I. Legal basis

Labor Code 2019

Social Insurance Law 2024.

Decree 12/2022/ND-CP.

II. Closing the social insurance book, can employees do it themselves?

According to current regulations, employees cannot close their own social insurance books. Closing the insurance book must be done by the employer. The above content is specifically stipulated in Article 48 of the 2019 Labor Code as follows:

Employers have the following responsibilities:

“Complete the procedure to confirm the time of payment of social insurance and unemployment insurance and return it along with the original documents if the employer has kept the employee;

Provide copies of documents related to the employee’s work history if the employee requests. The cost of copying and sending documents is paid by the employer.”

According to the Social Insurance Law 2024, employers must be responsible for closing books for employees when they leave work:

“Coordinate with the social insurance agency in confirming the social insurance payment period when the employee terminates the labor contract, work contract or resigns according to the provisions of law.”

Thus, when the labor contract terminates, the employer must carry out procedures to close the book and confirm the social insurance payment period for the employee at the social insurance agency. Therefore, employees cannot close their social insurance books themselves at the social insurance agency after quitting their jobs, whether they quit legally or temporarily, but must return to the old company to request them. Carry out procedures to close your social insurance book.

III. If the old company does not close the insurance book for employees, will they be fined?

One of the important responsibilities of businesses is to pay social insurance and deduct a portion of employees’ salaries every month to pay into the social insurance fund.

However, currently there are still some cases where employers intentionally retain employees’ social insurance books, especially in cases where the employee quits without prior notice. Meanwhile, the social insurance book is an important document for employees to apply for social insurance benefits. Therefore, the delay in closing books may affect the insurance benefits of employees.

According to Decree 12/2022/ND-CP, if the employer does not complete the procedure to confirm the time of payment of social insurance and unemployment insurance for the employee after terminating the labor contract. The fine level imposed on employers is determined based on the number of employees who do not close their books when quitting their jobs. Specifically:

• Fine from 1,000,000 VND to 2,000,000 VND: If there are from 01 to 10 employees.
• Fine from 2,000,000 VND to 5,000,000 VND: If there are from 11 to 50 employees.
• Fine from 5,000,000 VND to 10,000,000 VND: If there are from 51 to 100 employees.
• Fine from 10,000,000 VND to 15,000,000 VND: If there are from 101 to 300 employees who do not close the insurance book when leaving work.
• Fine from 15,000,000 VND to 20,000,000 VND: If there are 301 or more employees who are not allowed to close the insurance book when quitting work.

Above is the penalty level applicable to individual employers. Organizational employers will be fined double the above rate.

IV. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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