Vietnam: What are the support amounts for trade union members and employees who have been reduced working hours or suspended from work in 2023?

"What are the support amounts for trade union members and employees in Vietnam who have been reduced working hours or suspended from work in 2023?" - asked Mr. Tuan (Hanoi)

What does the application for grants for trade union members and employees in Vietnam who have been reduced working hours or suspended from work include?

Recently, on January 16, 2023, the Vietnam General Confederation of Labor issued Decision 6696/QD-TLD stipulating the implementation of policies to support trade union members and employees who have been reduced working hours or suspended from work since enterprises have been cut or reduced orders.

Accordingly, in Article 8 of the Regulations issued together with Decision 6696/QD-TLD in 2023 on the application for grants as follows:

- List of trade union members and employees who have been reduced working hours or suspended from work since enterprises have been cut or reduced orders certified by the grassroots trade unions and employers (according to Form No. 01 in the Appendix issued together with Decision 6696/QD-TLD).

- Copies of documents, plans, and decisions on rearranging working hours, production, and business, and reducing daily, weekly, and monthly working hours since enterprises have been cut or reduced orders.

- In case the employee is not a union member but is a pregnant female or is raising a biological or adopted child or is a surrogate carer for a child under 6 years of age, a copy of one of the following documents shall be submitted:

Documents proving that the employee is pregnant; Child's birth certificates; adoption certificate; Decisions on handing over and receipt to care of a child issued by competent authorities.

What are the support amounts for trade union members and employees in Vietnam who have been reduced working hours or suspended from work in 2023?

The support amounts for trade union members and employees in Vietnam who have been reduced working hours or suspended from work in 2023 are mentioned in Chapter II of the Regulations issued together with Decision 6696/QD-TLD in 2023 as follows:

(1) Subjects

Trade union members and employees working under employment contracts at enterprises who have paid union fees before September 30, 2022 and have been reduced working hours or suspended from work since enterprises have been cut or reduced orders.

(2) Conditions for grants

Trade union members and employees shall receive grants when meeting the following conditions:

- Have been reduced daily working hours or the number of working days in the week or month (except in the case of reducing overtime) or suspended from work according to Clause 3, Article 99 of the Labor Code for 14 days or more.

- Income of any month is equal to or lower than the regional minimum wage as prescribed in Decree 38/2022/ND-CP.

- Have been reduced working hours or suspended from work from October 1, 2022 to March 31, 2023.

(3) Support amounts and payment method

- Support amount

+ Employees are trade union members; who are not union members but are female employees aged at least 35, pregnant employees, are raising biological or adopted children or taking care of children under 6 years old (only for 01 person who is a mother or father or a child's surrogate carer): VND 1,000,000/person.

+ Non-union employees: VND 700,000/person.

- Payment method: Lump-sum payment in cash or bank transfer.

What are the procedures for implementing grants for trade union members and employees in Vietnam who have been reduced working hours or suspended from work?

According to the provisions of Article 9 of the Regulations issued together with Decision 6696/QD-TLD in 2023 as follows:

- Before the 15th of each month, the grassroots trade union shall review and request the employer to coordinate the compilation of the list of trade union members and employees eligible for grants and send the application for grants to the direct superior trade union.

The deadline for receiving applications is no later than March 31, 2023.

For enterprises without grassroots trade unions, the Labor Federation of districts, towns, cities, local trade unions, and equivalents, trade unions of industrial parks, export processing zones and economic zones (hereinafter referred to as trade unions superior to intra-organizational trade unions) proposes and coordinates with the employer in making a list of employees eligible for grants and collecting applications according to Article 8 of this Regulation.

- Within 05 working days from the date of receipt of a complete application, the trade unions superior to intra-organizational trade unions appraises and submits it to the provincial and municipal Labor Federation, the Central Trade Union, the Trade Union of the Corporation under the Vietnam General Confederation of Labor (hereinafter referred to as the provincial trade union).

In case the grassroots trade union is affiliated to the provincial-level trade union, the provincial-level trade union shall have to appraise.

- Within 05 working days from the date of receipt of a complete application, the provincial-level trade union shall issue a decision approving the list and support funds (according to Form No. 02 in the Appendix promulgated together with this Regulation);

Direct the trade unions superior to intra-organizational trade unions to transfer support funds or directly transfer support funds to the account of the grassroots trade union or direct the trade unions superior to intra-organizational trade unions to coordinate with the enterprise (where the grassroots trade union has not yet been established) to provide grants to trade union members and employees.

In case of non-approval, the provincial trade union shall notify in writing and clearly state the reasons.

- Within 05 working days from the date of receipt of support funds, grassroots trade unions, trade unions superior to intra-organizational trade unions, and provincial-level trade unions shall coordinate with employers in providing grants to trade union members and employees.

- Within 07 working days from the date of completion of the payment to trade union members and employees, grassroots trade unions send a list of signatures to receive grants from trade union members and employees (according to Form No. 03 in the Appendix promulgated together with this Regulation) or documents proving that they have transferred grants to trade union members and employees (in case union members and employees do not directly receive cash) and send to trade unions superior to intra-organizational trade unions.

For enterprises without grassroots trade unions, the trade unions superior to intra-organizational trade unions shall make a list of signatures to receive grants from employees or documents proving that they have transferred grants to employees (in case the employee does not directly receive cash) and save the documents as prescribed.

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