When an employee leaves a company in Vietnam, the employer must update the employee’s participation status in compulsory social insurance, health insurance and unemployment insurance. This is an important payroll and compliance step, not just an internal human resources procedure. Timely reporting helps the employer avoid unnecessary contributions, incorrect insurance records and additional administrative work later.

When must an employer report a decrease in social insurance participation?

When there is a change in the registered information for social insurance participation, the employer must submit an adjustment declaration and relevant documents to the social insurance authority.

In practice, an employer must report a decrease when the number of employees participating in social insurance, health insurance or unemployment insurance decreases, or when an employee temporarily stops being subject to compulsory contribution obligations.

Common situations include:

• The employee terminates the labor contract, working contract or leaves employment;
• The employee suspends the performance of the labor contract;
• The employee takes unpaid leave for 14 working days or more in a month, and there is no agreement to continue social insurance contributions;
• The employee takes sick leave for 14 working days or more in a month, where social insurance contributions are not required;
• The employee takes maternity leave during a period where both the employee and the employer are not required to make social insurance contributions.

For example, if an employee resigns and the employment relationship ends, the company should identify the correct last working date, determine the relevant contribution period and submit the adjustment to the social insurance authority.

What documents are required?

When registering or adjusting contributions to social insurance, health insurance and unemployment insurance, an employer generally needs to prepare the following documents:

• Declaration form for the employer’s registration or adjustment of social insurance, health insurance and unemployment insurance information — Form TK3-TS;
• List of employees participating in, or adjusting contributions to, social insurance, health insurance and unemployment insurance — Form D02-LT;
• Relevant documents of the employer or the participant, if any.

Depending on the reason for the decrease, the employer should also keep supporting internal documents, such as:

• Termination decision or mutual termination agreement;
• Decision on suspension of the labor contract;
• Approved unpaid leave request;
• Documents relating to sick leave or maternity leave;
• Timesheets, payroll records or documents confirming the number of non-working days in the month.

These supporting documents may not be required in every electronic submission. However, keeping them properly is important in case the social insurance authority requests clarification, or if a dispute arises with the employee.

How can the dossier be submitted?

Employers may submit the dossier through one of the following methods:

• Direct submission to the social insurance authority;
• Submission by postal service;
• Online submission via the National Public Service Portal;
• Online submission via the Vietnam Social Security Public Service Portal;
• Submission through an electronic social insurance transaction service provider, commonly known as an I-VAN provider.

Electronic submission is commonly used because it is convenient, fast and allows the employer to monitor the processing status of the dossier.

When submitting online, the employer prepares the electronic dossier, signs it digitally and sends it to the social insurance authority through the electronic transaction system. The employer should keep the receipt notice, dossier reference number, processing result and any request for amendment or supplementation.

How long does processing take?

Within 05 working days from the date of receipt of the required declaration and documents, the social insurance authority is responsible for adjusting the social insurance participation information.

If the authority does not make the adjustment, it must respond in writing and clearly state the reason.

Where the dossier or data is incomplete or inaccurate,, the time limit for notifying the employer of the return of the dossier or providing guidance on supplementation and completion is no more than 03 working days from the date of receipt of the dossier.

In practice, to avoid delays, employers should carefully check the employee’s social insurance number, full name, personal identification number, decrease date and reason for decrease before submission.

Why timely reporting matters

Late reporting may create administrative and financial issues for the employer.

If the employer does not report the decrease on time, the system may continue recording contribution obligations for an employee who has already left the company or is temporarily not subject to compulsory contributions. As a result, the employer may need to prepare additional adjustment dossiers, reconcile contribution data or deal with overpaid or incorrectly recorded contributions.

Late or incorrect reporting may also affect the employee’s insurance record. If the participation information is not updated accurately, it may create difficulties when confirming the contribution period or resolving future insurance benefits.

For human resources and payroll teams, delayed reporting also increases the administrative workload, especially when several employees leave, take unpaid leave, suspend their contracts or enter maternity or sick leave periods within the same reporting cycle.

Practical notes for employers

When handling social insurance procedures after an employee leaves or temporarily stops contributing, employers should pay attention to the following points:

• Identify the correct date on which the employee is no longer subject to insurance contributions through the employer;
• Check the employee’s social insurance number and personal information carefully;
• Declare the correct reason for the decrease;
• Reconcile timesheets, payroll records and labor documents before submission;
• Keep documents relating to termination, contract suspension, unpaid leave, sick leave or maternity leave;
• Monitor the processing result on the electronic transaction system;
• Promptly supplement or amend the dossier if the social insurance authority returns it or requests clarification.

Employers should also consider establishing an internal workflow for social insurance changes, including both new employee registration and decrease reporting. Clear coordination among the human resources team, payroll team and line managers can help reduce errors and ensure that employee insurance records remain accurate.