Guidance on salary payment and regime settlement during the shutdown due to the Covid epidemic (In 2021)

The article provides guidance on salary payment and settlement of benefits for employees during work stoppage related to the Covid-19 epidemic (Applicable to 2021 from January 01, 01).

Here are 6 cases that can be implemented depending on the reality of each business:

Table of contents articles

Case 1: Salary reduction (Equivalent to the modification of the agreement in the labor contract)

An enterprise can only reduce the employee's salary when it is agreed by the employee according to the provisions of Article 33 - Labor Code 2019.

Based on the actual situation of each enterprise, the employer can negotiate a reasonable salary reduction agreement with the employee.

In case the employee does not agree, the enterprise must still pay the salary directly, in full and on time to the employee

Case 2: Suspension of the performance of the labor contract (equivalent to unpaid leave)

In case of temporary suspension of the performance of a labor contract, the provisions of Point h, Clause 1, Article 30 of the Labor Code shall apply:

About salary: No salary

During the period of temporary suspension of the performance of the labor contract, the employee is not entitled to the salary and rights and benefits entered into in the labor contract, unless otherwise agreed upon by the two parties or provided for by law.

About social insurance money: No social insurance payment

Employees who do not work and do not receive wages for 14 or more working days in a month are do not pay social insurance that month. This period is not counted to receive social insurance benefits.

Case 3: Transferring employees to work other than the labor contract

In case, because of difficulties caused by the Covid-19 epidemic, the employee must be transferred to a job other than the labor contract, the salary shall be paid according to the provisions of Article 29 of the Labor Code: The salary for the new job is at least must be equal to 85% of the old job salary but not less than the regional minimum wage

Case 4: Let the employee stop working

Wages of employees during work stoppage due to the Covid-19 epidemic shall comply with Clause 3, Article 99 of the Labor Code 2019:

a) In case of cessation of work for 14 working days or less, the agreed stoppage salary shall not be lower than the minimum wage;

b) In case of having to stop working for more than 14 working days, the salary for stopping work shall be agreed upon by the two parties but must ensure that the salary for stopping work in the first 14 days is not lower than the minimum salary.

Case 5: The employer and the employee agree to terminate the labor contract voluntarily

Based on the actual situation of each enterprise, the employer may negotiate an agreement to terminate the performance of a voluntary labor contract with the employee according to the provisions of Point 3, Article 34 of the Labor Code. 2019 regulations.

Employers can negotiate with practical support for employees to switch jobs smoothly. 

Case 6: The employer unilaterally terminates the labor contract

The Covid-19 epidemic is now considered a dangerous disease for enterprises to have a basis to unilaterally terminate labor contracts with employees according to the provisions of Point c, Clause 1, Article 36 - Labor Code. 2019, but the following two conditions must be met:

  1. Enterprises have tried all remedies but still have to reduce the number of workplaces.
  2. Adhere to the following notice period:
  • At least 45 days for an indefinite term labor contract;
  • At least 30 days for a definite-term labor contract with a term of between 12 and 36 months;
  • At least 03 working days for a definite-term labor contract with a term of less than 12 months;
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