Below are guidelines for paying wages and settling benefits for employees during work stoppages related to the Covid-19 pandemic (Applicable for the years 2020 up to December 31, 2020).
From January 1, 2021, the new Labor Code, Law No. 45/2019/QH14, will be in effect.
On March 25, 2020, the Ministry of Labour, Invalids and Social Affairs issued Official Letter 1064-LĐTBXH-QHLĐTL providing guidance on paying wages during work stoppages and resolving benefits for employees during work stoppages related to the Covid-19 pandemic.
1. In case of work stoppage - The salary paid during the work stoppage period is as follows:
The Ministry of Labour, Invalids and Social Affairs requests the Department of Labour, Invalids and Social Affairs to guide businesses in the area to implement the following:
- The payment of wages during work stoppage is based on the provisions of Article 98 of the Labor Code, which considers the circumstances causing the work stoppage (due to the fault of the employer or the employee, or due to objective reasons) to determine the payment of wages to the employee.
- For cases where employees have to stop working due to the direct impact of the Covid-19 pandemic, such as:
- (i) foreign workers who are not yet allowed to return to the enterprise to work as required by the competent authority;
- (ii) employees must cease work during the quarantine period as required by the competent authority;
- (iii) workers have to stop working because the business or business unit is unable to operate due to the employer or other workers in that business or business unit being in quarantine or not yet able to return to work at the business.
The wages of employees during the period of work stoppage shall be determined in accordance with Clause 3, Article 98 of the Labor Code (wages agreed upon by both parties but not lower than the regional minimum wage stipulated by the Government).
Therefore, the wages of employees during periods of work stoppage shall be determined in accordance with Clause 3, Article 98 of the Labor Code (wages agreed upon by both parties but not lower than the regional minimum wage stipulated by the Government).
+ 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.
2. In cases where an employee is transferred to a different job than specified in their employment contract, the salary paid during this period will be as follows:
Therefore, in the case of transferring an employee to a different job than specified in the labor contract, the salary should be paid according to the provisions of Article 31 of the Labor Code mentioned above.
3. In case of temporary suspension of the labor contract - The salary will be paid as follows:
Therefore, in the case of temporary suspension of the labor contract, the above regulations shall apply.
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.
Article 33. Reinstating employees whose employment contracts have been temporarily suspended.
Within 15 days from the expiration of the temporary suspension of the labor contract in the cases stipulated in Article 32 of this Code, the employee must report to the workplace and the employer must reinstate the employee, unless otherwise agreed upon by both parties.
NOTE:
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.
4. In case of job reduction, labor restructuring shall be carried out in accordance with the guidelines in Article 38 or Article 44 of the Labor Code.
Therefore, if a company has exhausted all remedial measures but still has to reduce jobs, the company's unilateral termination of employment contracts should follow the guidelines mentioned above.
Regarding the procedure for unilateral termination of an employment contract, it shall be carried out in accordance with the guidelines of the Labor Law.
See also the Department of Labor, War Invalids and Social Affairs' implementation of this directive to businesses operating in Ho Chi Minh City via official document.
