Resolution 06/NQ-ĐCT: Support of up to 03 million VND for employees who are forced into reduced working hours in Vietnam

According to Resolution 06/NQ-DCT, support granted to  trade unionists or employees who are forced into reduced working hours or made redundant by termination of their labor contracts is as follows:

1. Levels of support for employees who are forced into reduced working hours in Vietnam

1.1. Support granted to trade unionists forced into reduction in their working hours

If employees who are trade unionists working under labor contracts are forced into reduction in their working hours per day, week or month (except reduction in overtime hours), or have stopped working pursuant to clause 3 of Article 99 in the Labor Code for 14 days or more during the period from October 1, 2022 to the end of March 31, 2023; and earn income in any month which is equal to or less than the region-specific minimum pay rate defined in the Government’s Decree No. 38/2022/ND-CP dated June 12, 2022, stipulating the minimum pay for employees working under labor contracts, each of them shall be entitled to an amount of support worth VND 1,000,000.

1.2. Support granted to trade unionists temporarily suspended from execution of their labor contracts, or on a furlough or unpaid leave in Vietnam

If employees who are trade unionists are temporarily suspended from execution of their labor contracts, or are furloughed or on an unpaid leave of absence within the consecutive 30-day period (except for personal reasons) from October 1, 2022 to the end of March 31, 2023, each of them shall be entitled to an amount of support worth VND 2,000,000.

1.3. Support granted to trade unionists whose labor contracts are terminated while they are not eligible for unemployment benefits in Vietnam

If employees who are trade unionists are not qualified for entitlement to unemployment benefits when being forced to terminate their labor contracts during the period from October 1, 2022 to March 31, 2023 (except as they unilaterally terminate labor contracts in contravention of law; are sanctioned in the form of firing; fail to meet probation requirements or fall into the situation where the probation contract is made null or void by a contracting party; are paid retirement pensions or benefits for their incapacity to work on a monthly basis), each of them shall be entitled to an amount of support worth VND 3,000,000.    

2. Principles of supporting employees who are forced into reduced working hours in Vietnam

- Ensure support granted to the right beneficiaries in an open and transparent manner without allowing any abuse or profiteering in the implementation process to occur.

- Set out criteria and conditions for trade unionists and employees to easily access and benefit from each trade union's support policies.

- Each trade unionist or employee shall be entitled to a one-time support in cash.

- When a trade unionist or employee is eligible for different support policies under this Resolution, they will only be entitled to the policy of highest value.

- Where a trade unionist or employee has received support of lower value and then qualified for support of higher value, they may continue to enjoy the difference in support value between these two support policies.

- Where a trade union member or employee is eligible for support under this Resolution, but has received the similar support of lower value than as defined herein from a trade union at any level before the effective date of this Resolution, they may enjoy the difference in support value between these two support policies.

- Employees who are not trade unionists may be granted support equal to 70% of the support for employees who are trade unionists.

- If employees who are 35 years old or older; pregnant female employees; employees who are raising natural or adopted children or fostering children under 6 years of age (only one person who is the mother or father or the foster carer), are not trade unionists, they shall be entitled to support in the same as the one intended for trade unionists.

- Support granted to trade unionists or employees shall be funded by the budget of the trade unions superior to workplace trade unions as follows:

+ Assigning immediately superior trade unions to use their contingency budget and existing regular funds; if any immediately superior trade union fails to have available funds,  the Federation of Labor in a province or city; the central or equivalent Trade Union; the Trade Union of the Incorporation or General Company directly under the Vietnam General Confederation of Labour shall act on behalf of that immediately superior trade union to provide funds for support.

+ If the Confederation of Labor in a province and city; the central or equivalent Trade Union; the Trade Union of an Incorporation or General Company directly under the Vietnam General Confederation of Labour has less than VND 15 billion in the balance of support expenditure in the recurrent account tier 2 or 3, the Standing Committee of the Presidium of the Vietnam General Confederation of Labor must be informed of such balance to seek its approval of budget support.

More details can be found in Resolution 06/NQ-DCT dated 16/01/2023.

Nhu Mai

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