decided by the employer).

4. Salary For Unpaid Working Days

This is the salary for days worked by the employee but the pay period has not yet arrived at the time of resignation.

• Legal Regulation: Article 48 of the 2019 Labor Code clearly stipulates the responsibilities for payment upon labor contract termination.
• Payment Deadline: Within 14 working days from the date of labor contract termination, both parties (employers and employees) are responsible for fully paying amounts related to each party’s benefits.
• Payment Priority: In cases where enterprises or cooperatives cease operations, are dissolved, or bankrupt, this salary payment will be prioritized.

5. Salary For Untaken Annual Leave Days

If employees have not used up their full annual leave days as regulated, they will be compensated in cash.

• Legal Basis: Clause 3, Article 113 of the 2019 Labor Code.
• Calculation Method: Employers will calculate the number of unused annual leave days and pay salaries for these days according to the salary rate stipulated in the labor contract.

Thus, upon resigning in 2025, employees can receive the above 5 important payments, including severance allowance, job-loss allowance, unemployment allowance, salary for unpaid working days, and salary for untaken annual leave days.

Additionally, depending on the labor contract and collective labor agreement, employees may be entitled to other benefits after resignation.

To ensure their rights, employees should proactively learn the provisions of labor law, especially the 2019 Labor Code and the 2013 Law on Employment.