Support up to VND 3 mil for reduction of working periods or termination of labor contracts

Recently, the Vietnam General Confederation of Labor issues the Resolution No. 06/NQ-DCCT with the policies for supporting employees subject to reduction of working periods or termination of labor contracts due to the decrease in the number of orders of enterprises. So how much are employees supported?

1. The level of support for employees subject to reduction of working periods or termination of labor contracts

Pursuant to Resolution No. 06/NQ-DCT, the employees shall receive various levels of support in specific cases. In particulars:

- Reduction of working periods or termination of labor contracts

• Support trade union members: Be entitled to lump-sum support of VND 01 million/person.
• Support employees who are not trade union members: Be entitled to a lump-sum support of VND 700,000/person.
• Employees who are not trade union members but are female employees aged full 35 years or older, pregnant female employees, employees who are raising a natural or adopted child or providing alternative care for a child under 6 years of age shall: Be entitled to a lump-sum support of VND 01 million/person.

- Trade union members subject to suspension of labor contracts or unpaid leave:

• Support trade union members: Be entitled to a lump-sum support of VND 02 million/person.
• Support employees who are not trade union members: Be entitled to a lump-sum support of VND 1.4 million/person.
• Employees who are not trade union members but are female employees aged full 35 years or older, pregnant female employees, employees who are raising a natural or adopted child or providing the alternative care for a child under 6 years of age shall: Be entitled to a lump-sum support of VND 02 million/person.

- Trade union members subject to termination of labor contracts and not eligible for unemployment allowance:

• Support trade union members: Be entitled to a lump-sum support of VND 03 million/person.
• Support employees who are not trade union members: Be entitled to a lump-sum support of VND 2.1 million/person.
• Employees who are not trade union members but are female employees aged full 35 years or older, pregnant female employees, employees who are raising a natural or adopted child or providing the alternative care for a child under 6 years of age shall: Be entitled to a lump-sum support of VND 03 million/person.

Above allowance shall be paid in cash or by transfer.

2. Who are the subjects of the Resolution No. 06/NQ-NCT?

The employees who satisfy all the following conditions to receive the support policies for employees subject to reduction of working periods or termination of labor contracts:

- Receive the support policies for working period reduction or work suspension:

(1) Employees being trade union members that work under labor contracts.

(2) and are subject to reduction of the daily working time, or working days in a week or a month (except for cases subject to reduction of overtime periods) or work suspension for 14 days or more during the period from October 01, 2022 to the end of March 31, 2023.

(3) From October 01, 2022 to the end of March 31, 2023: Income of any one month equal to or lower than the region-based minimum wage level

- Receive the support policies for the suspension of labor contracts or unpaid leave:

(1) In case employees being trade union members have a period of suspension of labor contracts or unpaid leave within the term of their labor contracts of 30 consecutive days or more (unless employees suspend their labor contracts or take unpaid leave due to personal reasons), from October 01, 2022 to the end of March 31, 2023.

(2) The suspension of labor contracts or unpaid leave starts from October 01, 2022 to the end of March 31, 2023.

- Receive the support policies for the termination of labor contracts and not eligible for unemployment allowance:

(1) Employees being terminated their labor contracts from October 01, 2022 to the end of March 31, 2023.

Except for cases:

• Employees unilaterally terminate their labor contracts illegally.
• Employees are dismissed as a form of discipline.
• The probation agreed in the labor contract is unsatisfactory or either party cancels the probation agreement.
• Employees are on pension or monthly working capacity loss allowance.

(2) Employee being not eligible for unemployment allowance.

Here is the information on the policies for supporting employees subject to reduction of working periods or termination of labor contracts.