Unlocking Pre-2009 Employment Benefits: A Guide to Your Entitlements

When leaving a job, benefits are a crucial source of income to sustain your daily life. If you started working before 2009, don't forget to claim these benefits upon resignation!

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The prolonged pandemic has caused significant challenges for businesses, resulting in job losses for many workers. If you’ve been in the workforce since 2009, don’t miss out on this article. We will explore the benefits that workers employed before 2009 are entitled to upon leaving their jobs.

1. Benefits for Workers Employed Before 2009 Upon Termination

Severance Pay

According to Article 46 of the 2019 Labor Code:

  • When the labor contract is terminated according to the provisions of Articles 34, paragraphs 1, 2, 3, 4, 6, 7, 9, and 10 of this Code, the employer shall be responsible for paying severance pay to employees who have worked regularly for at least 12 months. They are entitled to half a month’s salary for each year of work, except in cases where they meet the conditions to receive a pension according to the law on social insurance and the case specified in Article 36, paragraph 1, point e of this Code.
  • The time worked to calculate severance pay is the total time the employee has actually worked for the employer, excluding the time the employee has participated in unemployment insurance according to the law on unemployment insurance and the time worked for which the employee has been paid severance pay or job loss allowance.
  • The salary for calculating severance pay is the average salary of the last six consecutive months according to the labor contract before the employee leaves.

Employees who have worked for at least 12 months are entitled to severance pay upon termination

In other words, those who have participated in the workforce for at least 12 months are entitled to severance pay when they leave their jobs. The amount of severance pay depends on how long the individual has worked for the company, with each year of work equivalent to half a month’s salary.

The time used to calculate severance pay will be based on the actual working period, excluding the time after participating in unemployment insurance and the period during which severance pay and job loss allowance have been received.

The salary used to calculate severance pay is based on the average of the last six consecutive months before termination

The salary used to calculate severance pay is determined by the average of the last six consecutive months’ salary before the employee leaves.

We can understand this as follows: those who participated in the workforce before they started contributing to unemployment insurance will receive severance pay. After contributing to unemployment insurance, employees will only receive this benefit for their probationary period, maternity leave, or sick leave of 14 days or more.

Job Loss Allowance

According to Article 47 of the 2019 Labor Code:

  • The employer shall pay a job loss allowance to employees who have worked regularly for at least 12 months and have lost their jobs according to Article 34, paragraph 11 of this Code. They are entitled to one month’s salary for each year of work, but the allowance shall not be less than two months’ salary.
  • The time worked to calculate the job loss allowance is the total time the employee has actually worked for the employer, excluding the time the employee has participated in unemployment insurance according to the law on unemployment insurance and the time worked for which the employee has been paid severance pay or job loss allowance.
  • The salary for calculating the job loss allowance is the average salary of the last six consecutive months according to the labor contract before the employee loses their job.

Employees are entitled to a job loss allowance if they meet two specified conditions

In simpler terms, those who have worked for a company for at least 12 months are entitled to a job loss allowance upon termination if they meet the following two conditions:

  • Losing their job due to changes in the company’s structure, technology, or due to economic recession or restructuring by the State.
  • Losing their job due to company division, merger, consolidation, sale, lease, conversion of business type, or transfer of ownership or right to use assets.

The allowance amount is calculated based on the number of years the employee has worked.

The job loss allowance is calculated based on the number of years of employment, with each year of work equivalent to one month’s salary (but not less than two months’ salary). The salary used to calculate this allowance is based on the average of the last six consecutive months’ salary before the employee leaves.

The time used to calculate the job loss allowance will be based on the actual working period, excluding the time of participation in unemployment insurance and the period during which severance pay and job loss allowance have been received.

The time used to calculate the job loss allowance is the actual working time minus the period of unemployment insurance participation and any previously received allowances.

We can understand this as follows: employees who worked for companies before the unemployment insurance participation period are entitled to a job loss allowance upon termination if the reason for termination falls under one of the two conditions mentioned above.

