Support procedures for employees temporarily suspended from execution of their labor contracts due to reduction in orders in Vietnam

Support procedures for employees temporarily suspended from execution of their labor contracts due to reduction in orders in Vietnam (Internet image)

1. Conditions for support granted to employees temporarily suspended from execution of their labor contracts due to reduction in orders 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 without pay due to their employer’s cancellation or reduction of purchase orders upon meeting the following conditions:

- They are temporarily suspended from execution of their labor contracts, or are furloughed without pay within the contract term for the minimum period of consecutive 30 days due to their employers’ cancellation or reduction of purchase orders (except due to personal causes).

- The period of temporary suspension of the labor contract or unpaid furlough must be between October 1, 2022 and end of March 31, 2023.

- The start date of temporary suspension of the labor contract or unpaid furlough must fall between October 1, 2022 and end of March 31, 2023.

(Articles 10, 11 of Decision 6696/QD-TLD)

2. Amounts of support for employees temporarily suspended from execution of their labor contracts due to reduction in orders 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 2,000,000 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 1,400,000 per capita.

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

(Article 12 of Decision 6696/QD-TLD)

3. Application to request support for employees temporarily suspended from execution of their labor contracts due to reduction in orders in Vietnam

- The list of trade unionists or employees who are temporarily suspended from execution of their labor contracts, or are furloughed without pay due to their employers’ cancellation or reduction of purchase orders (Form No. 04 given in Appendix to Decision 6696/QD-TLD).

Form No. 04

- The copies of written agreements on temporary suspension from execution of labor contracts or unpaid leave of trade unionists and employees.

- The copies of written documents, plans or decisions on rearrangement of work, production and business activities due to cancellation or reduction of purchase orders that results in temporary suspension from execution of labor contracts or unpaid leave of trade unionists and employees.

- 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 13 of Decision 6696/QD-TLD)

4. Support procedures for employees temporarily suspended from execution of their labor contracts due to reduction in orders 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 any enterprise that has not yet established a grassroots trade union, 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 05 working days after receipt of the complete dossier, the immediate superior trade union shall conduct review and submit it to the provincial Federation of Labor.

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) 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.

Form No. 03

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 14 of Decision 6696/QD-TLD)

Diem My

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