In the labor relations terms, when an employee dies:

1. The Labor Contract shall be terminated (Clause 6, Article 36, Labor Code 2012);

2. If during the working process at the Company, this employee  has a period of NOT participating in the unemployment insurance (UI) for 30 days or longer, and at the time of termination of the labor contract, the total working time has full 12 months or longer, the Company will pay additional Severance Allowances (Clause 1, Article 48, Labor Code 2012); and

3. Receive the survivorship allowance   under  Law on Social Insurance. Specifically:

(i) The period over which the survivorship allowance is paid is total payment periods of voluntary and compulsory social insurance;

(ii) When any of the following employees dies, the persons who take charge of their funeral are entitled to a lump-sum funeral allowance worth 10-month base salary:

a. The employee who has paid compulsory social insurance for 12 months or longer;

b. The employee who has paid both compulsory and voluntary social insurance for 60 months or longer.

(iii) When an employee defined in any of the following cases, dies, his/her relative meeting requirements prescribed in clause 2 and clause 3 Article67 on the Law on Social insurance are entitled to a monthly survivorship allowance:

a. He/she has paid social insurance for 15 years or longer;

b. If the employee has only paid social insurance for 14 years and 6 months or longer but not enough 15 years, his/her relatives may continue paying the social insurance to the fund of retirement and survivorship with the premium equaling 22% of the employee’s monthly salary as the basis for social insurance payment before his/her death;

c. The levels of monthly survivorship allowance shall be prescribed in Article 68 of the Law on Social insurance.

(iv) Relatives of the employee defined in Clause 1 of this Article who are entitled to a lump-sum survivorship allowance include:

a. The employee does not fall in any of the cases in Clause 4, Article 12, Decree No. 115/2015/ND-CP;

b. The employee falls in one of the cases specified in Clause 4 Article 12 of Decree No. 115/2015/ND-CPbut have no relative eligible for the monthly survivorship allowance as defined in Clause 2 and Clause 3 Article 67 of the Law on Social insurance;

c. His/her relatives who are entitled to the monthly survivorship allowance as defined in Clause 2 and Clause 3 Article 67 wish to receive a lump-sum survivorship allowance, except under-6 children, children or spouses suffering a working capacity decrease of 81% or more.

(v) Levels of lump-sum survivorship allowance:

a. The lump-sum survivorship allowance for relatives of an employee who is paying social insurance or of an employee who has his/her period of social insurance premium payment preserved shall be calculated as prescribed in Clause 1 Article 70 of the Law on Social insurance and the average monthly income mentioned in Clause 4 Article 11 of Decree No. 115/2015/ND-CP;

b. The lump-sum survivorship allowance for relatives of dead pensioners shall be calculated as prescribed in Clause 2 Article 70 of the Law on Social insurance.

c. The lump-sum survivorship allowance for relatives of an employee who is on monthly labor accident or occupational disease allowance for their working capacity decrease of 61% or more and has not claimed a lump-sum social insurance payout shall be prescribed similarly to an employee who has his/her period of social insurance premium payment preserved.

The lump-sum survivorship allowance for an employee who is on monthly labor accident or occupational disease allowance and claimed a lump-sum social insurance payout shall equal 3-month labor accident or occupational disease allowance.

Best regards./.