To amend regulations to support employees who lose their jobs and have their working hours reduced

To amend regulations to support employees who lose their jobs and have their working hours reduced
Le Truong Quoc Dat

On August 25, 2023, the Vietnam General Confederation of Labor issued Decision 7785/QĐ-TLĐ amending the Decision 6696/QĐ-TLĐ in 2023 on the implementation of policies to support trade union members and employees whose working hours are reduced, labor contracts are terminated due to enterprises cutting or reducing orders with the following notable contents:

Principles of employee support in Vietnam 

- Union members and employees who are considered for policy support due to reduction in working time, stoppage of work, suspension of labor contract implementation, or unpaid leave must be working under the labor contract at the time of requesting support; their name is on the payroll list (or payroll) at the enterprise before the start time of having your working time reduced, stopping work, having your labor contract temporarily postponed, or taking leave without pay and requesting support for at least 30 days or more.

Union members and employees who are considered and supported by policies due to the termination of their labor contract but are not eligible for unemployment insurance must be on the payroll list (or payroll) at the enterprise before the start of the termination of the labor contract and request support for at least 90 days or more (at least 88 days or more if the start of the termination of the labor contract is on April 1, 2023).

- Union members and employees receive one-time support payments in cash or bank transfer.

- Union members and employees who are eligible for support and belong to any category are entitled to that category's support policy, but a person is only entitled to support once for one policy. In cases where trade union members and employees are entitled to all support policies, the difference between support levels will not be deducted.

In the event that it is impossible to verify the support policy that union members and employees have enjoyed, the union members and employees must have a commitment to whether or not they have enjoyed the support policy.

- In case union members or employees have their working hours reduced or their labor contracts terminated due to the enterprise cutting or reducing orders from October 1, 2022, to March 31, 2024, if the application has been submitted to the trade union levels after March 31, 2024, but the upper-level trade union has not yet appraised or decided to support, the upper-level trade union will continue to evaluate and consider the support decision.

- The deadline for completing procedures to support union members and employees is March 31, 2024, at the latest.

- Organizations and individuals are strictly prohibited from taking advantage of support under this Regulation for personal gain. If there is a violation, based on the nature and extent of the violation, compensation will be required, and consideration will be given to disciplinary action, administrative handling, or criminal prosecution according to the provisions of the law.

Employees who lose their jobs or have their working hours reduced are supported in Vietnam

Union members and employees working under labor contracts at enterprises that pay union fees before April 1, 2023 will have their working hours reduced or stop working due to the enterprise cutting or reducing orders.

Conditions to support employees who have lost their jobs and been reduced working hours in Vietnam

Union members and employees working under labor contracts at enterprises that pay union dues before April 1, 2023 and have their working hours reduced or stop working due to layoffs or reductions in orders will be supported when all of the following conditions are met:

- Having a reduction in daily working time or a reduction in the number of working days in a week or a month (except for the case of reducing overtime) or being stopped from work according to Clause 3, Article 99 of the Labor Code for 14 days or more.

- Income (not deducting mandatory monthly contributions as prescribed by law) for any month is equal to or lower than the regional minimum wage as prescribed in Decree 38/2022/ND-CP.

- Period of reduced working hours and stoppage of work from April 1, 2023, to December 31, 2023.

More details can be found in Decision 7785/QD-TLD 2023, taking effect on August 25, 2023.

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