What should businesses do when laying off multiple employees due to Covid-19?
Based on Clause 1, Article 44 of the Labor Code 2012, it is stipulated: In the event of changes in organizational structure or technology that affect the employment of many employees, employers are responsible for developing and implementing a labor utilization plan in accordance with the provisions of Article 46 of this Code; if there are new job positions, the employer should prioritize retraining employees for continued employment.
Clause 1, Article 13 of Decree 05/2015/ND-CP stipulates that changes in organizational structure or technology include the following cases:
- Changes in organizational structure, reorganization of labor;
- Changes in products, product structure;
- Changes in processes, technology, machinery, production, and business equipment associated with the business lines of the employer.
In the event that a company terminates the employment of many employees, it can only proceed after consulting with the representative organization of the employees at the establishment and giving 30 days' notice to the provincial labor management agency. The notification content includes:
- Name, address of the employer, and the legal representative of the employer;
- Total number of employees; number of employees being terminated;
- Reason for employee termination;
- Timing of employee termination;
- Amount of severance pay to be disbursed.
=> Therefore, when your company reorganizes labor and terminates the employment of multiple employees, it must first consult with the representative organization of the employees at the establishment and give 30 days' notice to the provincial labor management agency. In addition, the company must develop a new labor utilization plan that includes the following contents:
- List and number of employees to be retained, employees to be retrained for continued employment;
- List and number of employees retiring;
- List and number of employees transferred to part-time work; employees whose labor contracts must be terminated;
- Measures and financial resources to ensure the implementation of the plan.
The above is the support content.
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