Amendment to Vietnam's Resolution 68: Expanding the beneficiaries of support

At Resolution 126/NQ-CP amending and supplementing Resolution 68/NQ-CP, the Government has supplemented difficult workers to receive support money, and loose conditions on policies to support employers to borrow loans to pay wages to stop working and restore production. As follows:

Amendment to Resolution 68: Expanding the beneficiaries of support (Artwork)

Additional cases where difficult employees receive support money

Resolution 126/NQ-CP of Vietnam has added subjects to receive cash support due to temporary suspension of labor contracts, unpaid leave, and termination of labor contracts, specifically:

* For employees who suspend their labor contracts or take unpaid leave:

Employees working under labor contracts, participating in compulsory social insurance up to the time immediately before suspending the performance of labor contracts, 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 in one of the following cases :

- Being treated for COVID-19, medical isolation, in blocked areas, unable to go to the workplace due to the request of a competent state agency to prevent and control the COVID-19 epidemic;

- Suspension of operation at the request of a competent state agency to prevent and control the COVID-19 epidemic, or the head office, branch, representative office, production or business location Businesses in the area take measures to prevent and control the epidemic according to the principles of Directive 16/CT-TTg of Vietnam or redeploy production and labor to prevent and control the COVID-19 epidemic.

One-time support as follows: from 15 consecutive days or more up to less than 01 month at the rate of VND 1,855,000/person; from 01 month or more, the rate is 3,710,000 VND/person.

* For the employee who terminates the labor contract

Employees working under labor contracts, and participating in compulsory social insurance, must terminate their labor contracts during the period from May 1, 2021 to the end of December 31, 2021 and fall into one of the following cases:

- Being in medical isolation, in blocked areas or unable to go to the workplace due to the request of a competent State agency to prevent and control the COVID-19 epidemic;

- Suspension of operations at the request of a competent State agency to prevent and control the COVID-19 epidemic or the employer has a head office, branch or representative office, production and business locations in the locality that take measures to prevent and control the epidemic according to the principles of Directive 16 or redeploy production and labor to prevent and control the COVID-19 epidemic but are not eligible for benefits. unemployment benefits.

One-time support 3,710,000 VND/person.

Therefore, the policy of cash support for employees who suspend labor contracts, take unpaid leave, and terminate labor contracts has been amended and supplemented in the direction of expanding the beneficiaries of the policy as "employees working under a labor contract and participating in compulsory social insurance" but not specifically working at public non-business units, educational institutions, etc. as stipulated in Resolution 68.

Loosening conditions to support employers borrowing loans to pay wages to stop working and restore production

Resolution 126/NQ-CP of Vietnam has removed the bad debt condition in the regulations on the loan policy to pay the salary to stop working.

Specifically, the employer is entitled to borrow a loan from the Bank for Social Policies with an interest rate of 0% and does not have to take measures to secure the loan to pay the salary for termination of work for employees participating in compulsory social insurance must stop working continuously for 15 consecutive days or more (Previously, Vietnam's Resolution 68 also stipulates that "the employer has no bad debt at credit institutions and foreign bank branches at the time of loan application").

In addition, according to the new Resolution, the employer has fully paid social insurance or is temporarily suspending payment to the retirement and survivorship fund until the end of January 2021 ( It is until April 2021 under the old regulations of Vietnam) that is affected by the COVID-19 pandemic, leading to a reduction of 10% of employees (instead of 15% as prescribed in Resolution 68/NQ-CP), participating in social insurance or more compared to January 2021 (including employees who stop working, suspend the performance of labor contracts, and agreements on unpaid leave), employees and employers are entitled to temporarily stop paying to the retirement and survivorship fund for 6 months from the date of application submission.

In conclusion, the conditions for the employer to enjoy the loan policy to pay wages to stop working, restore production, and the policy of temporarily suspending contributions to the retirement and survivorship fund for employers have been loosened compared to Resolution 68 of Vietnam. The easing of conditions will make it easier for employers in general and businesses in particular to maintain production and business activities, and to ensure stable jobs for employees.

Bao Ngoc

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