What benefits should employees pay attention to when quitting?

Quitting is inevitable for employees in the process of working. To ensure their rights, employees need to know the regulations on their rights when deciding to quit.

1. Legal basis

The Labor Code 2019.

The Law on Employment 2025.

Decree No. 145/2020/ND-CP guiding the Labor Code on working conditions and labor relations.

Decree No. 374/2025/ND-CP guiding the Law on Employment on unemployment insurance.

According to the Labor Code 2019, depending on each case, employees who quit their jobs are entitled to receive the following amounts:

2. Wages for unpaid working days:

According to the provisions of Article 48 of the Labor Code 2019 stipulates: Within 14 working days following the termination of an employment contract, the employer shall settle all payments in respect of the rights and interests of the employee, including salary.

The payment period for this amount may be extended but shall not exceed 30 days in the following cases:

• Shutdown of business operation of the employer that is not a natural person;
• Changes in the organizational structure, technology or changes due to economic reasons;
• Full division, partial division, consolidation, merger of the enterprise; sale, lease, conversion of the enterprise; transfer of the right to ownership or right to enjoyment of assets of the enterprise or cooperative;
• Natural disasters, fire, hostility or major epidemics.

Thus, within the time limit prescribed above, the employee will be paid wages for working days that have not been paid.

3. Wages for annual leave:

According to the provisions of Article 113 of the Labor Code 2019, depending on the employee and working conditions, employees who work for full 12 months will be entitled to annual leave from 12 to 16 days.

Clause 3, Article 113 of the Labor Code 2019 stipulates that an employee who, due to employment termination or job loss, has not taken or not entirely taken up his/her annual leave shall be paid in compensation for the untaken leave days.

Thus, in addition to salary, employees are also entitled to receive annual leave that employees have not taken all leave if due to severance or job loss.

4. Severance allowance

Severance allowance is a financial support paid by an employer to an employee after quitting or terminating an employment contract for a certain period.

When  the employment contract is terminated in the following cases, the employee shall receive a severance allowance:

• The employment contract expires;
• The tasks stated in the employment contract have been completed.
• Both parties agree to terminate the employment contract.
• The employee is sentenced to imprisonment without being eligible for suspension or release as prescribed in Clause 5 Article 328 of the Criminal Procedure Code, capital punishment or is prohibited from performing the work stated in the employment contract by an effective verdict or judgment of the court .
• The employee dies; is declared by the court as a legally incapacitated person, missing or dead.
• The employer that is a natural person dies; is declared by the court as a legally incapacitated person, missing or dead. The employer that is not a natural person ceases to operate, or a business registration authority affiliated to the People’s Committee of the province (hereinafter referred to as “provincial business registration authority”) issues a notice that the employer does not have a legal representative or a person authorized to exercise the legal representative’s rights and obligations .
• The employee unilaterally terminates the employment contract in accordance with Article 35 of the Labor Code 2019.
• The employer unilaterally terminates the employment contract in accordance with Article 36 of the Labor Code 2019.

An employee who leaves one of the above cases and has worked regularly for a full 12 months or more will be entitled to a prescribed severance allowance, whereby each year of work is subsidized with half a month’s salary.

Within 14 working days from the date of termination  of the labor contract, the employer is  responsible for paying the employee’s severance allowance in full, except for the  case (the employer is not an individual who terminates the operation; due to natural disasters,  fire, enemy disaster or dangerous epidemic) but must not exceed the 30 days specified in Article 48 of the Labor Code 2019.

5. Redundancy allowance

According to Article 47 of the Labor Code 2019, employees who quit are paid redundancy allowances when they fully meet 02 conditions:

• Employment due to termination of employment contract according to Clause 11, Article 34 of the Labor Code 2019
• Have worked regularly for the employer for full 12 months or more.

Thus, if the above 02 conditions are met, the employee will be paid a redundancy allowance by the employer, paying 01 month’s salary for each working year but at least equal to 02 months’ salary. Specific:

• Redundancy allowance = working time calculated for benefits x monthly salary calculated for benefits.

