Decision No. 32/2020/QĐ-TTg: Amending regulations to support people facing difficulties due to Covid-19 in Vietnam

1. Supplementing subjects eligible for assistance due to Covid-19 in accordance with Resolution No. 154/NQ-CP

According to Clause 1 Article 1 of the Decision No. 32/2020/QĐ-TTg of the Prime Minister of Vietnam, supplementing workers working in enterprises, private education institutions or public education institutions guaranteeing recurrent expenditure for kindergarten, preschool, primary, lower secondary, upper secondary education level (hereinafter referred to as “education institutions”) to subjects eligible for assistance due to Covid-19. Specifically, Clause 3 Article 1 of the Decision No. 15/2020/QĐ-TTg amended as follows:

Working in enterprises, private education institutions or public education institutions guaranteeing recurrent expenditure for kindergarten, preschool, primary, lower secondary, upper secondary education level (hereinafter referred to as “education institutions”) that do not generate revenues or do not have financial resources to pay salaries (after utilizing backup salary funds, taxed revenues and other legal financial resources of enterprises and education institutions) due to the COVID-19 epidemic.

Concurrently, supplementing “education institutions” to provisions on documentation and procedures for assistance due to Covid-19, specifically as follows:

2. Enterprises and education institutions shall prepare a list of employees suspending employment contracts or taking non-paid leave and satisfactory to Article 1 of this Decision; request local union organizations (if any) and social insurance agencies to verify this list.

3. Within 3 working days from the date on which the list is received, social insurance agencies shall verify participation in social insurance of employees according to Clause 2 Article 1 of this Decision and send to enterprises and education institutions.

4. Enterprises and education institutions shall send application to People’s Committees of districts where the enterprises and education institutions are based. Within 3 working days from the date on which adequate applications are received, People's Committees of districts shall appraise and propose Chairpersons of People’s Committees of provinces. Within 2 working days from the date on which adequate applications are received, Chairpersons of People’s Committees of provinces shall issue Decisions on approving list and funding expenditure and pay for the funding.
2. Expanding the conditions for employers to take loans to provide suspension pay for workers

According to Clause 1 Article 12 of the Decision No. 15/2020/QĐ-TTg of the Prime Minister of Vietnam, conditions for employers to take loans to provide suspension pay for workers are as follows:

At least 20% of the workers or at least 30 workers who have social insurance are suspended for at least 01 consecutive month; at least 50% of the suspension pay has been provided for these workers during the period from April 01 to June 30, 2020.

According to the Decision No. 32/2020/QĐ-TTg of the Prime Minister of Vietnam:

Have employees participating in mandatory social insurance suspending occupation for at least 1 month consecutively from April 1, 2020 to December 31, 2020 inclusively.

=> To meet 01 of the 03 conditions for taking loans to provide suspension pay for workers, employees only have employees participating in mandatory social insurance suspending occupation for at least 1 month consecutively from April 1, 2020 to December 31, 2020 inclusively instead of having at least 20% of the workers or at least 30 workers.

3. Detailing conditions for taking loans to provide suspension pay for workers
According to Clause 2 Article 13 of the Decision No. 15/2020/QĐ-TTg of the Prime Minister of Vietnam, 01 of the 03 conditions for taking loans to provide suspension pay for workers is: 

The employer is facing financial hardship and thus does not have sufficient funds to provide the suspension pay after using up the backup wage fund.

However, this provision is amended by Decision No. 32/2020/QĐ-TTg of the Prime Minister of Vietnam as follows:

Employers having revenue in the first Quarter of 2020 reduced by at least 20% compared to the fourth Quarter of 2019 or revenue of the Quarter immediately before the date of considering benefits reduced by 20% compared to the same Quarter of 2019.

4. Annulling provisions on documentation and procedures

Clause 5 Article 1 of the Decision No. 32/2020/QĐ-TTg of the Prime Minister of Vietnam has annulled Article 14 of Decision No. 15/2020/QĐ-TTg on documentation and procedures.

5. Amending provisions on approving and disbursing loans

According to Clause 6 Article 1 of the Decision No. 32/2020/QĐ-TTg of the Prime Minister of Vietnam, amending Article 15 of the Decision No. 15/2020/QĐ-TTg, application, procedures for loan, loan approval and disbursement are as follows:

* Application for loan

+ Written application using form attached to Decision No. 15/2020/QĐ-TTg.

+ Written declaration on the number of suspending employees and figures on eligibility for the loan according to Decision No. 15/2020/QĐ-TTg.

* Before the 5th of each month, employers shall send application for loan to Vietnam Bank for Social Policy where base offices, branches, representative offices, business locations or residence (for household or individual business) of employers are located.

* When submitting application for benefitting from remedial policies, employers shall provide master registers of following documents:

+ Documents satisfactory to type of business: enterprise registration certificate/cooperative or household business registration certificate; Decision on establishment of competent authorities (if any); Business permit/operation permit/practice license (for conditional business lines or business lines required by the law); Investment permit/investment certificate (for enterprises established by foreign investors);

+ Power of attorney (if any);

+ Written agreement on employment suspension between employers and employees.

* Within 5 working days from the date on which loan applications of employers are received, Vietnam Bank for Social Policy shall approve the loan.  In case of rejection, inform employers in writing and specify the reason.

* Disbursement of Vietnam Bank for Social Policy shall be implemented until the end of January 31, 2021.

Above are all the regulations amending and supplementing Decision No. 15/2020/QĐ-TTg of the Decision No. 32/2020/QĐ-TTg of the Prime Minister of Vietnam. Customers and Members can view more details at Decision No. 32/2020/QĐ-TTg and Decision No. 15/2020/QĐ-TTg to know more about policies to support people facing difficulties due to the Covid-19 pandemic.

Thuy Tram

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE