The Government of Vietnam amends Resolution 68 on supporting workers and employers facing difficulties due to Covid-19

The Vietnamese government has just promulgated Resolution 126/NQ-CP amend Resolution 68/NQ-CP dated 1/7/2021 on supporting workers and employers in difficulty due to COVID-19.

Vietnamese Government amends Resolution 68 on supporting employees and employers facing difficulties due to Covid-19 (Illustration image)

Specifically, amending some support regulations in Resolution 68/NQ-CP as follows:

Policy on temporary suspension of contributions to the retirement and survivorship fund

Clause 2, Section II of the policy on temporary suspension of contributions to the retirement and survivorship fund is amended and supplemented as follows: The employer has fully paid social insurance (social insurance) or is temporarily suspending contributions to the retirement and survivorship fund until the end of January 2021 but are affected by the COVID-19 pandemic, resulting in a reduction from 10% of employees participating in social insurance or more than January 2021 (including workers stopped working, suspending the performance of the labour contract or agreement on unpaid leave), the employee and the employer are entitled to suspend payment to the retirement and survivorship fund for 6 months from the time of submitting the application.

Therefore, the conditions for enjoying the policy of temporary suspension of contributions to the retirement and survivorship fund have been loosened compared to Resolution 68 of Vietnam(Resolution 68 stipulates the condition that the reduction of employees participating in social insurance is 15% or more compared to April 2021).

Policies to support employees to suspend labor contracts and take unpaid leave

The policy to support employees to suspend labor contracts and take unpaid leave in Clause 4, Section II, is amended and supplemented as follows: Employees working under labor contracts and participating in compulsory social insurance up to the time immediately before suspending the performance of the labor contract, taking unpaid leave; having a period of temporary suspension of the performance of the labor contract, taking unpaid leave within the term of the labor contract from 15 consecutive days or more, from May 1, 2021 to the end of December 31, 2021 and The time to start suspending the performance of the labor contract, taking unpaid leave from May 1, 2021 to the end of December 31, 2021 and falling into one of the following cases: must be treated for COVID-19, medical isolation, in blocked areas, unable to go to the workplace due to the request of competent state agencies to prevent and control the COVID-19 epidemic; Directive 16/CT-TTg or rearrangement of production and labor for the prevention and control of the COVID-19 epidemic, one-time support as follows: from 15 consecutive days or more to less than 01 month, the rate is VND 1,855,000/person; from 01 month or more, the rate is 3,710,000 VND/person.

Therefore, the monetary support policy for employees who suspend labour contracts or take unpaid leave has been amended in the direction of expanding the beneficiaries of the policy as "employees working under labour contracts, employees participating in compulsory social insurance” but it is not specified that they have to work at public non-business units, educational institutions, etc., according to the provisions of Resolution No. 68.

Policies to support employees terminated from work

Regarding the policy to support employees who are suspended from work in Clause 5, Section II, it is amended and supplemented as follows: Employees working under labor contracts are terminated for reasons according to Clause 3, Article 99 of the Labor Code of Vietnam; are participating in compulsory social insurance up to the time immediately before stopping work and are in one of the following cases: having to be treated for COVID-19, medical isolation, in blocked areas or unable to go to work at the request of a competent state agency according to the principles of Directive 16/CT-TTg; because the employer has to suspend operations at the request of a competent state agency or has its head office, branch, representative office, production and business location in the locality to take measures to prevent and control the epidemic according to the principles of Directive 16/CT-TTg or rearrange production and labour to prevent and control the COVID-19 epidemic for 14 consecutive days or more from May 1, 2021 to the end of December 31, 2021, a one-time support of 1,000,000 VND/person.

Policies to support employees terminating labour contracts

Point 6, Section II of the policy on supporting employees to terminate labour contracts is amended and supplemented as follows: Employees working under labour contracts, participating in compulsory social insurance, must terminate their contracts during the period from May 1, 2021 to the end of December 31, 2021 and fall into one of the following cases: having to undergo medical isolation, in blocked areas or unable to go to the workplace requested of competent State agencies to prevent and control the COVID-19 epidemic; due to the employer's suspension of operations at the request of a competent State agency to prevent and control the COVID-19 epidemic or the employer's head office, branch, representative office, and business locations in the locality shall take measures to prevent and control the epidemic according to the principles of Directive 16/CT-TTg or redeploy production and labour to prevent and control the COVID-19 epidemic but are not eligible for unemployment benefits, receive a one-time support of VND 3,710,000/person.

Policies to support business households

The policy on supporting business households in Clause 10, Section II is amended and supplemented as follows: Business households have business registration and are included in the tax office's directory; Households doing business in agriculture, forestry, fishery, salt making, and those selling street goods, snacks, trips, mobile businesses, seasonal businesses, and service providers with low incomes are not required to register as household businesses. The business must stop operating for 15 consecutive days or more at the request of a competent state agency to prevent and control the COVID-19 epidemic or because there is a business located in the area that implements measures to prevent and control the epidemic. According to the principles of Directive 16/CT-TTg of Vietnam, the period from May 1, 2021 to the end of December 31, 2021 will receive a one-time support of 3,000,000 VND/household from the State budget.

Loan policy to pay wages to stop working, restore production in Vietnam

The policy on loan to pay salary for job termination at Point a, Clause 11 of Section II is amended and supplemented as follows: The employer is entitled to borrow a loan from the Bank for Social Policies at the interest rate of 0% and is not required to furnish a loan security to pay furlough wages to the employees who have contributed to compulsory social insurance and have been put on furlough for 15 consecutive days or more as prescribed in Clause 3, Article 99 of the Labor Code, from May 1, 2021 to the end of March 31, 2022. The employer must have no bad debt at any credit institution and foreign bank branch at the time of applying for a loan.  The maximum loan amount is equal to the regional minimum wage for the number of employees according to the actual payment period of furlough wages but not exceeding 03 months. The loan term is less than 12 months.

Resolution 126/NQ-CP of Vietnam takes effect from October 8, 2021.

Bao Ngoc

 

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