In there:

• Working time for calculating benefits: the total time the employee has actually worked for the employer minus the time the employee has participated in unemployment insurance according to the regulations on unemployment insurance and the working time has been paid severance pay by the employer.
• The salary for calculating job-loss allowance is the average salary of 06 preceding months according to the labor contract before the employee loses his/her job.

6. Unemployment allowance

Unemployment allowance is an amount of money that Social Security must pay to  employees who  pay unemployment insurance while the employee has not found a new job.

Pursuant to Article 31 and Article 38 of the Law on Employment 2025 (effective from January 1, 2026), employees currently contributing to unemployment insurance shall be entitled to unemployment allowances if they fall into one of the following categories:

• Persons working under indefinite-term labor contracts or fixed-term labor contracts with a duration of at least one (01) month. This includes cases where the parties agree on a different name for the contract, provided that the contents reflect paid employment, wages, and the management, administration, or supervision of one party;
• Employees mentioned above who work part-time, provided their monthly salary is equal to or higher than the minimum salary used as the basis for compulsory social insurance contributions as prescribed by the Law on Social Insurance;
• Persons working under working contracts (for public officials/civil servants);
• Enterprise managers, supervisors, or representatives of state capital in enterprises as prescribed by law; members of the Board of Directors, General Directors, Directors, members of the Board of Controllers or supervisors, and other elected management positions of cooperatives and unions of cooperatives under the Law on Cooperatives who receive wages;
• In cases where an employee simultaneously falls into multiple categories of unemployment insurance participants mentioned above, both the employee and the employer are responsible for participating in unemployment insurance concurrently with compulsory social insurance.

Furthermore, the employee must fully satisfy the conditions stipulated in Clause 1, Article 38 of the Law on Employment 2025, specifically as follows:

• Termination of Contract: Termination of the labor contract, working contract, or employment in accordance with the law, excluding cases where the employee unilaterally terminates the labor contract illegally under the Labor Code or retires upon eligibility for pension benefits;
• Contribution Period: Having contributed to unemployment insurance for at least 12 months within the 24-month period prior to the termination of the contract or employment. For employees working under fixed-term labor contracts from 01 month to less than 12 months, they must have contributed for at least 12 months within the 36-month period prior to termination;
• Application Submission: Having submitted a complete application for unemployment allowance within three (03) months from the date of termination of the labor contract, working contract, or employment;
• Status Verification: Within ten (10) working days from the date of submitting a complete application, the employee does not fall into any of the following circumstances:
  • Having secured employment and being subject to compulsory social insurance participation as prescribed by the Law on Social Insurance;
  • Performing military service, police service, or permanent militia duties;
  • Enrolling in studies with a duration of more than twelve (12) months;
  • Complying with decisions on compulsory education or compulsory rehabilitation;
  • Being held in temporary detention or serving an imprisonment sentence;
  • Emigrating for settlement abroad;
  • Death

The monthly unemployment allowance is calculated as 60% of the average monthly salary paid for unemployment insurance premiums in the 6 months preceding the unemployment but not more than 5 times the base salary for employees subject to the wage regime prescribed by the State or not more than 5 times the regional minimum wage as prescribed of the Labor Code for employees who pay unemployment insurance according to the salary regime decided by the employer at the time of termination of the labor contract or work contract.

The period of receiving unemployment benefits is calculated according to the number of months of unemployment insurance contributions, for every full 12 months to full 36 months, you are entitled to 3 months of unemployment benefits, then, for every additional 12 months, you are entitled to an additional 1 month of unemployment benefits but not more than 12 months.

In addition to the above-mentioned amounts, if the labor  contract or collective labor agreement at the enterprise contains  additional provisions on other amounts that  the employee  receives when quitting work, the employee will also be entitled to such additional amounts.

The above are the sharing of lawyers, providing information not for consulting purposes and not consulting opinions, Vo & Associates is not responsible in all cases.

Contact Information

📞 Hotline: +84 909 865 891 (Zalo, WhatsApp)

📧 Email: hello@vo-associates.vn

🌐 Website: https://vo-associates.vn

🏢 Room 105, 1st floor, Cityview Building, 12 Mac Dinh Chi Street, Sai Gon Ward, Ho Chi Minh City.

Best regards./.