According to Clause 1, Article 168 of the 2019 Labor Code, employers and employees must participate in compulsory social insurance, health insurance, and unemployment insurance. Employees are entitled to benefits as prescribed by law concerning social insurance, health insurance, and unemployment insurance. Furthermore, employers and employees are encouraged to engage in additional forms of insurance for employees.

* Social Insurance

As per Points a and b, Clause 1, Article 2 of the 2014 Social Insurance Law, the categories of employees required to participate in compulsory social insurance include: individuals working under indefinite-term labor contracts, fixed-term labor contracts, including contracts signed between employers and legal representatives of individuals under 15 years of age as stipulated by labor law; and those working under fixed-term labor contracts lasting from 1 month to less than 3 months.

Additionally, Clause 1, Article 2 of Decree 143/2018/ND-CP stipulates that foreign workers in Vietnam are required to participate in compulsory social insurance if they possess a work permit, professional certificate, or practicing license issued by the competent authority in Vietnam and have either an indefinite-term labor contract or a fixed-term labor contract of 1 year or more with an employer in Vietnam, except in the following cases:

(1) Intra-company transfers as regulated.

(2) Employees who have reached retirement age as prescribed.

Thus, employees signing fixed-term labor contracts of 1 month to less than 36 months, or contracts ranging from 1 month to less than 3 months, and foreign workers with contracts of 1 year or more are required to participate in compulsory social insurance.

* Unemployment Insurance

Clause 4, Article 3 of the 2013 Employment Law defines unemployment insurance as a system designed to compensate partially for the income of employees who lose their jobs, assisting them in vocational training, maintaining employment, and job searching based on contributions to the unemployment insurance fund.

According to Clause 1, Article 43 of the 2013 Employment Law, employees must participate in unemployment insurance when engaged under either of the following contracts:

(1) Indefinite-term labor contracts.

(2) Fixed-term labor contracts.

In cases where an employee has entered into and is executing multiple labor contracts as specified in Clause 1, Article 43 of the 2013 Employment Law, the employee and the employer of the first signed labor contract are responsible for participating in unemployment insurance. Therefore, those signing fixed-term labor contracts are mandatorily required to participate in unemployment insurance.

* Health Insurance

As defined in Clause 1, Article 2 of the 2008 Health Insurance Law, health insurance is a form of insurance applied in the healthcare sector, non-profit in nature, organized and implemented by the State, with participating entities as defined by this Law.

According to Clause 1, Article 12 of the 2008 Health Insurance Law, employees participating in health insurance include those working under indefinite-term labor contracts and fixed-term contracts lasting 3 months or more as prescribed by labor law; managers receiving salaries as per wage law; and civil servants as defined by the law.

Thus, those signing fixed-term labor contracts of 3 months or more are required to participate in health insurance.

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