Recently, the Prime Minister of Vietnam has issued the Decision No. 32/2020/QĐ-TTg on amendments to Decision No. 15/2020/QĐ-TTg. The new Decision has amended and supplemented provisions on conditions and procedures for employers to take loans to provide suspension pay for workers.
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Conditions for employers to take loans to provide suspension pay for workers due to Covid-19
Specifically, according to Clauses 3 and 4 Article 1 of the Decision No. 32/2020/QĐ-TTg of the Prime Minister of Vietnam, amending Clauses 1 and 2 Article 13 of the Decision No. 15/2020/QĐ-TTg, conditions for employers to take loans to provide suspension pay for workers due to Covid-19 are stipulated as follows:
- Have employees participating in mandatory social insurance suspending occupation for at least 1 month consecutively from April 1, 2020 to December 31, 2020 inclusively. (according to Decision No. 15/2020/QĐ-TTg, there is 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)
- 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. (according to Decision No. 15/2020/QĐ-TTg, 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)
Thus, according to the above provisions, any enterprise having employees participating in mandatory social insurance suspending occupation for at least 1 month consecutively from April 1, 2020 to December 31, 2020 inclusively, 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, concurrently, does not have bad debts at credit institutions and foreign bank branches by December 31, 2019, will be eligible to take loans to provide suspension pay for workers due to Covid-19.
Procedures for employers to take loans to provide suspension pay for workers due to Covid-19
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 to provide suspension pay for workers due to Covid-19 includes:
+ 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.
+ Master registers of 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.
- 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.
- 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.
Note: 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 on conditions and procedures for employers to take loans to provide suspension pay for workers due to Covid- 19 applied from October 19, 2020. 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.
Ty Na
- Key word:
- Decision No. 32/2020/QĐ-TTg
- Covid-19
