On 31 December 2025, the Government promulgated Decree No. 374/2025/ND-CP guiding the implementation of the Law on Employment 2025 (“Decree 374”), replacing Decree No. 28/2015/ND-CP (“Decree 28”).
In general, Decree 374 inherits the core provisions of Decree 28 while supplementing several regulations to guide new issues introduced under the Law on Employment 2025.
1. Employees’ right to initiate lawsuits against employers regarding unemployment insurance entitlements within 03 months from the termination of the labour contract
As a general principle, where an employer fails to fully pay unemployment insurance contributions, the employee is entitled to initiate a lawsuit requesting the employer to settle unemployment insurance–related entitlements.
Decree 374 stipulates that the time limit for employees to initiate such a lawsuit is 03 months from the date of termination of the labour contract.
However, this 03-month time limit appears to restrict employees’ right to initiate legal proceedings. Under the Civil Code 2015, the statute of limitations for initiating lawsuits related to contractual disputes or claims for compensation for damages is generally 03 years. The employer’s failure to fulfill unemployment insurance contribution obligations may be considered a breach of the labour contract and an act causing damage to the employee. Therefore, employees may reasonably rely on the statute of limitations provided under the Civil Code to protect their lawful rights and interests.
2. Specific guidance on monthly salary as the basis for unemployment insurance contributions
Decree 374 provides guidance on the provisions of the Law on Employment 2025 regarding the monthly salary used as the basis for unemployment insurance contributions. Accordingly, the salary used as the basis for unemployment insurance contributions includes the monthly salary, comprising:
(i) the salary based on the job or position;
(ii) salary allowances; and
(iii) other additional payments agreed to be paid regularly and stably in each salary payment period.
This provision is consistent with the principles set out in the Law on Social Insurance 2024.
3. Enterprises employing persons with disabilities are entitled to a reduction of the unemployment insurance contribution rate to 0%
The Law on Employment 2025 provides support mechanisms for enterprises that recruit and employ persons with disabilities.
Guiding this policy, Decree 374 stipulates that employers who newly recruit and employ persons with disabilities are entitled to a reduction of the unemployment insurance contribution rate from 1% to 0% of the unemployment insurance contribution payable by the employer for such employees during their employment period. The support period shall not exceed 12 months from the date of recruitment of the employee with disabilities.
To enjoy this incentive, enterprises must register with the social insurance authority and submit copies of disability certificates of each eligible employee.
Decree 374 takes effect from 01 January 2026./.
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