If you have changed jobs and want to close your social insurance book at your old company but don’t know how, follow the article below to find out the conditions and procedures for closing your social insurance book!
1. Understanding Social Insurance Book Closure
When do I need to close my social insurance book?
Closing the social insurance book is carried out when the employee no longer works for the company due to resignation or because the company is no longer in operation. Closing the social insurance book involves recording your social insurance and unemployment insurance contributions in a book held by a single unit.
When do I need to close my social insurance book?
What are the conditions for closing a social insurance book?
The social insurance book is used to record and track an employee’s insurance contributions and their entitlements. According to legal regulations, the social insurance agency will consider this as the basis for resolving issues related to the employee’s social insurance regime.
Therefore, the condition for completing the procedure for closing the social insurance book is when the employee stops working for the company or when the company goes bankrupt and no longer contributes to social insurance.
Conditions for closing a social insurance book
Can an employee close their own social insurance book?
According to the Labor Law 2012, Article 47, Clause 3, and Social Insurance Law 2014, Article 21, Clause 5 , the employer must be responsible for completing the confirmation procedures and returning the social insurance book along with other documents held by the employee upon their resignation.
According to legal regulations, when an employee resigns or terminates their work contract, the social insurance agency and the employer must be responsible for returning the social insurance book to the employee and confirming their social insurance contribution period.
The employer, along with the social insurance agency, is responsible for closing the employee’s book
2. Procedures for Closing a Social Insurance Book for Employers
To complete the procedure for closing an employee’s social insurance book, the employer needs to follow the two steps below.
When an employee resigns, the employer will complete the labor reduction report to proceed with closing their social insurance book. The labor reduction report includes:
– Receipt form No. 600a for reporting reductions in employees contributing to social insurance and health insurance
– Form D02-LT according to Decision 1040/QD-BHXH on the list of employees participating in social insurance contributions.
- Form D01-TS – Information sheet (if any).
- In the case of employees who have participated in social insurance multiple times, the cover of the social insurance book or loose sheets of the book are required.
- A copy of the decision to terminate the labor contract, work contract, transfer, or resignation with entitlements (expired).
- Employee’s health insurance card. (Valid)
After completion, the dossier can be submitted directly to the social insurance agency or online by the employer.
The social insurance agency will complete the labor reduction report for the employer within 10 days from the date of receiving the full dossier.
After the social insurance agency approves the labor reduction report, the employer can proceed with closing the employee’s social insurance book.
The dossier for closing the employee’s book includes:
- The employee’s social insurance book (old book template) or loose sheets of the social insurance book (new book template). Prepare additional loose covers if the employee has participated in social insurance multiple times.
- 01 form TK1-TS for the declaration and change of information of participants in social insurance and health insurance.
The employer can submit the dossier directly to the social insurance agency, by post, or online once it is complete.
The employer must be responsible for closing the social insurance book within 07 days from the date of termination of the contract and no later than 30 days.
According to social insurance regulations, if the company reports a reduction and book closure late, more than 30 days from the actual leave date, they will be subject to late payment interest.
The employer must fulfill their obligation to settle the employee’s insurance payments with the social insurance agency to complete the book closure procedure. If not, the employee will be considered by the social insurance agency as still participating in social insurance.
Note: The employer can submit both types of dossiers at the same time.
The procedure for employees to close their books consists of two steps
3. Procedures for Closing a Social Insurance Book for Employees
According to legal regulations, each person is only issued one social insurance book. Therefore, if the old company goes bankrupt and does not close the employee’s social insurance book, the employee can close the book themselves when they join a new company to continue contributing to social insurance.
The dossier for the employee to close their social insurance book includes:
- Social insurance book and loose sheets of the book (if any).
- A request form for closing the social insurance book, stating the reason and the name of the bankrupt unit.
- Documents related to the dissolution or bankruptcy of the old company or a resignation decision (if any).
- A copy of the employee’s ID card or citizen identification card.
Note: Employees can go to the social insurance agency where the new company contributes social insurance to close their book themselves.
If the employee closes their social insurance book themselves, according to Clause 3, Article 46 of Decision 595/QD-BHXH , the insurance contribution period will be calculated up to the time the old company participated for the employee. If the amount that the company has not paid is recovered, the outstanding amount will be confirmed in the social insurance book.
Each person is only issued one social insurance book
4. Frequently Asked Questions about Social Insurance Book Closure Procedures
Should I continue using the old company’s social insurance book or apply for a new one?
According to regulations, each person participating in social insurance will be assigned a unique identification number. This number is also the person’s social insurance number and will be used throughout their participation in social insurance.
When employees change jobs, they no longer contribute to social insurance at the old unit and do not take their book with them. However, this number remains the same when they move to a new unit. The entire social insurance participation process of the employee will be updated in the new book.
Therefore, employees should request to close their social insurance book, receive their book from the old unit, and submit it to the new unit. This will help employees save time and avoid the procedure of reapplying for a new book.
Should I continue using the old company’s social insurance book or apply for a new one?
Can I withdraw social insurance money in one lump sum if the company has not closed my social insurance book?
To apply for a one-time social insurance benefit, you need to prepare the following documents:
- Social insurance book with a complete record of contributions, including the cover and loose sheets;
- Form No.14-HSB – Application for one-time social insurance benefit, issued together with Decision 166/QD-BHXH;
- Household registration book or temporary residence book, ID card or citizen identification card.
According to the above regulations, the mandatory document to receive a one-time social insurance benefit is a social insurance book with a complete record of the employee’s social insurance contributions, including the cover and loose sheets.
The above are the conditions and procedures for closing a social insurance book that you can refer to. Remember to read them carefully to make the procedure easier and simpler!
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