This Official letter requests grassroots trade unions to closely monitor enterprises’ payment of wage, redundancy allowance to employees who have to suspend their work or have to stop working because of affects of the Covid-19 pandemic.
Accordingly, for employees who temporarily stop working because of medical quarantine or because the enterprise suspends its operation due to difficulties in terms of raw materials, consumption market, the enterprise must pay suspension wage (which must not be smaller than the region-based minimum wage rates as prescribed by the Government) according to Clause 3 Article 98 of the Labor Code.
If the suspension period prolongs and affects the enterprise's solvency, the enterprise may reach an agreement with the employee on suspension of the labor contract according to Article 32 of the Labor Code and on whether or not wage is paid during such suspension period. However, the agreement must be presented in writing.
In case the enterprise has to narrow its production or stop its operation leading to cutting of employee according to Articles 38 and 44 of the Labor Code, the enterprise must pay the employee the redundancy allowance according to Article 49 Labor Code.
|Published||Vietlaw's Newsletter No. 454|
Regarding PIT on redundancy pay (20/4/2020)