[Vietnam Legal Updates] Guidance On Supporting Policies To Enterprises And Employees Under Covid-19

April 29, 2020
Image source: Đô thị mới

In order to guide more detail in implementation of the resolution 42/NQ-CP dated 09 April 2020. The Prime Minister announced a decision 15/2020/QD-TTg (referred as “the Decision”) on 24 April 2020 to provide an instruction on the employees and enterprises to obtain subsidies under Covid-19 infection (having effective from 01 April 2020) as follows:

I - To the Employee:

1. Who is temporarily suspended from the performance for the labor contract or ceased work without salary payment.

(a) The employees shall meet the entire conditions as follows:

- The length of temporary suspension is from one month or more under the period from 01/4/2020 to 30/6/2020; and

- Enjoying the compulsory social insurance as of the time of suspension or ceasing work; and

- Working at the enterprises having no revenue or financial resources to pay salary (the balance calculated to 31/03/2020) due to Covid-19.

(b) Application and submission:

- The enterprises prepare an Application as the attached form no. 1 of the Decision and get confirmation from the grassroots Trade Union.

- The enterprises submit the Application to Social Security Authority in order to get a confirmation of the number of employees enjoying social insurance.

- After obtaining the confirmation, the enterprises submit the Application to the district-level People's Committee where the head office is located.

2. Whose labor contract is terminated, but not satisfy the conditions to enjoy unemployment allowance

(a) The employees shall meet the entire conditions as follows:

- Has entered into the labor contract before 01 April 2020 and enjoyed the compulsory social insurance; and

- The contract is terminated under the period from 01 April 2020 to 15 June 2020, but not eligible for unemployment allowance; and

- Earning no income, or the income is less than the line level of poverty in accordance with the decision 59/2015/QĐ-TTg.

(b) Application and submission:

- The employees prepare an Application as the attached form no.3 of this Decision and submit to the commune-level People's Committee.

3. Who has not entered any labor contract, and being under the status of losing their job.

(a) The employees shall meet the entire conditions as follows:

- Being job loss and having the income lower than the near-poverty line in accordance with the decision no. 59/2015/QD-TTg, under the period from 01/4/2020 to 30/6/2020; and

- Legal residence in the locality; and

- Working in non-agricultural sectors, such as street food business, garbage collectors, lodging, tourism, F&B, etc.

- In addition, the provincial People's Committee has the right to decide on additional subjects to be supported.

(b) Application and submission:

- The employees prepare an Application as the attached form no. 4 of this Decision and submit to commune-level People’s Committee after every 15th a month.

- In a case of the employees has permanent and temporary residence not within a province or city, when submitting the Application to the permanent residence, there is required to attach with a certification from commune-level People’s Committee in the temporary residence for not proposing to enjoy the support under this Decision and vice versa.

II - To the Employer, who need to borrow for paying a salary of ceasing work for their employees.

(a) Conditions for the employers

- Having from 20% or from 30 employees above enjoying the compulsory the social insurance are required to cease work from 01 consecutive month or more; and

- Already paid at least 50% of the ceasing work salary for those employees from 01/4/2020 to 30/6/2020; and

- Being under financial difficulties, failing to balance sources to pay ceasing work salary, and used up the back-up funds to pay the salary of ceasing work.

- Having no bad debt at credit institutions, foreign bank branches to 31/12/2019.

(b) Application and submission:

- The enterprises prepare an Application as the attached form no. 11,12 and 13 of this Decision.

- Before the 5th of every month, the enterprise shall submit the Application to the district-level People’s Committee where head office or branch, representative office, business location or residence (for business households, individuals)

- After getting approval of the People’s Committee, the Application shall be submitted to Social Policy Bank, and disbursement will be made till 31 July 2020.

(c) Others

- The loan does not require collateral and its interest is at 0% a year.

- By the time of debt repayment, if the enterprises fail to pay the debt, the Social Policy Bank will transfer the entire remaining loan amount to the overdue debt and apply the interest rate of 12% a year.

Reference:

*15/2020/QD-TTG_441047

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