Policies to support employees and employers in duration of the Covid-19 pandemic
LexNovum Lawyers
01/12/2021
Policies To Support Employees And Employers In Duration Of The Covid-19 Pandemic
On July 1st, 2021, the Government issued Resolution No. 68/NQ-CP (“Resolution 68”), which take effective on the same day, on policies to support employees and employers who are in difficulties due to the COVID-19 pandemic. Following that, on July 7th, 2021, the Government issued Decision No. 23/2021/QD-TTg (“Decision 23”) outlining the implementation of the aforementioned support policies, including the objects of support, conditions, and support rate, as well as support duration. On August 24th, 2021, the Vietnam General Confederation of Labor issued Decision 3089/QD-TLD on supporting employees to perform “3 on the spot”.
I. Supporting policies for the employers
1. Policy on reduction in insurance premiums for occupational accidents and diseases
Object of support:
– Employers that pay premiums to the Insurance Fund for Occupational Accidents and Diseases for employees eligible for occupational accident and disease insurance as prescribed in law on social insurance and occupational safety and hygiene (except for officials, public employees, people in the people’s armed forces, employees in the agencies of the Party, the State, administrative agencies, public sector entities on the payroll of the state budget).
– The employers shall provide the monetary support obtained from the reduction in premiums to the Insurance fund for occupational accidents and diseases for the employees in order to combat the COVID-19 pandemic.
Rate: 0% of the salary fund as the basis for paying social insurance premiums.
Duration: 12 months, from July 1st, 2021 to June 30th, 2022 inclusive.
2. Policy on suspension of contributions to the retirement and survivorship fund
Object of support: Employees and employers under compulsory social insurance as prescribed in Article 2 of the Law on Social Insurance.
Support conditions: Regarding employers who have fully paid social insurance premiums or are temporarily suspending contributions to the retirement and survivorship fund until the end of April 2021 but have been affected by the COVID-19 pandemic, resulting in a downsizing of at least 15% employees who have contributed to social insurance at the time of application submission compared to April 2021 (including the employees on furlough, suspension of employment contracts, and unpaid leave).
Suspension duration of contributions: 6 months from the date of the application submission.
Place of application: the social security agency to which the social insurance premiums are paid
3. Policy on supporting job retention training for employees
Object of support: An employer prescribed clause 3 Article 43 of the Employment Law shall submit an application for support from July1st, 2021 to the end of June 30th, 2022.
Support conditions:
– Having fully paid unemployment insurance premiums for employees under compulsory social insurance for full 12 months or more up to the time of requesting for support.
– Having change the technological structure as prescribed in Clause 1, Article 42 of the Labor Code.
– Having revenue in the preceding quarter has decreased by 10% or more compared to the same period in 2019 or 2020 at the time of requesting support.
– Having a plan, or cooperates with a vocational education institution in developing a plan, for training, retraining and skill enhancement in order to secure the jobs for employees.
The maximum support rate: VND 1,500,000 per employee per month
Support duration: up to 6 months
Place of application: Department of Labor, War Invalids and Social Affairs of province where head office is located
4. Loan policy to pay furlough wages, wages for production recovery
Loan conditions to pay furlough wages:
– Having employees working under employment contract who have participated in compulsory social insurance to the month preceding the furlough, have been put on furlough for 15 consecutive days or more as prescribed in Clause 3, Article 99 of the Labor Code, during the period from May 1st, 2021 to the end of March 31st, 2022.
– Having no bad debt at any credit institution and foreign bank branch at the time of applying for a loan.
Loan conditions to pay wages for production, business recovery:
a. Regarding the employer that has to suspend operation during the period from May 1st, 2021 to March 31st, 2022 by order of the competent authority to prevent and control the COVID-19 pandemic.
– The employer has to suspend operation during the period from May 1st, 2021 to March 31st, 2022 by order of the competent authority to prevent and control the COVID-19 pandemic.
– Having employees working under employment contract who have participated in compulsory social insurance up to the time of applying for the loan.
– Having a production, business recovery plan.
– Having no bad debt at any credit institution and foreign bank branch at the time of applying for the loan.
b. Regarding the employer in the realm of transportation, aviation, tourism, accommodation services, Vietnamese guest worker program under contract to recover production, business
– Having employees working under employment contract who have participated in compulsory social insurance up to the time of applying for the loan.
– Having a production/business recovery plan.
– Having no bad debt at any credit institution and foreign bank branch, and have completed the tax finalization in 2020 at the time of applying for the loan.
