[Vietnam Legal Updates] New Policies To Support Enterprises And Employees Having Difficulties Under Covid-19

April 27, 2020

Aiming to support in difficulties, stabilize people’s lives & employees across the country, The Government has informed an official resolution 42/NQ-CP dated 09 April 2020 provided instruction about policies to support enterprises and employees having crisis infected by the Covid-19 pandemic as follows:

I - To Employees:

- Employees have an agreement to suspend from labor contract performance, drop the work without wage payment from 01 month above due to their enterprise has business difficulties (by the pandemic, no revenue or no financial resources to pay wages). The employees will be subsidized 1,800,000 VND/month/person. This policy period is not exceeded than 03 months and started on 01 April 2020.

- Employees – in cases of their labor contract is terminated, though having adequate conditions to receive job loss allowance, or losing their job without the labor contract. They will be subsidized 1,000,000 VND/month/person. This policy period is not exceeded than 03 months and started from April to June 2020.

- The employees are permitted to submit an application for receiving job loss allowance via the post office, announce of monthly job hunting implemented via indirect form (email, fax, post office, etc.) within the period from 01 April 2020 until the announcement of the end of the pandemic without requiring confirmation from the People's Committee.

II - To Employers:

- In a case of the employers under financial difficulties have paid at least 50% the wages of ceasing work according to Article 98.3 of the Labor code 2012 within the period of April to June 2020, they are entitled to get a loan without collateral with the rate at most 50% of the minimum region wages per each employee according to the actual payment period but not more than 3 months without loan interest. The maximum loan period is 12 months at Vietnam Bank for Social Policies to pay the remaining wages and directly disburse monthly to the ceased employees.

- In a case of the employers has been infected by the Covid-19 pandemic, leading to decrease from 50% of employees enjoyed social insurance at the period of the pandemic announcement by competent authorities (including ceasing work, suspending from labor contract performance, non-pay work drop agreement), that employers and their employees are temporarily suspended from the payment of survivorship and retirement fund.


*42/NQ-CP_Hỗ trợ DN NLĐ_Covid 19

This is not a legal document. The information here is for reference and general guidance purposes only.

Kindly contact NVM to obtain qualified legal consultation for specific situations

Mr. Huynh Minh Quan | (84) 903 969 118 | quan.huynh@nvmgroup.com

Tags:  COVID-19