Support policy for employees who lost their job, got their working hours reduced or their labor contracts terminated due to their companies’ cancellation or reduction of purchase orders

01/09/2023 Newest Editor

On January 16th, 2023, Vietnam General Federation of Labour issued Resolution No. 06/NQ-DCT on the presidium of the Vietnam General Federation of Labour regarding support granted to trade unionists or employees who are trade unions contributors before September 30th, 2022 and forced into reduced working hours or made redundant by termination of their labor contracts due to their companies’ cancellation or reduction of purchase orders, there are 03 groups of employees that shall receive the following incentives:

– 01 Million VND for trade unionists forced into reduction in their working hours:

If employees who are trade unionists working under labor contracts are forced into reduction in their working hours per day, week or month (except reduction in overtime hours), or have stopped working pursuant to clause 3 of Article 99 in the Labor Code for 14 days or more during the period from October 1st, 2022 to the end of March 31st, 2023; and earn income in any month which is equal to or less than the region-specific minimum pay rate.

– 02 Million VND for trade unionists temporarily suspended from execution of their labor contracts, or on a furlough or unpaid leave:

If employees who are trade unionists are temporarily suspended from execution of their labor contracts, or are furloughed or on an unpaid leave of absence within the consecutive 30-day period (except for personal reasons) from October 1st, 2022 to the end of March 31st, 2023 and the start of their labor contracts suspension, an unpaid leave of absence which are from October 1st, 2022 to the end of March 31st, 2023

– 03 Million VND for trade unionists whose labor contracts are terminated while they are not eligible for unemployment benefits:

If employees who are trade unionists are not qualified for entitlement to unemployment benefits when being forced to terminate their labor contracts during the period from October 1st, 2022 to March 31st, 2023 (except as they unilaterally terminate labor contracts in contravention of law; are sanctioned in the form of firing; fail to meet probation requirements or fall into the situation where the probation contract is made null or void by a contracting party; are paid retirement pensions or benefits for their incapacity to work on a monthly basis)