After the introduction of unemployment insurance, most employees will receive unemployment benefits when they lose their jobs and will only receive a job loss allowance if they have a probationary period, maternity leave, or sick leave of 14 days or more.

2. Why Do Workers Employed Before 2009 Receive Severance Pay and Job Loss Allowance?

The reason why 2009 became a turning point for changes in severance pay and job loss allowance can be traced back to January 1, 2007, when the 2006 Social Insurance Law came into effect. This was the first law to include provisions on “unemployment insurance.”

Article 2, paragraph 3 of this Law states:

“Employees participating in unemployment insurance are Vietnamese citizens working under a labor contract or work contract, and these contracts are either of an indefinite duration or have a duration of between 12 and 36 months with the employer as specified in Article 4, paragraph 4 of this Law.”

Article 140, paragraph 1, also stipulates:

“This Law shall take effect from January 1, 2007; for voluntary social insurance, from January 1, 2008, and for unemployment insurance, from January 1, 2009.”

From 2009 onwards, employees are required to participate in unemployment insurance

Thus, starting from January 1, 2009, participation in unemployment insurance became a mandatory right and obligation for both employees and employers. The year 2009 marked the introduction of unemployment insurance for workers.

Before 2009, which was before the implementation of unemployment insurance, employees received severance pay.

Since 2009, most employees who leave their jobs receive unemployment benefits and only receive severance pay if they have a probationary period, maternity leave, or sick leave of 14 days or more.

We have now presented the information on the benefits that workers employed before 2009 are entitled to upon termination. We hope you found this information useful. Thank you for reading.

Frequently asked questions

Pre-2009 employment benefits refer to a set of entitlements that were available to employees in Singapore before the Employment Act was amended in 2009. These benefits included provisions for rest days, hours of work, and overtime pay. They were locked or superseded by the 2009 amendments, which introduced more comprehensive employment legislation.

All employees who were working in Singapore before 1 April 2009, regardless of their employment terms or contract type, are generally eligible for these pre-2009 benefits. This includes both local and foreign employees.

To unlock pre-2009 employment benefits, eligible employees or their authorized representatives need to submit a claim to the Ministry of Manpower (MOM). This can be done online through the MOM website or in person at a MOM Service Centre. Supporting documents, such as employment contracts and payslips, may be required to process the claim.

The specific pre-2009 benefits that an individual may be entitled to depend on their employment circumstances. However, some key benefits include: rest day entitlements, overtime pay for work done beyond the regular hours, compensation for unpaid salary, and reimbursement for unauthorized salary deductions.

Yes, there is a time limit for making claims for pre-2009 employment benefits. Claims must be submitted within three years from the date of termination of employment or within three years from the date the benefit was due, whichever is later.

If an employer refuses to comply with the pre-2009 benefits or disputes a claim, the employee can seek assistance from the Tripartite Alliance for Dispute Management (TADM). TADM provides mediation services to help resolve employment-related disputes amicably. If mediation fails, the case may be referred to the Employment Claims Tribunals for a legal resolution.

There are no official fees charged by the Ministry of Manpower for submitting a claim for pre-2009 employment benefits. However, individuals may incur legal fees if they choose to engage a lawyer to assist with the claim process.

To support a claim for pre-2009 employment benefits, individuals should gather relevant documents such as employment contracts, payslips, timesheets, and any other records that can help establish their employment terms and entitlements.

Yes, even if your former company is no longer in operation, you can still submit a claim for pre-2009 employment benefits. The Ministry of Manpower will assess your claim based on the available records and evidence provided.

For more detailed information and assistance regarding pre-2009 employment benefits, individuals can refer to the Ministry of Manpower’s website or seek advice from the Tripartite Alliance for Dispute Management (TADM). Free legal clinics and pro bono legal services may also provide guidance and support throughout the claims process.
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