This article provides guidance on paying wages and settling benefits for employees during periods of work stoppage related to the Covid-19 pandemic (Applicable for the year 2021 from January 1, 2021).
Below are six possible scenarios, depending on the specific circumstances of each business:
- The 2019 Labor Code came into effect on January 1, 2021.
- Official document No. 264/QHLĐTL-TL regarding the payment of wages to employees during work stoppages related to the Covid-19 pandemic. Issued on July 15, 2021 by the Department of Labor Relations.
- Official document 1064_LĐTBXH_QHLĐTL provides guidance on paying wages during work stoppages and resolving benefits for employees during work stoppages related to the Covid-19 pandemic. Issued by the Ministry of Labour, Invalids and Social Affairs on March 25, 2020
Case 1: Salary reduction (Equivalent to amending the employment contract)
Businesses can only reduce employees' salaries with the employees' consent, as stipulated in Article 33 of the 2019 Labor Code.
Based on the specific circumstances of each company, employers can negotiate a reasonable wage reduction with their employees.
Even if the employee disagrees, the company is still obligated to pay the employee their salary directly, in full, and on time.
Case 2: Temporary suspension of the employment contract (equivalent to unpaid leave)
In cases of temporary suspension of the labor contract, the provisions of Point h, Clause 1, Article 30 of the Labor Code shall apply:
Regarding salary: No salary
During the period of suspension of the labor contract, the employee is not entitled to salary and the rights and benefits stipulated in the labor contract, unless otherwise agreed upon by both parties or provided for by law.
Regarding social insurance contributions: No social insurance contributions were paid.
Workers who do not work and do not receive wages for 14 or more working days in a month are did not pay social insurance contributions that month.This period is not counted towards social insurance benefits.
The law does not specify a maximum duration for a temporary suspension. Therefore, businesses need to agree on a specific timeframe, not a vague one, for example: "Once the pandemic is over, the company will rehire its employees." because it can easily lead to disputes later on.
Within 15 days from the expiration of the temporary suspension of the labor contract, the employee must report to the workplace, and the employer must reinstate the employee to their job under the concluded labor contract if the labor contract is still valid, unless otherwise agreed upon by both parties or stipulated by law.
Case 3: Transferring an employee to a different job than specified in their employment contract.
In cases where difficulties caused by the Covid-19 pandemic necessitate transferring employees to different jobs than those specified in their labor contracts, wages shall be paid in accordance with Article 29 of the Labor Code: The minimum wage for the new job must be equal to... 85% of my previous salary. but not lower than the regional minimum wage.
Case 4: Allowing employees to stop working.
Regarding the payment of wages to employees during the work stoppage in 2021 due to the Covid-19 pandemic, the provisions of Clause 3, Article 99 of the 2019 Labor Code shall apply:
a) In cases of work stoppage lasting 14 working days or less, the agreed-upon wages for the period of work stoppage shall not be lower than the minimum wage;
b) In cases where work is suspended for more than 14 working days, the compensation for the suspension of work shall be agreed upon by both parties, but it must be ensured that the compensation for the first 14 days of suspension of work is not lower than the minimum wage.
Article 3 of Decree 90/2019/ND-CP stipulates the current minimum wage levels for each region as follows:
+ Region I, at 4.420.000 VND/month;
+ Region II, at a rate of 3.920.000 VND/month;
+ Region III, at a rate of 3.430.000 VND/month;
+ Region IV, at a rate of 3.070.000 VND/month.
Case 5: The employer and employee agree to terminate the employment contract voluntarily.
Based on the actual circumstances of each enterprise, employers may negotiate and agree to voluntarily terminate the labor contract with employees in accordance with Point 3, Article 34 of the 2019 Labor Code.
Employers can agree to provide practical support to help employees transition to new jobs more smoothly.
Case 6: The employer unilaterally terminates the employment contract.
The current Covid-19 pandemic is considered a dangerous disease that provides a basis for businesses to unilaterally terminate employment contracts with employees as stipulated in Point c, Clause 1, Article 36 of the 2019 Labor Code. but the following two conditions must be met:
- The company has explored all possible solutions but still had to reduce jobs.
- Please adhere to the following notice period:
- At least 45 days for indefinite-term employment contracts;
- At least 30 days' notice for fixed-term employment contracts with a term of 12 to 36 months;
- At least 03 working days for fixed-term employment contracts with a term of less than 12 months;
1. Workers who are sick or injured, or suffering from occupational diseases and are undergoing treatment or rehabilitation as prescribed by a competent medical facility, except in cases specified in point b, clause 1, Article 36 of this Code.
2. Employees who are on annual leave, personal leave, or other types of leave approved by the employer.
3. Female employees who are pregnant; employees who are on maternity leave or raising children under 12 months old.
