Procedures to support employees who are forced into reduction in working hours or resign from their job in Vietnam

Procedures to support employees who are forced into reduction in working hours or resign from their job in Vietnam (Internet image)

1. Conditions to support employees who are forced into reduction in working hours or resign from their job in Vietnam

Support shall be granted to trade unionists and employees working under labor contracts at enterprises who have paid union dues before September 30, 2022 if they are working reduced hours or on furlough due to their employer’s cancellation or reduction of purchase orders. Trade unionists and employees shall be entitled to support if

- They are forced into reduction in working hours per day or working days per week or month (except reduction in overtime), or on furlough pursuant to clause 3 of Article 99 in the Labor Code for  at least 14 days.

- Their income in any month is equal to or less than the region-specific minimum pay specified in Decree 38/2022/ND-CP.

- The period during which they work reduced hours or are on furlough falls between October 1, 2022 and end of March 31, 2023.

(Articles 5 and 6 of Decision 6696/QD-TLD)

2. Amounts of support and payment methods in Vietnam

- Amounts of support

+ If employees are trade unionists; employees who are not trade unionists are females aged 35 years or older; employees are pregnant females; employees are raising natural or adopted children or fostering children under 6 years of age, they shall be entitled to VND 1,000,000 per capita (only one person who is the mother or father or the foster carer).

+ Employees who are not trade unionists shall be entitled to VND 700,000 per capita.

- Payment method: Support shall be paid in cash or wire transfer on a one-time basis.

(Article 7 of Decision 6696/QD-TLD)

3. Application package to request support for employees who are forced into reduction in working hours or resign from their job in Vietnam

Application package to request support employees who are forced into reduction in working hours or resign from their job include:

- The list of trade unionists or employees who are forced into reduced working hours or on furlough due to their companies’ cancellation or reduction of purchase orders.

This list must be certified by both the grassroots trade union and the employer (Form No. 01 given in Appendix attached to Decision 6696/QD-TLD).

Form No. 01

- The copies of documents, plans or decisions stating change of working, production or business time, and reduction of daily, weekly and monthly working hours due to cancellation or reduction of purchase orders.

- If an employee who is not a trade unionist is a pregnant female; an employee is raising a biological or adoptive child or fostering a child under 6 years old, he/she shall be required to submit the following documents other than those mentioned above:

+ Proof of pregnancy;

+ Birth certificate or evidence of birth of the child;

+ Certificate of adoption;

+ Decision on transfer of foster care of a child issued by a competent authority.

(Article 8 of Decision 6696/QD-TLD)

4. Procedures to support employees who are forced into reduction in working hours or resign from their job in Vietnam

- Step 1: Before the 15th of every month, the grassroots trade union shall review and request the employer to cooperate in compiling the list of trade unionists and employees eligible for support, and send the application package to the immediate superior trade union.

The submission deadline is end of March 31, 2023.

For enterprises that have not yet established a grassroots trade union, the Federation of Labour of a district, town, city, local trade unions and the equivalent, the trade union of an industrial park, export processing zone, or economic zone (hereinafter referred to as the immediate superior trade union) shall propose and join with each employer to make a list of employees eligible for support and collect the documents specified in Section 3.

- Step 2: Within 5 working days after receipt of the complete dossier, the immediate superior trade union shall conduct review and submit it to the Federation of Labor of the province or city, the central trade union, the trade union of an incorporation under the Vietnam General Confederation of Vietnam (hereinafter referred to as provincial Federation of Labour).

In case where the grassroots trade union is directly under the provincial Federation of Labour, the provincial Federation of Labour shall be responsible for such review.

- Step 3: Within 05 working days of receipt of the complete dossier, the provincial Federation of Labour shall

+ Issue a decision to approve the list and support funding (using Form No. 02 in the Appendix issued with these Regulations);

Form No. 02

+ Instruct the immediate superior trade union to disburse the support funding or directly transfer the support fund to the account of the grassroots trade union, or direct the immediate superior trade union to cooperate with the enterprise (where the grassroots trade union has not yet been set up) in supporting trade unionists and employees.

In case of rejection, the written notice from the provincial Federation of Labour, clearly stating reasons for such rejection, must be sent.

- Step 4: Within 05 working days of receipt of the support funding, the grassroots trade union, the immediate superior trade union and/or the provincial Federation of Labour shall cooperate with the employer in paying support to trade unionists and employees.

- Step 5: Within 07 working days from the date of completed payment of support to trade unionists and employees, the grassroots trade union shall send a list of trade unionists and employees signing for support (using Form No. 03 in the Appendix to these Regulations)

Form No. 03

Or documents proving that the amounts of support have been paid to trade unionists and employees by wire transfer (if the trade union member or employee does not directly receive cash), and send it to the immediate superior trade union.

For any enterprise that has not yet established a grassroots trade union, the immediate superior trade union shall make a list of employees signing for support or documents proving that the amounts of support have been paid to the employees by wire transfer (if the payees cannot directly receive cash), and keep documentary evidence as prescribed.

(Article 9 of Decision 6696/QD-TLD)

Diem My

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