Supporting employers, employees affected by the Covid-19 epidemic

29/04/2020 Newest VBP

On April 9th, 2020, The Government issued Resolution No. 42/NQ-CP on supporting measures for people affected by covid-19 pandemic, thereby the employers and employees shall be supported as follows:

Supporting measures for employees:

+ Employer who has financial difficulties and has prepaid at least 50% of suspension allowance for their employees as prescribed in Clause 3 Article 98 of the Labor Code during the period from April to June 2020 may apply for an unsecured loan up to 50% of total region-based minimum wages of each suspended employee over the suspension period (not exceeding 3 months) with an interest rate of 0% with a loan term of up to 12 months at Vietnam Bank for Social Policies. The loan shall be used for unpaid wages and disbursed monthly to pay to the suspended employees.

+ Employers affected by the Covid-19 pandemic result in a reduction of 50% or more for employees participating in social insurance compared to the time when competent agencies announce epidemics (including stopped work, temporary suspension of employment contracts, unpaid leave agreements), the employee and the employer are temporarily allowed to suspend its contribution to the retirement and survivorship fund for not more than 12 months.

Supporting measures for employers:

+ Laborers working under the labor contract regime must agree to postpone the performance of labor contracts, take unpaid leave from work for 01 month or more due to difficulties of Covid-19 pandemic, have no income or no financial sources to pay salaries, shall be supported with 1,800,000 VND/person/month. The period of support is based on the actual time of temporary deferment of the labor contract, leave without pay, monthly according to the actual situation of the epidemic, starting from April 1, 2020 and not exceeding 3 months.

+ Employee who has their labor contract terminated or the employment contract is not eligible for unemployment benefits; laborers who did not enter into labor contracts and lose their jobs shall be supported with 1,000,000 VND/person/month on a monthly basis depending on the actual situation of the epidemic for no more than 3 months. This shall be applied from April to June 2020.