OFFICIAL LETTER NO. 1064/LDTBXH-QHLĐTL PROVIDING GUIDANCE ON PAYMENT OF SEVERANCE PAY AND BENEFITS FOR EMPLOYEES

     Currently, the Covid-19 epidemic is a top concern of countries around the world, not only in Vietnam. This disease has caused serious consequences for both businesses and workers, leading to the business of businesses seriously damaged, at the same time, workers also suffered losses when businesses. must suspend or narrow the business or production. Businesses are very difficult when their operation is delayed, but they still have to solve the problems for their employees, which are payroll issues. Therefore, on March 25^th, 2020, the Ministry of Labor, War Invalids and Social Affairs issued Official Letter No. 1064/LDTBXH-QHLĐTL providing guidance on payment of severance pay and benefits for employees during the period of time. cease work related to the disease Covid-19, in order to solve the labor situation for businesses and still ensure the rights of workers.

Specifically, the Official Letter provides as follows:

To: Department of Labor – Invalids and Social Affairs of provinces and cities directly under the Central Government

       In recent days, due to the impact of Covid-19 epidemic, production and business of many businesses have encountered difficulties, some enterprises have to suspend or narrow production, some workers have to stop working from The effects of translation such as:

(i) foreign workers have not been returned to the enterprise to work during the epidemic period as prescribed;

(ii) workers must segregate at the request of a competent authority;

(iii) the employee has to stop working due to the inability of the enterprise or its division to work because other workers have not returned to work at the request of the competent authority;

(iv) enterprises are facing difficulties due to epidemics affecting raw material sources, the market has led to a narrowing of production, not arranged even though jobs for workers.

     From the above reality, in order to implement the salary payment regime during the period of job stoppage and settle the benefits for employees in accordance with the labor law, the Ministry of Labor, War Invalids and Social Affairs requests the Department of Labor. – Invalids and Social Affairs guides businesses in the area to implement the following:

1. The payment of severance pay shall be based on the provisions of Article 98 of the Labor Code to consider cases of job discontinuation (due to the fault of the employer or the employee or for objective reasons) to determine severance pay for employees.
2. In the case of an employee who has to stop working due to the direct impact of the Covid-19 epidemic, such as: (i) a foreign worker who has not been returned to the enterprise to work at the request of the competent authority; (ii) the employee has to stop working during the quarantine period at the request of the competent authority; (iii) the employee has to stop working because the enterprise or the enterprise division is inoperable because the employer or other workers in the same enterprise or division are in the period of isolation or if not yet returned to the enterprise, the employee’s salary during the period of suspension shall comply with Clause 3, Article 98 of the Labor Code (the salary agreed by both parties but not lower than the regional minimum wage due to Government regulations).
3. For cases where the enterprises face difficulties in the source of raw materials and the market leading to not having enough jobs, the employer may temporarily transfer laborers to do other jobs compared to the labor contracts. to comply with the provisions of Article 31 of the Labor Code; if the prolonged period of job stoppage affects the solvency of the enterprise, the employer and the employee may agree to postpone the performance of the labor contract in accordance with Article 32 of the Labor Code; If the enterprise has to narrow its production, leading to a reduction in the working place, the labor arrangement shall comply with Article 38 or 44 of the Labor Code.
4. For other arising cases, the Department of Labor, War Invalids and Social Affairs is requested to base on each specific content and case to guide the settlement in accordance with law or report to the Ministry of Labor – Invalids and Social Affairs for guidance and timely handling./.

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