Currently, the situation of the Covid-19 pandemic is complicated, businesses have actively arranged for employees to work from home. Employees need to know these things to ensure their rights.
Article table of contents
1. Can businesses reduce wages when employees work from home during the Covid-19 epidemic?
Pursuant to Clause 1 Article 95 of the Labor Code 2019 of Vietnam on salary payment:
“Article 95. Salary payment
1. The employer shall pay the employee on the basis of the agreed salary, productivity and work quality.”
According to this provision, the salary payment for employees is based on the agreed salary, productivity and work quality but not the workplace. Thus, if the employees perform work which is equal to or better in comparison of productivity and work quality when working at the enterprises, enterprises can not reduce the salary of the employee but must pay the full salary to the employee as agreed.
2. Shall an employee who works overtime at home counted for overtime salary?
In the current situation, many employees are still working hard even though working hours are over when working from home. However, employees need to understand the regulations on overtime to protect their rights.
What is overtime work?
Overtime work is the duration of work performed at any other time than during normal working hours, as indicated in the law, collective bargaining agreement or internal labor regulations of an employer. Moreover, normal working hours shall not exceed 08 hours per day or 48 hours per week.
Thus, if the employees work in the time out of the working time specified in the labor regulations of the enterprise, it shall be counted as overtime salary.
How is overtime salary calculated?
Pursuant to Article 98 of the Labor Code 2019 of Vietnam:
Article 98. Overtime pay, night work pay
1. An employee who works overtime will be paid an amount based on the piece rate or actual salary as follows:
a) On normal days: at least 150%;
b) On weekly days off: at least 200%;
c) During public holidays, paid leave, at least 300%, not including the daily salary during the public holidays or paid leave for employees receiving daily salaries.
2. An employee who works at night will be paid an additional amount of at least 30% of the normal salary.
3. An employee who works overtime at night will be paid, in addition to the salary specified in Clause 1 and Clause 2 of this Article, an amount of at least 20% of the day work salary of a normal day, weekend or public holiday.
3. Does employee who works from home pay social insurance?
Pursuant to Clause 26 Article 1 of the Circular No. 06/2021/TT-BLĐTBXH, monthly salary serving as the basis for social insurance contribution shall be salaries, salary-based allowances and other amounts. Thus, if the employee still works online and receives a salary, he/she is still subject to participation in social insurance according to the provisions of law.
4. Shall employees who works during Covid-19 but reduced working time pay social insurance premiums?
Many businesses are implementing policies to reduce the working time of employees. For example: Many workers go to work with a schedule of 3 working days and 4 days off a week. So in this case, how to pay social insurance?
Pursuant to Clause 4 Article 42 Decision No. 595/QĐ-BHXH dated April 14, 2017:
An employee who does not work or receive salary for at least 14 working days in a month is not required to pay social insurance contributions in this month. This period shall not be included in the payment period of social insurance contributions.
Therefore, employers who are reduced working time during Covid-19 period may be in one of the following cases:
- Case 1: Employees whose number of days off is from 13 days or less in a month still have to pay social insurance premiums for that month.
- Case 2: Employees whose number of days off is from 13 days or more in a month but still receive a salary paid by the employer, the employee and the employer must pay social insurance premiums according to regulations.
- Case 3: Employees whose number of days off is from 13 days or more in a month but do not receive a salary paid by the employer, the employee and the employer shall not pay social insurance premiums according to regulations.
