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Dear Valued Clients,
We would like to share the Official Laws and Supporting documents related to Covid 19 for your reference.
1. Social insurance benefits for workers under compulsory medical quarantine for prevention of COVID-19 disease (According to Document 422/BHXH-CSXH dated 13/02/2020, under the provisions of Article 1 of the Government's Decree No. 101/2010/ND-CP and Law on Social Insurance):
| Conditions |
Allowance
levels of the sickness regime |
Instruction |
|
Employees who have the certification of a competent health establishment under the Ministry of Health’s regulations due to suffer from any infectious diseases |
Employees entitled to the sickness regime
prescribed in the Law on Social Insurance |
Regarding applications for sickness benefits offered to quarantined persons: - The hospital discharge summary (for inpatient treatment), or - The certificate of eligibility for social insurance benefits during leave of absence (for outpatient treatment); or - The hospital discharge summary in which the in-charge physician or doctor prescribes further rest post-discharge |
2. Suspension of contribution to the pension fund and death benefit fund by entities affected by Covid-19 (According to Official Document 860/BHXH-BT, dated 17th Mar 2020 from Vietnam Social Security, Clause 1 Article 88 of the 2014’s Law on Social Insurance; Clauses 1, 2, 3, 4 Article 16 of the Government’s Decree No. 115/2015/ND-CP and Article 28 of Circular No. 59/2015/TT-BLDTBXH of the Ministry of Labor, War Invalid and Social Affairs)
| Conditions |
Details |
Instruction |
|
Agencies, units, organizations and Enterprises (hereinafter referred to as "enterprises”) that operate in passenger transport, hospitality, food and drink, and other business lines affected by the pandemic and have to lay off employees, including: - At least 50% of the total number of employees who have social insurance before the business suspension, or - Lose more than 50% of total assets (excluding land) |
- Temporary suspension of payment of social insurance is 22% - Companies must contribute 10% for the Social Insurance fund |
At the end of the suspension period (the end of June 2020), Enterprises must fully pay contributions, including the suspended amounts without charging late payment interest. |
3. Postpone Trade Union funds by entities affected by Covid-19 (According to Official Document 245/TLĐ, dated 18th Mar 2020)
| Conditions |
Details |
Remark |
|
Enterprise affected by the pandemic and have to lay off employees, including: - At least 50% of the total number of employees who have social insurance before the business suspension |
Postpone Trade Union funds (Company contribution) for the first 6 months of 2020 until June 30, 2020. |
After 30/06/2020, if the epidemic has not been relieved, the extension of postpone Trade Union Funds will be considered and given by Authority later (if any) |
4. Tax and Land Rent deferral (According to Decree 41/2020/ND-CP, dated 08th Apr 2020)
| Conditions |
Tax and land rent deferral |
Instruction |
|
Enterprises, organizations, (hereinafter referred to as "taxpayers”) that are manufacturers in the following business lines and kind of enterprise be mentioned in the Article 2 of Decree 41/2020/ND-CP |
1. VAT (except VAT paid upon importation of goods): - Taxpayers declaring tax month: VAT incurred of March, April, May, June of 2020 - Taxpayers declaring tax quarterly: the first and second quarter of 2020 2. Corporate income tax (CIT) - CIT declared in the 2019’s annual statement - CIT declared in the first and second quarters of 2020 … |
Deferred for 05 months from the deadlines for VAT and CIT payment prescribed by tax administration laws as scheduled: ● Deadline for payment of VAT incurred in March 2020 is deferred to September 20, 2020. ● Deadline for payment of VAT incurred in April 2020 is deferred to October 20, 2020. ● Deadline for payment of VAT incurred in May 2020 is deferred to November 20, 2020. ● Deadline for payment of VAT incurred in June 2020 is deferred to December 20, 2020. ● Deadline for payment of VAT incurred in the first quarter of 2020 is deferred to September 30, 2020. Deadline for payment of VAT incurred in the second quarter of 2020 is deferred to December 30, 2020. |
5. Assistance for people affected by Covid-19 pandemic (According to Resolution 42/2020/NQ-CP, dated 09th Apr 2020):
-
For Employees:
Categories
Monthly allowance
Applicable period
Employees whose labor contracts are temporarily suspended or who are placed on unpaid leave by their employers for one month or above due the COVID-19 pandemic
VND 1.8 million/person/month
Paid monthly, depending on the actual period of suspension or unpaid leave and the COVID-19 pandemic situation
Can be up to a maximum period of three months starting from 1 April 2020
Employees whose labor contracts are terminated but who are not eligible for unemployment allowance; or employees who work without labor contracts and lose their jobs
VND 1 million/person/month
Paid monthly, depending on the COVID-19 pandemic situation
Can be up to a maximum period of three months, from April to June 2020
-
For employers:
Condition
Incentive
Loan term
Employers who have suffered financial difficulties due to the COVID-19 pandemic and have already paid at least 50% of salary for work suspension from April to June 2020 to employees in accordance with Article 98.3 of the Labor Code
Borrow a loan with zero-percent interest and no requirement of collateral from the Vietnam Bank for Social Policies. The maximum loan value is 50% of the regional minimum salary per employee per month and for a maximum period of three months.
Maximum loan term: 12 months
6. Liability of Enterprise for Labor Law violation during the Covid 19 pandemic:
Currently, the global economy in general and the Vietnamese economy in particular are facing a crisis by the Covid-19 pandemic. Almost all businesses are under pressure to solve the economic problem, balance the cash flow and conduct necessary behaviors that are suitable for their employees. Accordingly, there are several options given and applied as follows:
- Cut off headcount in the form of temporary leave without termination of the Labor Contract ("Labor Contract”) such as: (i) Suspension of labor contract, (ii) Suspension of employment, and (iii) Unpaid leave salary
- Lay off employees ("employees”) in the form of termination of the labor contract or unilateral termination of labor contract.
- Transfer employee to do other jobs which is not stipulated in the labor contract
- Deduct employee’s salary and bonus due to the difficult business impacted by Covid-19
Regarding the four (04) options above, the Employer should have reached a written agreement with employees prior in order to avoid any illegal issue.
Hereby, you could refer Decree 95/2013/ND-CP dated 22nd August 2013 stipulated on penalties for administrative violations against regulations on labor, social insurance, and overseas manpower supply amended and supplemented by Decree 88/2015/ND-CP on October 7, 2015 that Employer may be taken during the Covid-19 pandemic.
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