Loan rate and terms:
– Loan to pay furlough wages: The maximum loan rate is equal to the regional minimum wage for the number of employees according to the actual payment period of furlough wages but not exceeding 03 months; the loan term is less than 12 months.
– Loan to pay wages for production, business recovery: The maximum loan rate is equal to the regional minimum wage for the employees under employment contracts. The support duration is up to 3 months; the loan term is less than 12 months.
Place of application: Bank for Social Policies where the head office or branch, representative office, business location or residence of the business household or individual is located
II. Supporting policies for the employees
1. Policy on supporting employees on suspension of employment contracts, unpaid leave
Object of support: Employees that have worked for enterprises, cooperatives, public sector entities that cover their own recurrent expenditures or investment and recurrent expenditures, people-founded and private preschools, kindergartens, primary schools, junior high schools, high schools and vocational schools (hereinafter referred to as enterprises, cooperatives, public sector entities, education institutions) that temporarily cease operations at the request of competent authorities for the prevention and control of the COVID-19 pandemic.
Support conditions:
– Their period of suspension of employment contracts or unpaid leave within the term of the employment contracts is from 15 consecutive days or more from May 1st, 2021 to the end of December 31st, 2021, with a start date of suspension of employment contracts or unpaid leave between May 1st, 2021 and December 31st, 2021.
– Having contributed to compulsory social insurance up to the month preceding the time of suspension of employment contracts, unpaid leave.
Support rate: 1,855,000 VND per person for 15 consecutive days or more but less than 01month (30 days); 3,710,000 VND per person for 01month (30 days) or more.
Place of application: People’s Committee of district where head office is located
2. Policy on supporting furloughed employees
Support conditions:
– Employees that have worked under an employment contract and have been put on furlough under Clause 3, Article 99 of the Labor Code and are subject to quarantine or in a locked down area as required by the competent authority for 14 days or more during the period from May 1st, 2021 to the end of December 31st, 2021.
– Having contributed to compulsory social insurance up to the month preceding the furlough time as prescribed in clause 3 Article 99 of the Labor Code.
Support rate: VND 1,000,000 per person
Place of application: People’s Committee of district where head office is located
3. Policy on supporting employees with terminated employment contract
Object of support: Employees that have worked for enterprises, cooperatives, public sector entities that cover their own recurrent expenditures or investment and recurrent expenditures, people-founded and private preschools, kindergartens, primary schools, junior high schools, high schools and vocational schools which temporarily cease operations at the request of competent authorities for the prevention and control of the COVID-19 pandemic from May 1st, 2021 to the end of December 31st, 2021.
Support conditions:
– Having contributed to compulsory social insurance up to the month preceding the time of termination of employment contracts.
– Having their employment contract terminated during the period from May 1st, 2021 to December 31st, 2021 but they are ineligible for unemployment benefit, except for the following cases: The employee unilaterally terminates the employment contract against the law; The employee is on monthly pension or work-capacity loss allowance.
Support rate: VND 3,710,000 per person
Place of application: Employment Service Center affiliated to Department of Labor, War Invalids and Social Affairs where the employee shall terminate the employment contract.
Note:
– In addition to the corresponding amounts received under Sections 1, 2, and 3, employees in the following special cases are supported with extra amount as follows:- Pregnant Employees are supported with an extra amount of VND 1,000,000 per person;
– Those who are raising biological or adoptive children or taking care of children under 6 years old on behalf of their parents are supported with an extra amount of VND 1,000,000 per child under 6 years old, and either mother or father or caregiver is supported.
4. Policy on support emloyees to implement “3 on the spot”
On August 24th, 2021, the Vietnam General Confederation of Labor issued Decision 3089/QD-TLD on supporting meals for union members and employees to perform “3 on the spot” of businesses in the provinces and cities that implement social distancing according to Directive 16/CT-TTg of the Prime Minister. As follows:
Supporting rate: 01 million VND/person for union members and employees who are working at enterprises paying trade union fees, performing “3 on the spot” for production.
Deployment method:
– The grassroots trade union shall report the number of union members and workers mobilized by the enterprise to carry out “3 on-the-spot” production maintenance to the immediate superior trade union at the grassroots level so that the immediate superior trade union at the grassroots level can verify the results. funding allocation.
– In case an enterprise has paid trade union fees but has not yet organized a trade union, the immediate superior trade union at the grassroots level shall work with the enterprise, inspect and determine the number of union members and employees to perform “3 at place” maintain production to support.
The time to implement: From August 24th, 2021
Executive: Nhi Phan – LexNovum Lawyers
