Amid complicated Covid-19 situation, several state agencies have issued official dispatches guiding enterprises affected by the pandemic, specifically as follows:
- Vietnam Social Security has issued Official Dispatch No. 860/BHXH-BT on March 17th 2020 providing guidance on the suspension of payment of retirement, survivorship allowances to those affected by Covid-19 epidemic.
The provincial-level Social Security shall accept and promptly handle the application file for temporary suspension of retirement and survivorship allowance fund payment until June 2020 upon receipt of the enterprise’s request dossier; there is also no interest added to the payment. If the pandemic still continues, enterprises may consider and propose for the suspension till December 2020.
During the suspension period, no specialized inspection of payment on social insurance, health insurance and unemployment insurance against enterprises affected by Covid-19 pandemic is permitted provided that such enterprises do not show any sign of violation.
In addition, the Official Dispatch provides that the Social Security at provincial level have to urge enterprises to fully and promptly make payment to sickness, maternity fund; labour accident and occupational disease fund; health insurance and the unemployment insurance fund to ensure benefits for employees.
- On March 18th 2020, with a view to implementing Directive No. 11/CT-TTg on urgent objectives and solutions for assisting businesses facing difficulties and assurance of social welfare amid covid-19 pandemic, Vietnam General Confederation of Labor issued Official Dispatch No. 245/TLD on postponing of paying trade union fees for enterprises affected by Covid-19 pandemic.
According to the Directive, enterprises affected by the Covid-19 pandemic are consented to postpone trade union fees for the first 06 months of 2020 until June 30th 2020.
Enterprises affected by Covid-19 pandemic are those whose 50% or more of the total employees subject to compulsory social insurance must temporarily quit the job.
After such period, if the Covid-19 pandemic situation does not get better and enterprises are still in difficulty, the due day will be extended until December 31st 2020.
Confederation of Labor at provincial level; Central Trade Union; Trade Union Corporation under the General Confederation of Labor are held responsible for implementing and reporting the situation to the General Confederation on the 10th of each month.
- Official Dispatch No. 1064/LDTBXH-QHLDTL on March 25th 2020 of Minister of Labor, Invalids and Social Affairs guiding Provincial and Municipal Departments of Labor, Invalids and Social Affairs on wage payment and settlement policies for employees during the work suspension time due to Covid-19 pandemic. Whereby:
The wage in case of work suspension should be considered, under Article 98 of Labour Code, in order to see whether the work suspension is due to the fault of the employer or the employee or due to objective reasons, to determine the wages for employees.
In case the employees have to stop working due to the direct impact of Covid-19 pandemic, such as: (i) foreign workers have not been returned to the enterprise as requested by competent authorities; (ii) workers who have to stop working during quarantine time as requested by competent authorities; (iii) workers who have to stop working because of the inability of the enterprise or the enterprise departments since the employer or other workers are in the isolation time or have not been returned to work. In such events, the wage payment shall comply with Clause 3, Article 98 of the Labor Code (the wage agreed by both parties but not lower than the regional minimum wage set by the Government).
In case the enterprise has to cope with difficulties in material sources and the market which results in not having enough jobs, the employer may temporarily transfer employees to other jobs as prescribed in Article 31 of the Labor Code. If the prolonged period of suspension adversely affects the solvency of the enterprise, the employer and employee may agree to postpone the performance of the Labor contract in accordance with Article 32 of the Labor Code. If the enterprise has to reduce its production, leading to a decrease in positions, the labour arrangement shall comply with Article 38 or 44 of the Labor Code.
The above timely policies and supports show the great efforts of the competent authorities in supporting enterprises and employees to overcome difficulties and negative economic impacts of Covid-19 pandemic.
It should be noted that the Official Dispatch is not a legislative document according to Law on Promulgation of Legislative Documents 2015. However, Article 7 of Decree 30/2020/ND-CP provides that the list of administrative documents includes Official Dispatch (Article 7). This is the one formed in the process of direction, administration and settlement of work of authorities. Therefore, although the Official Dispatch is not a legislative document, it is effective within that sector, that authorities system because it contains information of administrative management such as guidance, urge, inspection, monitor and et cetera, of authorities activities.
Enterprises and employees should study Official Dispatches to understand and apply the policies of Vietnam Social Security, Vietnam General Confederation of Labor, Minister of Labor, Invalids and Social Affairs to their own cases.