The partnership contract has the following main contents:

- Term and scope of contract work: Working mode on a weekly basis, from Monday to Friday (8:30 am to 5:30 pm every day) based on the relevant provisions of the company's labor regulations. Fixed workplace and business travel at the request of the employer.

- Obligations, interests and rights of the employer and the employee, including the monthly cooperation fee.

- Form of payment, payment term and 30-day notice period upon termination.

From August 1, 2020, the company signs a labor contract and only pays health insurance according to regulations for foreign workers. As of May 31, 2021, the company did not renew the labor contract.

Huyen asked, the company is calculating severance allowance for the total time employees directly work without paying unemployment insurance is 17 months (from January 1, 2020 to May 31, 2021), the average payment of 6 months' salary, is that correct?

In this regard, the Ministry of Labor, War Invalids and Social Affairs replied as follows:

From January 1, 2021, the calculation and payment of severance allowances shall comply with the provisions of Article 46 of the Labor Code 2019 and Article 8 of Decree No. 145/2020/ND-CP dated December 14, 2020. Accordingly, the employer is responsible for paying severance allowance to the employee (excluding foreign workers) when the labor contract is terminated as prescribed in Clauses 1, 2, 3, 4, 6, 7, 9 and 10, Article 34 of the Labor Code. 

Working time to calculate severance allowance is the actual working time for the employer minus the time which the employee has participated in unemployment insurance (including the time when the employee is not eligible for participating in unemployment insurance according to the provisions of law but are paid by the employer together with the employee's salary an amount equivalent to the level of unemployment insurance premium paid by the employer for the employee) and working time has been paid severance allowance or job loss allowance by the employer.

The salary used to calculate the severance allowance is the average salary of the preceding 6 months before the employee quits his job. 

Thus, in case the foreign worker terminates the labor contract according to the provisions of Clauses 1, 2, 3, 4, 6, 7, 9 and 10, Article 34 of the Labor Code, the enterprise shall be responsible for paying severance allowance according to the above provisions, the working time to calculate severance allowance does not include the time which the enterprise hires workers from a third party.