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blue-check Guidelines on payment of suspension salary and severance allowance for employees due to Covid -19

Official letter No. 260/LDLD dated May 11th, 2021 of the Confederation of Labour of Ha Noi city regarding guidelines on payment of suspension salary for employees during suspension in relation to the Covid-19 pandemic
Posted: 12/5/2021 10:22:30 AM | Latest updated: 17/5/2021 11:02:58 AM (GMT+7) | LuatVietnam: 5202 | Vietlaw: 509
VietlawOnline

This Official letter is to request grassroots trade unions (in Ha Noi city) to supervise enterprises to ensure the accurate payment of suspension salary, benefits, severance allowances for employees who have to suspend their work due to the Covid-19 pandemic’s effects.

Accordingly, the suspension salary shall be paid according to Article 99 of the Labour Code No. 45/2019/QH14 and the guidelines provided at document No. 1064/LDTBXH-QHLDTL dated March 25th, 2020.

In case an employee has to suspend his/her work because he/she is subject centralized quarantine or because enterprise or its division is imposed lockdown, the suspension salary shall be agreed by both parties according to Clause 3 Article 99 of the Labour Code. Accordingly, the suspension salary paid for the suspension period or for the first 14 days (if the suspension is longer than 14 working days) must not be lower than the statutory minimum wages.

In case an enterprise faces difficulties in business and production operation, it may temporarily assign employee to perform another job according to Article 29 of the Labour Code for an accumulated period of up to 60 working days within 01 year and must inform the employee at least 03 working days in advance. The employee shall be paid the salary of the new work. If the new salary is lower than the previous salary, the previous salary shall be maintained for 30 working days

If the suspension period prolongs and affects the enterprise's financial capacity, the employer and employee may reach an agreement on "suspension of a labor contract" with or without salary as greed by both parties (Article 30 of the Labour Code).

In case the enterprise has to reduce employee(s), it has to pay severance allowance or redundancy allowance according to Article 46 or Article 47 of the Labour Code.

Ms Phuong Thao (VietlawOnline.com)
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Published Vietlaw's Newsletter No. 509
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Labour - Employment