Delaying the union contribution term and providing support for redundancy employees of 1 to 3 million Vietnam Dong due to reduced manufacturing

08/12/2023 Newest Editor

On August 31st, 2023, Vietnam General Confederation of Labor issued Decision No. 7823/QD-TLD, whereby:

Allowing enterprises losing at least 50% of their workforce who are social insurance membership compared to as of January 1st, 2023 (including furloughed employees, employees having their employment contracts temporarily suspended, employees taking unpaid leave) due to reduced manufacturing orders to delay their union contributions to December 31st, 2023.

 

Before that, Vietnam General Confederation of Labor also issued Decision No. 7785/QD-TLD, thereby the supporting policies granted to trade union members (trade unionists) and employees who are subject to reduced working hours; are furloughed; are subject to suspension of their labor contracts; are forced to take unpaid leave; or labor contract termination when their enterprises or cooperatives (hereinafter referred to as employers) are afflicted with cancellation or reduction of manufacturing orders shall be as follows:

Employees type Group One-time support level
Workers are union members; Employees who are not union members but are women of 35 years old or older, pregnant women, employees who are raising biological or adopted children or taking care of substitute children under 6 years old (only support for 01 person who is the child’s mother/father/alternative caregiver) Group 1 01 Million VND/person
Group 2 02 Million VND/person
Group 3 03 Million VND/person
Workers are not union members Group 1 700.000 VND/person
Group 2 1,4 Million VND/person
Group 3 2,1 Million VND/person

There are 03 groups of employees entitled to receive support from the trade union including:

Group 1: Union members and employees working under labor contracts at enterprises that contribute union fees before April 1st, 2023 who had their working hours reduced or stopped working from April 1st, 2023 to December 31st, 2023 due to reduced manufacturing orders.

Group 2: Union members and employees working under labor contracts at enterprises that contribute union fees before April 1st, 2023 will have their labor contracts suspended, taking unpaid leave from April 1st, 2023. until December 31st, 2023 due to reduced manufacturing orders.

Group 3: Union members and employees working under labor contracts at enterprises that contribute union fees before April 1st, 2023 will have their labor contracts terminated from April 1st, 2023 to December 31st, 2023 due to reduced manufacturing orders and they are not eligible for unemployment benefits.